2025 Capital Gains Tax Rules in India: New Rates & Limits

So, you’re investing in India—maybe in stocks, mutual funds, property, gold, or even crypto. If you’ve glanced at the Union Budget for 2025–26, you know the government’s been on a mission to make capital gains tax less of a maze. Here’s the lowdown, with all the new rules, rates, and some tips to help you keep more of your gains.

The 12.5% Flat LTCG Tax: Still Here

Let’s start with the headline. If you’re holding onto stuff for the long term—shares, mutual funds, property, gold, whatever—the taxman wants 12.5% of your profits. No more juggling different rates for different assets. Bought a flat and held it for two years? Sold gold you’ve had for a while? Cashed out on mutual funds after a year? All long-term capital gains are taxed at 12.5%. This isn’t brand new; it kicked in last year, but it’s sticking around.

Equity Gains: Slightly Higher Exemption

If you’re into stocks or equity mutual funds, here’s something to smile about: you can now make up to ₹1.25 lakh in long-term gains every year without paying a rupee in tax. That’s a bump from the old ₹1 lakh limit. Only what’s above that gets taxed at the new 12.5% rate.

Short-Term Equity Gains: Up to 20%

If you’re flipping stocks or equity mutual funds in less than a year, your profits get hit with a 20% tax. That’s up from the old 15%. This change applies to sales after July 23, 2024. So, if you’re a trader, factor this in when you’re booking profits.

Holding Periods: Much Simpler Now

This is one of those changes that actually makes life easier. For listed shares, equity mutual funds, and business trust units, hold for at least 12 months and you’re in long-term territory. For everything else—property, gold, debt funds, unlisted shares—you need to hold for 24 months to qualify for long-term gains. No more 36-month confusion for real estate.

Indexation: Now Just for Old Property

Remember how you could adjust your property’s purchase price for inflation (indexation) and pay less tax? That’s only for properties bought before July 23, 2024. Buy after that, and indexation is gone. Same for debt funds and gold—no indexation there, no matter when you bought.

Reinvestment Exemptions: Now With Caps

If you’re selling a property and planning to reinvest to save on taxes, heads up. Under Section 54 or 54F, you can only shield up to ₹10 crore of your gains by buying a new house. Anything above that gets taxed. And if you’re eyeing those Section 54EC bonds, you’re still capped at ₹50 lakh per year.

Special Asset Classes: What’s Different?

Debt Mutual Funds: No matter how long you hold, gains are taxed at 12.5%, and indexation is out.
Market-Linked Debentures: Always taxed as short-term gains. No loopholes.
Crypto: Still taxed at a whopping 30%, with zero deductions. No change here.

Rural Agricultural Land: Still Tax-Free

If you’re selling rural agricultural land, you’re in the clear—no capital gains tax, and Section 50C (which deals with stamp duty value) doesn’t apply.

Non-Residents: No More Currency Conversion Perks

If you’re a non-resident selling unlisted shares, your long-term gains are taxed at 12.5%, and you don’t get to use foreign currency conversion benefits anymore.

Quick Q&A: What Folks Are Asking

How does the 12.5% LTCG rate work for property sales in 2025?

If you’ve held the property for more than 24 months, pay 12.5% tax on your gains. Indexation helps only if you bought before July 23, 2024.

What if I reinvest more than ₹10 crore in a new house?

Only ₹10 crore of your gain is shielded. Anything above that gets taxed at 12.5%.

Are debt mutual funds taxed differently now?

Yes. All gains are taxed at 12.5%, no matter how long you hold, and you can’t use indexation.

Is rural agricultural land taxable?

Nope. Still fully exempt from capital gains tax.