Wealth Creation & Capital Gains: The Rules That Changed in 2024 — and What They Mean Now
Capital gains taxation was overhauled by the Finance (No. 2) Act, 2024, effective from 23rd July 2024 — and these rules are now firmly in effect for FY 2025-26 filings. This guide explains the simplified two-tier holding period (12 months for listed securities, 24 months for everything else), the current rates (12.5% LTCG without indexation on most assets; equity LTCG at 12.5% above a ₹1.25 lakh annual exemption; equity STCG at 20%; debt funds taxed at slab rate regardless of holding period), and — most importantly — the grandfathering provisions: for property bought before 23rd July 2024, resident individuals/HUFs can choose the lower of 12.5% without indexation or 20% with indexation (NRIs cannot); for equity bought before 31st January 2018, the cost base resets to January 2018 fair market value. We also cover capital loss set-off rules (STCL vs both gains, LTCL vs LTCG only, 8-year carry-forward), unchanged Section 54/54EC/54F rollover exemptions, and flag recent STT rate increases for active traders to verify directly.