India's Finance Minister, Nirmala Sitharaman, increases capital gains tax rates; STCG to 20%, LTCG to 12.5%, and raises exemption limit for financial assets.
India's Finance Minister, Nirmala Sitharaman, announced in the 2024-25 budget increases to the capital gains tax rate, including raising the short-term capital gains tax (STCG) to 20% and increasing the long-term capital gains tax (LTCG) rate to 12.5% for financial and non-financial assets. The limit for exemption of capital gains on certain financial assets was also increased from ₹1 lakh to ₹1.25 lakh annually to benefit lower and middle-income groups. These changes aim to reduce the gap between short-term and long-term capital gains rates and encourage longer-term investments.
July 22, 2024
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