Based on post-Budget 2024 rules (unchanged through FY 2026-27): equity/equity mutual funds — STCG 20%, LTCG 12.5% above ₹1.25 lakh exemption per year. Property & other assets — LTCG 12.5% (no indexation, for assets bought on/after 23 Jul 2024).
For listed equity shares and equity mutual funds, gains are 'long-term' if held over 12 months and taxed at 12.5% above a ₹1.25 lakh combined exemption per financial year; gains held 12 months or less are 'short-term' and taxed at a flat 20%. For property, gold, and most other assets bought on or after 23 July 2024, long-term (held over 24 months) gains are taxed at 12.5% with no indexation benefit, while short-term gains are simply added to your income and taxed at your regular slab rate.
This structure replaced the older system that allowed indexation (adjusting the purchase price for inflation) for most asset classes — a change that can mean a higher effective tax on property gains for some sellers compared to pre-2024 rules, depending on how much inflation occurred during the holding period.
Long-term capital gains from listed equity and equity mutual funds up to ₹1.25 lakh in a financial year are entirely tax-free; only the amount above this threshold is taxed at 12.5%, and this exemption applies per person per year, not per investment.
For property acquired on or after 23 July 2024, no — the new 12.5% flat rate applies without indexation. Property acquired before that date may have a choice between the old (20% with indexation) and new (12.5% without) rules — this is a nuanced area, so consult a CA for property sales.
For equity, short-term gains are taxed at a flat 20% for everyone. For other assets (like property held under 24 months), short-term gains are added to your total income and taxed at your individual slab rate, so it varies person to person.