Indian investors face increased tax burden with new capital gains tax hikes

Indian investors will now have to allocate a larger portion of their earnings to taxes as the government has increased both short-term and long-term capital gains taxes in the Union Budget for 2024-25.

Key changes:

Long-Term Capital Gains (LTCG) Tax:

New Rate: 12.5% (previously 10%)

Non-Taxable Limit: Increased from ₹1 lakh to ₹1.25 lakh

Short-Term Capital Gains (STCG) Tax:

New Rate: 20% (previously 15%)

The Union Budget for 2024-25 has raised the Long-term Capital Gains (LTCG) tax from 10 percent to 12.5 percent, while the Short-term Capital Gains (STCG) tax on certain assets is now 20 percent. Additionally, the non-taxable limit for LTCG has been increased from Rs 1 lakh to Rs 1.25 lakh.