Capital Gains Tax Rates 2026: Every Asset, Every Holding Period
Listed equity: 12.5% LTCG above the ₹1.25 lakh annual exemption (held over 12 months), 20% STCG. Most other assets (property, gold, unlisted shares) pay 12.5% LTCG without indexation. Crypto sits apart: a flat 30%, whatever the holding period.
Every rate by asset and holding period
The post-23-July-2024 structure, carried into the Income-tax Act 2025 (defined in Sec 67, taxed under Secs 196–198). Holding period decides short-term vs long-term; the asset decides the rate.
| Asset | Holding for LTCG | STCG rate | LTCG rate | Notes |
|---|---|---|---|---|
| Listed equity shares & equity mutual funds | > 12 months | 20% | 12.5% above ₹1.25L/yr exemption | – |
| Immovable property | > 24 months | Slab rate | 12.5% (no indexation) | Bought before 23-Jul-2024: option of 20% with indexation, whichever is lower. |
| Debt mutual funds (bought after 1-Apr-2023) | Not applicable | Slab rate | Slab rate (no LTCG benefit) | – |
| Physical gold & gold ETFs † | > 24 months | Slab rate | 12.5% | – |
| Unlisted shares | > 24 months | Slab rate | 12.5% | – |
| Crypto / VDAs | No LTCG category | 30% flat | 30% flat | Plus 1% TDS on transfer (old Sec 194S). No loss set-off, no expense deduction except cost. |
† Pending CA verification against the primary source (Finance (No. 2) Act, 2024 · Income-tax Act, 2025 (Secs 67, 196–198)).
How each asset is taxed
Listed equity and equity mutual funds
Hold for more than 12 months and gains are long-term: 12.5%, but only on the part above the ₹1.25 lakh annual exemption. Sell within 12 months and the whole gain is short-term at 20%.
Example: you book ₹2,00,000 of long-term equity gains in a year. The first ₹1,25,000 is exempt; 12.5% on the remaining ₹75,000 is ₹9,375 (plus cess). These rates date from 23 July 2024 and carry into the Income-tax Act 2025 unchanged.
Immovable property
Long-term after 24 months: 12.5% without indexation. Sell earlier and the gain is added to your income at slab rates.
The grandfather clause matters: for property bought before 23 July 2024, resident individuals and HUFs can instead pay 20% with indexation, whichever of the two works out lower. On an old property with big inflation adjustment, the indexed route often wins. Run both before you sell.
Debt mutual funds
Units bought after 1 April 2023 have no LTCG category at all; gains are taxed at your slab rate however long you hold. A 30%-slab investor pays 30% whether the holding was 6 months or 6 years.
Older units (bought before 1 April 2023) follow transitional rules. Check the position for your purchase date before you sell.
Crypto and other VDAs
A flat 30% (plus cess) on every gain, regardless of holding period: there is no long-term category and no exemption. A 1% TDS is deducted on transfers (old Sec 194S).
Questions people actually ask
What is the LTCG tax rate on equity in 2026?
12.5% on long-term gains above the ₹1.25 lakh annual exemption, for listed equity and equity mutual funds held over 12 months.
What is the STCG rate on shares?
20% on listed equity sold within 12 months (post-July-2024 structure, unchanged under the Income-tax Act 2025).
How is crypto taxed in India in 2026?
A flat 30% on gains plus 4% cess, with 1% TDS deducted on every transfer. Losses cannot be set off against any other income, not even other crypto gains.