Following Budget 2024: New capital gains tax rates, exemptions, holding periods, and moreUnion The capital gains tax regime for nearly all asset classes has been modified by Budget 2024. Budget 2024 contains revisions to the holding periods for both long-term capital gains (LTCG) and short-term capital gains (STCG). All of your assets, whether they be investments in debt, stocks, gold, mutual funds, or real estate, will be impacted by the changes outlined in Budget 2024. The impact of the new capital gain tax regime on investors following Budget 2024 is explained by ET Wealth Online.
The long-term capital gains holding period regulations are modified in Budget 2024.
The capital asset’s holding period determines whether the gains are long-term or short-term. In the past, different capital assets had to be held for varying amounts of time in order for capital gains to qualify as STCG or LTCG. Long-term capital gains were, for example, defined as capital gains from listed equity shares held for more than 12 months, and long-term gains from unlisted bonds held for more than 36 months.
There would only be two holding periods—12 months and 24 months—to ascertain whether capital gains resulting from the assets are long-term or short-term, according to Budget 2024. It is suggested that all listed assets have a 12-month holding period in order for the gains to be considered long-term capital gains. Listed stocks, listed bonds, equity exchange-traded funds (ETFs), gold ETFs, bond ETFs, real estate investment trusts (REITs), and infrastructure investment trusts (InvITs) will all be covered by this.
