How capital gains tax works in India
India has no separate capital gains code. Gains sit inside income tax with their own holding periods and special rates. What you sold and how long you held it decides everything.
Listed shares and equity funds held over 12 months pay 12.5% on gains above INR 1.25 lakh a year, with no indexation. The same assets held 12 months or less pay a flat 20%. Most other assets turn long-term after 24 months and pay 12.5% without indexation.
Property sellers who bought before 23 July 2024 can elect the old 20% with indexation if it gives a lower bill. Unlisted gains inside 24 months, debt-fund gains and business-asset sales generally follow slab rates, and crypto pays a flat 30% with no loss set-off.
Tax rates at a glance
- Listed STCG
- 20%Section 111A
- Listed LTCG
- 12.5%
- Annual LTCG exemption
- INR 1.25 lakh
- Property LTCG option
- 20% with indexation
- Unlisted STCG
- Slab rates
- Crypto (VDA)
- 30%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
InvestorsCrypto holdersTradersHigh earnersFamily offices
Watch out for
- The 87A rebate does not apply to gains taxed at special rates. Salary income can be zero-tax while the same return's equity gains still attract 12.5% or 20%.
- Indexation is gone for most assets bought after 23 July 2024. Long holding periods no longer shrink taxable property or gold gains the way they used to.
- Securities transaction tax still applies on listed trades on top of capital gains tax. Intraday and derivatives income is usually business income, not capital gains.
- Non-residents selling Indian shares or property face withholding and treaty questions before the money leaves India, so check rates and filings early.
Frequently asked questions
Does India tax capital gains?
Yes. Listed equity gains pay 20% short-term or 12.5% long-term above INR 1.25 lakh a year, and most other long-term gains pay 12.5% without indexation.
Are crypto gains taxed in India?
Yes, at a flat 30% plus surcharge and cess. Losses cannot be set off against other income, and 1% TDS applies on transfers.
Is property sale taxed in India?
Yes. Property held over 24 months pays 12.5% without indexation, with a transitional option of 20% with indexation for assets bought before 23 July 2024.