New Capital Gains Tax Rules: On July 23, Finance Minister Nirmala Sitharaman changed the rules of Capital Gains Tax in the Union Budget 2024-25. In this budget, a proposal was made to change the capital gains tax rate and holding period of many assets including immovable properties.
Capital gains tax is levied on the profit from any property or asset. After the change in the rules of capital gains tax, many people are quite confused about the new rules. In such a situation, to clear their confusion, the Central Board of Direct Taxes (CBDT) issued an FAQ. All the information related to the new rules of capital gains tax has been given in this FAQ.
- Advertisement -
What are the major changes in taxing capital gains?
Changes in rules have been proposed to simplify capital gains tax. The government has taken into consideration 5 criteria in its rules.
- The holding tenure has been simplified in the new rules. Now there are only two holding tenures (1 year, 2 years).
- Changes were made to rationalise and uniform rates for several assets.
- The rates for calculation have been increased from 12.5 per cent to 20 per cent.
- Changes were also made to bring equality between Indian residents and non-residents.
- There is no change in the roll over benefit.
Also Read: School Holiday in Aug 2024: Schools will remain closed for 10 days next month in this state, see the list here
When will the new rules be implemented?Â
The new rules for capital gains tax have come into effect from July 23, 2024. This means that for any transfer after July 23, 2024, capital gains tax will be applicable as per the new rules.
- Advertisement -
