Post-23 July 2024 capital-gains map: 12-month listed vs 24-month other holding periods, STCG 20% u/s 111A, LTCG 12.5% u/s 112A with ₹1.25 lakh exemption, property indexation election, and ITR reporting.
By Kanoons Editorial Team · 14 min read · Last verified 2026-10-06
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Summary
Capital gains tax in India is the tax on profit when you transfer a capital asset — shares, mutual-fund units, property, gold and a long list of other assets. For transfers on or after 23 July 2024, Finance (No. 2) Act, 2024 rewired the practical map: two holding periods (12 months for listed securities, 24 months for most other assets), 20% STCG on STT-paid listed equity under section 111A, 12.5% LTCG under section 112A above a ₹1.25 lakh annual exemption, and a uniform 12.5% without indexation headline rate under section 112 for other long-term gains (with a property comparison path for older acquisitions). Verified against section 111A, section 112A, section 112 and the PIB FAQ (PRID 2036604) on 6 October 2026.
- Cut-off date: rules below apply to transfers on/after 23 July 2024 (earlier transfers keep the old rate story).
- Holding: >12 months → long-term for listed securities; >24 months → long-term for most other assets.
- Listed equity / equity MF / business-trust units (STT conditions): STCG 20% (s.111A); LTCG 12.5% above ₹1.25 lakh (s.112A).
- Other LTCG: generally 12.5% without indexation (s.112); property acquired before 23 Jul 2024 needs the statute’s comparison path.
- Exemptions 54 / 54F / 54EC remain available when you meet their conditions.
- Service path: Capital Gains Tax.
STCG vs LTCG — decide the bucket first
| Asset (typical) | Becomes long-term after | Short-term tax shape (post 23-Jul-2024) | Long-term tax shape (post 23-Jul-2024) |
|---|---|---|---|
| Listed equity / equity-oriented MF / business-trust units (STT conditions met) | 12 months | 20% under s.111A (+ cess / surcharge as applicable) | 12.5% on gains above ₹1.25 lakh under s.112A |
| Other listed securities (as classified long-term at 12 months) | 12 months | Usually slab rates (not 111A unless the section applies) | Often 12.5% under s.112 — confirm class |
| Immovable property, unlisted shares, gold / bullion, most other assets | 24 months | Slab rates | 12.5% without indexation under s.112 (property comparison path if acquired before 23 Jul 2024) |
| Specified debt mutual funds (post-1 Apr 2023 design) | Often always short-term by deeming fiction | Slab rates | N/A where the deeming rule applies |
“Transfer” is wider than a stock-exchange sale — gifts, compulsory acquisition, certain redemptions and extinguishments can all be transfers. Cost of acquisition, cost of improvement and transfer expenses still matter; what changed is mainly rate, holding period and indexation availability.
Listed equity — sections 111A and 112A
Section 111A (STCG): STT-paid short-term gains on equity shares, equity-oriented fund units and business-trust units are taxed at 20% for transfers on/after 23 July 2024 (15% before that date). Chapter VI-A deductions are computed on total income after carving out these gains (same structural rule as before).
Section 112A (LTCG): STT-paid long-term gains on the same asset classes are taxed at 12.5% on the aggregate amount exceeding ₹1.25 lakh in the financial year (10% above ₹1 lakh for transfers before 23 July 2024). The ₹1.25 lakh threshold is an aggregate cap across the 112A population for the year — do not invent a fresh ₹1.25 lakh per broker account.
STT must be paid as the section requires (acquisition and transfer for shares; transfer for units). IFSC / foreign-currency exchange carve-outs in the provisos still exist for specialised facts.
Other long-term gains — section 112 and the property footnote
For long-term capital assets outside the 112A design, transfers on/after 23 July 2024 are generally taxed at 12.5% without indexation under section 112 (replacing the familiar 20% with indexation headline for most assets).
Property acquired before 23 July 2024: section 112’s post-amendment text includes a comparison mechanism so resident individuals / HUFs are not forced into a higher tax than the pre-amendment computation on land or building. Work both numbers with the same sale deed before you pick a filing position — this is the single most common DIY error on FY 2024-25 / 2025-26 property sales.
Exemptions and rollovers that still matter
PIB’s July 2024 FAQ is explicit: rollover benefits were not withdrawn. Practically:
| Section | Typical use | Watch-outs |
|---|---|---|
| 54 | Reinvest residential-house LTCG into another residential house | Timelines, one-house limits, deposit in CGAS if purchase/construction lags |
| 54F | Reinvest LTCG from a non-residential asset into a residential house | Net-consideration (not just gain) reinvestment test; other house-holding conditions |
| 54EC | Invest specified bonds within six months | Cap per financial year; lock-in; only notified bonds |
Exemptions fail quietly when the bank account is personal, the purchase is in the wrong name, or the CGAS deposit is late. Document the trail before 31 March planning season ends.
How gains show up in AIS / 26AS and the ITR
- Broker / depository / mutual-fund reporting often lands in AIS (SFT and related codes) before you finish your Excel.
- TDS on property (section 194-IA) and other withholdings still need a Form 26AS credit check.
- Limited s.112A LTCG can fit ITR-1; everything else usually needs ITR-2 or ITR-3 — see Which ITR form to file.
- Large gains mid-year can create advance-tax instalments — see Advance tax due dates.
Mid-article CTA: Get a capital-gains computation before you file → Cross-sell: ITR Filing, Advance & Self-Assessment Tax, Tax Planning.
Practical computation checklist
1. List every transfer in the financial year (date, asset, consideration, expenses). 2. Apply the correct holding period using the 23 July 2024 rules for that transfer date. 3. Compute cost (including improvement) and transfer expenses; apply grandfathering / FMV rules where still relevant for pre-31 Jan 2018 listed equity under the 112A design. 4. Split 111A / 112A / 112 / slab STCG buckets — do not dump everything into one 12.5% cell. 5. Test 54 / 54F / 54EC eligibility with calendar dates, not vibes. 6. Reconcile broker statements → AIS → draft ITR schedules. 7. Pay residual tax (advance / self-assessment) before you e-verify.
Common failure modes
- Using 10% / ₹1 lakh mental math on a post-23-Jul-2024 equity sale.
- Treating unlisted shares as 12-month assets.
- Ignoring the ₹1.25 lakh aggregate nature of the 112A exemption.
- Filing property LTCG at 12.5% without running the pre-23-Jul-2024 acquisition comparison.
- Claiming 54F on partial reinvestment of net consideration.
- Skipping AIS review so CPC processes a gain you never scheduled.
Related reading on this site
Primary sources
- Income Tax Department — section 111A
- Income Tax Department — section 112A
- Income Tax Department — section 112
- PIB — Capital gains rationalisation FAQ (PRID 2036604)
- Finance (No. 2) Act, 2024 (w.r.e.f. 23 July 2024 for the rate / holding changes above)
- incometax.gov.in e-filing / AIS for reporting hygiene
Disclaimer
General information only — not legal or tax advice. Kanoons is not a law firm or accounting firm. Rates, holding periods, indexation elections and exemption conditions are fact-specific and statute-sensitive; confirm against the live Income-tax Act text and your sale documents before acting. See our Disclaimer.
Frequently asked questions
What are the STCG and LTCG rates on listed equity after 23 July 2024?
For transfers on or after 23 July 2024, short-term capital gains on STT-paid equity shares, equity-oriented mutual fund units and business-trust units are taxed at 20% under section 111A (was 15%). Long-term capital gains under section 112A are taxed at 12.5% on the amount exceeding ₹1.25 lakh in a financial year (was 10% above ₹1 lakh). Verified against the Income Tax Department section pages for 111A and 112A.
What holding period makes a capital asset long-term now?
Finance (No. 2) Act, 2024 simplified holding periods for transfers on or after 23 July 2024: listed securities (including listed equity, listed units of business trusts, and generally other listed securities as notified) become long-term after more than 12 months; most other capital assets (including immovable property, unlisted shares and gold) become long-term after more than 24 months. Confirm the asset class against the live Act text for edge cases such as specified debt mutual funds.
Is indexation still available on property sales?
For most long-term capital gains on transfers on or after 23 July 2024, the headline rate under section 112 is 12.5% without indexation. For land or building (or both) acquired before 23 July 2024, resident individuals and HUFs may compare that computation with the pre-amendment 20%-with-indexation computation and the statute provides relief where the new computation would exceed the old one — treat the election / comparison as fact-specific and re-read section 112 before filing.
Which ITR form do I use if I have capital gains?
Limited long-term capital gains under section 112A up to ₹1.25 lakh can still fit inside ITR-1 (Sahaj) when all other Sahaj conditions are met (AY 2026-27 rules). Broader capital-gains mixes generally need ITR-2 (no business income) or ITR-3 (with business / professional income). See our which-ITR-form guide.
Do sections 54, 54F and 54EC still work after the 2024 rate change?
Yes. The PIB FAQ on the July 2024 rationalisation expressly states that rollover / exemption benefits were not withdrawn. Eligibility, timelines and asset locks under sections 54, 54F, 54EC (and siblings) still apply — missing a reinvestment deadline is still a taxable gain, not a paperwork inconvenience.