Question 1

What is the LTCG tax on equity and mutual funds under Section 112A?

Accepted Answer

LongTerm Capital Gains (LTCG) on equity shares and equityoriented mutual funds are taxed under Section 112A of the Income Tax Act. This section was introduced in Budget 2018 and the rates were revised in Budget 2024.

Current LTCG tax rules (FY 202526):

Parameter  Detail

Tax rate  12.5% (increased from 10% in Budget 2024) 
 Exemption limit  ₹1,25,000 per financial year 
 Holding period for LTCG  More than 12 months 
 Applicable on  Listed equity shares, equity mutual funds, units of busines

Question 2

How much capital gains tax do I pay when selling property in India?

Accepted Answer

Selling property in India triggers capital gains tax. The rate and treatment depend on how long you held the property.

Holding period and classification (from FY 202425 onwards):

Holding Period  Classification  Tax Rate

Up to 24 months  ShortTerm Capital Gains (STCG)  Added to income, taxed at your slab rate 
 More than 24 months  LongTerm Capital Gains (LTCG)  12.5% without indexation

Major change from Budget 2024: Indexation benefit has been removed for property sold on or after July 2

Question 3

What is the holding period for STCG vs LTCG on different assets in India?

Accepted Answer

The classification of a capital gain as ShortTerm (STCG) or LongTerm (LTCG) in India depends on how long you held the asset before selling. Different assets have different threshold periods.

Holding periods (from FY 202425 onwards, post Budget 2024 changes):

Asset Type  LTCG Threshold  STCG Tax Rate  LTCG Tax Rate

Listed equity shares  > 12 months  20%  12.5% 
 Equityoriented mutual funds  > 12 months  20%  12.5% 
 Listed bonds/debentures  > 12 months  Slab rate  12.5% 
 Debt mutual funds

Question 4

What are the TDS rates on salary, FD interest, rent, and other payments in India?

Accepted Answer

Tax Deducted at Source (TDS) is the mechanism where the payer deducts tax before making a payment and deposits it with the government on your behalf. Here are the most common TDS rates.

Common TDS rates for individuals (FY 202526):

Section  Payment Type  TDS Rate  Threshold

192  Salary  Slab rates  As per tax computation 
 194A  Bank FD/RD interest  10%  ₹40,000/yr (₹50,000 for seniors) 
 194B  Lottery/game show winnings  30%  ₹10,000 
 194C  Contractor payment (individual)  1%  ₹30,000 si

Categories

Capital Gains Tax

What is the LTCG tax on equity and mutual funds under Section 112A?

How much capital gains tax do I pay when selling property in India?

What is the holding period for STCG vs LTCG on different assets in India?

What are the TDS rates on salary, FD interest, rent, and other payments in India?