Lesson 2 of 3 · 8 min
One rate, and the ₹1.25 lakh in front of it
One long-term rate now covers almost every asset class. Short-term listed equity has a rate of its own, and an exemption sits in front of the whole thing.
The second of the 2024 changes was to the rates. Long-term gains used to be taxed at 10% on listed equity and 20% with indexation on most other things. Now there is one long-term rate for almost everything: 12.5%. Short-term gains on listed equity where securities transaction tax was paid went the other way — up from 15% to 20%.
The three numbers this course turns on
- Long-term rate, almost all assets
- 12.5%
- Short-term rate, STT-paid listed equity
- 20%
- Long-term exemption, listed equity and equity funds
- ₹1,25,000
Was 10% on listed equity and 20% with indexation elsewhere.
Was 15%.
Aggregate across the year. Was ₹1 lakh.
The exemption is worth reading carefully. It is not a deduction from your income and it is not per transaction. It is an aggregate: add up your long-term gains for the year on listed equity shares and equity-oriented fund units, and the first ₹1.25 lakh of that total is not taxed. The rest is taxed at 12.5%.
Your turn
Your long-term gains for the year on listed equity add up to ₹2,00,000. How much of it is taxable, in rupees?
| Gain | Rate |
|---|---|
| Long-term, listed equity or equity fund, STT paid | 12.5% on the amount above ₹1.25 lakh |
| Long-term, other assets — property, gold, listed bonds | 12.5% |
| Short-term, listed equity or equity fund, STT paid | 20% |
| Short-term, other assets | Your normal slab rate |
| Unlisted bonds and unlisted debentures | Your normal slab rate, short-term or long-term |
Check yourself
1 / 3
Kabir asks
You made three separate long-term equity gains this year: ₹60,000, ₹50,000 and ₹40,000. How much is taxable?
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