A simple guide explaining how shares, mutual funds, gold, bonds and property are taxed

Making Sense of Capital Gains Taxation

A simple guide explaining how shares, mutual funds, gold, bonds and property are taxed

Capital gains tax depends on the type of asset and the period for which it is held. Below is a clear, category-wise explanation to help investors understand the tax impact in a simple and practical manner.

1. Taxation of Shares (Stocks)

Listed Domestic Shares

Holding Period	Nature of Gain	Tax Rate
Up to 12 months	Short-term	20%
More than 12 months	Long-term	12.5%

Unlisted Shares and Foreign Shares

Holding Period	Nature of Gain	Tax Rate
Up to 24 months	Short-term	Income-tax slab
More than 24 months	Long-term	12.5%

2. Taxation of Mutual Funds

Equity Mutual Funds (More than 65% in Indian equities)

Holding Period	Nature of Gain	Tax Rate
Up to 12 months	Short-term	20%
More than 12 months	Long-term	12.5%

Hybrid Mutual Funds (35%–65% equity exposure)

Holding Period	Nature of Gain	Tax Rate
Up to 24 months	Short-term	Income-tax slab
More than 24 months	Long-term	12.5%

Debt Mutual Funds (More than 65% in debt instruments)

Investment Date	Holding Period	Tax Rate
Before 1 April 2023	More than 36 months	20% with indexation
On or after 1 April 2023	Any period	Income-tax slab

Gold Funds and International Mutual Funds

Investment Period	Holding Period	Tax Rate
Before 1 April 2023	More than 36 months	20% with indexation
1 April 2023 to 31 March 2025	Any period	Income-tax slab
On or after 1 April 2025	More than 24 months	12.5%

3. Taxation of Bonds and Debentures

Listed Bonds and Debentures

Holding Period	Nature of Gain	Tax Rate
Up to 12 months	Short-term	Income-tax slab
More than 12 months	Long-term	12.5%

Unlisted Bonds and Debentures

Holding Period	Tax Rate
Any period	Income-tax slab

4. Sovereign Gold Bonds (SGBs)

Held Till Maturity (8 Years)

Income Type	Tax Treatment
Capital gain on redemption	Exempt
Annual interest (2.5%)	Taxed as income

Sold on Stock Exchange

Holding Period	Nature of Gain	Tax Rate
Up to 12 months	Short-term	Income-tax slab
More than 12 months	Long-term	12.5%

5. Taxation of Gold and Silver

Physical Gold and Silver

Holding Period	Nature of Gain	Tax Rate
Up to 24 months	Short-term	Income-tax slab
More than 24 months	Long-term	12.5%

Digital Gold and Silver

Holding Period	Nature of Gain	Tax Rate
Up to 24 months	Short-term	Income-tax slab
More than 24 months	Long-term	12.5%

Gold and Silver ETFs

Holding Period	Nature of Gain	Tax Rate
Up to 12 months	Short-term	Income-tax slab
More than 12 months	Long-term	12.5%

Gold and Silver Mutual Funds

Holding Period	Nature of Gain	Tax Rate
Up to 24 months	Short-term	Income-tax slab
More than 24 months	Long-term	12.5%

6. Taxation of Real Estate (Property)

Date of Purchase	Holding Period	LTCG Tax
Before 23 July 2024	More than 24 months	12.5% or 20% with indexation (lower of the two)
On or after 23 July 2024	More than 24 months	12.5%

Short-term capital gains on property are taxed as per the applicable income-tax slab.

Mutual fund investments are subject to market risks. Read all scheme related documents carefully.