Budget 2024: FM unveiled a revised tax framework for long-term capital gains

Budget 2024: Finance Minister, Nirmala Sitharaman, unveiled a revised tax framework for long-term capital gains (LTCG). Here are the details:

• Revised tax rate: All long-term capital gains (LTCG) on assets, including both financial and non-financial, will be subject to a flat rate of 12.5%, replacing the current varied rates across asset classes.
• Updated exemption limit: The annual exemption limit for capital gains eligible for tax exemption has been adjusted to ₹1.25 lakh.
  
  Furthermore, the Finance Minister also suggested increasing the exemption limit for capital gains on specific financial assets to ₹1.25 lakh per annum, up from the previous threshold of ₹1 lakh.
  
  In the Budget, listed financial assets held for more than a year are categorized as long-term assets, while unlisted financial assets and all non-financial assets held for at least two years will also be classified as long-term. In contrast, unlisted bonds, debentures, debt mutual funds, and market-linked debentures will incur capital gains tax at applicable rates regardless of their holding period.