Hi, While filing IT returns for AY 25-26 (FY 24-25), I have a doubt regarding capital Gains Tax on sale of equity. There is a change of allowing exemption from 1 Lac to 1.25 Lac after budget on 23rd July 2024. Also, the capital gains tax for short term and long term have een revised from 15% and 10% to 20% and 12.5%. I hope these changes are applicable only from 23/7/2024. Now while calculating tax, how we should do calculation? Separately accounting gains upto 23/7/2024 and allowing exemption limit of Rs 1 lac for LTCG and the next 25,000 in LTCG from 23/7/24 to 31/3/25 or we can allow entire 1.25 exemption after 23/7/24 till 31/3/25 without availing exemption before 23/7/24. Because the latter one will be beneficial as far as total tax is concerned. Any views please?
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Hi @RV3548,
You’ll need to calculate the capital gains separately, one for sales made before 23rd July and another for those made after 23rd July.
However, when it comes to claiming exemption, you’ll still get the ₹1.25 lakh LTCG exemption on the total gains, regardless of when those gains were made.
Hope this helps!
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Thanks Quicko for your response. However, just I would like to know whether I shall have the privilege of utilising entire 1.25 lakh exemption from sales consideration after 23rd July as it gives advantage of 2.5% extra savings in Tax.