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LTCG hiked to 12.5%. Big blow to investors.

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Applicable from FY'25-26 or AY'26-27. So no worries for profits booked till March 31, 2025. 2.5% extra not much and it is also for selected financial gains not everywhere. My heart broke for 0.02% STT on FnO. STCG @20% is done so as to discourage middle class from risking money in FnO. Middle class people are actually day dreamers and to get rich, they take risk without analysis. I have seen many middle class young age people commiting suicide around me. So nice step. It should have been 25% on STCG from Markets.

I want crypto to be completely banned in India. 95% people lose their money in markets. The generation that invested after Covid don't know the financial risk and turmoils happened in 1929 followed by 2008. I witnessed all my profits going down drain in 2008 and luckily I somehow exited with small gains but took a life lesson and never going to repeat mistake. Some are investing in stock markets as if they go one side only. Since 2021 comeback markets have not seen majot correction which is unhealthy thing happening.
 
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am11 said:
LTCG hiked to 12.5% (from 10%) and STCG hiked to 20% (from 15%). Exemption limit set to 1.25 lakh in a year.
I remember someone in this forum mentioning to make hay while the sun shines (10 % LTCG). Its over now.
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That's incorrect. LTCG has been hiked however exemption has also been increased by 25k. That's matters more than 2.5 percent hike.

Stcg was at tax rate. This year it's been lowered to 20 percent( applicable for ppl in 30 percent bracket) For others it a hike and no impact for ppl in 20 percent bracket.
 
shivamk said:
Are you sure? https://www.indiabudget.gov.in/doc/bh1.pdf mentions that LTCG is hiked on all financial and non-financial assets
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Was about to read the pdf. Yes, it is increased for all type of LTCG. Still not a concern as around 10-15% gains have been transferred to income part. 25000 added to LTCG also gonna help with 2500-7500 tax benefits. Actual gone per 10 Lakh is 25000 and gain is around same levels. So all in all no loss no gain but profitable for people under 15 Lakh and upto limit of 50 Lakh. Indexation cost on Non-Financial assets set this off every year and it has been removed now.

Gold gains LTCG down from 20% to 12.5% now. Property LTCG down from 20% to 12.5% but with indexation removed real gains have to be counted. Even with indexation, as 10-20 years property were not high priced, it didn't benefitted many. So now 7.5% tax off from it will really help save more.

Example: If a property bought in 2001 with CII at 100 @ 10 Lakh sold in 2023 with CII 363, the CoA here 36.3 (10X3.63) Lakh and sold at 1 crore then capital gain of 65.7 Lakh was taxed at 20% of it = ~13.14 Lakh. Now this will be taxed for whole 90 Lakh profit @ 12.5%= Rs.11,25000.
 
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desiviru said:
Was about to read the pdf. Yes, it is increased for all type of LTCG. Still not a concern as around 10-15% gains have been transferred to income part. 25000 added to LTCG also gonna help with 2500-7500 tax benefits. Actual gone per 10 Lakh is 25000 and gain is around same levels. So all in all no loss no gain but profitable for people under 15 Lakh and upto limit of 50 Lakh. Indexation cost on Non-Financial assets set this off every year and it has been removed now.

Gold gains LTCG down from 20% to 12.5% now. Property LTCG down from 20% to 12.5% but with indexation removed real gains have to be counted. Even with indexation, as 10-20 years property were not high priced, it didn't benefitted many. So now 7.5% tax off from it will really help save more.

Example: If a property bought in 2001 with CII at 100 @ 10 Lakh sold in 2023 with CII 363, the CoA here 36.3 (10X3.63) Lakh and sold at 1 crore then capital gain of 65.7 Lakh was taxed at 20% of it = ~13.14 Lakh. Now this will be taxed for whole 90 Lakh profit @ 12.5%= Rs.11,25000.
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That property ltcg w e f next FY right
 
shashankrt said:
That's incorrect. LTCG has been hiked however exemption has also been increased by 25k. That's matters more than 2.5 percent hike.

Stcg was at tax rate. This year it's been lowered to 20 percent( applicable for ppl in 30 percent bracket) For others it a hike and no impact for ppl in 20 percent bracket.
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Wasn't STCG for equity mutual funds flat 15%. It has been increased to 20%. But not much of an impact as equity mutual fund should ideally not be sold in 1 year.
 
desiviru said:
Example: If a property bought in 2001 with CII at 100 @ 10 Lakh sold in 2023 with CII 363, the CoA here 36.3 (10X3.63) Lakh and sold at 1 crore then capital gain of 65.7 Lakh was taxed at 20% of it = ~13.14 Lakh. Now this will be taxed for whole 90 Lakh profit @ 12.5%= Rs.11,25000.
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so post this budget no cii concept there?
Just seeing if selling an old apartment will be best now…
 
Today indexing has been removed from real estate. Most probably to test the waters and reaction. Tomorrow or in the near future it will be removed from stock as well..
 
shivamk said:
Didn't get this
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Bro try to find answer yourself too. Sab mehnat dusra hi kar ke dede 🤣

Anyways, tax slab benefit in new regime comparatively now is 5000 (1 Lakh added to 5% slab between 3-7 Lakh and reduced from 10% slab), + 5000 (7-10 Lakh) + 5000 (9-12 as now 10 Lakh has 10% instead of 15%) + 25000 SD (2750 tax benefit) = Total 17500+4% cess put in pocket. For 2.5% LTCG increase, gain should be 17500*100/2.5 = 700000. So LTCG upto 7 Lakh already covered. Also 1.25 Lakh LTCG is tax exempt. Total 8.25 Lakh if compared with benefit provided with no extra tax burden. Actualy benefit is more than 10-20% of total tax liability here. Most people having income upto 12 Lakh and all benefitted. Middle class get something and other rich won't get affected with 2.5% LTCG more as those rich are into properties and gold assets where they gonna save 7.5% tax now.
 
Riva said:
Today indexing has been removed from real estate. Most probably to test the waters and reaction. Tomorrow or in the near future it will be removed from stock as well..
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I think it has been removed from all kind of financial and no-financial assets. So stocks also included.
 
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