The Union Budget 2024 has proposed that there will only be two holding periods -- 12 months and 24 months -- for determining whether the capital gains are short-term or long-term, and tax rates have been rationalised and made uniform for majority of assets.

Further, the indexation benefit has been done away in Budget 2024, while raising the exemption limit of Rs 1 lakh for Long-term Capital Gains (LTCG) on these assets such as listed shares and mutual fund to Rs 1.25 lakh.

Short-term capital gains (STCG) tax has been increased to 20 percent, and LTCG tax is now 12.5 percent for specific assets. Additionally, the Securities Transaction Tax (STT) has been hiked from 0.1 percent to 0.2 percent for equity transactions.