Published 9 May 2026
How to Split Gains Before and After 23 July 2024
Finance Act, 2024 (No. 2) effective 23 July 2024 fundamentally restructured capital gains taxation. For financial year 2024-25 (assessment year 2025-26), every transaction in your Income-tax Return Schedule for Capital Gains must be classified as PRE-23 July 2024 or POST-23 July 2024 -- different rates, different exemptions, different rows in the form. Get the split right; Income-tax Return processing depends on it.
Key Cut-Off Date Cut-off: DATE OF TRANSFER (not date of agreement, not date of payment). Listed equity / mutual fund: National Stock Exchange / Bombay Stock Exchange settlement date. Property: registration date / section 53A possession date. Mutual funds: Net Asset Value date of redemption. |
Finance Act, 2024 Capital Gains Rate Matrix
Asset Class | Pre 23 July 2024 | Post 23 July 2024 |
|---|---|---|
Listed Equity / Equity Mutual Fund -- Long-term Capital Gains (Section 112A) | 10% on excess INR 1 lakh | 12.5% on excess INR 1.25 lakh |
Listed Equity / Equity Mutual Fund -- Short-term Capital Gains (Section 111A) | 15% | 20% |
Other Long-term Capital Assets (Section 112) | 20% with indexation | 12.5% no indexation |
Real Estate (acquired before 23 July 2024) | 20% with indexation | 12.5% OR 20% indexed (whichever lower) |
Real Estate (acquired after 23 July 2024) | Not applicable | 12.5% only |
Debt Mutual Fund (post Finance Act, 2023 amendment) | Short-term Capital Gains at slab | Short-term Capital Gains at slab (unchanged) |
Virtual Digital Asset (Section 115BBH) | 30% flat | 30% flat (no Finance Act, 2024 change) |
Holding Period Threshold for Long-term Capital Gains
Asset | Holding Period for Long-term Capital Gains |
|---|---|
Listed equity / equity mutual fund / business trust units (Securities-Transaction-Tax-paid) | More than 12 months |
Unlisted shares | More than 24 months (per Finance Act, 2017) |
Immovable property | More than 24 months (per Finance Act, 2017) |
Debt mutual fund (post Finance Act, 2023) | Treated as Short-term Capital Gains regardless of period |
Other capital assets (gold, art, etc.) | More than 36 months |
Worked Example -- Real Estate Election
Property purchased 15 March 2018 for INR 50 lakh; sold 15 December 2024 for INR 1.5 crore. The Cost Inflation Index for 2024-25 is 363; for 2017-18 was 272. The election:
Computation | Option A: 12.5% no indexation (default) | Option B: 20% with indexation (election) |
|---|---|---|
Sale Consideration | 1,50,00,000 | 1,50,00,000 |
Less: Cost / Indexed Cost | 50,00,000 | 66,72,794 (CII 363/272 multiplied by 50 lakh) |
Long-term Capital Gains | 1,00,00,000 | 83,27,206 |
Tax Rate | 12.5% | 20% |
Tax (before cess / surcharge) | 12,50,000 | 16,65,441 |
Verdict: Option A (12.5% no indexation) saves INR 4.15 lakh For pre-23 July 2024 acquisitions of real estate, the assessee can ELECT either method. Compute both; pick lower. Document the choice in the Income-tax Return Schedule for Capital Gains with supporting calculation. Election is per-transaction. |
Reporting Workflow for Financial Year 2024-25 Income-tax Return
Step | Action |
|---|---|
1 | Download all broker / property / mutual fund statements with TRANSACTION DATES. |
2 | Sort transactions chronologically by date of transfer. |
3 | Tag each as PRE 23 July 2024 or POST 23 July 2024. |
4 | For listed equity: split INR 1 lakh exemption (pre) and INR 1.25 lakh (post) -- separate, not combined. |
5 | For real estate (pre 23 July 2024 acquisition): compute 12.5% AND 20%-indexed; choose lower; document. |
6 | For other Long-term Capital Assets: 12.5% no-indexation post; 20% indexed pre. |
7 | Income-tax Return (Form 2 / Form 3) Schedule for Capital Gains: enter in pre and post split rows. |
8 | Maintain a working file with all computations plus supporting documents. |
Key Takeaways
- Finance Act, 2024 (No. 2) effective 23 July 2024: capital gains split required for financial year 2024-25 Income-tax Return.
- Listed equity Long-term Capital Gains: 10% (pre) to 12.5% (post). Threshold: INR 1 lakh to INR 1.25 lakh.
- Listed equity Short-term Capital Gains: 15% (pre) to 20% (post).
- Other Long-term Capital Assets: 20% indexed (pre) to 12.5% no-indexation (post).
- Real estate (acquired pre 23 July 2024): election between 12.5% no-indexation OR 20% indexed -- whichever is lower.
- Virtual Digital Asset unchanged at 30% flat under section 115BBH.
- Futures and Options unchanged: Profits and Gains of Business or Profession at slab rate.
Disclaimer: This article is for general information only. It does not constitute tax / legal advice. Please consult a qualified Chartered Accountant or tax practitioner for advice specific to your circumstances. The legal position is current as of FA 2024 (No. 2) / FA 2025; subsequent amendments and CBDT notifications may modify the position.