Tax Implications On New Investments

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Tax Implications On New Investments

Oct , 2024 0 Comments

Tax Implications on New Investments

Whether it's gold, mutual funds, or real estate, the tax treatment varies depending on the type of asset and the holding period. Understanding how capital gains tax works can help you make informed financial decisions.

Tax Insights on Popular Investments

Investment Type	Long-Term Holding	Short-Term Holding	Tax Rate	2024 Budget Update
Gold (Physical & ETFs)	> 24 months	≤ 24 months	12.5% (LTCG)	Indexation benefit is not available for LTCG.
Equity Mutual Funds	> 12 months	≤ 12 months	12.5% on LTCG, 20% on STCG with STT	Increased exemption to ₹1.25L on LTCG. STCG rate increased to 20%. LTCG rate ncreased at 12.5%
Real Estate	> 24 months	≤ 24 months	12.5% on LTCG, slab rates for STCG	Choose 12.5% without indexation or 20% with indexation
Debt Mutual Funds	Any holding period	Any holding period	Slab rates (No LTCG)	Now taxed as STCG

Note: The above tax rates are based on recent Budget 2024 amendments, effective from July 23, 2024.

Factor in indexation changes

Recent amendments offer two choices for real estate —calculate taxes at 12.5% without indexation or at 20% with indexation.Choose wisely for optimized tax liability.

Be mindful of short-term gains

High tax rates on short-term capital gains mean holding assets longer could be beneficial.

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Tax Implications On New Investments