{"id":4122,"date":"2026-01-27T20:30:00","date_gmt":"2026-01-27T15:00:00","guid":{"rendered":"https:\/\/tradebrains.in\/money\/?p=4122"},"modified":"2026-01-27T17:36:04","modified_gmt":"2026-01-27T12:06:04","slug":"big-capital-gains-tax-changes-coming-experts-say-budget-2026-may-change-stcg-and-ltcg-rules","status":"publish","type":"post","link":"https:\/\/tradebrains.in\/money\/big-capital-gains-tax-changes-coming-experts-say-budget-2026-may-change-stcg-and-ltcg-rules\/","title":{"rendered":"Big Capital Gains Tax Changes Coming? Experts Say Budget 2026 May Change STCG and LTCG Rules!"},"content":{"rendered":"\n
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Synopsis<\/strong>: This article explains the current capital gains tax rules in India, its shortcomings, and what changes the tax professionals and market experts expect and suggest for the Union Budget 2026.<\/em><\/p>\n<\/blockquote>\n\n\n\n

As the nation prepares for the Union Budget 2026, the capital gains tax regime is gaining attention. Recent hikes in LTCGs and STCGs have left investors uncertain about their long-term savings. Therefore, investors urge the government to provide clarity and relief on these taxes.<\/p>

\"scapia<\/a><\/div>\n\n\n\n

Capital Gains Tax Basics: STCG vs LTCG<\/strong><\/h2>\n\n\n\n

Capital gains tax is a tax levied on gains from the sale of assets such as equities, mutual funds, real estate, bonds, gold, or other investments. The tax rate depends on factors such as the asset type, holding period, and profits earned.<\/p>\n\n\n\n

Profit from the sale of assets can be classified into 2 categories<\/strong><\/h3>\n\n\n\n
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  1. Short-Term Capital Gains (STCG): Gains from the assets sold within a specified short holding period, i.e., lower than the minimum period required to qualify for LTCG. These tax rates are usually high or at special rates.<\/li>\n\n\n\n
  2. Long-Term Capital Gains (LTCG): Gains from assets held for longer than the prescribed period. These tax rates are lower compared to STCG, encouraging long-term investing.<\/li>\n<\/ol>\n\n\n\n

    Current Holding Period Rules Across Asset Classes<\/strong><\/h2>\n\n\n\n
    Asset Type<\/strong><\/td>Minimum Period to Qualify for LTCG<\/strong><\/td><\/tr>
    Equities and Equity MFs<\/td>12 months<\/td><\/tr>
    Bonds and Debt MFs<\/td>24 months<\/td><\/tr>
    Immovable Properties<\/td>24 months<\/td><\/tr>
    Gold, Silver, unlisted shares, etc<\/td>24 months<\/td><\/tr>
    Business for Slump Sale<\/strong><\/em><\/td>36 months<\/strong><\/em><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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    Also read: Top 7 International Mutual Funds in India With Up to 37.2% Returns in 3 Years<\/a><\/strong><\/h4>\n<\/blockquote>\n\n\n\n

    Current Capital Gains Tax Treatment<\/strong><\/h2>\n\n\n\n
    Asset Type<\/strong><\/td>STCG Tax Rate<\/strong><\/td>LTCG Tax Rate<\/strong><\/td><\/tr>
    Equities and Equity MFs<\/td>20%<\/td>12.5% on gains above \u20b91.25 lakh<\/td><\/tr>
    Listed Bonds and Debentures<\/td>Slab rates<\/td>12.5%<\/td><\/tr>
    Debt MFs<\/td>Slab rates<\/td>Slab rates<\/td><\/tr>
    Immovable Properties<\/td>Slab rates<\/td>20% or 12.5%, depending on the date of acquisition. <\/td><\/tr>
    Gold, Silver, unlisted shares, etc<\/td>Slab rates<\/td>12.5%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

    What\u2019s Wrong with the Current Framework?<\/strong><\/h2>\n\n\n\n
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    • Complexity Due to Multiple Holding Periods<\/li>\n\n\n\n
    • Inconsistency in Tax Treatment Across Asset Classes<\/li>\n\n\n\n
    • Compliance Challenges for Taxpayers<\/li>\n\n\n\n
    • Impact on Long-Term Investing and Tax Planning<\/li>\n<\/ul>\n\n\n\n

      Budget 2026: Key Changes Experts Expect<\/strong><\/h2>\n\n\n\n

      At present, different asset classes have different holding periods. Tax professionals urge aligning these holding periods to simplify and improve clarity for taxpayers.<\/p>