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India's Capital Gains Tax Revamp: What Taxpayers Must Know for 2025 ITR Filing
27 Jul
Summary
- Long-term capital gains tax raised to 12.5% across all asset classes
- Short-term capital gains tax on equities increased to 20%
- Deadline for salaried individuals and HUFs extended to September 15, 2025
In July 2024, India implemented a new capital gains tax framework, which is now impacting the 2025 income tax return (ITR) filing season. Under the revised rules, long-term capital gains (LTCG) across all asset classes, including equities, gold, and property, are taxed at a flat 12.5%, up from the earlier 10% in certain cases. Short-term capital gains (STCG) on financial assets such as equities will now be taxed at 20%, replacing the earlier 15% rate.
The 2025 ITR filing season also features several other changes. The deadline for salaried individuals and Hindu Undivided Families (HUFs) not requiring audit has been extended to September 15, 2025, providing taxpayers more time to adjust. Businesses and professionals subject to audit must file by October 31, 2025, while belated and revised returns can be submitted by December 31, 2025, though late filings will attract penalties.
Taxpayers must also be mindful of the July 23, 2024 cut-off for the application of the new capital gains tax rules. Gains from assets sold on or after this date will be taxed under the revised regime, while those sold prior will fall under the previous structure. Taxpayers are required to bifurcate capital gains accordingly in their returns.
