Question

The Union Budget 2024-25 reduced long-term capital gains (LTCG) tax from 20% to _______ but removed the indexation benefit available earlier?

• A. 12.5%
• B. 14.5%
• C. 16.5%
• D. 10.5%

Answer 1

Answer:

A. 12.5%

The Union Budget 2024-25 reduced long-term capital gains (LTCG) tax from 20% to 12.5% but removed the indexation benefit available earlier. The indexation benefit has been removed for most assets. For land and building sold after July 23, 2024, the tax rate is 12.5% without indexation. If acquired before that date, taxpayers can choose between 12.5% without indexation or 20% with indexation.