Capital Gains Tax Rates (FY 2024–25 onwards)
| Asset Type | Holding Period | Type | Tax Rate |
|---|---|---|---|
| Immovable property (land / building) | > 24 months | LTCG | 12.5% (no indexation from Budget 2024) |
| Immovable property | ≤ 24 months | STCG | Slab rate (as per income) |
| Listed equity shares / equity mutual funds | > 12 months | LTCG | 12.5% on gains above Rs. 1.25 lakh |
| Listed equity shares / equity mutual funds | ≤ 12 months | STCG | 20% |
| Debt mutual funds / bonds | Any period (post Apr 2023) | STCG | Slab rate |
| Gold (physical / Gold ETF) | > 24 months | LTCG | 12.5% (no indexation) |
| Cryptocurrency / VDA | Any period | VDA | 30% flat + 4% cess + 1% TDS |
* Rates as per Union Budget 2024. Subject to change. We calculate tax based on current rates applicable for your assessment year.
Capital Gains Exemptions — Save Tax Legally
Exemption on LTCG from residential property sale if you invest the gains in buying/constructing another residential property within 2 years (purchase) or 3 years (construction). One house only (if LTCG ≤ Rs. 2 crore, two houses allowed once in lifetime).
Invest LTCG from immovable property in NHAI or REC bonds within 6 months. Exemption up to Rs. 50 lakh. 5-year lock-in. Ideal if you don't want to buy another property.
Exemption on capital gains from sale of agricultural land if the gain is reinvested in another agricultural land within 2 years. Both seller and new land must meet conditions.
Exemption on LTCG from assets other than residential property (shares, gold, commercial property) if the net sale consideration is reinvested in a residential house. No other house should be owned.
If you cannot invest before the ITR filing date, deposit the gains in a Capital Gains Account (available at nationalised banks) before the ITR due date to preserve the exemption.
STCL can be set off against STCG or LTCG. LTCL can only be set off against LTCG. Unabsorbed losses can be carried forward for 8 years — but only if ITR is filed on time before the due date.
Property Sale — TDS Implications
If you are selling a property in Pondicherry for Rs. 50 lakh or more, the buyer must deduct TDS at 1% of the sale price under Section 194-IA and deposit via Form 26QB. The buyer must provide Form 16B (TDS certificate) to the seller. This TDS credit appears in your Form 26AS and is adjusted against your capital gains tax liability when you file ITR-2.
Capital Gains ITR Filing Process
Collect sale deed, purchase deed, registration receipt, home loan statements (for property). Broker notes / contract notes for shares. Mutual fund account statements. Form 26AS and AIS from IT portal.
We calculate LTCG/STCG for each asset. For property: Sale price − indexed cost of acquisition (using CII) − improvement cost − transfer expenses. For shares/MF: FIFO method, dividend stripping rules applied.
We identify applicable exemptions (Section 54, 54EC, 54F) based on reinvestment timeline and advise on Capital Gains Account Scheme deposits if needed before the ITR filing date.
Capital gains tax must be paid as advance tax by the quarter in which gains arise. We compute and remind clients of advance tax due dates to avoid Section 234B/234C interest charges.
File ITR-2 (which has the capital gains schedule) with accurate details. Gains, exemptions, set-offs and tax payable are reported. E-verify using Aadhaar OTP / net banking / digital signature.
Frequently Asked Questions
Capital Gains ITR Filing in Pondicherry
Sold a property, flat, plot, shares or mutual funds? We compute capital gains accurately, identify Section 54/54EC exemptions and file ITR-2 before the deadline — saving you maximum tax.