New Income Tax bill introduced in Lok Sabha: Has STCG, LTCG taxation changed?

The Finance Minister (FM) in the Union Budget 2024 has announced that both the LTCG and STCG liability of equity mutual fund investors is subject to an increase of 12.5% and 20%, respectively, effective 23 July 2024.

Income Tax written in this representative image Credit: iStock Photo

Union Finance Minister Nirmala Sitharaman introduced the Income Tax Bill, 2025, in the Lok Sabha on Thursday and urged Speaker Om Birla to refer it to a select committee of the House.

Opposition members opposed the Bill at the introduction stage but the House passed a motion by voice vote for its introduction.

Getting to the finer points of the new tax bill, will there be changes in the short-term capital gains (STCG) and long-term capital gains (LTCG)? Let’s take a look:

The taxation will remain the same as the current one.

The government had introduced a simplified capital gains tax regime in 2024 and capital assets taxed under the capital gains regime are divided into two categories –

1. Listed securities

2. Unlisted securities and non-financial securities.

Source: https://www.deccanherald.com/business/new-income-tax-bill-introduced-in-lok-sabha-has-stcg-ltcg-taxation-changed-3404662

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