Latest capital gains tax rate for equity, gold, mutual funds for FY2026-2027 after Budget 2026

While it was hoped that Budget 2026 clarifies the tax position for debt mutual funds by taxing them at a special rate instead of slab rate, this did not happen. So the capital gains tax rate as applicable last year is now applicable the same for FY 2026-27.

Capital gains tax rate table

Here’s a table showing the current tax rates for both long term (LTCG) and short term (STCG) capital gains:

Types of asset	Holding period for long term capital asset	Long term capital gains (LTCG)	Short term capital gains (STCG)
Listed equity shares	12 months	Gains up to Rs 1.25 lakh exempt; balance taxable at 12.5% without indexation	20%**
Listed equity mutual funds	12 months	Gains up to Rs 1.25 lakh exempt; balance taxable at 12.5% without indexation	20%***
Listed tax-free bonds	12 months	12.5%, indexation benefit not available (interest from notified tax-free bonds is exempt from tax)	Tax at slab rates
Listed debentures	12 months	12.5%, indexation benefit not available (interest from notified tax-free bonds is exempt from tax)	Tax at slab rates
Debt mutual funds (more than 65% in debt and money market instruments)	24 months	If acquired prior to April 1, 2023: 12.5% without indexation Acquired on or after April 1, 2023: Tax at applicable slab rates, indexation benefit not available	If acquired prior to April 1, 2023: 12.5% without indexation Acquired on or after April 1, 2023: Tax at applicable slab rates, indexation benefit not available
Unlisted shares	24 months	12.5% without indexation	Tax at slab rates
Unlisted debentures and unlisted bonds	24 months	Tax at applicable slab rates, indexation benefit not available	Tax at applicable slab rates, indexation benefit not available
Immovable property	24 months	Acquired before July 23, 2024: 20% with indexation or 12.5% without indexation Acquired on or after July 23, 2024: 12.5% without indexation	Tax at slab rates

**If STT of 0.1% each is paid by seller and buyer in both cases

***If STT of 0.001% is paid by seller; STT rates mentioned above are for delivery based transactions only

Exemption available if STT paid on sale as well as purchase, in case of equity shares acquired on or after October 1, 2004 (subject to certain exceptions notified)

The tax rates applicable on the transfer of capital assets, whether classified as Long-Term Capital Gains (LTCG) or Short-Term Capital Gains (STCG), remain unchanged irrespective of whether the taxpayer opts for the Old Tax Regime or the New Tax Regime.

1. Exchange Traded Funds (ETFs), including Gold and Silver ETFs

Particulars	Before April 1, 2023	April 1, 2023 to March 31, 2025	April 1, 2025 onwards
Short term capital gains (STCG)	Holding Period: Held for up to 36 months Tax rates: Taxed at applicable slab rates	Holding Period: Always short term, irrespective of the holding period Tax rates: Taxed at applicable slab rates	Holding period: Held for up to 12 months Tax rates: Taxed at applicable slab rates
Long term capital gains (LTCG)	Holding period: Held for up to 36 months Tax rates: 20% with indexation benefits	Holding Period: Always short term, irrespective of the holding period Tax rates: Taxed at applicable slab rates	Holding Period: Held for more than 12 months Tax rates: 12.5% without indexation benefits

Source: CA (Dr.) Suresh Surana

2. Physical precious metals such as gold, silver, etc

Particulars	Prior to July 23, 2024	On or after July 23, 2024
STCG	Held for up to 36 months and taxed at applicable slab rate	Held for up to 24 months and taxed at applicable slab rate
LTCG	Held for more than 36 months and taxed at 20% rate with indexation benefit	Held for more than 24 months and taxed at 12.5% without indexation benefits

(The tax rate would be increased by surcharge if applicable and cess)

Is Section 87A tax rebate available on any type of capital gains income- long or short - of any asset?

Section 112A(6) stipulates that the rebate shall be allowed only after reducing LTCG under Section 112A from total income, and this restriction applies solely to LTCG exceeding Rs. 1,25,000. Budget 2025 explicitly stated that Section 87A rebate is not available for LTCG and STCG or any special rate income from FY 2025-26 onwards

The explanatory memorandum to Budget 2025 had said:

From assessment year 2026-27 onwards, for an assessee, being an individual resident in India whose income is chargeable to tax under the sub-section (1A) of section 115BAC, it is proposed to–

(i) enhance the limit of total income for rebate in clause (a) and (b) of first proviso under Section 87A, on which the income-tax is payable as per the rates of income-tax under sub-section (1A) of Section 115BAC, from Rs 7,00,000 to Rs. 12,00,000 and the limit of rebate in clause (a) of first proviso to Section 87A from Rs 25,000 to Rs. 60,000.

(ii) rationalise the first proviso to Section 87A by inserting a new proviso so as to provide that the deduction under the first proviso, shall not exceed the income-tax payable as per the rates provided in sub-Section (1A) of Section 115BAC.

5. Further, as mentioned in para. 4 above, such rebate of income-tax is not available on tax on incomes chargeable at special rates (for e.g.: capital gains u/s 111A, 112 etc.).