Summary
- The Income-tax Act, 2025 introduces significant changes to capital gains taxation, simplifying the complex provisions of the previous Income-tax Act, 1961.
- Key updates include revised tax rates: Short-Term Capital Gains on listed shares now taxed at 20%, while Long-Term Capital Gains are set at 12.5% with an exemption limit of ₹1,25,000.
- The Act clarifies definitions and expands the scope of capital assets and transfers, ensuring a broader range of transactions fall under capital gains taxation.
- These reforms aim to modernize India's tax framework, making compliance and investment planning more straightforward for taxpayers and professionals alike.
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