Capital Gains & Crypto Tax

Taxing gains on assets

Capital gains arise on the transfer of capital assets — shares, property, mutual funds and more. The tax depends on the holding period and asset type.

Short-term vs long-term

Gains are short-term (STCG) or long-term (LTCG) based on holding period. For listed equity, over 12 months is long-term; for real estate, over 24 months. LTCG on equity above a threshold is taxed at a concessional rate; property LTCG may benefit from indexation (adjusting cost for inflation) and roll-over exemptions like Sections 54/54F.

Set-off and exemptions

Capital losses can be set off against gains under specific rules and carried forward up to eight years. Reinvestment exemptions (e.g., buying a residential house, or specified bonds under 54EC) can defer or eliminate tax on property gains.

Crypto and VDAs

Virtual Digital Assets (crypto, NFTs) have a special regime: gains are taxed at a flat 30% with no deductions except cost of acquisition, losses cannot be set off against other income, and a 1% TDS applies on transfers above a threshold. This makes crypto one of the most tightly taxed asset classes in India.