Capital gains on shares, mutual funds and property, explained simply
Holding periods that matter
- Listed shares & equity mutual funds: long-term after 12 months.
- Immovable property: long-term after 24 months.
- Most other assets: long-term after 24–36 months depending on type.
Exemptions that reduce the bill
Long-term gains on property can be sheltered by reinvesting in another house (Section 54) or in specified bonds (Section 54EC), within set time limits. Equity LTCG has an annual exemption threshold before tax applies. The right exemption depends on your numbers and timing.
Get the cost base right
Errors usually come from a wrong purchase cost, ignored improvement costs, or missed brokerage. For property and pre-2018 equity, special base-cost rules apply. Because gains are often material, it's worth an expert review before filing.
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Reviewed by Abhishek Kumar. General information, not individual tax advice — rules change, so confirm current rules for your situation before acting.