The 2024 Union Budget of India has introduced sweeping changes to the capital gains tax framework, impacting a broad spectrum of taxpayers with investments in stocks, mutual funds, real estate, bonds, gold, and more. The primary goal appears to simplify the calculation of capital gains, which was previously complicated by varying tax rates, holding periods ranging from 12 to 36 months depending on the asset, and rules around cost indexation. This revision aims to streamline the entire process for better clarity and ease of compliance.
With the country expected to urbanise at a rate of around 36 percent this year and 50 percent by 2050, the focus will shift to tier-2 towns.
