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Taxation of capital gains proposed to be rationalized and simplified. Holding periods reduced to two categories: 12 months for listed securities, 24 months for other assets. Short-term capital gains rate on STT paid equity shares, equity oriented mutual funds, and business trusts increased to 20%. Long-term capital gains rate unified at 12.5% for all assets, with exemption of up to 1.25 lakh for STT paid equity shares, equity oriented funds, and business trusts. Indexation for long-term capital gains removed. Parity in taxation between residents and non-residents. Withholding tax provisions aligned. Changes effective from July 23, 2024.