<h1>New Budget Alters Capital Gains Tax: 20% for Short-Term, 12.5% for Long-Term; Exemption Limit Raised to Rs. 1.25 Lakh.</h1> The Union Budget 2024-25, presented by the Finance Minister, introduced changes to capital gains taxation. Short-term gains on certain financial assets will now be taxed at 20%, while long-term gains on all assets will incur a 12.5% tax. The exemption limit for long-term capital gains on financial assets has been raised from Rs. 1 lakh to Rs. 1.25 lakh annually. Listed financial assets held over a year are long-term, whereas unlisted financial and non-financial assets require a two-year holding period. Unlisted bonds, debentures, and certain debt instruments will be taxed at applicable rates regardless of holding duration.