In the Union Budget 2024-25, the Short Term Capital Gains Tax has been increased to how much?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → 20%
In the Union Budget 2024-25, presented by Finance Minister Nirmala Sitharaman on 23 July 2024, the tax on short-term capital gains from listed equity shares, equity-oriented mutual funds and business trusts (Section 111A of the Income-tax Act) was raised from 15% to 20%.
The same Budget raised the tax on long-term capital gains from these assets from 10% to 12.5%, and the yearly exemption limit for such gains from ₹1 lakh to ₹1.25 lakh.