Missed this new July 23 tax rule? You might overpay capital gains on your ITR 2025

Sold a house, shares, or gold recently? If the transaction took place during FY 2024–25, the key date that could decide your capital gains tax bill is July 23, 2024.

Following major reforms introduced via the Finance (No. 2) Bill, 2024, India’s capital gains tax structure has undergone sweeping changes. The tax you owe now hinges not just on the type of asset or how long you held it—but when you sold it. And the dividing line is July 23.

Here’s what changed:

For property, shares, gold, and other capital assets, capital gains tax rates and benefits like indexation now vary based on the sale date. Sell before July 23, and the old rules apply. Sell on or after July 23, and the new regime takes over.

For example, long-term capital gains (LTCG) on real estate (held ≥2 years) used to be taxed at 20% with indexation. Post-July 23, it’s a flat 12.5% without indexation. However, if you purchased the property before July 23 but sold it after, resident individuals and HUFs can choose the more favorable of the two.

Shares held over one year and sold before July 23 incur 10% LTCG tax (after ₹1 lakh exemption). After July 23, that rate rises to 12.5%, though the exemption increases slightly to ₹1.25 lakh. Short-term gains on equities are also hit harder—15% earlier, now 20%.

Gold, debt, and other capital assets see their holding period for LTCG classification drop from 3 years to 2, with a unified 12.5% tax and no indexation.

How to file ITR 2025 with capital gains (Assessment Year 2025–26):

• Documents needed: Sale/purchase deeds, broker notes, investment statements, improvement bills (for real estate), PAN, Aadhaar, bank details.
• Login to the Income Tax e-Filing portal.
• Navigate to: e-File > Income Tax Returns > File Income Tax Return.
• Choose AY 2025–26, mode: “Online”, form: ITR-2 (unless you have business income).

In “Schedules,” select “Capital Gains”.

• Split gains by date:
• Report all pre-July 23 sales using the old regime.
• Report post-July 23 sales with new rules.
• For real estate sold after July 23 but bought earlier, choose 12.5% (no indexation) or 20% (with indexation), whichever is lower.
• Include income, deductions, and taxes.
• Preview, validate, and submit.
• Verify within 30 days (via Aadhaar OTP, net banking, or by post).

Filing deadline: 15 September 2025. Double-check sale dates and rates. One wrong entry could mean paying thousands more in tax.