Explained: Tax implications of capital gains on mutual funds, stocks in 2025

Investing in mutual funds and stocks remains a popular wealth-building strategy in India. However, if the investment in such specified mutual funds was made before April 1, 2023, then the concept of long-term capital gains will still be applicable. In such a case, to qualify as a long-term asset, the investor should have held the units for more than 24 months from the date of acquisition. The gains will be taxed at 12.5 per cent and indexation will not be available. 

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