Decoding Short-Term Capital Gains: Key Changes & Tax Rates

Summary

Capital gains refer to profits from selling assets and are split into short-term and long-term based on holding periods. Budget 2024 introduces changes to these periods and increases tax rates for certain assets. Understanding the calculation methods and exemptions is key for effective tax planning and compliance.

Key Takeaways

Capital gains are profits from asset sales, classified by holding period.
Budget 2024 updates include longer holding periods and higher tax rates for some assets.
STCG calculation involves deducting expenses, acquisition, and improvement costs.
Applicable exemptions can improve tax efficiency.