STCG on equity mutual funds increased to 20% from 15%. LTCG now 12.5% from 10%, affecting SIP investors.
LTCG exemption limit raised to ₹1.25 lakh from ₹1 lakh, offering some relief to small investors despite higher rates.
A ₹50,000 monthly SIP for 60 months now has a higher tax outgo of ₹94,095 vs. ₹77,456 before Budget 2024 changes.
Debt funds continue to be taxed at normal income tax rates. No change in capital gains tax for these investments.
Despite higher taxes, equity mutual funds remain attractive due to potential returns and long-term wealth creation.
Higher STCG and LTCG rates incentivize long-term holdings, aligning with sustainable wealth creation strategies.