Module: General Practice
Q12: With reference to the "New Income Tax Act" simplified capital gains structure announced in Budget 2026-27, consider the following statements:
There are now only two holding periods for classifying assets as Long Term or Short Term: 12 months (Listed) and 24 months (Unlisted/Others).
The indexation benefit for Real Estate has been fully restored for properties bought before 2026.
Short Term Capital Gains (STCG) on listed equity are taxed at 20%.
The indexation benefit for Real Estate has been fully restored for properties bought before 2026.
Short Term Capital Gains (STCG) on listed equity are taxed at 20%.
✅ Correct Answer: B
Statements 1 and 3 are Correct.
The Union Budget 2026-27 Act has rationalized holding periods: Listed assets are Long Term after 12 months; all others (Unlisted/Real Estate) after 24 months.
STCG on listed equity remains at 20%. Statement 2 is Incorrect: The budget did not restore indexation fully; it maintained the nominal rate reduction (LTCG at 12.5% without indexation). This is a critical aspect of the Fiscal Consolidation Path involving revenue rationalization.
The Union Budget 2026-27 Act has rationalized holding periods: Listed assets are Long Term after 12 months; all others (Unlisted/Real Estate) after 24 months.
STCG on listed equity remains at 20%. Statement 2 is Incorrect: The budget did not restore indexation fully; it maintained the nominal rate reduction (LTCG at 12.5% without indexation). This is a critical aspect of the Fiscal Consolidation Path involving revenue rationalization.