The Income Tax Bill 2025 has proposed significant changes to the capital gains tax structure, introducing a 20% short-term capital gains tax (STCG) and a 12.5% long-term capital gains tax (LTCG) on the sale of equity shares where Securities Transaction Tax (STT) has been paid. 

As per Clause 196 of the Income Tax Bill 2025, where the total income of an assessee includes any income chargeable 35 under the head “Capital gains”, arising from the transfer of a short-term capital asset being an equity share in a company or a unit of an equity oriented fund or a unit of a business trust. The transaction of sale of such equity share or unit is chargeable to securities transaction tax under Chapter VII of the Finance (No. 2) Act, 2004, then, the tax payable by the assessee on the total income, subject to the provisions of sub-section (2), shall be the aggregate of income-tax calculated on such short-term capital gains at the rate of 20%.

As per Clause 198 of the Income Tax Bill 2025 income-tax calculated on long-term capital gains  arise from the transfer of a long-term capital asset being an equity share in a company or a unit of an equity oriented fund or a unit of a business trust exceeding Rs. 1,25,000 on long-term capital gains at the rate of 12.5%.