### Budget 2024: Changes in Capital Gains Taxation and Customs Duties on Precious Metals

The Budget 2024, presented by Finance Minister Nirmala Sitharaman on July 23, has introduced significant changes to the taxation of capital gains and customs duties on precious metals. These updates aim to simplify the tax framework and make key assets more affordable for investors and consumers.

#### Capital Gains Tax Revisions

**Simplified Holding Periods**

– **Listed Securities**: One year
– **All Other Assets**: Two years

**Revised Income Tax Rates**

– **Listed Equity Shares, Equity-Oriented Mutual Funds, Units of Business Trusts**:
– **Short-Term Capital Gains (STCG)**: Increased from 15% to 20%
– **Long-Term Capital Gains (LTCG)**: Increased from 10% to 12.5%
– **Exemption Limit for LTCG**: Raised from ₹1 lakh to ₹1.25 lakh

**Other Assets**

– **Long-Term Capital Gains**: Standardized to 12.5%, replacing the previous 20% with indexation
– **Rollover Benefits**: No changes to existing rollover benefits under the Income Tax Act, allowing taxpayers to continue using these benefits to save on LTCG tax, provided conditions are met.

#### Customs Duty Reductions on Precious Metals

In addition to changes in capital gains tax, the Budget has announced reductions in customs duties on precious metals:

– **Gold and Silver**: Reduced from 15% to 6%
– **Platinum**: Lowered to 6.4%

These duty reductions are expected to make gold, silver, and platinum more affordable for consumers.

### What Investors and Consumers Should Do

#### For Investors:

1. **Review Investment Strategies**: With increased STCG and LTCG rates on equity-related investments, reassessing and diversifying portfolios to include assets with more favorable tax treatments is crucial.
2. **Leverage Rollover Benefits**: Continue utilizing existing rollover benefits to minimize tax liabilities on long-term capital gains.

#### For Consumers:

1. **Take Advantage of Lower Duties**: The reduction in customs duties on precious metals provides an opportunity to invest in gold, silver, and platinum at more affordable rates.

Consulting with financial advisors can help tailor investment approaches and ensure portfolios remain tax-efficient under the new regulations.