The Union Budget 2024 ushered in significant changes to the taxation of capital gains in India. These modifications have far-reaching implications for investors across various asset classes. Let’s delve into the key alterations: Harmonisation of Long-Term Capital Gains (LTCG) Tax Rate Uniform rate:The most prominent change is the introduction of a uniform LTCG tax rate of 12.5% for all asset classes, including property, gold, and equity. Previously, these assets had different tax rates No indexation benefit:The government has eliminated the indexation benefit, a provision that allowed taxpayers to adjust the purchase price of an asset for inflation. This means higher taxable gains. What were the major the major announcements Short term gains on certain financial assets shall henceforth attract a tax rate of 20 per cent, while that on all other financial assets and all non-financial assets shall continue to attract the applicable tax rate. Long term gains on all financial and non-financial assets, on the other hand, will attract a tax rate of 12.5 per cent. For the benefit of the lower and middle-income classes, I propose to increase the limit of exemption of capital gains on certain financial assets to ₹ 1.25 lakh per year. Listed financial assets held for more than a year will be classified as long term, while unlisted financial assets and all non-financial assets will have to be held for at least two years to be classified as long-term. Unlisted bonds and debentures, debt mutual funds and market linked debentures, irrespective of holding period, however, will attract tax on capital gains at applicable rates. ( Refer : https://www.indiabudget.gov.in/) Impact on Different Asset Classes Property: While the LTCG tax rate has reduced from 20% to 12.5%, the removal of indexation might offset this benefit, especially for older properties. Gold: Similar to property, the lower tax rate is counterbalanced by the absence of indexation. Equity: While the LTCG tax rate has increased from 10% to 12.5%, the exemption limit has been raised from Rs. 1 lakh to Rs. 1.25 lakh. Short-Term Capital Gains (STCG) Tax Higher rate: The STCG tax rate on equity-related investments has been increased from 15% to 20%. Asset Class Holding Period STCG LTCG Shares/ Equity (Listed) 12 months 20% 12.5% Equity MF 12 Months 20% 12.5% Bonds ( Listed ) 12 Months 20% 12.5% REITs/ InVITs 12 Months 20% 12.5% Silver/ Gold ETF 12 Months Slab 12.5% Gold Funds 24 Months Slab 12.5% Stock( Unlisted ) 24 Months Slab 12.5% Foreign Shares 24 Months Slab 12.5% Overseas Equity Fund 24 Months Slab 12.5% Gold 24 Months Slab 12.5% Real Estate 24 Months Slab 12.5% Debt MF/ MLD NA Slab Slab Debt ETF NA Slab Slab Bonds ( Unlisted) NA Slab Slab Key Takeaways Simplification: The new regime aims to simplify the tax structure for capital gains. Higher tax burden: For many investors, especially those with older assets, the overall tax burden might increase due to the removal of indexation. Strategic planning: Investors need to carefully evaluate the impact of these changes on their portfolios and investment strategies. Conclusion The changes in capital gains tax introduced in Budget 2024 mark a significant departure from the existing tax regime. While the intent might be to simplify the tax structure, the practical implications for investors are complex. It is crucial to consult with a tax professional to understand the full ramifications of these changes on your personal financial situation. You can reach us to help you design the bets fund portfolio , so that you get best results according to your need and assessment.( you can reach us : https://wa.me/message/LC5W5ZNTPSJ5L1) Do set you asset allocation and understand which fund would suit you the best 
Fund Name Year Of inception Fund rating ( Crisil rated ) Portfolio Size ( In Cr ) Expense ratio PE ratios Exit Load ITI Mid Cap Fund Reg (G) 2021 5 1,085.02 2.13% 25.50 1% for redemption within 1 year Motilal Oswal Midcap Fund Reg 2014 5 14,445.55 1.66% 57.08 1% for redemption within 1 year HDFC Mid Cap Opportunities Fund 2007 4 75,382.3 1.39% 23.55 1% for redemption within 1 year Nippon India Growth Fund 1995 4 32,970.78 1.59% 30.36 1% for redemption within 30 days Edelweiss Mid Cap Fund 2007 4 6994.17 1.75 33.31 1% for redemption within 90 days SBI Magnum MidCap Fund Reg (G) 2005 3 21,127.45 1.66 40.57 1% for redemption within 1 year HSBC Midcap Fund Reg (G) 2004 3 11,882.09 1.72 37.31 For units in excess of 10% of the investment, 1% will be charged for redemption within 365 days Quant MidCap Fund 2008 3 9,282.92 1.73% 31.19 0.5% for redemption within 90 days Kotak Emerging Equity (G) 2007 3 50,601.84 1.42 30.57 For units in excess of 10% of the investment, 1% will be charged for redemption within 365 days Axis Mid cap fund(G) 2011 2 30,854.63 1.57 35.59 For units in excess of 10% of the investment, 1% will be charged for redemption within 365 days PGIM India Mid Cap Opp Fund Reg (G) 2013 1 11,216.06 1.7% 41.54 0.5% for redemption within 90 days ITI Mid Cap Fund Reg: The fund is currently 5 star rated , and has a very high expense ratio of 2.13% with low portfolio size 1,085 cr. The fund is a very recent entry in th category in 2021. Current PE of the fund is 25.50. MotilalOswal Mid cap fund: Crisil has rated this 2014 launched fund as 5 star. The fund has a decent size of 14,445 cr with an expense ratio of 1.66%. It has the highest PE among the funds considered. HDFC Mid Cap Opportunities Fund : The fund was launched in 2007, Currently rated as 4 star by CRISIL. This is the biggest fund in the category at 75,382 cr. The lowest expense ratio of 1.39%. The fund has PE 23.55 inline with the category. Nippon India Growth Fund : This is one of the oldest funds in the category 1995. Currently rated by CRISIL as 4 star. The fund is 3rd highest fund size in the category with 32,970 cr. The expense ratio is decent with 1.59%. PE is bit high with 30.36 Edelweiss Mid Cap Fund : The fund was launched in 2007. CRISIL has rated it as a 4 star fund. FUnd size small at 6994.17cr. So the expense ratio is high at 1.75%. The fund PE is 33.31 a bit high. SBI Magnum MidCap Fund: The fund was launched in 2005, Currently CRISIL rated 3. A decent fund size of about 21,127 cr. With expense ratio of 1.66. Fund PE of 40.57 is a bit high. HSBC Midcap Fund : The fund was launched in 2004, CRISIL rated as 3. Portfolio size of 11,882.09 cr with expense a bit high of 1.72%. PE is high on 37.31. Quant MidCap Fund: The fund was launched in 2008, it was run by escorts mutual fund under the name of escort opportunities fund. It was changed to quant AMC took over the business of escorts , in 2018. The fund size is small 9,282 cr. With a high expense ratio of 1.73%. Currently CRISIL is rated as 3 star. The fund has a bit high PE of 31.19 Kotak Emerging Equity : The fund was launched in 2007. Currency CRISIL rated as 3 star. The fund is Second largest fund size of Rs 50,601,84 cr. Low expense Ratio 1.42. Current PE of 30.57. Axis Mid cap fund Fund: The fund was launched in the year 2011. Currently CRISIL is rated as 2. This is the 4th largest fund size in the category with a size of 30,854.63. The Fund has a high PE of 35.59. PGIM Mid cap fund Fund: The fund was launched in the year 2013, CRISIL rated as 1, The fund size is low at 11,216 cr. High expense ratio 1.7%. High PE of 41.54 Trailing Returns : Scheme 1 month 3 months 6 months 1 year 3 years 5 years 7 years 10 years 15 years 20 years Axis Midcap Fund (G) 7.18 11 27.29 44.72 18.62 26.54 20.6 18.09 Edelweiss Mid Cap Fund Reg (G) 9.08 15.29 28.84 57.53 26.95 32.74 21.34 20.71 21.23 HDFC Mid Cap Opportunities Fund (G) 4.89 10.98 20.1 46.64 29.04 31.24 20.04 19.68 21.53 HSBC Midcap Fund Reg (G) 7.21 10.47 24.22 56.55 23.96 27.21 16.52 18.67 18.75 19.56 ITI Mid Cap Fund Reg (G) 5.55 7.88 24.81 62.87 24.46 Kotak Emerging Equity (G) 7.25 12.95 29.65 47.54 24.16 30.6 20.19 20.62 19.91 Motilal Oswal Midcap Fund Reg (G) 7.15 21.07 33.24 61.92 37.28 34.58 22.26 21.35 Nippon India Growth Fund (G) 5.93 12.25 25.84 51.06 27.46 32.12 21.29 19.57 17.6 21.44 PGIM India Mid Cap Opp Fund Reg (G) 6.4 12.5 20.71 33.35 16.2 32.56 19.51 17.26 Quant MidCap Fund (G) 2.34 0.52 13.91 51.46 29.7 37.15 24.75 20.2 16.31 14.24 SBI Magnum MidCap Fund Reg (G) 6.08 10.81 20.98 36.09 23.07 30.08 17.97 18.04 18.21 1 year trailing 1st quartile : 55.5- 63%: ITI Mid Cap Fund Reg (G), Edelweiss Mid Cap Fund Reg (G), HSBC Midcap Fund Reg (G), Motilal Oswal Midcap Fund Reg (G) 2rd quartile : 48- 55.5% : Nippon India Growth Fund (G), Quant MidCap Fund (G) 3rd quartile : 40.5- 48% : HDFC Mid Cap Opportunities Fund (G), Kotak Emerging Equity (G), Axis Midcap Fund (G) 4th quartile : 33- 40.5 % : PGIM India Mid Cap Opp Fund Reg (G), SBI Magnum MidCap Fund Reg (G) 3 years trailing return 1st quartile : 32.5-38 %: Motilal Oswal Midcap Fund Reg (G) 2rd quartile : 27%- 32.5%: HDFC Mid Cap Opportunities Fund , Nippon India Growth Fund (G),Quant MidCap Fund (G) 3rd