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 Exit Load Quant small cap fund 1996 3 26,645 cr 1.59 1% for redemption within 365 days Bandhan Small cap fund 2020 4 7,534 cr 1.74 1% for redemption within 365 days Hdfc Small cap fund 2008 3 33,894 cr 1.57 1% for redemption within 365 days Nippon India small cap fund 2010 4 62,260 cr 1.42 1% for redemption within 365 days Axis Small cap fund 2013 2 24,766 cr 1.61 For units in excess of 10% of the investment, 1% will be charged for redemption within 365 days HSBC Small Cap fund 2014 4 17,306 cr 1.68 For units in excess of 10% of the investment, 1% will be charged for redemption within 365 days SBI small cap fund 2009 3 34,217 cr 1.56 1% for redemption within 365 days DSP small Cap fund 2007 1 16,705 cr 1.7 1% for redemption within 364 days Kotak Small cap Fund 2005 3 18,287 cr 1.64 For units in excess of 10% of the investment, 1% will be charged for redemption within 365 days Mahindra Manulife Small Cap Fund Reg (G) 2022 – 5,478 cr 1.79 1% for redemption within 3 months ITI Small Cap Fund Reg (G) 2020 5 2,415 cr 1.93 1% for redemption within 365 days Quant small cap fund : One of the oldest performing funds in the category, enjoying 3 star rating, but of course it was not launched by quant but had been taken over by quant, with a decent portfolio size of 26,645 cr , expense ratio of 1.59. Bandhan Small cap fund : Launched in 2020 , bandhan small cap enjoys 4 star rating , Portfolio size is small at 7,534 cr, high expense ratio of 1.74.  Hdfc Small cap fund: Launched in 2008 , the fund enjoys a 3 star rating . It has a decent fund size of 33,894 cr, and seems like a lot of people liked it . The expense ratio is very low 1.57. Nippon India small cap fund : Launched in 2010, the category leader enjoys a 4 star rating. Highest fund size of 62,260 cr, managed by sunil singhania before exit. Lowest expense ratio of 1.42% . Axis Small cap fund : Launched in 2013 , the fund enjoys a 2 star rating. Even with this rating the fund has a decent portfolio size of 24,766 cr , as it was favorite at some point in time. 1.61% expense ratio is very decent. HSBC Small Cap fund : Launched in 2014, the fund was very much in demand in its earlier times. It enjoyed a rating of 4. Portfolio size of 17,306 cr . Expense ratio is a bit high 1.68%. SBI small cap fund : Launched in 2009, with the distribution power of SBI bank , the fund is the 3rd highest fund size of 34,217 Cr. Fund is 3 star rated. Low expense ratio of 1.56%. DSP small Cap fund : Launched in 2007, the fund is 1 star rated. Fund size is 16,705 cr. High expense ratio of 1.64%. Kotak Small cap Fund : The fund was launched in 2005. Currently rated as 3 star. Has garnered a decent fund size of 18,287 cr. Decent expense ratio of 1.64% . Mahindra Manulife Small Cap: The fund launched in 2022, so the fund is not rated till now. Very Small fund size of 5,478 cr. High expense ratio of 1.79%. 7 ITI Small Cap Fund Reg (G): The fund was launched in 2020, is highest rated as of now at 5. The fund size is not too big 2,415 cr. The expense ratio is 1.93 . Trailing Returns : Scheme 1 Year 3 Year 5 Year 7 Year 10 Year 15 Year Bandhan Small Cap Fund Reg (G) 59.88 26.44 0 0 0 0 Kotak Small cap Fund (G) 36.99 19.06 31.17 20.07 19.97 18.93 HSBC Small Cap Fund Reg (G) 36.45 25.81 30.69 18.71 21.04 14.36 Axis Small Cap Fund Reg (G) 32.9 20.96 27.3 21.5 19.86 0 Mahindra Manulife Small Cap Fund Reg (G) 45.25 0 0 0 0 0 Nippon India Small Cap Fund (G) 39.97 28.75 35.78 22.63 22.85 0 DSP Small cap Fund Reg (G) 32.45 21.83 30.55 17.54 19.76 20.97 ITI Small Cap Fund Reg (G) 46.97 20.36 0 0 0 0 SBI Small Cap Fund Reg (G) 32.25 20.38 27.97 19.42 22.53 21.16 Quant Small Cap Fund (G) 43.97 25.67 45.81 26.28 20.84 17.94 HDFC Small Cap Fund (G) 27.17 22.48 28.22 18.88 19.25 17.52 Even though in the market the past returns are no guarantee of future returns but let us understand how in this rising market these funds have performed. Well we do have trailing returns history for last 24 years since only one fund was present at that moment we would consider the following 13 years trailing ,we see that looking at 1year/ 3 years / 5 years /7 years /10/15 years returns 1 year trailing 1st quartile : 51.25 – 60% – Bandhan Small Cap Fund Reg (G), 2rd quartile : 42.5 – 51.25 % – Mahindra Manulife Small Cap Fund Reg (G), ITI Small Cap Fund Reg (G), Quant Small Cap Fund (G) 3rth quartile : 33.75 – 42.5 % – Nippon India Small Cap Fund (G), Kotak Small cap Fund (G), HSBC Small Cap Fund Reg (G), 4th quartile : 25 – 33.75 % – Axis Small Cap Fund Reg, DSP Small cap Fund Reg (G), SBI Small Cap Fund Reg (G), HDFC Small Cap Fund (G) 3 years trailing return 1st quartile : 25 – 29%: Bandhan Small Cap Fund Reg (G), HSBC Small Cap Fund Reg (G), Nippon India Small Cap Fund (G), Quant Small Cap Fund (G) 2nd quartile: 21- 25%: DSP Small cap Fund Reg (G), HDFC Small Cap Fund (G) 3rd quartile : 17 – 21% : Kotak Small cap Fund (G), ITI Small Cap