Finance Minister Nirmala Sitharaman on Tuesday said the government plans to raise capital gains exemption limit on certain financial assets to Rs 1.25 lakh per year for middle and upper middle class. Long Term Capital Gains (LTCG) tax will be increased from 10 to 12.5% while the Short Term Capital Gains (STCG) tax on some assets will be increased from 15% to 20%. Unlisted bonds, debt mutual funds will continue to be taxed at applicable tax rate.