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Calculate Long-Term (12.5%) & Short-Term (20%) Equity Capital Gains Tax under Budget 2024 rules
Classification: Long-Term Capital Gain (LTCG)
Holding period is over 12 months. Taxed at 12.5% on profits exceeding ₹1.25 Lakh per financial year (Section 112A).
Total Tax Liability
₹29,250
Effective Tax Rate: 8.4% of gross profit
₹3.21 L
₹29,250
Net Return on Investment: 64.15%
| Step / Particulars | Amount (₹) | Notes & Applicable Rules |
|---|---|---|
| 1. Purchase Value (Buy Price) | ₹5.00 L | Initial cost of acquisition |
| 2. Sale Value (Sell Price) | ₹8.50 L | Gross realization on sale |
| 3. Gross Capital Gain / Profit | ₹3.50 L | Sale Value − Buy Value |
| 4. Annual Tax-Free Exemption (Sec 112A) | − ₹1.25 L | Max ₹1,25,000 per financial year (Budget 2024 limit) |
| 5. Taxable Capital Gain | ₹2.25 L | Gross Profit − Exemption |
| 6. Base LTCG Tax (12.5%) | ₹28,125 | 12.5% of Taxable Gain |
| 7. Health & Education Cess (4%) | ₹1,125 | 4% on Base Tax |
| Total Tax Liability Payable | ₹29,250 | Base Tax + 4% Cess |
| Final Net In-Hand Profit | ₹3.21 L | Gross Profit − Total Tax |
Comparison between total purchase value, gross capital profit, tax liability, and net retained profit.
Capital Gains Tax applies when you sell listed equity shares or equity-oriented mutual funds at a profit. Under revised regulatory guidelines:
LTCG Tax Formula (Section 112A):
Taxable LTCG = Gross LTCG − ₹1,25,000
Total LTCG Tax = (Taxable LTCG × 12.5%) × 1.04
STCG Tax Formula (Section 111A):
Total STCG Tax = (Gross STCG × 20%) × 1.04
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