LTCG Tax Calculator 2026

Calculate Long-Term (12.5%), Short-Term (20%) Capital Gains Tax & Tax-Loss Harvesting strategies for Indian mutual funds & stocks.

Total Purchase Value (Buy Price)

₹

₹10,000₹1.00 Cr

Total Sale Value (Sell Price)

₹

₹10,000₹2.00 Cr

Holding Period (Months)

1120

Already Claimed LTCG Exemption This Year

₹

₹0₹1.25 L

Other taxable income (yearly)

₹

₹0₹5.00 Cr

Tax regime

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

Gross Profit: ₹3.50 L
Net In-Hand Profit: ₹3.21 L

Profit vs Tax Breakdown

Net In-Hand Profit: ₹3.21 L
Total Tax Paid: ₹29,250

Net Return on Investment: 64.15%

Step-by-Step Tax Calculation

Step / Particulars	Amount (₹)	Notes & Applicable Rules
Purchase Value (Buy Price)Initial cost of acquisition	₹5,00,000	Initial cost of acquisition
Sale Value (Sell Price)Gross realization on sale	₹8,50,000	Gross realization on sale
Gross Capital Gain / ProfitSale Value − Buy Value	₹3,50,000	Sale Value − Buy Value
Annual Tax-Free Exemption (Sec 112A)Max ₹1,25,000 per financial year (Budget 2024 limit)	− ₹1,25,000	Max ₹1,25,000 per financial year (Budget 2024 limit)
Taxable Capital GainGross profit less the exemption and any set-off	₹2,25,000	Gross profit less the exemption and any set-off
Base LTCG Tax (12.5%)12.5% of Taxable Gain	₹28,125	12.5% of Taxable Gain
Health & Education Cess (4%)4% on tax plus surcharge	₹1,125	4% on tax plus surcharge
Total Tax Liability PayableWhat the gain adds to your tax for the year	₹29,250	What the gain adds to your tax for the year
Final Net In-Hand ProfitGross Profit − Total Tax	₹3,20,750	Gross Profit − Total Tax

Capital Gains Visual Breakdown

Comparison between total purchase value, gross capital profit, tax liability, and net retained profit.

Tax Formulas

Standard Formula

Tax = (G − E − S) × r + R + SC, plus 4% cess and rounding D

Live Calculation (Plugging Your Values)

Gross Profit (G):₹3,50,000

Annual Tax-Free Exemption (Sec 112A) (E):₹1,25,000

Basic exemption set off (S):₹0

Tax rate (r):12.5%

87A change (R):+ ₹0

Surcharge (SC):₹0

Rounding to the nearest ₹10 (D):+ ₹0

Substituted Equation:

(₹3,50,000 − ₹1,25,000 − ₹0) × 12.5% = ₹28,125; ₹28,125 + ₹0 + ₹0 + cess ₹1,125, rounded to the nearest ₹10 (+ ₹0) = ₹29,250

Total Tax Liability:₹29,250

Long-term gains on listed equity are taxed at 12.5% under Section 112A after the annual ₹1,25,000 exemption (E); short-term gains at 20% under Section 111A. The gain sits on top of your other income: any part of the nil slab that income leaves unused is set off against the gain first (S), Section 87A is tested on total income with the gain included (R is the rebate it takes away, or under the old regime the rebate it gets), and above ₹50 lakh of total income a surcharge (SC) applies, capped at 15% on the gain's tax. 4% cess is charged on the tax plus surcharge, and the total is then rounded to the nearest ₹10 (Section 516 of the Income-tax Act, 2025). The year's tax is rounded both with the gain and without it, and D is the few rupees by which the two roundings differ. At most incomes S, R and SC are nil and the tax is simply the gain × rate × 1.04, plus D. A loss attracts no tax.

About Capital Gains Tax on Mutual Funds & Stocks (Budget Rules)

Capital Gains Tax applies when you sell listed equity shares or equity-oriented mutual funds at a profit. Under revised regulatory guidelines:

Long-Term Capital Gains (LTCG — Section 112A): Applies when equity investments are held for more than 12 months. Taxed at 12.5% on gains exceeding ₹1.25 Lakhs per financial year.
Short-Term Capital Gains (STCG — Section 111A): Applies when equity investments are held for 12 months or less. Taxed at 20% on the gain.
Tax-Loss Harvesting: An effective strategy where you sell profitable equity investments up to ₹1.25L before March 31 to utilize your zero-tax limit and immediately repurchase to reset your cost base.

Authoritative References

How these numbers are checked →

Long-Term Capital Gains (LTCG) FAQs

What is the LTCG tax rate on equity in India?

Under Section 112A, Long-Term Capital Gains on listed equity shares and equity mutual funds held for more than 12 months are taxed at a flat 12.5%, on gains exceeding ₹1,25,000 per financial year. Indexation is not available on equity.

How much LTCG is exempt from tax in India?

₹1,25,000 of equity LTCG per financial year, raised from ₹1,00,000 with effect from FY 2024-25. The exemption applies once per taxpayer across all equity holdings, not per scheme or per demat account.

Can long-term capital losses be set off against STCG?

No. Under Sections 70 and 71, a Long-Term Capital Loss can only be set off against Long-Term Capital Gains. It cannot be adjusted against STCG, salary or any other head, but it can be carried forward for 8 assessment years.

What is the LTCG holding period for different assets?

Listed equity, equity mutual funds and listed bonds: 12 months. Unlisted shares, immovable property and gold: 24 months. Debt mutual funds bought after 1 April 2023 are always taxed at slab rate regardless of holding period.

Is the Rs 1.25 lakh LTCG exemption available under both regimes?

Yes. The Rs 1.25 lakh exemption on equity and equity mutual fund gains under section 112A applies identically in the Old and New Regimes, because capital gains are taxed at special rates outside the slabs. Your regime choice changes nothing here. What does change is the section 87A rebate. It never reaches 112A tax in either regime (Section 112A(6)), so LTCG stays taxable at 12.5% even if your total income is below Rs 12 lakh. Under the new regime it does not reach 111A tax either; under the old regime it can, when total income is Rs 5 lakh or less.

How does grandfathering work for shares bought before 31 January 2018?

For listed equity and equity funds held on 31 January 2018, the cost is taken as the higher of your actual purchase price and the fair market value on that date, capped at the sale price. So gains that accrued up to 31 January 2018 stay untaxed. If you bought at Rs 100, the 31 January 2018 price was Rs 250 and you sell at Rs 400, your taxable gain is Rs 150 a share, not Rs 300. Report the FMV in Schedule 112A of the return, scrip by scrip.

Is LTCG on gold and property also taxed at 12.5%?

Yes, 12.5% without indexation is now the standard long-term rate for gold, unlisted shares and property after 23 July 2024, with a 24-month holding period. There is no Rs 1.25 lakh exemption on these — that belongs only to section 112A equity. Property has one extra option: a resident individual or HUF who bought before 23 July 2024 may instead pay 20% with indexation and choose whichever comes out lower.

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