LTCG

Long-Term Capital Gains are the profit you make on an asset held beyond the statutory long-term holding period. In Indian tax law, the threshold and rate depend on the asset class: 12 months for listed equity and equity-oriented mutual funds, 24 months for most other assets including immovable property, unlisted shares, debt funds (acquired pre-April 2023), and gold/jewellery. LTCG treatment usually carries a lower tax rate than regular income, which is why holding period planning matters.

Post the Union Budget of July 2024, listed equity LTCG is taxed at 12.5% on gains above ₹1.25 lakh per financial year (the first ₹1.25L is exempt). Property and other assets are taxed at 12.5% without indexation (or 20% with indexation for land/building acquired before 23 July 2024, at the seller's choice). Example: sell a flat bought for ₹60 lakh in 2018 for ₹1 crore in 2026 — LTCG is ₹40 lakh, tax ₹5 lakh at 12.5% flat.

Debt mutual funds purchased on/after 1 April 2023 no longer get LTCG treatment at all — gains are taxed at slab rate regardless of holding period. Losses can be carried forward for 8 years.

Our capital gains calculator handles all these post-Budget 2024 rules — enter purchase date, sale date, and amounts to see the exact tax across equity, debt, property, and gold.