LTCG Tax Calculator 2026
Calculate Long-Term (12.5%), Short-Term (20%) Capital Gains Tax & Tax-Loss Harvesting strategies for Indian mutual funds & stocks.
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
Profit vs Tax Breakdown
₹3.21 L
₹29,250
Net Return on Investment: 64.15%
Step-by-Step Tax Calculation
| 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 |
Capital Gains Visual Breakdown
Comparison between total purchase value, gross capital profit, tax liability, and net retained profit.
Long-Term Capital Gains (LTCG) Architecture: The 12.5% Tax Framework
Under Section 112A of the Income Tax Act, gains realized from listed equity shares and equity-oriented mutual funds held for more than 12 months are subject to a flat 12.5% tax rate on cumulative annual gains exceeding the statutory exemption threshold of ₹1,25,000.
Includes the mandatory 4% Health & Education Cess. Note: Surcharges on equity LTCG are capped at a maximum of 15%.
Long-Term Capital Gains (LTCG) FAQs
Statutory answers for retail stock and mutual fund investors.
Is grandfathering relief from 31st January 2018 still valid for long-held shares?
Yes. For shares purchased on or before January 31, 2018, capital gains accumulated up to January 31, 2018 remain completely protected under the grandfathering provisions of Section 112A. The fair market value (highest price on 31 Jan 2018) is treated as the cost of acquisition.
Can LTCG from equity be offset by short-term capital losses (STCL)?
Yes. Under Section 70, short-term capital losses (STCL) can be set off against both short-term capital gains and long-term capital gains in the same financial year.
Can long-term capital losses (LTCL) be set off against short-term gains?
No. Long-term capital losses can only be set off against long-term capital gains, never against short-term capital gains.
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