LTCG Calculator
Enter what you paid and what you're selling for. You get the long-term capital gains tax on listed shares and equity mutual funds held for more than a year, after this year's ₹1.25 lakh tax-free limit.
By Hardik Vegad, founder of WealthGamma · Last updated
LTCG tax to pay
₹9,750
On a gain of ₹2,00,000. ₹1,25,000 is tax-free and the rest is taxed at 12.5% plus 4% cess.
₹1,25,000 of the ₹1,25,000 tax-free limit used100%
Capital gain
₹2,00,000
Tax-free part
₹1,25,000
Taxable gain
₹75,000
Net in-hand profit
₹1,90,250
What is LTCG tax on shares and mutual funds?
LTCG tax is the tax on profit from listed shares and equity mutual funds you held for more than 12 months. The rate is 12.5% on gains above ₹1.25 lakh in a financial year, plus 4% cess. Gains up to ₹1.25 lakh are tax-free.
These are the rates set in the July 2024 Budget. Check the current rates before you file.
How is LTCG tax calculated?
Take the gain, remove what is left of the yearly limit, and tax the rest:
Capital gain = Sell value − Purchase value
Taxable gain = Capital gain − Unused part of ₹1.25 lakh
LTCG tax = Taxable gain × 12.5% × (1 + 4% cess)
Worked through for units bought at ₹6,00,000 and sold at ₹8,00,000:
- ₹8,00,000 − ₹6,00,000 = ₹2,00,000 of gain
- ₹2,00,000 − ₹1,25,000 = ₹75,000 taxable
- ₹75,000 × 12.5% × 1.04 = ₹9,750
If you had already realised ₹1,00,000 of long-term gains this year, only ₹25,000 of the limit is left and the tax on the same sale rises to ₹22,750.
How much LTCG is tax-free?
The first ₹1.25 lakh of long-term gains in a financial year is tax-free. The limit is per person and counts every sale of listed shares and equity funds in the year together.
| Long-term gain | Taxable gain | LTCG tax |
|---|---|---|
| ₹1,00,000 | ₹0 | ₹0 |
| ₹1,25,000 | ₹0 | ₹0 |
| ₹2,00,000 | ₹75,000 | ₹9,750 |
| ₹5,00,000 | ₹3,75,000 | ₹48,750 |
| ₹10,00,000 | ₹8,75,000 | ₹1,13,750 |
No other long-term gains in the year. 4% cess included.
What counts as long-term?
Listed shares and equity mutual funds are long-term once you've held them for more than 12 months. Sold on or before that, the gain is short-term and taxed at 20%. Use the STCG calculator for those.
In a SIP, every instalment has its own 12-month clock. When you redeem, the fund sells your oldest units first, so a redemption can be part long-term and part short-term.
What about shares bought before 31 January 2018?
Gains made up to 31 January 2018 are protected. For those shares and units, your purchase value for tax is the higher of what you actually paid and the price on 31 January 2018 (capped at your sell value). Enter that figure as the purchase value here.
How can you reduce LTCG tax?
Two legal ways, and both work every year:
- Use the limit every year. Sell up to ₹1.25 lakh of gains and buy back. The gain is tax-free and your purchase value resets higher.
- Set off losses. A long-term or short-term capital loss cuts your long-term gains before tax is worked out.
The tax harvesting calculator works out both from your gains and losses.
What does this LTCG calculator leave out?
It covers listed shares and equity mutual funds only. It doesn't count:
- Other assets. Debt funds, property, gold and unlisted shares follow different rules.
- Surcharge. It applies only at high incomes.
- Losses. Capital losses you can set off this year, or ones carried forward.
- Costs. Brokerage and exit loads, which lower your real gain.
Frequently asked questions
What is the LTCG tax rate on shares and equity mutual funds?
12.5% on long-term gains above ₹1.25 lakh in a financial year, plus 4% cess. It applies to listed shares and equity mutual funds held for more than 12 months.
How much LTCG is tax-free?
The first ₹1.25 lakh of long-term gains from listed shares and equity funds in a financial year. The limit is per person and covers all such sales in the year added together.
How do I calculate LTCG tax?
Gain = sell value − purchase value. Subtract what is left of the ₹1.25 lakh limit, then take 12.5% and add 4% cess. A ₹2 lakh gain with the full limit unused is taxed ₹9,750.
Is indexation available on LTCG from shares?
No. Gains on listed shares and equity mutual funds are taxed without indexation. You pay the flat rate on the gain above the yearly limit.
How is LTCG on a SIP calculated?
Each SIP instalment has its own 12-month clock. When you redeem, the fund sells your oldest units first, so only instalments older than a year count as long-term.
Can I avoid LTCG tax?
You can lower it. Book up to ₹1.25 lakh of gains every year and buy back, or set off capital losses against your gains. The tax harvesting calculator works out both.