LTCG Tax Rate 2025-26 (The New 12.5% Rule)
Following the Union Budget 2024, the tax landscape for long-term gains has shifted significantly. Here are the primary rates you need to know for FY 2025-26:
- Listed Equity & Equity Mutual Funds: Taxed at **12.5%** (Increased from 10%). Only gains *above* ₹1.25 Lakh per year are taxable.
- Real Estate (Property): Taxed at **12.5%** without indexation benefits for properties acquired after July 2024. For older properties, there are specific grandfathering clauses.
- Gold & Unlisted Shares: Also aligned to the new **12.5%** rate in the 2024 overhaul.
LTCG vs STCG — What defines 'Long Term'?
The holding period defines whether your gain is Short Term (STCG) or Long Term (LTCG). This is critical because STCG rates are usually much higher (20% for equity).
How to Calculate LTCG with Example
Calculation for equity is straightforward after applying the ₹1.25L 'Free' limit. Let's look at an example:
- Buy Price: 100 shares at ₹2,000 (Total ₹2,00,000)
- Sell Price: 100 shares at ₹5,000 after 2 years (Total ₹5,00,000)
- Gross Profit: ₹3,00,000
- Exemption: -₹1,25,000
- Taxable Gain: ₹1,75,000
- Tax Amount (12.5%): **₹21,875**
Section 54F — Save LTCG Tax on Property/Mutual Funds
If you sell any long-term asset other than a residential house (like stocks, gold, or plot) and use the proceeds to buy a residential house, you can claim exemption under Section 54F. To get the full exemption, you must invest the entire net sale consideration into the new property.
Frequently Asked Questions
⚠️ Disclaimer
The figures provided by this calculator are estimates based on the inputs you provide and standard financial formulas. STOCKCALC.IN does not offer investment advice. Please consult a qualified financial advisor before making any investment decisions.