Calculate Long Term Capital Gains tax on your equity mutual funds and stocks — updated for Budget 2024 rules. LTCG on equity: 12.5% flat rate with ₹1.25 lakh annual exemption.
Budget 2024 changed the rules for long-term capital gains on equity mutual funds. Now, any profit from equity funds held for more than 12 months is taxed at a flat 12.5% — but with a generous exemption: your first ₹1,25,000 of gains in a financial year is completely tax-free. This calculator shows you exactly how much tax you owe and how to legally minimise it.
Meena sold equity mutual fund units and made ₹3,00,000 in profit this financial year (held 2+ years).
📌 Total LTCG: ₹3,00,000
📌 Minus annual exemption: ₹1,25,000
📌 Taxable LTCG: ₹1,75,000
📌 Tax at 12.5%: ₹21,875
📌 In-hand after tax: ₹2,78,125
Tax planning tip: Meena's friend Nita has ₹4 lakh gain. She's smart — she sells ₹2.5L worth before March 31, redeeming just above the exemption. Then in April (new financial year), she redeems the remaining ₹1.5L gain and gets another ₹1.25L exemption. She saves an extra ₹15,625 by splitting across two FYs — completely legal.
The ₹1.25 lakh LTCG exemption resets every April 1. If you're a long-term SIP investor sitting on large unrealised gains, consider "harvesting" up to ₹1.25L of gains every year — sell and immediately reinvest. This resets your cost basis and uses the exemption before it expires, saving you 12.5% on ₹1.25L = ₹15,625 every year, tax-free, for life.
Confusing the 12-month holding period for SIP investors. For SIPs, each monthly instalment has its own 12-month clock. The SIP you started 14 months ago qualifies for LTCG. Last month's instalment is still STCG at 20%. If you redeem your entire SIP today, part of your gain is LTCG (12.5%) and part is STCG (20%) — the calculator handles this split automatically.
Enter your purchase value, sale value, and holding period. We'll compute the exact LTCG tax and your net take-home amount after tax.
Long Term Capital Gains (LTCG) tax is the tax you pay when you sell an investment — equity mutual funds, listed stocks, or gold ETFs — after holding it for a qualifying period. Getting the calculation right matters because the difference between paying tax on the right amount versus overpaying can easily be ₹10,000–₹50,000 for a typical SIP investor redeeming after 3–5 years.
Not every gain is LTCG — the holding period is everything. For equity mutual funds (those investing at least 65% in Indian equities), you need to hold each unit for more than 12 months. Sell before that and you're looking at Short Term Capital Gains (STCG) at 20%. For debt mutual funds purchased after April 1, 2023, there is no LTCG — all gains are taxed at your income slab rate regardless of holding period. Gold ETFs and hybrid funds need a 24-month holding for LTCG treatment.
For SIP investors, this creates a complexity: each monthly SIP instalment starts its own 12-month clock. If you've been doing a SIP for 24 months and redeem everything today, the first 12 monthly instalments qualify for LTCG at 12.5%, while the last 12 are STCG at 20%. This is why a clean LTCG calculator that handles partial periods is essential.
Here is the exact formula used by Indian tax authorities for FY 2025–26:
The calculator above does all four steps automatically — including tracking how much of your ₹1.25L exemption is already used if you've redeemed other funds earlier in the same financial year.
The distinction between LTCG and STCG is not just about tax rates — it affects when you pay and how you can offset losses:
| Factor | LTCG (Long Term) | STCG (Short Term) |
|---|---|---|
| Holding period (equity MF) | More than 12 months | 12 months or less |
| Tax rate (equity MF) | 12.5% flat | 20% flat |
| Annual exemption | ₹1,25,000 per FY | None |
| Indexation allowed | No (for equity MF) | Not applicable |
| Loss set-off | Against LTCG only | Against STCG and LTCG |
| Loss carry forward | Up to 8 assessment years | Up to 8 assessment years |
The Union Budget 2024 (presented July 23, 2024) revised the LTCG framework in two material ways. First, the LTCG tax rate on listed equity shares and equity-oriented mutual funds was raised from 10% to 12.5%. Second, the annual exemption limit was increased from ₹1,00,000 to ₹1,25,000 per financial year. These changes took effect immediately on July 23, 2024 — gains realised after that date are taxed at the new rate, even if the investment was made before Budget day. For most long-term SIP investors, the higher exemption partially offsets the rate increase — you now save an extra ₹3,125 per year through the ₹25,000 increase in the exemption limit.
If you sell an equity fund at a loss and the holding period was more than 12 months, you have an LTCG loss. This loss can be set off against any LTCG gains in the same financial year — including gains from stocks, debt funds (pre-April 2023 purchases), or real estate — reducing your total taxable LTCG. Any remaining (unused) LTCG loss can be carried forward for up to 8 assessment years and set off against LTCG in those future years. LTCG loss cannot be set off against ordinary income (salary, rent, etc.) or STCG. To carry forward losses, you must file your income tax return before the due date — missing the ITR deadline forfeits the carry-forward benefit.