Knowledge Base

Capital Gains Tax (LTCG/STCG)

LTCG = 12.5% above ₹1.25L. STCG = 20% (equity)

Equity LTCG (held >1 year): 12.5% on gains above ₹1.25L. No indexation from FY24-25.

Equity STCG (held <1 year): 20% flat rate.

Debt fund gains: Taxed at slab rate regardless of holding period (from FY 2023-24).

Real estate LTCG: 12.5% without indexation OR 20% with indexation (choose beneficial).

Section 54/54F: Reinvest property sale proceeds in new house to save LTCG tax.

Pro Tip

Tax-loss harvesting: Book losses before March 31 to offset gains and stay within the ₹1.25L LTCG exemption.

Capital Gains Tax (LTCG/STCG) - Complete Guide

Everything you need to know about Capital Gains Tax (LTCG/STCG) and how to optimize your financial strategy.

Understanding the Formula

The core calculation is based on:

LTCG = 12.5% above ₹1.25L. STCG = 20% (equity)

Key Concepts & Rules

Equity LTCG (held >1 year): 12.5% on gains above ₹1.25L. No indexation from FY24-25.

Equity STCG (held <1 year): 20% flat rate.

Debt fund gains: Taxed at slab rate regardless of holding period (from FY 2023-24).

Real estate LTCG: 12.5% without indexation OR 20% with indexation (choose beneficial).

Section 54/54F: Reinvest property sale proceeds in new house to save LTCG tax.

Expert Strategy

Tax-loss harvesting: Book losses before March 31 to offset gains and stay within the ₹1.25L LTCG exemption.

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