Long term capital gains tax on equity shares and mutual funds for FY 2025-26. Includes Section 112A, ₹1.25 lakh annual exemption, and grandfathering (FMV as of 31 Jan 2018).
Under Section 112A of the Income Tax Act, long term capital gains on listed equity shares and equity mutual funds are taxed at 12.5% on gains above ₹1.25 lakh per financial year. Gains below ₹1.25L are fully exempt.
A holding period of more than 12 months qualifies as long term for listed equity. For debt mutual funds held after April 1, 2023, LTCG rules no longer apply — these are taxed at slab rates.
For shares and equity MFs held before February 1, 2018, the cost of acquisition is deemed to be the higher of: (a) the actual purchase price, or (b) the fair market value (closing price on NSE/BSE) as of January 31, 2018. This protects gains earned before LTCG was reintroduced in Budget 2018. Enter the Jan 31, 2018 closing price in the "Grandfathering price" field above.
| Asset | Holding period for LTCG | LTCG rate | STCG rate |
|---|---|---|---|
| Listed equity shares (NSE/BSE) | > 12 months | 12.5% (above ₹1.25L exempt) | 20% |
| Equity mutual funds | > 12 months | 12.5% (above ₹1.25L exempt) | 20% |
| Debt mutual funds (post Apr 2023) | N/A | Slab rate (no LTCG) | Slab rate |
| Unlisted shares | > 24 months | 12.5% (no indexation) | Slab rate |
| Property / real estate | > 24 months | 12.5% (no indexation, post Jul 2024) | Slab rate |
Every financial year (April–March), the first ₹1.25 lakh of LTCG on equity is tax-free. If you have multiple sell transactions, enter the total LTCG already booked this year in the "Prior LTCG" field — the calculator adjusts the exemption accordingly.
Strategic tax harvesting: if your total LTCG is close to ₹1.25L at year end, consider booking more gains before March 31 — or deferring sales to the next financial year to start fresh.