Educational guide
Long-Term Capital Gains Tax (LTCG) — Rates & Examples
Long-term capital gains tax in India is now a uniform 12.5% across most assets — with the equity ₹1.25 lakh exemption and a narrow indexation window for legacy property.
// equity & equity mfs
Holding > 12 months → LTCG. First ₹1,25,000 of aggregate equity LTCG in a financial year is exempt; the excess is taxed at 12.5%. Cess of 4% applies on the tax.
// property
Holding > 24 months → LTCG. For property purchased on/after 23 Jul 2024: 12.5% flat without indexation. For property purchased earlier: choose between 12.5% no-indexation OR 20% with-indexation — whichever yields lower tax.
// debt mfs, gold, unlisted
Holding > 24 months → LTCG at 12.5% without indexation. Debt MFs purchased on/after 1-Apr-2023 are an exception — they are always taxed at slab rate regardless of holding period.
// frequently asked questions
If you have any capital gains transaction, even if exempt, you should file an ITR-2 or ITR-3 declaring the same. Filing is mandatory if your total income (before LTCG exemption) crosses the basic exemption limit.