Back to tools

LTCG Calculator

Calculate Long Term Capital Gains tax on your investments with detailed analysis and optimization tips

Capital Gain

₹45,000

Before tax

Tax Payable

₹0

LTCG @ 10%

Net Gain

₹45,000

After tax

Effective Tax Rate

0.00%

On gains

Long Term Capital Gains

Holding Period: 4 years (Minimum for LTCG: 12 months)

Tax Rates for Equity/Mutual Funds

LTCG Tax: 10%
STCG Tax: 15%
LTCG Exemption: ₹1,00,000
Min. Holding Period: 12 months

Tax Calculation

Purchase Price: ₹1,00,000
Sale Price: ₹1,50,000
Expenses: ₹5,000

Capital Gain: ₹45,000
Exemption: -₹45,000
Taxable Gain: ₹0
Tax Rate: 10%

Tax Payable: ₹0

Return Analysis

Gross Return: 50.00%
Annualized Return: 10.67%
Net Return (After Tax): 50.00%
Tax Impact: 0.00%

Holding Period

Purchase Date: 1/1/2020
Sale Date: 1/1/2024
Holding Period: 4 years
Classification: Long Term

Tax Optimization

• You can gain up to ₹55,000 more tax-free this year

What If Scenarios

If sold at 55% gain:
₹5,250

Available Exemptions

• LTCG exemption up to ₹1 lakh per financial year

• No indexation benefit available

Important Notes

• This is an estimated calculation for reference only

• Actual tax may vary based on your tax slab and other factors

• Consider cess and surcharge if applicable

• Consult a tax advisor for complex transactions

• Set-off losses against gains where applicable

Understanding Capital Gains Tax

Long Term vs Short Term

  • Equity/MF: LTCG if held > 1 year
  • Real Estate: LTCG if held > 2 years
  • Debt MF/Gold: LTCG if held > 3 years
  • • LTCG rates are generally lower than STCG
  • • Timing of sale can significantly impact tax

Tax Rates (2023-24)

  • Equity LTCG: 10% (above ₹1L exemption)
  • Equity STCG: 15%
  • Non-Equity LTCG: 20% (with indexation)
  • Non-Equity STCG: As per income tax slab
  • • Plus applicable cess and surcharge

Indexation Benefit

  • • Available for debt funds, property, and gold
  • • Adjusts purchase price for inflation
  • • Uses Cost Inflation Index (CII)
  • • Significantly reduces taxable gains
  • • Not available for equity investments

Tax Planning Tips

  • • Plan sale timing for LTCG qualification
  • • Use annual ₹1L equity exemption limit
  • • Set-off losses against gains
  • • Consider reinvestment exemptions
  • • Maintain proper documentation