Archive · 18 Jun 2025
LTCG Tax Calculation May Be Complex This Fiscal Season
When you sell stocks or equity mutual funds, the profits are taxed as Long-Term Capital Gains (LTCG).
The tax rate depends on when you sold the assets.
You get to deduct some amount before calculating the tax.
Remember that you won't get a tax break (rebate) on these gains, even if your overall income is low.
Also, you must pay your taxes in advance if the total tax is above a certain amount.
LTCG from equities is taxed at 12.5% for assets sold after July 23, 2024, and 10% before.
An exemption of ₹1 lakh or ₹1.25 lakh is allowed on equity sold before and after July 23, 2024, respectively.
Basic exemption limits are ₹2.5 lakh (old regime) and ₹3 lakh (new regime).
Rebate under Section 87A is NOT available on LTCG from equity assets.
Advance tax must be paid if total tax liability exceeds ₹10,000.
- Who
- Taxpayers with LTCG from stocks or equity-oriented mutual funds.
- What
- Tax calculation complexities for LTCG from equities.
- When
- Assessment Year 2025-26 (FY 2024-25) and onwards.
- Where
- Not explicitly stated.
- Why
- To ensure accurate tax liability calculation and compliance.
Taxpayer
Tax Authority
Advance Tax Payment
Taxpayer
Taxpayers are required to pay advance tax.
Tax Authority
If capital gains arise after an installment date, you can pay in subsequent installments without interest.
- LTCG Tax Rate (Post July 23, 2024)
- 12.5%
- LTCG Tax Rate (Pre July 23, 2024)
- 10%
- LTCG Exemption (Post July 23, 2024)
- ₹1.25 lakh
- LTCG Exemption (Pre July 23, 2024)
- ₹1 lakh
- Old Tax Regime Basic Exemption
- ₹2.5 lakh
- New Tax Regime Basic Exemption
- ₹3 lakh
- Advance Tax Threshold
- ₹10,000
Sources
Missed The Advance Tax Deadline For First Instalment? Penalties For Taxpayers Missing Payments
How to file your ITR without a CA: Step-by-step guide for salaried individuals to file income tax return
Is Form 16 Sufficient For Filing ITR This Year? Here's What It Doesn't Tell You
