What is LTCG tax rate on equity in India for FY 2025-26?

Long-Term Capital Gains (LTCG) on equity shares and equity mutual funds above ₹1.25 lakh are taxed at 12.5% (without indexation) for FY 2025-26, following Budget 2024 changes. Gains up to ₹1.25 lakh are exempt. Holding period for equity must exceed 12 months.

What is STCG tax rate on equity in India?

Short-Term Capital Gains (STCG) on equity and equity mutual funds (held less than 12 months) are taxed at 20% for FY 2025-26 (increased from 15% in Budget 2024). This applies when Securities Transaction Tax (STT) is paid.

How is LTCG on property calculated in India?

LTCG on immovable property (held more than 24 months) is taxed at 12.5% without indexation from FY 2024-25. Previously indexation benefit was available at 20% rate. Taxpayers can choose either 12.5% without indexation or 20% with indexation for property acquired before July 23, 2024.

Capital Gains Tax Calculator India — STCG & LTCG 2025-26

Capital Gains Tax in India — FY 2025-26 Complete Guide

Capital gains arise when you sell a capital asset — stocks, mutual funds, property, gold, bonds — for more than you paid. India taxes these gains differently based on the type of asset and how long you held it. Budget 2024 made significant changes effective 23 July 2024.

STCG vs LTCG — Holding Periods

Asset	LTCG Threshold	STCG Rate	LTCG Rate
Listed Equity / Equity MF	> 12 months	20%	12.5% (above ₹1.25L)
Debt Mutual Fund (post-Apr 2023)	—	Slab rate	Slab rate
Immovable Property	> 24 months	Slab rate	12.5% (no indexation)
Gold / Silver / Other	> 24 months	Slab rate	12.5% (no indexation)

Budget 2024 Changes (from 23 July 2024)

→LTCG on equity raised from 10% to 12.5%; LTCG exemption limit raised from ₹1L to ₹1.25L
→STCG on equity raised from 15% to 20%
→Indexation benefit removed for property and gold LTCG (flat 12.5%)
→Holding period for property reduced from 36 to 24 months for LTCG

LTCG Harvesting Strategy

The ₹1.25L annual exemption on equity LTCG is per year. Savvy investors book gains up to ₹1.25L each financial year (before 31 March) to utilise this exemption tax-free. This is called LTCG harvesting. You can then reinvest at a higher cost basis, reducing future tax liability.

Set-off and Carry Forward

Capital losses can be set off against capital gains. Short-term losses can offset both STCG and LTCG. Long-term losses can only offset LTCG. Unadjusted losses can be carried forward for 8 years. To carry forward losses, filing ITR before the due date is mandatory.

Sold property or have large equity gains?

Capital gains tax planning is complex — Section 54 / 54F / 54EC exemptions for property, LTCG harvesting for equity, timing redemptions across financial years. Our CA can help you minimise the tax impact legally. Get a consultation →