LTCG Calculator — Long-Term Capital Gains Tax (India, FY 2026-27)

LTCG tax rates FY 2026-27 (unchanged from Budget 2024)

Section 112A vs Section 112 — which LTCG rule applies?

The Income-tax Act has two parallel LTCG provisions, and which one governs your gain is decided by whether Securities Transaction Tax (STT) has been paid on the asset.

• Section 112A applies to listed equity shares, equity-oriented mutual-fund units, and business-trust units on which STT was paid on the sale (and, for shares, also on the original acquisition). Rate: 12.5% flat on gains above the ₹1.25 lakh annual exemption. No indexation, ever — equity never had indexation and Section 112A makes that explicit. The ₹1.25 lakh exemption is per assessee per FY, not per asset.
• Section 112(1)(a) is the residual rule for any other long-term capital asset: unlisted equity, property, gold, debt instruments, foreign stocks, bonds, artwork, debentures. Rate: 12.5% flat post-Budget-2024 with no indexation. For property acquired before 23 July 2024, Section 112 offers the taxpayer-friendly alternative of 20% with CII indexation if that produces a lower tax (per the Finance (No. 2) Act, 2024).

Grandfathering — pre-31-Jan-2018 listed equity: if you bought listed equity before 1 February 2018, the acquisition cost for LTCG purposes is the higher of (actual cost) or (fair market value on 31 January 2018). This protects gains accrued before Section 112A came into effect in Budget 2018. Our calculator auto-applies this when an acquisition date before that cutoff is entered.

Worked examples — long-term capital gains tax calculator in action

Example 1 — Listed equity LTCG (Section 112A)

• Bought 1,000 shares of Infosys at ₹1,480 on 10 March 2024 (cost ₹14,80,000)
• Sold all 1,000 at ₹1,920 on 15 May 2026 (proceeds ₹19,20,000)
• Holding: 26 months → long-term
• STT paid on both legs → Section 112A applies
• Gain = ₹19,20,000 − ₹14,80,000 = ₹4,40,000
• Less ₹1,25,000 annual exemption → taxable ₹3,15,000
• Tax @ 12.5% = ₹39,375 + 4% cess = ₹40,950
• Total LTCG tax payable = ₹40,950

Example 2 — Property LTCG: 12.5% vs 20% indexation choice

• Bought apartment for ₹60,00,000 in November 2015 (CII 254, registration in FY 2015-16)
• Sold for ₹1,40,00,000 in August 2026 (FY 2026-27, CII projected 391)
• Holding: ~10 years 9 months → long-term, pre-23-Jul-2024 → choice available

Option A — 12.5% flat, no indexation:

• Gain = ₹1,40,00,000 − ₹60,00,000 = ₹80,00,000
• Tax @ 12.5% = ₹10,00,000 + 4% cess = ₹10,40,000

Option B — 20% with indexation:

• Indexed cost = ₹60,00,000 × (391 / 254) = ₹92,36,220
• Gain = ₹1,40,00,000 − ₹92,36,220 = ₹47,63,780
• Tax @ 20% = ₹9,52,756 + 4% cess = ₹9,90,866

Option B (indexation) wins by ~₹49,134 for this 11-year holding. The crossover flips when holding is short and appreciation is steep; see our full property LTCG indexation-choice guide for the full matrix.

Example 3 — Gold LTCG (post-Budget-2024, 24-month threshold)

• Bought 500 g physical gold at ₹6,800/g = ₹34,00,000 in April 2024
• Sold 500 g at ₹7,600/g = ₹38,00,000 in June 2026
• Holding: 26 months → long-term (24-month post-Budget-2024 threshold, down from 36)
• Gain = ₹4,00,000
• Tax @ 12.5% = ₹50,000 + 4% cess = ₹52,000 (no indexation)

For pre-July-2024 gold purchases, the 36-month + 20%-indexation rule would have applied; from FY 2024-25 onwards all gold LTCG falls under the unified 12.5% flat.

Example 4 — Unlisted equity LTCG (e.g., pre-IPO startup shares)

• ESOP allotment of 5,000 shares at FMV ₹200 in January 2024
• Company IPO at ₹650 in April 2026; sold post-listing in September 2026 at ₹750
• Holding: 32 months → long-term
• Gain = (750 − 200) × 5,000 = ₹27,50,000 (no STT on the original allotment; treated under Section 112 not 112A)
• Tax @ 12.5% flat = ₹3,43,750 + 4% cess = ₹3,57,500

Key nuance: because the allotment was off-market (no STT), Section 112A does not apply even though the sale post-listing happens on a STT-paid exchange. For the calculator, enter this as “unlisted equity” not “listed equity” to get the correct Section 112 treatment.

Example 5 — Section 54EC bond exemption claim

• Continuing from Example 2 — Option B = ₹47,63,780 indexed gain
• Within 6 months of sale, invest ₹47,63,780 (up to ₹50 L cap) into NHAI / REC 54EC bonds
• 5-year lock-in; interest 5.25% p.a. taxable at slab
• LTCG tax post-exemption: ₹0 (full exemption because invested amount ≥ indexed gain)
• Comparison: saves ₹9,90,866 of tax at the cost of locking ₹47 L for 5 years at 5.25%
• Breakeven vs taxable deployment depends on what else you would do with the ₹47 L; modelled in our property LTCG guide.

How to calculate LTCG on equity / equity mutual funds?

1. Confirm long-term holding period. Check holding period for listed equity / equity mutual funds: must be 12 months or more from purchase to sale date. Anything below 12 months is STCG at 20%.
2. Compute the nominal gain. Gain = (Sale price × Units) − (Purchase price × Units) − brokerage / STT on the buy and sell legs. No indexation is permitted for equity under Section 112A.
3. Apply the ₹1.25 lakh annual exemption. Subtract ₹1,25,000 from your total Section 112A gains across all equity transactions in the financial year. The exemption is per assessee per FY, not per asset.
4. Apply the 12.5% flat rate. Multiply the post-exemption taxable gain by 12.5%. Add a 4% health and education cess on the tax amount. Surcharge applies if total income exceeds ₹50 lakh.

How to calculate LTCG on property (12.5% vs 20% indexation)?

1. Check acquisition date against the 23 July 2024 cutoff. For property bought before 23 July 2024 and held over 24 months, you have a CHOICE between 12.5% flat (no indexation) and 20% with CII indexation. For property bought on or after that date, only 12.5% flat applies.
2. Compute Option A — 12.5% flat. Gain = Sale consideration − Original cost − Stamp duty / registration paid − Improvement cost. Tax = 12.5% × gain + 4% cess.
3. Compute Option B — 20% with indexation (pre-cutoff only). Indexed cost = Original cost × (CII of sale FY / CII of acquisition FY). Use CBDT-notified CII values (FY 2001-02 = 100 base). Tax = 20% × (Sale − Indexed cost) + 4% cess.
4. Choose the lower tax outcome. Pick whichever option produces less tax. Indexation typically wins for long holdings (10+ years); flat 12.5% wins for short-tenure / high-appreciation properties.
5. Claim 54 / 54EC / 54F exemption if reinvesting. Re-invest LTCG into another residential property (Section 54), up to ₹50 lakh in NHAI/REC bonds within 6 months (Section 54EC), or full sale consideration into a residential house (Section 54F) to fully or partially eliminate the tax.

How to calculate LTCG on debt mutual funds (pre-1-Apr-2023 units)?

1. Check the 1 April 2023 acquisition cutoff. Debt mutual funds purchased on or after 1 April 2023 are taxed at SLAB rate under Section 50AA, regardless of holding period — there is no LTCG distinction. Use the Debt Fund Tax Calculator instead.
2. For pre-1-Apr-2023 units, verify 36-month holding. Debt MF units bought before 1 April 2023 still follow the legacy rule: holding ≥ 36 months qualifies as LTCG; less than 36 months is STCG at slab rate.
3. Apply 20% with indexation. Indexed cost = Acquisition cost × (CII of redemption year / CII of investment year). LTCG tax = 20% × (Redemption value − Indexed cost) + 4% cess.
4. Adjust against unabsorbed LTCL if any. Carry-forward long-term capital losses (up to 8 years) can offset this LTCG. File ITR-2/ITR-3 to report under Schedule CG.

Is LTCG tax-free up to ₹1.25 lakh in India?

The ₹1.25 lakh exemption is specific to Section 112A — listed equity and equity mutual funds where STT has been paid. It is an annual, per-assessee exemption: every financial year, the first ₹1,25,000 of equity LTCG is wiped out before the 12.5% rate is applied. For property, gold, unlisted equity, debt MFs, or any non-Section-112A asset, there is no exemption — the 12.5% (or 20% indexed) rate applies from the first rupee of gain. This is the single biggest difference between equity and non-equity LTCG planning.

Do I need to pay advance tax on long-term capital gains?

Yes — advance tax obligations cover LTCG just like salary or business income, once your total tax liability for the year (including LTCG) exceeds ₹10,000 net of TDS. The four instalments are 15% by 15 June, 45% by 15 September, 75% by 15 December, 100% by 15 March. Capital gains arising in a later quarter can be paid with the next instalment without 234C interest for prior quarters — a relief specific to capital gains. Equity LTCG under Section 112A has no TDS for resident individuals, so advance tax + self-assessment is the only collection mechanism. NRIs face TDS at 12.5% on equity and per Section 195 rates on other assets.

LTCG exemption sections — Section 54, 54EC, 54F

Three exemption routes reduce or eliminate LTCG on specific asset classes. Each has strict timing and reinvestment rules; missing any condition cancels the exemption retroactively.

• Section 54 — residential property → residential property. Sale of a residential house. Re-invest the LTCG (not the full sale proceeds) into one or two residential properties within India within 2 years (buy) or 3 years (build). Exemption capped at ₹10 Cr per transaction post-Budget 2023. Holding period on the new property: 3 years — sale earlier revokes the exemption.
• Section 54EC — bond investment. Any long-term asset sale. Re-invest up to ₹50 lakh of the LTCG into specified bonds (NHAI, REC, PFC, IRFC) within 6 months. 5-year lock-in. Interest ~5.25% p.a. taxable. Only option that caps the bond investment but allows any LTCG source, including equity.
• Section 54F — any other long-term asset → residential. Sale of any long-term asset other than a residential house. Re-invest the full sale consideration (not just the gain) into one residential property within 2 / 3 years. Pro-rated exemption if reinvested amount is partial. Cannot own more than one other residential property at the time of claiming.

Set-off and carry-forward of long-term losses

LTCL (long-term capital loss) is narrower than STCL:

• Same-year: LTCL can only be set off against LTCG from another transaction in the same year. It cannot offset STCG or any income head other than LTCG.
• Carry-forward: unabsorbed LTCL carries forward for 8 assessment years and in each year can offset only LTCG, never STCG or other income. Filing the ITR by the original due date is a prerequisite; belated returns forfeit carry-forward.
• Equity LTCL: post-April-2018, loss on listed equity / equity MF sold after 12 months with STT paid is a recognised long-term capital loss and can be offset against any LTCG. Before April 2018, Section 10(38) exempted equity LTCG and disallowed equity LTCL set-off; that changed with the introduction of Section 112A.
• Crypto (VDA) exception: Section 115BBH explicitly disallows set-off of crypto losses against any other head — not even other crypto gains can carry forward. Treat crypto as a separate tax regime, not as capital gains.

Advance tax on LTCG

Advance tax is due in four instalments (15% by 15-Jun, 45% by 15-Sep, 75% by 15-Dec, 100% by 15-Mar) if total tax liability including LTCG exceeds ₹10,000 net of TDS. Capital gains realised in a later quarter can be paid with the next instalment without 234C interest for prior quarters. Section 112A equity LTCG has no TDS for resident individuals; you pay entirely through advance tax / self-assessment.

On property sale above ₹50 lakh, buyer deducts 1% TDS under Section 194-IA. This flows into your Form 26AS + AIS and is credited as a TDS credit against LTCG tax liability in the ITR. For NRI sellers, TDS on LTCG is 12.5% (equity) or per Section 195 rates (other assets) — seek Form 13 lower-deduction certificate before the sale if your actual liability is lower.

Reporting LTCG in your ITR

LTCG mandates ITR-2 or ITR-3. ITR-1 has no Schedule CG and filing with any capital gain triggers a Section 139(9) defective return. Schedule CG has separate rows for 112A (listed equity), 112 at 12.5% (most other long-term assets), 112 at 20% indexation (grandfathered property), and exemption claims under 54 / 54EC / 54F. See our ITR filing + AIS reconciliation guide for the form-choice decision tree and the exact Schedule CG mapping.