Ltcg Taxation

Long-Term Capital Gains Tax

Tax Implications for Investors

Exemption and Tax Rates

Long-term capital gains (LTCG) on the sale of listed equity shares over Rs. 1 lakh per financial year are subject to a tax rate of 10%. LTCG up to Rs. 1 lakh in a financial year is exempt from tax.

Tax-Saving Strategies

Investors can legitimately save on LTCG tax by engaging in specific investments or activities outlined in the Income Tax Act.

Tax on Long-Term Capital Gains

In India, profits from the sale of assets held for more than 24 months are subject to LTCG tax. The tax rate is 20.8% of the profit after indexation of cost. Alternatively, investors can opt to pay tax at 10% without indexation.