What is the LTCG tax rate on equity mutual funds in India 2026?+
Long-Term Capital Gains (LTCG) on equity shares and equity mutual funds: 12.5% on gains exceeding ₹1.25 lakh in a financial year (increased from ₹1 lakh in Budget 2024). Holding period for LTCG: more than 12 months. No indexation benefit. Short-Term Capital Gains (STCG): 20% (increased from 15% in Budget 2024), for holdings ≤ 12 months.
How to calculate LTCG on property sold in 2026?+
Property LTCG (held for more than 24 months): Tax Rate = 12.5% without indexation (changed from July 23, 2024 Budget). Previously you could choose between 20% with indexation or 12.5% without. Gain = Sale Price – Cost of acquisition – Improvement costs – Transfer expenses. LTCG amount can be reinvested in another property (54EC bonds) within 6 months to claim exemption.
What is the LTCG exemption limit on equity?+
LTCG on equity shares and equity mutual funds is tax-free up to ₹1.25 lakh per financial year (increased from ₹1 lakh in Budget 2024). Only the gains exceeding ₹1.25 lakh are taxed at 12.5%. This exemption is per taxpayer per year, not per transaction. Strategic redemption each year to harvest gains below ₹1.25 lakh can significantly reduce your tax burden.
What is the holding period for LTCG vs STCG on different assets?+
Holding period thresholds: Equity shares/MF listed on exchange: LTCG if held > 12 months, STCG if ≤ 12 months. Debt MF, bonds: LTCG if held > 24 months (taxed at slab rate as per 2023 amendment). Immovable property (land/building): LTCG if held > 24 months. Gold/jewellery: LTCG if held > 24 months. Unlisted shares: LTCG if held > 24 months.
How to save capital gains tax on property sale in India?+
Tax-saving options for property LTCG: Section 54: Invest in another residential property within 1 year (before) or 2 years (after) sale, or construct within 3 years. Section 54F: For sale of any capital asset (not property), invest entire sale proceeds in a new house. Section 54EC: Invest up to ₹50 lakh in NHAI/REC bonds within 6 months of sale (lock-in: 5 years).