Is the ₹1.25 lakh exemption per stock or per year?

Per year, across all listed shares, equity mutual funds and business trust units together.

Do NRIs get the ₹1.25 lakh exemption?

Yes, the exemption under Section 112A is available to NRIs too, though TDS is deducted on their gains by the broker or fund.

Are bonus shares and splits taxed differently?

Bonus shares have a cost of nil (or the 31 January 2018 price if grandfathered), and the holding period starts from allotment. Split shares carry the original cost and date.

Can I rely on this calculator's result for filing?

Use it as a planning estimate. The final figure depends on the tax year's rules and your exact documents, so a CA should review it before you file or pay.

Does the calculator store my data?

No. The calculation runs in your browser and nothing you type is saved. If you want a CA to review it, share your documents through our checklist-led process.

Investment calculator

LTCG on Stocks / MF Calculator

Gains on listed shares and equity mutual funds held for more than 12 months are long-term capital gains under Section 112A. Since 23 July 2024, they are taxed at 12.5% on the amount above ₹1.25 lakh a year (earlier 10% above ₹1 lakh). STT must have been paid, and shares bought before 1 February 2018 use the 31 January 2018 price as cost if higher.

LTCG rate: 12.5%
Yearly exemption: ₹1.25 lakh
Long-term after: 12 months

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LTCG on Stocks / Equity MF

Long-term capital gains @12.5% on listed equity & MF above ₹1.25L exemption (from Jul 23, 2024).

12.5% LTCG

Applicable for: Listed equity shares, equity-oriented MF units, and units of business trusts held for more than 12 months (24 months for some assets). STT must have been paid on purchase and sale.

Sale value (₹)

Purchase value / cost of acquisition (₹)

For shares bought before Jan 31, 2018, use the grandfathering price (higher of actual cost or market value on Jan 31, 2018).

Total LTCG

₹10,00,000

Exempt (₹1.25L / year)

(₹1,25,000)

Taxable LTCG

₹8,75,000

LTCG Tax + Cess

₹1,13,750.00

Effective rate: 11.38%

Tax @12.5%

₹1,09,375.00

Net gain after tax

₹8,86,250.00

LTCG rate changed from 10% to 12.5% and exemption from ₹1L to ₹1.25L effective July 23, 2024 (Budget 2024). No indexation benefit for equity LTCG. Surcharge on LTCG capped at 15%. Loss can be set off against LTCG only.

Key rules

Rule	Detail
Holding period	More than 12 months
Rate	12.5% (plus surcharge capped at 15%, and 4% cess)
Exemption	First ₹1.25 lakh of LTCG in the year
Grandfathering	Cost = higher of actual cost and 31 Jan 2018 price (capped at sale value)
Rebate	Section 87A rebate doesn't reduce this tax
Losses	LTCL can be set off only against LTCG; carry forward 8 years

Tax harvesting

Booking up to ₹1.25 lakh of long-term gains every year and reinvesting resets your cost higher, so the exemption isn't wasted. Since there is no wash-sale rule in India, this is legitimate, but transaction costs and exit loads should be counted.

Worked example: selling shares held for 2 years

1Long-term gains in the year: ₹3,00,000.
2Less exemption ₹1,25,000 → taxable LTCG ₹1,75,000.
3Tax at 12.5% = ₹21,875, plus 4% cess = ₹875.

Tax ≈ ₹22,750.

Official sources

incometaxindia.gov.in

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