LTCG on Equity Mutual Fund — Tax Above ₹1.25 Lakh

Bought equity MF for ₹5 lakh, sold at ₹8 lakh after 18 months: gain ₹3 lakh. LTCG exemption: ₹1.25 lakh. Taxable LTCG: ₹1.75 lakh. Tax at 12.5%: ₹21,875. Net profit after tax: ₹2,78,125.

LTCG — 12.5% above ₹1.25L

₹3,00,000

Tax Payable

₹21,875

LTCG Exemption

₹1,25,000

Tax Rate

12.5%

Long-Term Capital Gain (held 12+ months): 12.5% on gains above ₹1.25L — no indexation benefit (Budget 2024).

For listed equity shares and equity mutual funds only. Rates as per Budget 2024 (effective 23 July 2024).

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Common questions about LTCG on Equity Mutual Fund — Tax Above ₹1.25 Lakh

What is the LTCG exemption limit for equity?

From Budget 2024, LTCG on equity/equity MF above ₹1.25 lakh is taxed at 12.5% (up from ₹1L at 10%). Gains up to ₹1.25 lakh per financial year are completely tax-free. Holding period must be 12+ months for LTCG.

Is there still indexation benefit on equity LTCG?

No, Budget 2024 removed indexation benefit for all asset classes. Equity LTCG is now a flat 12.5% above ₹1.25L exemption without indexation. For property, the rate dropped from 20% with indexation to 12.5% without.