Long-term capital gain
Profit on an investment held beyond the long-term period, usually taxed more gently.
A long-term capital gain is the profit from selling an investment after holding it long enough to qualify, 12 months for listed equity and longer for most other assets. It is usually taxed at a lower rate than a short-term gain, and equity long-term gains get a yearly exemption. Rates and limits change at Budget time, so check the current rules.
Questions people ask
What is the full form of LTCG?
LTCG stands for long-term capital gain, the profit from selling an investment after holding it beyond the long-term period, 12 months for listed equity and longer for most other assets.
What is the LTCG tax rate on shares?
For listed equity sold after 23 July 2024, long-term gains are taxed at 12.5%, and the first ₹1.25 lakh of such gains each year is exempt. Rates change at Budget time, so confirm on incometax.gov.in.
Is there indexation on LTCG now?
For most financial assets, no. Indexation was removed from 23 July 2024, so equity long-term gains are taxed at 12.5% without it. Some property bought earlier may still have a choice.
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