Indian Capital Gains Tax (LTCG/STCG) Estimator

Navigating Capital Gains Tax in India (Budget 2024)

The Union Budget 2024 introduced significant changes to the taxation of capital gains in India. Understanding these rules is crucial for investors to calculate their net post-tax returns accurately.

1. Short-Term Capital Gains (STCG)

If you sell listed equity shares or equity-oriented mutual funds within 12 months of purchase, the profit is considered STCG. As per the latest rules, STCG is now taxed at a flat rate of 20% (previously 15%).

2. Long-Term Capital Gains (LTCG)

Profits made on equity investments held for more than 12 months are classified as LTCG. The new tax rate for LTCG is 12.5% (previously 10%).

3. The New Exemption Limit

The government has increased the exemption limit for LTCG on equity from ₹1 Lakh to ₹1.25 Lakh per financial year. This means you only pay the 12.5% tax on the portion of your long-term profits that exceeds ₹1,25,000.

Why use this Tax Estimator?

• Budget 2024 Compliant: Automatically applies the new 20% STCG and 12.5% LTCG rates.
• Exemption Logic: Factors in the ₹1.25L exemption for long-term investors.
• Holding Period Check: Helps you decide if waiting a few more months could save you 7.5% in taxes.