Securing Hannav Ledger...
Securing Hannav Ledger...
Glossary
Long-Term Capital Gains are profits from selling capital assets held beyond the statutory minimum holding period for that asset class.
Hold investments long enough and profits qualify as long-term gains, often with lower tax rates or exemptions than short-term.
Equity LTCG typically requires 12+ months holding. Exemptions like ₹1.25 lakh annual LTCG on equity may apply per current rules. Real estate LTCG benefits from indexation on older property regimes — rules evolve with each budget.
After holding listed shares for 18 months, you sell for ₹5 lakh gain. LTCG tax applies only on amount exceeding the statutory exemption threshold per current IT rules.
Finance Acts periodically adjust the annual exemption limit on listed equity and equity-oriented fund LTCG. Verify the current threshold before selling.
Post-2023 debt mutual fund taxation largely moved to slab rates without indexation benefit for units purchased after specified dates. Legacy holdings may differ.
Sections 54 and 54F allow reinvestment in residential property under conditions to defer LTCG on real estate — consult a tax advisor for eligibility.