About the LTCG Calculator
What is the LTCG Calculator?
Gains on listed shares and equity mutual funds held for more than 12 months are long-term capital gains (LTCG) under Section 112A. From 23 July 2024, the first ₹1.25 lakh of such gains each financial year is tax-free, and the rest is taxed at 12.5% plus cess.
Enter the sale value, purchase cost and any LTCG already booked this year. For shares bought before 1 February 2018, enter the fair market value on 31 January 2018 — the grandfathering rule lets you use it as your cost so older gains stay untaxed.
How to use the LTCG Calculator
- Sale Value (₹) (sample: 9,00,000)
- Purchase Cost (₹) (sample: 5,00,000)
- Fair Market Value on 31 Jan 2018 (₹, only if bought before 1 Feb 2018) (sample: 0)
- Brokerage & Transfer Expenses (₹) (sample: 0)
- Other Equity LTCG Already Booked This Year (₹) (sample: 0)
- Press Calculate LTCG Tax (results also refresh as you type). The result card shows the LTCG Tax Payable, along with Long-term capital gain, Cost used (after grandfathering), Exemption used (₹1.25 lakh a year) and Taxable LTCG.
Formula used
LTCG tax = (Gain − Unused ₹1.25 lakh exemption) × 12.5% × 1.04
- Cost (grandfathered) = higher of actual cost and the lower of FMV on 31 Jan 2018 and sale value
The exemption applies to the total of all Section 112A gains in the financial year, not per transaction.
Worked example
These are the sample values already filled in the calculator above, and the result it returns for them:
| Input | Sample value |
|---|---|
| Sale Value (₹) | 9,00,000 |
| Purchase Cost (₹) | 5,00,000 |
| Fair Market Value on 31 Jan 2018 (₹, only if bought before 1 Feb 2018) | 0 |
| Brokerage & Transfer Expenses (₹) | 0 |
| Other Equity LTCG Already Booked This Year (₹) | 0 |
| Result | Value |
|---|---|
| LTCG Tax Payable | ₹35,750 |
| Long-term capital gain | ₹4,00,000 |
| Cost used (after grandfathering) | ₹5,00,000 |
| Exemption used (₹1.25 lakh a year) | ₹1,25,000 |
| Taxable LTCG | ₹2,75,000 |
| Effective tax on the gain | 8.94% |
Tips for using the LTCG Calculator
- Book gains of up to ₹1.25 lakh every year to reset your cost higher tax-free.
- Long-term losses can be set off only against long-term gains and carried forward for 8 years.
- The 87A rebate cannot be used against LTCG taxed under Section 112A.