Long Term Capital Gain Tax Calculator

Long term capital gain tax is levied on profits earned from sale of assets held for longer duration. In India, long term capital gain tax is typically lower than short-term rates, making it advantageous for investors. 

Long-term capital gains tax (LTCG) in India applies to profits from sale of assets held for more than 12 months. For listed equity shares & equity-oriented mutual funds, LTCG tax rate is 12.5% for exceeding 1.25 Lakh. Investors can use long term capital gains tax calculator to estimate taxes for long-term gains, ensuring accurate tax planning. Additionally, utilizing long term capital gains tax calculator can help compare different tax scenarios. For comprehensive financial planning, incorporating long term capital gains tax calculator is essential for managing LTCG effectively

Capital assets are personal belongings that may or may not have anything to do with business or vocation. Common capital asset examples include jewelry, bonds, mutual funds, patents, & trademarks. But personal clothing & furnishings, as well as rural agricultural land, are not considered capital assets.

Long-Term Capital Gains, or LTCG, is profit made from holding assets such as bonds, stocks, commodities, & real estate etc. for a longer horizon. Duration of ownership, whether "long Term" or "Short Term," varies depending on the kind of asset. According to the Income Tax Act of 1961, it is defined.

-You can see how capital assets are categorized as long-term on holding duration in the table.

-Capital gains from shares & equity-oriented mutual funds that are held for a year or more are subject to long-term capital gains tax.

-As per the recent budget announced by Finance Minister Mrs. Sitharaman the 12.5% Long-Term Capital Gains tax is levied on gains exceeding ₹ 1.25 lakh per fiscal year.

- Time frame in which you sold units of equity-oriented mutual funds or shares must be selected. Investment is free from long-term capital gains tax if you make your choice before March 31, 2018. Should you make your decision after April 1, 2018, long-term capital gains tax will apply.

-If you have held an investment for a shorter amount of time, you can then choose a holding term shorter than a year.

-Both investment's purchase & selling values must be entered.

-You may view LTCG taxes with the 5Paisa LTCG Calculator.

-If you have invested for a period longer than a year, you must choose a holding period of more than a year.

- Investment's sale value is then your choice.
You have to indicate whether you want to buy units on or before January 31, 2018, depending on which date works best.

-  Calculator will ask you for fair market value if you choose the latter option.

-You may view long-term capital gain & long-term capital gains tax with 5Paisa LTCG Calculator.
 

Let’s understand the LTCG Calculator with an example;

This example will help you comprehend how the LTCG calculator operates. In June 2018, you paid ₹ 2,000 for 150 shares of ABC Company Ltd. In Feb 2021, you sold each of 150 shares for ₹ 3,000.

- Shares you own have been held for more than a year. ₹ 1,50,000 (150 * 3000 – 150 * 2000) profit is referred to as long-term capital gains.

-For gains beyond ₹ 1.25 lakh in a fiscal year, you are required to pay long-term capital gains tax. On ₹ 25,000 (₹ 1,50,000 – ₹ 1,25,000), you have 12.5% LTCG tax. Long-term capital gains tax of ₹ 3,125 is paid by you. (₹ 25,000 @ 12.5%) rupees.

-In only a few seconds, 5Paisa LTCG Calculator will provide long-term capital gains tax associated with buying & selling shares & equity-oriented funds.

-After deducting taxes, you are given an overview of the investment's true return. It assists you in determining the best time frame for your equity fund & share investments to maximize tax savings.

-Since you already know how much capital gains tax you will pay over the course of the holding period—either short-term or long-term—you may plan your investments in equity instruments.

LongTerm Capital Gain tax on listed equity shares & equity-oriented mutual funds is 12.5% for gains exceeding ₹1.25 lakh, with no indexation benefits. In case of immovable property, unlisted shares, gold and bonds, while the tax rate for long Term Capital Gain has been lowered from 20% to 12.5%, the benefit of indexation would no longer be available. Understanding implications of Long Term Capital Gain tax is crucial for efficient tax planning & maximizing investment returns. Using a Long Term Capital Gain tax calculator can help investors estimate their liabilities accurately.