Long-term scenario

LTCG Tax on Rs 1 Lakh Profit

Rs 1 lakh in long-term capital gains is fully exempt from tax — it falls within the Rs 1.25 lakh annual exemption.

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Quick Tax Calculator for LTCG Tax on Rs 1 Lakh Profit

Enter your buy and sell price to estimate the capital gains tax.

Capital Gain/Loss

₹1,00,000

LTCG

Tax Rate

12.5%

LTCG rate

Exemption Used

₹1,00,000

of Rs 1.25L limit

Tax Owed

₹0

Within exemption!

Estimates assume this is your only capital gain for the FY. Actual tax depends on total gains, losses, and carry-forward. For exact FIFO-based calculation, upload your tradebook.

How This Tax Is Calculated

Long-term capital gains up to Rs 1.25 lakh per financial year are completely tax-free on listed equity shares. Since Rs 1 lakh is below this threshold, no LTCG tax is owed. However, you must still report this gain in your ITR.

Tax Breakdown

Profit amountRs 100,000
Less: LTCG exemptionRs 1,25,000
Taxable amountRs 0
Tax rate12.5%
Tax owedRs 0

Key Rules That Apply

  • 1LTCG exemption limit: Rs 1.25 lakh per person per FY
  • 2LTCG rate above exemption: 12.5%
  • 3Holding period must exceed 12 months for long-term
  • 4FIFO method is mandatory for calculating gains

How to Reduce This Tax

  • This gain is already tax-free under the Rs 1.25L exemption
  • Consider gain harvesting: book gains up to Rs 1.25L each year to reset cost basis
  • Use TaxHarvestLab to check your remaining exemption after existing realized gains

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Common questions about this tax amount

Is Rs 1 lakh LTCG taxable?

No. Long-term capital gains up to Rs 1.25 lakh per financial year are fully exempt from tax on listed equity shares.

Do I need to report Rs 1 lakh LTCG in my ITR?

Yes. All capital gains must be reported in your income tax return, even if they fall within the exemption limit.

What if I have other LTCG gains this year?

The Rs 1.25 lakh exemption applies to your total LTCG for the financial year. If your other gains push the total above Rs 1.25 lakh, the excess is taxed at 12.5%.

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