Long-term scenario

LTCG Tax on Rs 10 Lakh Profit

On Rs 10 lakh LTCG, you pay 12.5% on Rs 8.75 lakh — that's Rs 1,09,375. Tax planning is essential at this level.

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Quick Tax Calculator for LTCG Tax on Rs 10 Lakh Profit

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

Capital Gain/Loss

₹10,00,000

LTCG

Tax Rate

12.5%

LTCG rate

Exemption Used

₹1,25,000

of Rs 1.25L limit

Tax Owed

₹1,09,375

Effective rate: 10.9%

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

Rs 10 lakh in LTCG results in Rs 1,09,375 in tax. This typically happens when long-held stocks are sold in a single financial year. Annual gain harvesting could have spread this across multiple years, each utilizing the Rs 1.25 lakh exemption.

Tax Breakdown

Profit amountRs 1,000,000
Less: LTCG exemptionRs 1,25,000
Taxable amountRs 875,000
Tax rate12.5%
Tax owedRs 1,09,375

Key Rules That Apply

  • 1Taxable LTCG: Rs 10,00,000 - Rs 1,25,000 = Rs 8,75,000
  • 2Tax owed: 12.5% of Rs 8,75,000 = Rs 1,09,375
  • 3Annual gain harvesting across 8 years could have made this entirely tax-free
  • 4Carry-forward LTCL from previous years can reduce taxable amount

How to Reduce This Tax

  • Check for carry-forward losses from previous ITRs
  • Harvest available short-term and long-term losses before year-end
  • In future, use annual gain harvesting to book Rs 1.25L per year tax-free
  • For exact lot-level analysis, upload your tradebook to TaxHarvestLab

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Common questions about this tax amount

How much tax on Rs 10 lakh LTCG?

Rs 1,09,375 (plus 4% cess). After the Rs 1.25 lakh exemption, Rs 8.75 lakh is taxed at 12.5%.

Could I have avoided this tax?

Partially, yes. Annual gain harvesting (selling and rebuying up to Rs 1.25L of gains each year) resets your cost basis tax-free. Over 8 years, Rs 10L in gains could have been realized entirely tax-free.

Can I pay in installments?

Capital gains tax must be paid as advance tax in the quarter it arises. Late payment attracts interest under Section 234C.

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