LTCG Tax on Rs 2 Lakh Profit
On Rs 2 lakh LTCG, the first Rs 1.25 lakh is exempt. You pay 12.5% tax on the remaining Rs 75,000 — that's Rs 9,375.
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Quick Tax Calculator for LTCG Tax on Rs 2 Lakh Profit
Enter your buy and sell price to estimate the capital gains tax.
Capital Gain/Loss
₹2,00,000
LTCG
Tax Rate
12.5%
LTCG rate
Exemption Used
₹1,25,000
of Rs 1.25L limit
Tax Owed
₹9,375
Effective rate: 4.7%
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
With Rs 2 lakh in long-term capital gains, the Rs 1.25 lakh exemption covers most of it. Only Rs 75,000 is taxable at 12.5%, resulting in a tax of Rs 9,375. Loss harvesting or timing your sales across financial years can reduce this further.
Tax Breakdown
Key Rules That Apply
- 1Taxable LTCG: Rs 2,00,000 - Rs 1,25,000 = Rs 75,000
- 2Tax owed: 12.5% of Rs 75,000 = Rs 9,375
- 3Exemption is per person, per financial year
- 4Losses (STCL or LTCL) can reduce taxable LTCG
How to Reduce This Tax
- Harvest short-term losses to offset LTCG before the exemption calculation
- Split sales across two financial years to use two years of exemption (Rs 2.5L total)
- Upload your tradebook to TaxHarvestLab for exact lot-level FIFO calculations
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Common questions about this tax amount
How much tax on Rs 2 lakh LTCG?
Rs 9,375. The first Rs 1.25 lakh is exempt, and the remaining Rs 75,000 is taxed at 12.5%.
Can I avoid this tax?
You can reduce it by harvesting losses to offset gains, or by splitting sales across financial years to use multiple years of exemption.
Does this include cess?
The 12.5% LTCG rate is the base rate. Health and education cess of 4% applies on top, making the effective rate approximately 13%.