Long-term scenario

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.

Try it yourself

Enter values to calculate your tax

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

Profit amountRs 200,000
Less: LTCG exemptionRs 1,25,000
Taxable amountRs 75,000
Tax rate12.5%
Tax owedRs 9,375

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

Upload your portfolio for personalized analysis

Upload your tradebook for exact FIFO-based calculations and personalized tax optimization recommendations.

Analyze my portfolio — free

Upload your tradebook · No data stored permanently

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%.

💚