Long-term scenario

LTCG Tax on Rs 3 Lakh Profit

On Rs 3 lakh LTCG, the first Rs 1.25 lakh is exempt. Tax of 12.5% applies on Rs 1.75 lakh — that's Rs 21,875.

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Quick Tax Calculator for LTCG Tax on Rs 3 Lakh Profit

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

Capital Gain/Loss

₹3,00,000

LTCG

Tax Rate

12.5%

LTCG rate

Exemption Used

₹1,25,000

of Rs 1.25L limit

Tax Owed

₹21,875

Effective rate: 7.3%

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 3 lakh in LTCG, Rs 1.75 lakh is taxable after the exemption. At 12.5%, that's Rs 21,875. This is where loss harvesting becomes especially valuable — even Rs 50,000 in harvested losses saves Rs 6,250 in tax.

Tax Breakdown

Profit amountRs 300,000
Less: LTCG exemptionRs 1,25,000
Taxable amountRs 175,000
Tax rate12.5%
Tax owedRs 21,875

Key Rules That Apply

  • 1Taxable LTCG: Rs 3,00,000 - Rs 1,25,000 = Rs 1,75,000
  • 2Tax owed: 12.5% of Rs 1,75,000 = Rs 21,875
  • 3Short-term losses can offset LTCG before exemption applies
  • 4Consider spreading sales across FYs for double exemption

How to Reduce This Tax

  • Harvest both STCL and LTCL to reduce net LTCG
  • If near March 31, consider deferring some sales to next FY
  • Use gain harvesting on other stocks to utilize the full exemption

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Common questions about this tax amount

How much tax on Rs 3 lakh long-term capital gains?

Rs 21,875. After the Rs 1.25 lakh exemption, Rs 1.75 lakh is taxed at 12.5%.

How can I reduce LTCG tax on Rs 3 lakh?

Harvest losses from other stocks to offset the gains, or split your sales across two financial years to use Rs 2.5 lakh in total exemptions.

Is the Rs 1.25 lakh exemption per stock or total?

Total. The exemption applies to your aggregate LTCG across all listed equity shares and equity mutual funds for the financial year.

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