LTCG Tax on Rs 5 Lakh Profit
On Rs 5 lakh LTCG, you pay 12.5% on Rs 3.75 lakh (after exemption) — that's Rs 46,875 in tax.
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Quick Tax Calculator for LTCG Tax on Rs 5 Lakh Profit
Enter your buy and sell price to estimate the capital gains tax.
Capital Gain/Loss
₹5,00,000
LTCG
Tax Rate
12.5%
LTCG rate
Exemption Used
₹1,25,000
of Rs 1.25L limit
Tax Owed
₹46,875
Effective rate: 9.4%
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 5 lakh in LTCG means Rs 3.75 lakh is taxable. At 12.5%, the tax is Rs 46,875. At this level, active tax planning through loss harvesting and annual gain harvesting becomes essential to minimize your liability.
Tax Breakdown
Key Rules That Apply
- 1Taxable LTCG: Rs 5,00,000 - Rs 1,25,000 = Rs 3,75,000
- 2Tax owed: 12.5% of Rs 3,75,000 = Rs 46,875
- 3Annual gain harvesting (booking up to Rs 1.25L/year) prevents this accumulation
- 4STCL can offset LTCG, reducing the taxable amount
How to Reduce This Tax
- If you have unrealized losses, harvest them to offset gains
- Consider annual gain harvesting in future years to prevent large LTCG buildup
- TaxHarvestLab identifies exact lots and quantities to sell for optimal tax outcome
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Common questions about this tax amount
How much tax on Rs 5 lakh LTCG?
Rs 46,875. After the Rs 1.25 lakh exemption, Rs 3.75 lakh is taxed at 12.5%.
Can I reduce Rs 5 lakh LTCG tax?
Yes — harvest losses, split sales across FYs, or use carry-forward losses from previous years.
What is gain harvesting?
Selling stocks at a profit up to Rs 1.25 lakh each year to book gains tax-free and reset the cost basis. This prevents large gains from accumulating.