Capital Gains Tax If Sold After 1 Year
Shares held over 12 months qualify as long-term. First Rs 1.25 lakh is exempt, rest taxed at 12.5%.
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Enter values to calculate your tax
Quick Tax Calculator for Capital Gains Tax If Sold After 1 Year
Enter your buy and sell price to estimate the capital gains tax.
Capital Gain/Loss
₹1,00,000
LTCG
Tax Rate
12.5%
LTCG rate
Exemption Used
₹1,00,000
of Rs 1.25L limit
Tax Owed
₹0
Within exemption!
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
Once you cross the 12-month mark, the tax treatment improves dramatically. The first Rs 1.25 lakh of LTCG per year is tax-free, and gains above that are taxed at just 12.5% — compared to the 20% flat rate for short-term gains.
Tax Breakdown
Enter values in the calculator to see the tax breakdown for your scenario.
Key Rules That Apply
- 1Holding > 12 months = Long-term capital gain
- 2Rs 1.25 lakh exemption per person per FY
- 3LTCG rate: 12.5% on gains above exemption
- 4FIFO determines which specific lots qualify as long-term
How to Reduce This Tax
- Use the full Rs 1.25L exemption every year through gain harvesting
- Harvest losses to reduce net LTCG below the exemption threshold
- Plan sales across financial years for double exemption benefit
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Common questions about this holding period
Is 1 year holding tax-free?
Not entirely. LTCG up to Rs 1.25 lakh per FY is tax-free. Above that, 12.5% tax applies.
When exactly does 12 months start?
From the date of purchase (or allotment for IPOs/bonuses). The day after completing 12 months, it becomes long-term.
What about the grandfathering clause?
For shares bought before Feb 1, 2018, the cost basis is the higher of actual purchase price or the market price on Jan 31, 2018.