What is the LTCG tax rate for AY 2025-26 and what is the exemption limit?

For AY 2025-26 (FY 2024-25), LTCG tax rates are: Equity and equity mutual funds — 12.5% on gains above ₹1.25 lakh per year (increased from 10% on gains above ₹1 lakh in Budget 2024, effective 23 July 2024). Property, gold, debt MF — 12.5% without indexation (or 20% with indexation for property purchased before 23 July 2024, taxpayer's choice). The LTCG exemption limit for equity is ₹1.25 lakh per financial year — gains up to this amount are completely tax-free.

How is LTCG tax calculated on sale of property with indexation in India?

LTCG on property with indexation (only for property purchased before 23 July 2024): Indexed Cost = Purchase Price × (CII of Sale Year ÷ CII of Purchase Year). LTCG = Sale Price − Indexed Cost − Improvement Cost − Transfer Expenses. Tax = LTCG × 20%. For property sold after 23 July 2024, the taxpayer can choose: either 12.5% without indexation OR 20% with indexation — whichever results in lower tax. The Cost Inflation Index for FY 2024-25 is 363 and FY 2023-24 is 348.

What changed in LTCG tax after Budget 2024?

Budget 2024 made significant LTCG changes effective 23 July 2024: (1) Equity LTCG rate increased from 10% to 12.5%. (2) Equity LTCG exemption limit increased from ₹1 lakh to ₹1.25 lakh. (3) Equity STCG rate increased from 15% to 20%. (4) Property/gold LTCG rate reduced from 20% with indexation to 12.5% without indexation. (5) For property bought before 23 July 2024, taxpayer can choose between old (20% with indexation) and new (12.5% without indexation) — whichever gives lower tax.

Can I save LTCG tax by reinvesting in property or bonds?

Yes. Section 54 (reinvest in residential property): LTCG from property sale can be exempted by buying a new residential house within 1 year before or 2 years after sale (or constructing within 3 years). The exemption equals the lower of LTCG or new property cost. Section 54EC (capital gains bonds): Invest up to ₹50 lakh in NHAI or REC 54EC bonds within 6 months of sale to exempt LTCG. These bonds have a 5-year lock-in and earn ~5% interest (taxable). Section 54F: For sale of assets other than property, reinvest entire sale proceeds (not just gains) in residential property to claim full LTCG exemption.

What is the Cost Inflation Index (CII) for FY 2024-25?

The Cost Inflation Index (CII) for FY 2024-25 is 363, notified by the CBDT. Key CII values: FY 2024-25: 363, FY 2023-24: 348, FY 2022-23: 331, FY 2021-22: 317, FY 2020-21: 301, FY 2019-20: 289, FY 2018-19: 280, FY 2017-18: 272, FY 2016-17: 264, FY 2015-16: 254, FY 2014-15: 240, FY 2013-14: 220, FY 2012-13: 200, FY 2011-12: 184, FY 2010-11: 167, FY 2009-10: 148, FY 2008-09: 137, FY 2001-02: 100 (base year).

How to calculate LTCG on sale of equity mutual funds?

LTCG on equity mutual funds (held 12+ months): Step 1: Calculate total sale proceeds. Step 2: Subtract cost of acquisition (purchase price). Step 3: Subtract LTCG exemption of ₹1.25 lakh. Step 4: Apply 12.5% tax on remaining gains. Example: Bought equity MF units for ₹5 lakh in 2022, sold for ₹8 lakh in 2025. LTCG = ₹3 lakh. Less exemption = ₹1.25 lakh. Taxable LTCG = ₹1.75 lakh. Tax = ₹1.75L × 12.5% = ₹21,875. Plus 4% cess = ₹875. Total tax = ₹22,750.

Is LTCG on property sale taxable if I reinvest in another property?

Under Section 54, LTCG from sale of a residential property is exempt if you purchase or construct another residential property in India. Rules: (1) Must be ONE residential property (not commercial). (2) Purchase within 1 year before or 2 years after sale; or construct within 3 years. (3) Exemption = Lower of (LTCG amount) or (Cost of new property). (4) New property cannot be sold within 3 years. (5) Capital Gains Account Scheme: If new property not purchased before ITR filing deadline, deposit the gains in CGAS (bank) to preserve exemption eligibility.

What is the LTCG holding period for different assets in India?

LTCG holding period for different assets: Listed equity shares and equity mutual funds — 12 months (1 year). Listed bonds and debentures — 12 months. Unlisted shares — 24 months (2 years). Immovable property (land, building) — 24 months. Gold and gold ETFs — 24 months. Debt mutual funds — 24 months. REITs and InvITs — 36 months. Any asset held shorter than this is STCG. Assets must be held beyond the holding period to qualify for LTCG rates.

LTCG Tax Calculator India 2025-26 — Long Term Capital Gains on Property, Equity & Gold

Calculate LTCG tax on property sale with indexation, equity mutual funds, gold, and all assets. Includes Budget 2024 changes, CII table, Section 54 exemptions, and old vs new method comparison.

🏠 Property LTCG: 12.5% or 20% with Indexation 📈 Equity LTCG: 12.5% above ₹1.25L 🆕 CII FY 2024-25: 363 ✅ Sec 54 / 54EC Exemption Shown 📋 Budget 2024 Rates Applied

Property LTCG Calculator

Your LTCG Tax After Budget 2024

Enter sale price, purchase price, and year of purchase. With indexation (20%) vs without (12.5%) comparison shown automatically for property bought before 23 Jul 2024.

📅 Year of Purchase

📅 Year of Sale

📋 Tax Slab (for surcharge)

Sale Price (₹)₹80.00 L

₹1 Lakh₹10 Crore

Purchase Price (₹)₹20.00 L

₹1 Lakh₹5 Crore

Improvement / Renovation Cost₹0

₹0₹50 Lakh

Transfer / Sale Expenses₹2.00 L

₹0₹20 Lakh

Sec 54 / 54EC Reinvestment₹0

₹0 (No Exemption)₹1 Crore

📋 Holding Period

Purchase / Cost Value (₹)₹5.00 L

₹10,000₹5 Crore

Sale / Current Value (₹)₹8.00 L

₹10,000₹10 Crore

LTCG Already Used This Year₹0

₹0₹1.25 L (Full Limit)

🎉 Gold Type

📋 Tax Slab

Purchase Price (₹)₹5.00 L

₹10,000₹5 Crore

Sale / Redemption Value (₹)₹9.00 L

₹10,000₹10 Crore

💼 Asset Type

📋 Tax Slab

Purchase / Cost Value (₹)₹5.00 L

₹10,000₹5 Crore

Sale / Current Value (₹)₹9.00 L

₹10,000₹10 Crore

WHICH METHOD SAVES MORE?

✅ With Indexation

₹0

20% rate

📈 Without Indexation

₹0

12.5% rate

+300% gain

Cost Gain Tax

🚀 Plan LTCG Tax Saving on WhatsApp

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B.E. | MBA Finance | NISM Certified | 7+ Years in Finance

📋 LTCG Tax Rates FY 2024-25 (AY 2025-26) — After Budget 2024 Changes

Budget 2024 changed LTCG rates for most assets effective 23 July 2024. The table below applies to transactions after that date.

Asset Class	Holding for LTCG	LTCG Rate	STCG Rate	Exemption Limit	Indexation?
Listed Equity Shares	12 months	12.5%	20%	₹1.25L/yr	No
Equity Mutual Funds	12 months	12.5%	20%	₹1.25L/yr	No
Equity-Oriented Hybrid MF (>65%)	12 months	12.5%	20%	₹1.25L/yr	No
Residential Property / Land	24 months	12.5% (no idx) 20% (with idx)*	Slab rate	Sec 54/54EC	Optional*
Commercial Property	24 months	12.5%	Slab rate	Sec 54F/54EC	No (post Jul 2024)
Gold / Gold ETF	24 months	12.5%	Slab rate	None	No
Sovereign Gold Bond (8yr maturity)	8 years	0% (Tax-Free!)	N/A	Full exemption	N/A
Debt Mutual Funds	—	Slab rate	Slab rate	None	No (removed Apr 2023)
Unlisted Shares	24 months	12.5%	Slab rate	None	No
REITs / InvITs	36 months	12.5%	20%	None	No
Foreign Equity / Assets	24 months	12.5%	Slab rate	None	No

* For residential property purchased before 23 July 2024: taxpayer can choose between (a) 12.5% without indexation OR (b) 20% with indexation — whichever gives lower tax. For property bought on/after 23 July 2024: only 12.5% without indexation applies. Plus 4% Health & Education Cess on LTCG tax. Surcharge applies if total income exceeds ₹50 lakh.

📅 Cost Inflation Index (CII) Table — FY 2001-02 to FY 2024-25

CII is used to calculate indexed cost of acquisition for property LTCG. Indexed Cost = Purchase Price × (CII of Sale Year ÷ CII of Purchase Year).

Financial Year	CII	Financial Year	CII	Financial Year	CII
FY 2024-25	363	FY 2016-17	264	FY 2008-09	137
FY 2023-24	348	FY 2015-16	254	FY 2007-08	129
FY 2022-23	331	FY 2014-15	240	FY 2006-07	122
FY 2021-22	317	FY 2013-14	220	FY 2005-06	117
FY 2020-21	301	FY 2012-13	200	FY 2004-05	113
FY 2019-20	289	FY 2011-12	184	FY 2003-04	109
FY 2018-19	280	FY 2010-11	167	FY 2002-03	105
FY 2017-18	272	FY 2009-10	148	FY 2001-02	100 (Base)

Base year for CII is FY 2001-02 = 100. If property was purchased before 2001, use the Fair Market Value (FMV) as on 1 April 2001 as the cost of acquisition — not the original purchase price. CII is notified annually by CBDT (Central Board of Direct Taxes). Formula: Indexed Cost = Purchase Price × (Sale Year CII ÷ Purchase Year CII). The indexed cost is then deducted from sale price to arrive at taxable LTCG under the 20% with indexation method.

✅ How to Save LTCG Tax — Section 54, 54EC & 54F Exemptions

Indian tax law provides multiple routes to reduce or eliminate LTCG tax on property sale. Plan your reinvestment carefully to minimise tax outgo.

Section 54

Reinvest in Residential Property

Sell a residential property and buy/construct another residential property in India. Buy within 1 year before or 2 years after sale. Construct within 3 years. Exemption = lower of LTCG or new property cost. New property can't be sold within 3 years.

✅ Exemption up to full LTCG amount

Section 54EC

Capital Gains Bonds (NHAI / REC)

Invest LTCG in NHAI, REC, PFC, or IRFC 54EC bonds within 6 months of sale. 5-year lock-in. Interest ~5% p.a. (taxable). Maximum investment: ₹50 lakh per financial year. Available from banks and online bond platforms.

✅ Exemption up to ₹50 Lakh

Section 54F

Sell Any Asset, Buy Residential Property

For LTCG from sale of any long-term asset (gold, unlisted shares, commercial property) — reinvest the ENTIRE sale proceeds (not just gains) in a residential property. Exemption proportional to amount invested vs total proceeds.

✅ Full exemption if full proceeds reinvested

Capital Gains Account (CGAS)

Bank Deposit Before ITR Filing

If you cannot purchase/construct a new property before the ITR filing deadline, deposit the LTCG amount in a Capital Gains Account Scheme (CGAS) at an authorised bank. This preserves the Section 54 exemption while you complete the reinvestment within the allowed time.

✅ Protects exemption till reinvestment

Section 54B

Agricultural Land Sale Exemption

LTCG from sale of agricultural land used for agriculture is exempt if reinvested in new agricultural land within 2 years. Must be used for agricultural purposes for at least 2 years before and after. Maximum exemption = lower of LTCG or new land cost.

✅ Agricultural land LTCG exempt

Equity ₹1.25L Limit

Annual LTCG Harvesting — Equity

LTCG up to ₹1.25 lakh per year on equity and equity MF is completely tax-free. Strategy: redeem and immediately reinvest ₹1.25L of gains every year in March. This resets cost basis and eliminates future LTCG on that portion — tax-free compounding.

✅ ₹1.25L/year tax-free equity gains

📌 Pocket Wealth Note: Section 54 exemptions require careful timing and documentation. LTCG tax planning should begin before the sale, not after. Vikash Royal (ARN: ARN-356458) can connect you with a qualified CA for property LTCG tax planning alongside your investment planning.

💡 4 Smart LTCG Tax Planning Strategies

Reduce your LTCG tax bill legally and efficiently — before and after the sale.

🍻

Harvest ₹1.25L Equity LTCG Tax-Free Every Year

LTCG up to ₹1.25 lakh per year on equity/equity MF is completely tax-free. Every March, redeem equity MF units with ₹1.25L of unrealised gains and reinvest the same day. This resets your cost basis. Over 10 years, this strategy saves ₹12,500–₹15,625 annually (₹1.25L × 12.5%) — tax-free compounding of ₹1.56+ lakh over a decade at zero additional cost or market exit.

🏠

Compare Indexation vs No-Indexation Before Property Sale

For property purchased before 23 July 2024, always run both calculations before selling: (a) 20% tax with indexation vs (b) 12.5% tax without indexation. Old property bought at very low prices typically benefits more from indexation. Recently purchased property (last 3–5 years) often gives lower tax without indexation at 12.5%. The calculator above does this comparison automatically — always choose the lower tax method.

📋

Use 54EC Bonds for Immediate LTCG Relief

If you don't want to buy another property (Section 54), invest LTCG up to ₹50 lakh in Section 54EC bonds (NHAI/REC/PFC) within 6 months of property sale. The tax saved (12.5–20% on LTCG) far outweighs the modest 5% bond interest at 30% slab. At ₹50L LTCG: tax saved = ₹6.25L–₹10L; bond interest over 5 years = ₹12.5L gross. Net benefit: significant even accounting for interest tax.

⚠

Don't Sell Before the LTCG Holding Period

STCG on equity is taxed at 20% (vs LTCG at 12.5%) — a 7.5% penalty for selling before 12 months. On ₹5 lakh gain: STCG tax = ₹1L vs LTCG tax = ₹46,875 (after ₹1.25L exemption) — you pay ₹53,125 extra by selling 1 day early. For property, selling before 24 months means STCG taxed at your slab rate (up to 30%) vs LTCG at 12.5%. Always wait for the LTCG holding period — the calendar date matters enormously.

❓ LTCG Tax Calculator — Frequently Asked Questions

Most searched LTCG tax questions for India FY 2024-25 (AY 2025-26) — answered precisely.

For AY 2025-26 (FY 2024-25), LTCG rates post-Budget 2024 (effective 23 July 2024):

• Equity / Equity MF: 12.5% on gains above ₹1.25 lakh per year (no indexation)
• Residential Property: 12.5% without indexation OR 20% with indexation (taxpayer chooses, for property bought before 23 Jul 2024)
• Gold / Gold ETF: 12.5% (held 24+ months)
• Unlisted Shares: 12.5% (held 24+ months)
• SGB at 8-year maturity: 0% — completely tax-free
• Debt MF: Taxed at slab rate (any holding period)

Exemption limit for equity LTCG: ₹1.25 lakh per financial year — gains up to this amount are completely tax-free. Increased from ₹1 lakh in Budget 2024. There is no LTCG exemption limit for property, gold, or unlisted shares — Sections 54/54EC provide conditional exemptions via reinvestment.

Step-by-step LTCG calculation on property sale with indexation:

Step 1: Indexed Cost = Purchase Price × (CII of Sale Year ÷ CII of Purchase Year)
Step 2: LTCG = Sale Price − Indexed Cost − Improvement Costs (indexed) − Transfer Expenses
Step 3: Tax = LTCG × 20% (with indexation) + 4% cess

Example: Property bought for ₹20L in FY 2014-15 (CII 240), sold in FY 2024-25 (CII 363) for ₹80L:
• Indexed Cost = ₹20L × (363÷240) = ₹30.25L
• LTCG = ₹80L − ₹30.25L − expenses = ₹47.75L
• Tax (20% with idx) = ₹9.55L + 4% cess = ₹9.93L
• Tax (12.5% without idx) = ₹60L gain × 12.5% = ₹7.5L + cess = ₹7.8L
• Without indexation saves ₹2.13L in this case

Budget 2024 made 5 major LTCG changes effective 23 July 2024:

1. Equity LTCG rate: 10% → 12.5%
2. Equity LTCG exemption: ₹1L → ₹1.25L per year
3. Equity STCG rate: 15% → 20%
4. Property LTCG: 20% with indexation → 12.5% without indexation
5. Property bought before 23 Jul 2024: can choose between old method (20% with idx) and new method (12.5% without) — whichever gives lower tax

Net effect: Property sellers with old, highly appreciated property (where indexation reduces LTCG significantly) may benefit from the old 20% + indexation method. Recent property buyers always benefit from the flat 12.5% method. Equity investors pay slightly more (12.5% vs 10%) but get slightly higher exemption (₹1.25L vs ₹1L).

Three main ways to save/reduce LTCG tax on property:

Section 54 — Buy another house: Purchase a new residential property within 2 years of sale (or construct within 3 years). LTCG exemption = lower of LTCG or new property cost. If you buy a property costing ₹60L and LTCG was ₹50L, the full ₹50L is exempt. Can claim only once in a lifetime for property costing above ₹2 crore.

Section 54EC — Capital Gains Bonds: Invest up to ₹50L in NHAI/REC bonds within 6 months. Tax saved = LTCG × 12.5–20%. 5-year lock-in, ~5% interest.

Capital Gains Account Scheme (CGAS): If reinvestment not done before ITR deadline, deposit in CGAS to preserve Section 54 eligibility while completing the purchase.

The Cost Inflation Index (CII) for FY 2024-25 is 363, notified by CBDT. The base year CII is 100 (FY 2001-02).

How to use CII:
Indexed Cost = Purchase Price × (CII of Sale Year ÷ CII of Purchase Year)

Example: Bought property for ₹10L in FY 2010-11 (CII 167), selling in FY 2024-25 (CII 363):
Indexed Cost = ₹10L × (363 ÷ 167) = ₹21.74L

This inflated cost base reduces the LTCG significantly — instead of ₹10L original cost, you use ₹21.74L. On an ₹80L sale: LTCG with indexation = ₹80L − ₹21.74L = ₹58.26L vs without = ₹70L. In this case, 20% × ₹58.26L = ₹11.65L vs 12.5% × ₹70L = ₹8.75L — without indexation still saves more here. Use the calculator to compare.

LTCG qualifying holding period:

• Listed equity shares, equity MF: 12 months
• Listed bonds, debentures: 12 months
• Unlisted shares: 24 months
• Residential / commercial property: 24 months
• Physical gold, gold ETF: 24 months
• Sovereign Gold Bond: 8 years for full capital gains exemption; 5+ years (RBI window) for 12.5% LTCG
• REITs and InvITs: 36 months
• Debt MF: No LTCG benefit regardless of holding period (taxed at slab)

Assets held shorter than these periods are taxed as STCG — at 20% for equity or at slab rate for others. The holding period is counted from the date of purchase to the date of sale (transfer).

LTCG on equity mutual funds (held 12+ months), FY 2024-25:

Step 1: Total LTCG = Redemption Value − Cost of Acquisition
Step 2: Exemption = ₹1.25 lakh per financial year
Step 3: Taxable LTCG = Total LTCG − ₹1.25L (only if not used elsewhere)
Step 4: Tax = Taxable LTCG × 12.5%
Step 5: Add 4% cess on tax

Example: Bought equity MF for ₹5L in 2022, redeemed for ₹8L in 2025:
LTCG = ₹3L. Less exemption = ₹1.25L. Taxable = ₹1.75L.
Tax = ₹1.75L × 12.5% = ₹21,875. Cess = ₹875. Total = ₹22,750.

Grandfathering: Cost of equity assets purchased before 31 Jan 2018 is the higher of original cost or Fair Market Value as on 31 Jan 2018 (Budget 2018 provision — still applicable).

🏠 Selling Property or Redeeming MF? Plan Your LTCG First

A single phone call before the property sale or redemption can save lakhs in LTCG tax. Vikash Royal will connect you with a CA for Section 54 planning, compare indexation methods, and ensure your investment portfolio is structured for maximum tax efficiency. SEBI-Registered. ARN: ARN-356458

💬 Plan My LTCG Tax on WhatsApp