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(AKA: LTCG, Long Term Capital Gains Tax, LTCG Tax)

LTCG (Long-Term Capital Gains)

Executive Definition

Tax levied on profits made from selling financial or real assets held over a specified minimum period (e.g., 12 or 24 months in India).

Long-Term Capital Gains (LTCG)

Long-Term Capital Gains (LTCG) is the profit earned on the sale of a capital asset (like equity shares, mutual funds, real estate, or gold) that has been held for longer than a specified holding period defined by the Income Tax Department of India.

Key Holding Period Guidelines (India)

  • Listed Equity & Equity Mutual Funds: Held for more than 12 months.
  • Unlisted Shares & Real Estate: Held for more than 24 months.
  • Debt Mutual Funds: Held for more than 36 months.

Taxation Rate

Under the latest Indian tax regime rules, equity LTCG above ₹1.25 Lakh per financial year is taxed at 12.5% (without indexation benefit).

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