Long Term Capital Gain Tax On Shares For AY 2025-26



Quick Summary
Long-Term Capital Gains (LTCG) on shares held over 12 months are taxed in India. For AY 2025-26, gains up to ₹1.25 lakh are exempt, with a flat 12.5% tax rate applying to amounts exceeding this. This rate is effective for transfers made on or after July 23, 2024. Gains accrued before this date are taxed at the previous 10% rate. The benefit of indexation is not available for these gains, but losses can be carried forward for 8 years if reported correctly in your tax return.

Investing in the stock market can yield great returns but when it is sold, the shares which is held for more than 12 months attracts taxation under the head Income from Capital Gains in India. Key Takeaways LTCG up to ₹1 lakh is exempt per year. LTCG losses can only be set off against LTC
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About the Author

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I simplify complex income tax, TDS, banking, and investment updates into practical insights for taxpayers, salaried professionals, pensioners, and senior citizens. I regularly write on ITR filing, tax compliance, savings schemes, and the latest financial rule changes in India.

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