{"id":2518,"date":"2025-07-08T11:15:10","date_gmt":"2025-07-08T05:45:10","guid":{"rendered":"https:\/\/www.caclubindia.com\/guide\/?p=2518"},"modified":"2025-07-08T11:15:13","modified_gmt":"2025-07-08T05:45:13","slug":"long-term-capital-gain-tax-on-shares","status":"publish","type":"post","link":"https:\/\/www.caclubindia.com\/guide\/long-term-capital-gain-tax-on-shares\/","title":{"rendered":"Long Term Capital Gain Tax On Shares For AY 2025-26"},"content":{"rendered":"\n<p>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.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\r\n<div class=\"ez-toc-title-container\">\r\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\r\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\r\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.caclubindia.com\/guide\/long-term-capital-gain-tax-on-shares\/#Key_Takeaways\" >Key Takeaways<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.caclubindia.com\/guide\/long-term-capital-gain-tax-on-shares\/#What_is_Long-Term_Capital_Gain_LTCG\" >What is Long-Term Capital Gain (LTCG)?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.caclubindia.com\/guide\/long-term-capital-gain-tax-on-shares\/#Rules_on_LTCG_Tax_on_Shares_for_AY_2025-26\" >Rules on LTCG Tax on Shares for AY 2025-26<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.caclubindia.com\/guide\/long-term-capital-gain-tax-on-shares\/#New_LTCG_Tax_Rate_Exemption_for_AY_2025%E2%80%9326\" >New LTCG Tax Rate &amp; Exemption for AY 2025\u201326<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.caclubindia.com\/guide\/long-term-capital-gain-tax-on-shares\/#What_is_Grandfathering_in_LTCG\" >What is Grandfathering in LTCG?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.caclubindia.com\/guide\/long-term-capital-gain-tax-on-shares\/#LTCG_Calculation_on_Equity_Shares\" >LTCG Calculation on Equity Shares<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.caclubindia.com\/guide\/long-term-capital-gain-tax-on-shares\/#Assuming\" >Assuming<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.caclubindia.com\/guide\/long-term-capital-gain-tax-on-shares\/#Computation\" >Computation:<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.caclubindia.com\/guide\/long-term-capital-gain-tax-on-shares\/#How_to_Calculate_LTCG_with_Grandfathering\" >How to Calculate LTCG with Grandfathering?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.caclubindia.com\/guide\/long-term-capital-gain-tax-on-shares\/#Grandfathering_Example\" >Grandfathering Example<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.caclubindia.com\/guide\/long-term-capital-gain-tax-on-shares\/#Lets_say\" >Let\u2019s say:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.caclubindia.com\/guide\/long-term-capital-gain-tax-on-shares\/#Step-by-step_LTCG_Calculation\" >Step-by-step LTCG Calculation:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.caclubindia.com\/guide\/long-term-capital-gain-tax-on-shares\/#Cost_of_Acquisition_Higher_of\" >Cost of Acquisition = Higher of:<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.caclubindia.com\/guide\/long-term-capital-gain-tax-on-shares\/#Why_No_Indexation_for_Shares\" >Why No Indexation for Shares?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.caclubindia.com\/guide\/long-term-capital-gain-tax-on-shares\/#Section_112A_LTCG_on_Shares_Equity_Mutual_Funds\" >Section 112A (LTCG on Shares &amp; Equity Mutual Funds)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.caclubindia.com\/guide\/long-term-capital-gain-tax-on-shares\/#Exemption_on_LTCG_under_Section_112A\" >Exemption on LTCG under Section 112A<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.caclubindia.com\/guide\/long-term-capital-gain-tax-on-shares\/#Set-Off_of_LTCG_Losses\" >Set-Off of LTCG Losses<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.caclubindia.com\/guide\/long-term-capital-gain-tax-on-shares\/#Carry_Forward_of_Capital_Losses\" >Carry Forward of Capital Losses<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/www.caclubindia.com\/guide\/long-term-capital-gain-tax-on-shares\/#Priority_of_Set-Off\" >Priority of Set-Off<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/www.caclubindia.com\/guide\/long-term-capital-gain-tax-on-shares\/#FAQs\" >FAQs<\/a><\/li><\/ul><\/nav><\/div>\r\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_Takeaways\"><\/span>Key Takeaways<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>LTCG up to \u20b91 lakh is exempt per year.<\/li>\n\n\n\n<li>LTCG losses can only be set off against LTCG.<\/li>\n\n\n\n<li>Capital losses can be carried forward for 8 years.<\/li>\n\n\n\n<li>File your return on time to claim set-off\/carry-forward.<\/li>\n\n\n\n<li>Report exempt and taxable LTCG in the ITR correctly.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_Long-Term_Capital_Gain_LTCG\"><\/span>What is Long-Term Capital Gain (LTCG)?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><a href=\"https:\/\/www.caclubindia.com\/guide\/long-term-capital-gain\/\">Long-Term Capital Gain (LTCG)<\/a><\/strong> refers to profits made by selling listed shares after holding them for more than 12 months. The gain is taxed at 12.5% if it exceeds \u20b91 lakh in a financial year, as per Section 112A of the Income Tax Act.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Rules_on_LTCG_Tax_on_Shares_for_AY_2025-26\"><\/span>Rules on LTCG Tax on Shares for AY 2025-26<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Particulars<\/strong><\/td><td><strong>Details<\/strong><\/td><\/tr><tr><td>Type of Asset<\/td><td>Listed Equity Shares \/ Equity Mutual Funds<\/td><\/tr><tr><td>Holding Period for LTCG<\/td><td>More than 12 months<\/td><\/tr><tr><td>Exemption Limit<\/td><td>\u20b91,00,000 per financial year<\/td><\/tr><tr><td>LTCG Tax Rate<\/td><td>12.5% (over \u20b91,00,000, no indexation allowed)<\/td><\/tr><tr><td>STT Requirement<\/td><td>STT must be paid on purchase &amp; sale<\/td><\/tr><tr><td>Cess<\/td><td>4% Health &amp; Education Cess on tax amount<\/td><\/tr><tr><td>Surcharge<\/td><td>Applicable if income exceeds threshold<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"New_LTCG_Tax_Rate_Exemption_for_AY_2025%E2%80%9326\"><\/span>New LTCG Tax Rate &amp; Exemption for AY 2025\u201326<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>LTCG Tax Rate: <\/strong>12.5% (flat, no indexation) on gains exceeding \u20b91.25 lakh<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Exemption Threshold: <\/strong>Up from \u20b91 lakh to \u20b91.25 lakh per financial year<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Applicability Date:<\/strong> Tax rate is applicable for transfers made on or after 23 July 2024; gains before that date remain taxed at the previous 10% rate.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_Grandfathering_in_LTCG\"><\/span>What is Grandfathering in LTCG?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Grandfathering is a tax relief measure introduced by the Indian government when LTCG tax on equity shares and equity mutual funds was reintroduced from 1st April 2018.<\/p>\n\n\n\n<p>Before this, LTCG on listed shares was completely tax-free. To protect gains made until that date, the government introduced &#8220;grandfathering&#8221; to exempt gains accrued up to 31st January 2018.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"LTCG_Calculation_on_Equity_Shares\"><\/span>LTCG Calculation on Equity Shares<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Assuming\"><\/span>Assuming<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Mr A bought 1,000 shares of ABC Ltd. at \u20b9100\/share on 1st April 2023. And sold them at \u20b9250\/share on 1st May 2024. Where These are listed shares, and STT is paid.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Computation\"><\/span>Computation:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Purchase Cost = \u20b9100 x 1,000 = \u20b91,00,000<\/li>\n\n\n\n<li>Sale Price = \u20b9250 x 1,000 = \u20b92,50,000<\/li>\n\n\n\n<li>LTCG = \u20b92,50,000 &#8211; \u20b91,00,000 = \u20b91,50,000<\/li>\n\n\n\n<li>Exempt LTCG = \u20b91,00,000<\/li>\n\n\n\n<li>Taxable LTCG = \u20b950,000<\/li>\n\n\n\n<li>LTCG Tax @10% = \u20b95,000<\/li>\n\n\n\n<li>Cess @4% = \u20b9200<\/li>\n\n\n\n<li>Total Tax Payable = \u20b95,200<\/li>\n<\/ul>\n\n\n\n<p><strong>Note: <\/strong>No benefit of indexation is allowed under Section 112A.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_to_Calculate_LTCG_with_Grandfathering\"><\/span>How to Calculate LTCG with Grandfathering?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-table is-style-stripes\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>LTCG = Sale Price \u2013 Cost of Acquisition<\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>But <strong>Cost of Acquisition<\/strong> is determined as the <strong>higher of<\/strong>:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Actual Purchase Price, and<\/li>\n\n\n\n<li>Lower of:<\/li>\n<\/ol>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Fair Market Value (FMV) as on 31-Jan-2018, and<\/li>\n\n\n\n<li>Sale Price<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Grandfathering_Example\"><\/span>Grandfathering Example<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Lets_say\"><\/span>Let\u2019s say:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>You bought 100 shares of XYZ Ltd. at \u20b9100 each in Jan 2016<\/li>\n\n\n\n<li>FMV as of 31-Jan-2018 is \u20b9300<\/li>\n\n\n\n<li>You sell the shares in June 2024 at \u20b9400 each<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Step-by-step_LTCG_Calculation\"><\/span>Step-by-step LTCG Calculation:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Actual Purchase Price = \u20b9100<\/li>\n\n\n\n<li>FMV on 31-Jan-2018 = \u20b9300<\/li>\n\n\n\n<li>Sale Price = \u20b9400<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Cost_of_Acquisition_Higher_of\"><\/span>Cost of Acquisition = Higher of:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>\u20b9100 and<\/li>\n\n\n\n<li>Lower of (\u20b9300, \u20b9400) = \u20b9300<\/li>\n<\/ul>\n\n\n\n<p>So, Cost of Acquisition = \u20b9300<\/p>\n\n\n\n<p><strong>LTCG = \u20b9400 (Sale Price) \u2013 \u20b9300 (Cost) = \u20b9100\/share \u00d7 100 = \u20b910,000<\/strong><\/p>\n\n\n\n<p><strong>Tax:<\/strong> If your total LTCG in the year exceeds \u20b91 lakh, the amount above \u20b91 lakh will be taxed at 12.5%.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_No_Indexation_for_Shares\"><\/span>Why No Indexation for Shares?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>When the government re-introduced LTCG tax on shares in Budget 2018, it was set at a lower flat rate of 10% and excluded the benefit of indexation.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Section_112A_LTCG_on_Shares_Equity_Mutual_Funds\"><\/span>Section 112A (LTCG on Shares &amp; Equity Mutual Funds)<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The benefit of indexation shall not be available for capital gains arising from the transfer of equity shares or units of equity-oriented mutual funds.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Exemption_on_LTCG_under_Section_112A\"><\/span>Exemption on LTCG under Section 112A<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>LTCG on listed equity shares and equity mutual funds is exempt up to \u20b91,00,000 per financial year.<\/li>\n\n\n\n<li>Any LTCG above \u20b91 lakh is taxed at 10% (without indexation).<\/li>\n\n\n\n<li>Applies only if STT (Securities Transaction Tax) is paid on both purchase and sale.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Set-Off_of_LTCG_Losses\"><\/span>Set-Off of LTCG Losses<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>If you incur a long-term capital loss (LTCL) on sale of shares or equity funds, it can only be set off against:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Long-Term Capital Gains (LTCG) \u2013 not against Short-Term Capital Gains (STCG)<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Cannot be set off against salary, business income, or any other heads of income.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Carry_Forward_of_Capital_Losses\"><\/span>Carry Forward of Capital Losses<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>If setoff is not available in that particular Assessment Year then Carry forward of losses can be availed.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Carry forward the loss for 8 assessment years<\/li>\n\n\n\n<li>Use it to set off against future LTCG only<\/li>\n\n\n\n<li>Must file the Income Tax Return on or before the due date (usually 31st July for individuals) to claim carry-forward benefit.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Priority_of_Set-Off\"><\/span>Priority of Set-Off<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Income Tax Act follows this order of set-off:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Type of Loss<\/strong><\/td><td><strong>Set-Off Against<\/strong><\/td><td><strong>Carry Forward Allowed<\/strong><\/td><\/tr><tr><td>STCL<\/td><td>STCG &amp; LTCG<\/td><td>Yes (8 years)<\/td><\/tr><tr><td>LTCL<\/td><td>LTCG only<\/td><td>Yes (8 years)<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>Reporting LTCG, Exemptions &amp; Losses in ITR<\/p>\n\n\n\n<p><strong>While filing ITR:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Use Schedule 112A for LTCG reporting.<\/li>\n\n\n\n<li>Report FMV on 31-Jan-2018 for grandfathered gains.<\/li>\n\n\n\n<li>Use Schedule CG for capital gain\/loss set-off and carry-forward.<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-table is-style-stripes\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong><a href=\"https:\/\/www.caclubindia.com\/guide\/short-term-capital-gain-tax-on-shares\/\">Also Read Short Term Capital Gain Tax On Shares For AY 2025-26<\/a><\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FAQs\"><\/span>FAQs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1751951701358\"><strong class=\"schema-faq-question\">What is the tax rate for LTCG in 2025?<\/strong> <p class=\"schema-faq-answer\">The <strong><a href=\"https:\/\/www.caclubindia.com\/guide\/ltcg-tax-rate\/\">LTCG rate<\/a><\/strong> is flat 12.5%<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1751951724372\"><strong class=\"schema-faq-question\">Is there any exemption limit for LTCG on shares?<\/strong> <p class=\"schema-faq-answer\">Yes. For AY 2025\u201326, LTCG on equity shares and equity mutual funds is exempt up to \u20b91.25 lakh. Tax applies only on gains above this threshold.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1751951738500\"><strong class=\"schema-faq-question\">Can You Claim 80C to 80U Deductions Against LTCG?<\/strong> <p class=\"schema-faq-answer\">Under the Income Tax Act, deductions under Sections 80C to 80U (which include investments like ELSS, LIC, PPF, medical insurance, etc.) are allowed only from &#8220;Gross Total Income&#8221;. However, LTCG on listed equity shares and equity mutual funds (taxable under Section 112A) is excluded from Gross Total Income for deduction purposes, if taxed at the special rate of 12.5%.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1751951759062\"><strong class=\"schema-faq-question\">Is indexation benefit available for LTCG on shares?<\/strong> <p class=\"schema-faq-answer\">No, indexation is not allowed for shares taxed under Section 112A.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1751951771381\"><strong class=\"schema-faq-question\">Can LTCG loss be adjusted?<\/strong> <p class=\"schema-faq-answer\">Yes. LTCG loss can be set off only against LTCG and carried forward for 8 years.<\/p> <\/div> <\/div>\n","protected":false},"excerpt":{"rendered":"<p>Investing in the stock market can yield great returns but when it is sold, the shares which is held for [&hellip;]<\/p>\n","protected":false},"author":10,"featured_media":2519,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[5],"tags":[],"class_list":["post-2518","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-capital-gains-tax"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\r\n<title>Long Term Capital Gain Tax On Shares For AY 2025-26 - Tax Guide<\/title>\r\n<meta name=\"description\" content=\"Discover Long-Term Capital Gains Tax on share: tax rates, exemptions and explore how to calculate gains with practical examples.\" \/>\r\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\r\n<link rel=\"canonical\" href=\"https:\/\/www.caclubindia.com\/guide\/long-term-capital-gain-tax-on-shares\/\" \/>\r\n<meta property=\"og:locale\" content=\"en_US\" \/>\r\n<meta property=\"og:type\" content=\"article\" \/>\r\n<meta property=\"og:title\" content=\"Long Term Capital Gain Tax On Shares For AY 2025-26 - Tax Guide\" \/>\r\n<meta property=\"og:description\" content=\"Discover Long-Term Capital Gains Tax on share: tax rates, exemptions and explore how to calculate gains with practical examples.\" \/>\r\n<meta property=\"og:url\" content=\"https:\/\/www.caclubindia.com\/guide\/long-term-capital-gain-tax-on-shares\/\" \/>\r\n<meta property=\"og:site_name\" content=\"Tax Guide\" \/>\r\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/caclubindia\" \/>\r\n<meta property=\"article:published_time\" content=\"2025-07-08T05:45:10+00:00\" \/>\r\n<meta property=\"article:modified_time\" content=\"2025-07-08T05:45:13+00:00\" \/>\r\n<meta property=\"og:image\" content=\"https:\/\/www.caclubindia.com\/guide\/wp-content\/uploads\/2025\/07\/Long-term-Capital-Gain.png\" \/>\r\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\r\n\t<meta property=\"og:image:height\" content=\"630\" \/>\r\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\r\n<meta name=\"author\" content=\"Poojitha Raamaprasad\" \/>\r\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\r\n<meta name=\"twitter:creator\" content=\"@caclubindia\" \/>\r\n<meta name=\"twitter:site\" content=\"@caclubindia\" \/>\r\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Poojitha Raamaprasad\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\r\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/long-term-capital-gain-tax-on-shares\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/long-term-capital-gain-tax-on-shares\\\/\"},\"author\":{\"name\":\"Poojitha Raamaprasad\",\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/#\\\/schema\\\/person\\\/8afcaae8cc6a960371f56e055b7f881f\"},\"headline\":\"Long Term Capital Gain Tax On Shares For AY 2025-26\",\"datePublished\":\"2025-07-08T05:45:10+00:00\",\"dateModified\":\"2025-07-08T05:45:13+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/long-term-capital-gain-tax-on-shares\\\/\"},\"wordCount\":932,\"publisher\":{\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/long-term-capital-gain-tax-on-shares\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/wp-content\\\/uploads\\\/2025\\\/07\\\/Long-term-Capital-Gain.png\",\"articleSection\":[\"Capital Gains Tax\"],\"inLanguage\":\"en-US\"},{\"@type\":[\"WebPage\",\"FAQPage\"],\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/long-term-capital-gain-tax-on-shares\\\/\",\"url\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/long-term-capital-gain-tax-on-shares\\\/\",\"name\":\"Long Term Capital Gain Tax On Shares For AY 2025-26 - Tax Guide\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/long-term-capital-gain-tax-on-shares\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/long-term-capital-gain-tax-on-shares\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/wp-content\\\/uploads\\\/2025\\\/07\\\/Long-term-Capital-Gain.png\",\"datePublished\":\"2025-07-08T05:45:10+00:00\",\"dateModified\":\"2025-07-08T05:45:13+00:00\",\"description\":\"Discover Long-Term Capital Gains Tax on share: tax rates, exemptions and explore how to calculate gains with practical examples.\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/long-term-capital-gain-tax-on-shares\\\/#breadcrumb\"},\"mainEntity\":[{\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/long-term-capital-gain-tax-on-shares\\\/#faq-question-1751951701358\"},{\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/long-term-capital-gain-tax-on-shares\\\/#faq-question-1751951724372\"},{\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/long-term-capital-gain-tax-on-shares\\\/#faq-question-1751951738500\"},{\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/long-term-capital-gain-tax-on-shares\\\/#faq-question-1751951759062\"},{\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/long-term-capital-gain-tax-on-shares\\\/#faq-question-1751951771381\"}],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/long-term-capital-gain-tax-on-shares\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/long-term-capital-gain-tax-on-shares\\\/#primaryimage\",\"url\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/wp-content\\\/uploads\\\/2025\\\/07\\\/Long-term-Capital-Gain.png\",\"contentUrl\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/wp-content\\\/uploads\\\/2025\\\/07\\\/Long-term-Capital-Gain.png\",\"width\":1200,\"height\":630},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/long-term-capital-gain-tax-on-shares\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Long Term Capital Gain Tax On Shares For AY 2025-26\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/#website\",\"url\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/\",\"name\":\"Tax Guide\",\"description\":\"All tax related info news and updates in one place.\",\"publisher\":{\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/#organization\",\"name\":\"CAclubindia\",\"url\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/#\\\/schema\\\/logo\\\/image\\\/\",\"url\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/wp-content\\\/uploads\\\/2024\\\/05\\\/cropped-icon-384x384-1.png\",\"contentUrl\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/wp-content\\\/uploads\\\/2024\\\/05\\\/cropped-icon-384x384-1.png\",\"width\":512,\"height\":512,\"caption\":\"CAclubindia\"},\"image\":{\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/#\\\/schema\\\/logo\\\/image\\\/\"},\"sameAs\":[\"https:\\\/\\\/www.facebook.com\\\/caclubindia\",\"https:\\\/\\\/x.com\\\/caclubindia\",\"https:\\\/\\\/www.instagram.com\\\/caclubindia\\\/\",\"https:\\\/\\\/www.linkedin.com\\\/company\\\/caclubindia\\\/\",\"https:\\\/\\\/www.youtube.com\\\/caclubindia?sub_confirmation=1\"]},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/#\\\/schema\\\/person\\\/8afcaae8cc6a960371f56e055b7f881f\",\"name\":\"Poojitha Raamaprasad\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/7377f6e6823312b5a91f31c22cab85601e3c4c9c07ac5914c8a8fd2717ba556c?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/7377f6e6823312b5a91f31c22cab85601e3c4c9c07ac5914c8a8fd2717ba556c?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/7377f6e6823312b5a91f31c22cab85601e3c4c9c07ac5914c8a8fd2717ba556c?s=96&d=mm&r=g\",\"caption\":\"Poojitha Raamaprasad\"},\"url\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/author\\\/poojitha-raamaprasad\\\/\"},{\"@type\":\"Question\",\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/long-term-capital-gain-tax-on-shares\\\/#faq-question-1751951701358\",\"position\":1,\"url\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/long-term-capital-gain-tax-on-shares\\\/#faq-question-1751951701358\",\"name\":\"What is the tax rate for LTCG in 2025?\",\"answerCount\":1,\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"The <strong><a href=\\\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/ltcg-tax-rate\\\/\\\">LTCG rate<\\\/a><\\\/strong> is flat 12.5%\",\"inLanguage\":\"en-US\"},\"inLanguage\":\"en-US\"},{\"@type\":\"Question\",\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/long-term-capital-gain-tax-on-shares\\\/#faq-question-1751951724372\",\"position\":2,\"url\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/long-term-capital-gain-tax-on-shares\\\/#faq-question-1751951724372\",\"name\":\"Is there any exemption limit for LTCG on shares?\",\"answerCount\":1,\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Yes. For AY 2025\u201326, LTCG on equity shares and equity mutual funds is exempt up to \u20b91.25 lakh. Tax applies only on gains above this threshold.\",\"inLanguage\":\"en-US\"},\"inLanguage\":\"en-US\"},{\"@type\":\"Question\",\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/long-term-capital-gain-tax-on-shares\\\/#faq-question-1751951738500\",\"position\":3,\"url\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/long-term-capital-gain-tax-on-shares\\\/#faq-question-1751951738500\",\"name\":\"Can You Claim 80C to 80U Deductions Against LTCG?\",\"answerCount\":1,\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Under the Income Tax Act, deductions under Sections 80C to 80U (which include investments like ELSS, LIC, PPF, medical insurance, etc.) are allowed only from \\\"Gross Total Income\\\". However, LTCG on listed equity shares and equity mutual funds (taxable under Section 112A) is excluded from Gross Total Income for deduction purposes, if taxed at the special rate of 12.5%.\",\"inLanguage\":\"en-US\"},\"inLanguage\":\"en-US\"},{\"@type\":\"Question\",\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/long-term-capital-gain-tax-on-shares\\\/#faq-question-1751951759062\",\"position\":4,\"url\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/long-term-capital-gain-tax-on-shares\\\/#faq-question-1751951759062\",\"name\":\"Is indexation benefit available for LTCG on shares?\",\"answerCount\":1,\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"No, indexation is not allowed for shares taxed under Section 112A.\",\"inLanguage\":\"en-US\"},\"inLanguage\":\"en-US\"},{\"@type\":\"Question\",\"@id\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/long-term-capital-gain-tax-on-shares\\\/#faq-question-1751951771381\",\"position\":5,\"url\":\"https:\\\/\\\/www.caclubindia.com\\\/guide\\\/long-term-capital-gain-tax-on-shares\\\/#faq-question-1751951771381\",\"name\":\"Can LTCG loss be adjusted?\",\"answerCount\":1,\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Yes. LTCG loss can be set off only against LTCG and carried forward for 8 years.\",\"inLanguage\":\"en-US\"},\"inLanguage\":\"en-US\"}]}<\/script>\r\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Long Term Capital Gain Tax On Shares For AY 2025-26 - Tax Guide","description":"Discover Long-Term Capital Gains Tax on share: tax rates, exemptions and explore how to calculate gains with practical examples.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.caclubindia.com\/guide\/long-term-capital-gain-tax-on-shares\/","og_locale":"en_US","og_type":"article","og_title":"Long Term Capital Gain Tax On Shares For AY 2025-26 - Tax Guide","og_description":"Discover Long-Term Capital Gains Tax on share: tax rates, exemptions and explore how to calculate gains with practical examples.","og_url":"https:\/\/www.caclubindia.com\/guide\/long-term-capital-gain-tax-on-shares\/","og_site_name":"Tax Guide","article_publisher":"https:\/\/www.facebook.com\/caclubindia","article_published_time":"2025-07-08T05:45:10+00:00","article_modified_time":"2025-07-08T05:45:13+00:00","og_image":[{"width":1200,"height":630,"url":"https:\/\/www.caclubindia.com\/guide\/wp-content\/uploads\/2025\/07\/Long-term-Capital-Gain.png","type":"image\/png"}],"author":"Poojitha Raamaprasad","twitter_card":"summary_large_image","twitter_creator":"@caclubindia","twitter_site":"@caclubindia","twitter_misc":{"Written by":"Poojitha Raamaprasad","Est. reading time":"5 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.caclubindia.com\/guide\/long-term-capital-gain-tax-on-shares\/#article","isPartOf":{"@id":"https:\/\/www.caclubindia.com\/guide\/long-term-capital-gain-tax-on-shares\/"},"author":{"name":"Poojitha Raamaprasad","@id":"https:\/\/www.caclubindia.com\/guide\/#\/schema\/person\/8afcaae8cc6a960371f56e055b7f881f"},"headline":"Long Term Capital Gain Tax On Shares For AY 2025-26","datePublished":"2025-07-08T05:45:10+00:00","dateModified":"2025-07-08T05:45:13+00:00","mainEntityOfPage":{"@id":"https:\/\/www.caclubindia.com\/guide\/long-term-capital-gain-tax-on-shares\/"},"wordCount":932,"publisher":{"@id":"https:\/\/www.caclubindia.com\/guide\/#organization"},"image":{"@id":"https:\/\/www.caclubindia.com\/guide\/long-term-capital-gain-tax-on-shares\/#primaryimage"},"thumbnailUrl":"https:\/\/www.caclubindia.com\/guide\/wp-content\/uploads\/2025\/07\/Long-term-Capital-Gain.png","articleSection":["Capital Gains Tax"],"inLanguage":"en-US"},{"@type":["WebPage","FAQPage"],"@id":"https:\/\/www.caclubindia.com\/guide\/long-term-capital-gain-tax-on-shares\/","url":"https:\/\/www.caclubindia.com\/guide\/long-term-capital-gain-tax-on-shares\/","name":"Long Term Capital Gain Tax On Shares For AY 2025-26 - Tax Guide","isPartOf":{"@id":"https:\/\/www.caclubindia.com\/guide\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.caclubindia.com\/guide\/long-term-capital-gain-tax-on-shares\/#primaryimage"},"image":{"@id":"https:\/\/www.caclubindia.com\/guide\/long-term-capital-gain-tax-on-shares\/#primaryimage"},"thumbnailUrl":"https:\/\/www.caclubindia.com\/guide\/wp-content\/uploads\/2025\/07\/Long-term-Capital-Gain.png","datePublished":"2025-07-08T05:45:10+00:00","dateModified":"2025-07-08T05:45:13+00:00","description":"Discover Long-Term Capital Gains Tax on share: tax rates, exemptions and explore how to calculate gains with practical examples.","breadcrumb":{"@id":"https:\/\/www.caclubindia.com\/guide\/long-term-capital-gain-tax-on-shares\/#breadcrumb"},"mainEntity":[{"@id":"https:\/\/www.caclubindia.com\/guide\/long-term-capital-gain-tax-on-shares\/#faq-question-1751951701358"},{"@id":"https:\/\/www.caclubindia.com\/guide\/long-term-capital-gain-tax-on-shares\/#faq-question-1751951724372"},{"@id":"https:\/\/www.caclubindia.com\/guide\/long-term-capital-gain-tax-on-shares\/#faq-question-1751951738500"},{"@id":"https:\/\/www.caclubindia.com\/guide\/long-term-capital-gain-tax-on-shares\/#faq-question-1751951759062"},{"@id":"https:\/\/www.caclubindia.com\/guide\/long-term-capital-gain-tax-on-shares\/#faq-question-1751951771381"}],"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.caclubindia.com\/guide\/long-term-capital-gain-tax-on-shares\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.caclubindia.com\/guide\/long-term-capital-gain-tax-on-shares\/#primaryimage","url":"https:\/\/www.caclubindia.com\/guide\/wp-content\/uploads\/2025\/07\/Long-term-Capital-Gain.png","contentUrl":"https:\/\/www.caclubindia.com\/guide\/wp-content\/uploads\/2025\/07\/Long-term-Capital-Gain.png","width":1200,"height":630},{"@type":"BreadcrumbList","@id":"https:\/\/www.caclubindia.com\/guide\/long-term-capital-gain-tax-on-shares\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.caclubindia.com\/guide\/"},{"@type":"ListItem","position":2,"name":"Long Term Capital Gain Tax On Shares For AY 2025-26"}]},{"@type":"WebSite","@id":"https:\/\/www.caclubindia.com\/guide\/#website","url":"https:\/\/www.caclubindia.com\/guide\/","name":"Tax Guide","description":"All tax related info news and updates in one place.","publisher":{"@id":"https:\/\/www.caclubindia.com\/guide\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.caclubindia.com\/guide\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.caclubindia.com\/guide\/#organization","name":"CAclubindia","url":"https:\/\/www.caclubindia.com\/guide\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.caclubindia.com\/guide\/#\/schema\/logo\/image\/","url":"https:\/\/www.caclubindia.com\/guide\/wp-content\/uploads\/2024\/05\/cropped-icon-384x384-1.png","contentUrl":"https:\/\/www.caclubindia.com\/guide\/wp-content\/uploads\/2024\/05\/cropped-icon-384x384-1.png","width":512,"height":512,"caption":"CAclubindia"},"image":{"@id":"https:\/\/www.caclubindia.com\/guide\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/caclubindia","https:\/\/x.com\/caclubindia","https:\/\/www.instagram.com\/caclubindia\/","https:\/\/www.linkedin.com\/company\/caclubindia\/","https:\/\/www.youtube.com\/caclubindia?sub_confirmation=1"]},{"@type":"Person","@id":"https:\/\/www.caclubindia.com\/guide\/#\/schema\/person\/8afcaae8cc6a960371f56e055b7f881f","name":"Poojitha Raamaprasad","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/7377f6e6823312b5a91f31c22cab85601e3c4c9c07ac5914c8a8fd2717ba556c?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/7377f6e6823312b5a91f31c22cab85601e3c4c9c07ac5914c8a8fd2717ba556c?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/7377f6e6823312b5a91f31c22cab85601e3c4c9c07ac5914c8a8fd2717ba556c?s=96&d=mm&r=g","caption":"Poojitha Raamaprasad"},"url":"https:\/\/www.caclubindia.com\/guide\/author\/poojitha-raamaprasad\/"},{"@type":"Question","@id":"https:\/\/www.caclubindia.com\/guide\/long-term-capital-gain-tax-on-shares\/#faq-question-1751951701358","position":1,"url":"https:\/\/www.caclubindia.com\/guide\/long-term-capital-gain-tax-on-shares\/#faq-question-1751951701358","name":"What is the tax rate for LTCG in 2025?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"The <strong><a href=\"https:\/\/www.caclubindia.com\/guide\/ltcg-tax-rate\/\">LTCG rate<\/a><\/strong> is flat 12.5%","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/www.caclubindia.com\/guide\/long-term-capital-gain-tax-on-shares\/#faq-question-1751951724372","position":2,"url":"https:\/\/www.caclubindia.com\/guide\/long-term-capital-gain-tax-on-shares\/#faq-question-1751951724372","name":"Is there any exemption limit for LTCG on shares?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"Yes. For AY 2025\u201326, LTCG on equity shares and equity mutual funds is exempt up to \u20b91.25 lakh. Tax applies only on gains above this threshold.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/www.caclubindia.com\/guide\/long-term-capital-gain-tax-on-shares\/#faq-question-1751951738500","position":3,"url":"https:\/\/www.caclubindia.com\/guide\/long-term-capital-gain-tax-on-shares\/#faq-question-1751951738500","name":"Can You Claim 80C to 80U Deductions Against LTCG?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"Under the Income Tax Act, deductions under Sections 80C to 80U (which include investments like ELSS, LIC, PPF, medical insurance, etc.) are allowed only from \"Gross Total Income\". However, LTCG on listed equity shares and equity mutual funds (taxable under Section 112A) is excluded from Gross Total Income for deduction purposes, if taxed at the special rate of 12.5%.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/www.caclubindia.com\/guide\/long-term-capital-gain-tax-on-shares\/#faq-question-1751951759062","position":4,"url":"https:\/\/www.caclubindia.com\/guide\/long-term-capital-gain-tax-on-shares\/#faq-question-1751951759062","name":"Is indexation benefit available for LTCG on shares?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"No, indexation is not allowed for shares taxed under Section 112A.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/www.caclubindia.com\/guide\/long-term-capital-gain-tax-on-shares\/#faq-question-1751951771381","position":5,"url":"https:\/\/www.caclubindia.com\/guide\/long-term-capital-gain-tax-on-shares\/#faq-question-1751951771381","name":"Can LTCG loss be adjusted?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"Yes. LTCG loss can be set off only against LTCG and carried forward for 8 years.","inLanguage":"en-US"},"inLanguage":"en-US"}]}},"_links":{"self":[{"href":"https:\/\/www.caclubindia.com\/guide\/wp-json\/wp\/v2\/posts\/2518","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.caclubindia.com\/guide\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.caclubindia.com\/guide\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.caclubindia.com\/guide\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/www.caclubindia.com\/guide\/wp-json\/wp\/v2\/comments?post=2518"}],"version-history":[{"count":1,"href":"https:\/\/www.caclubindia.com\/guide\/wp-json\/wp\/v2\/posts\/2518\/revisions"}],"predecessor-version":[{"id":2521,"href":"https:\/\/www.caclubindia.com\/guide\/wp-json\/wp\/v2\/posts\/2518\/revisions\/2521"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.caclubindia.com\/guide\/wp-json\/wp\/v2\/media\/2519"}],"wp:attachment":[{"href":"https:\/\/www.caclubindia.com\/guide\/wp-json\/wp\/v2\/media?parent=2518"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.caclubindia.com\/guide\/wp-json\/wp\/v2\/categories?post=2518"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.caclubindia.com\/guide\/wp-json\/wp\/v2\/tags?post=2518"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}