Glossary term

LTCG

Tax on gains from assets held for the long term. For Indian equity: 12.5% above ₹1.25 lakh/year, on holdings over 12 months.

Long-Term Capital Gains (LTCG) is the tax on profits from selling an asset held longer than a specified period. For Indian equity and equity mutual funds, the qualifying period is 12 months and the rate is 12.5% on gains above ₹1.25 lakh per financial year.

For debt mutual funds bought after 1 April 2023, the LTCG concept no longer applies — all gains are taxed at slab rate. For property and unlisted shares, the LTCG period is 24 months at 12.5% without indexation (or 20% with indexation for property bought before 23 July 2024).