STCG and LTCG Taxation

Income Tax Income from Capital Gains
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Hey @Tanmay_mehta,

In Budget 2018, the grandfathering rule was announced u/s 112A which implies that - long term capital gains above INR 1 Lakh will be taxed at 10% after 1st Feb 2018.
Therefore to calculate LTCG:

  • Take the equity value as on 31st Jan 2018 to be X
  • so LTCG = Sales price - value as on 31st Jan 2018
  • LTCG = 1,80,000 - X

Any tax on LTCG will be 10% above INR 1 Lakh

  • LTCG below INR 1 Lakh is fully exempt
  • LTCG above INR 1 Lakh will be taxable at 10% for the amount above INR 1 Lakh only.

Hope this helps!

Refer to our learn article on LTCG on sale of Equity Shares and Equity Mutual funds