31 Tool · Money & Jobs
LTCG tax calculator: now vs if LTCG is scrapped
On 13 Oct 2026 Finance Minister Nirmala Sitharaman said she'd hear views on removing LTCG tax before Budget 2027, but promised nothing. Here's what you owe under today's rules on listed shares and equity mutual funds, and what you'd save if long-term gains on equity became tax-free.
How this works
- Long-term (held more than 12 months): 12.5% on gains above ₹1.25 lakh in a financial year, if STT was paid (Section 198, Income-tax Act 2025; Income Tax Department).
- Short-term (12 months or less): 20% on the whole gain.
- On top: 4% health and education cess; surcharge if your income is above ₹50 lakh, capped at 15% for these gains.
- "If LTCG is scrapped" assumes long-term equity gains become fully tax-free and short-term rules stay the same. That's a scenario, not a proposal: SBI Research's 12 Oct suggestion also extends the holding period to 2–3 years, and the government hasn't announced anything.
A simplified estimate. It doesn't account for losses you can set off, the basic-exemption adjustment for residents with low other income, pre-2018 grandfathered costs, or anything else in your return. Check with a tax professional before you act.
Read the full story: LTCG news: Sitharaman says she'll hear views on removing LTCG tax. Is it going?.