Long-term capital gains on sale of assets (other than listed equity) are taxed at 12.5% without indexation. Covers unlisted shares, property, gold, and debt mutual funds held for 24+ months (36+ for immovable property).
Individuals who sell property, gold, debt mutual funds, or unlisted shares after the required holding period.
Scenario
Suresh bought a flat in Bangalore in 2022 for ₹60L. He sells it in 2026 for ₹90L after living in it. Brokerage and registration fees: ₹2L.
Calculation
Sale consideration: ₹90,00,000 Less: Transfer costs: – ₹2,00,000 Net sale consideration: ₹88,00,000 Cost of acquisition: ₹60,00,000 (No indexation benefit post 2024) LTCG = ₹88,00,000 – ₹60,00,000 = ₹28,00,000 Tax at 12.5%: ₹28,00,000 × 12.5% = ₹3,50,000 Add 4% cess: ₹3,64,000
Result
Suresh pays ₹3,64,000 in tax on his property sale profit. He can avoid this entirely by reinvesting the ₹28L LTCG into another residential property (Section 54) within 2 years, or into specified bonds within 6 months.
Scenario
Anita inherited gold jewellery (valued at ₹3L at time of inheritance in 2018) and sells it for ₹8L in 2026. Held for 8 years — long-term.
Calculation
Sale price: ₹8,00,000 Cost (inheritor's cost = previous owner's cost): ₹3,00,000 LTCG: ₹5,00,000 Tax: ₹5,00,000 × 12.5% = ₹62,500 Add cess: ₹65,000
Result
Anita pays ₹65,000 on the gold sale. For inherited assets, the cost to the original purchaser (not the market value at inheritance) is used as the base cost — which can sometimes be very low for old gold.
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Section references are based on the Income Tax Act 2025 (Tax Year 2026-27). Examples are illustrative — verify with a Chartered Accountant before filing.