What is LTCG (Long-Term Capital Gain)?

 What is Long-Term Capital Gain?

A long-term capital gain is a profit made on an investment that has been held for more than one year. It is the difference between the purchase price of the investment and the price at which it is sold after one year or more. 

Long-term capital gains are typically taxed at a lower rate than short-term capital gains, which are profits made on investments held for one year or less. The tax rate for long-term capital gains depends on the investor's income level and the type of asset that was sold. 

In India, long-term capital gains on equities and equity-oriented mutual funds are taxed at a rate of 10% (plus applicable surcharge and cess) if the total gains exceed Rs. 1 lakh in a financial year. Long-term capital gains on other assets such as real estate, gold, and debt mutual funds are taxed at a rate of 20% (plus applicable surcharge and cess) with indexation benefits, which adjust the purchase price of the asset for inflation. 

It's important to note that tax laws can change and that individual circumstances can affect tax liabilities. It's always a good idea to consult with a tax professional or financial advisor to understand your specific tax situation.

As per the current tax laws in India, long-term capital gains on equities and equity-oriented mutual funds are taxed at a rate of 10% (plus applicable surcharge and cess) if the total gains exceed Rs. 1 lakh in a financial year. Long-term capital gains on other assets such as real estate, gold, and debt mutual funds are taxed at a rate of 20% (plus applicable surcharge and cess) with indexation benefits, which adjust the purchase price of the asset for inflation.