Long-Term Capital Gains Tax refers to the tax levied on profits generated from the sale of assets held for a specific period, usually more than a year, here are some things to know about it.
1
LTCG Tax is applicable on the gains derived from the sale of capital assets held for a long duration.
2
The tax applies to a variety of assets, including stocks, mutual funds, real estate, gold, and other investments.
3
LTCG on listed equity shares and equity-oriented mutual funds exceeding INR 1 lakh is taxed at 10% without the benefit of indexation.
4
Indexation is a method to adjust the purchase price of an asset for inflation, thereby reducing the taxable gains.
5
In India, gains from the sale of long-term listed securities up to INR 1 lakh in a financial year are exempt from tax.
6
Accurate record-keeping of purchase and sale transactions, including dates, prices, and expenses incurred in the acquisition and sale.
7
LTCG Tax influences investment strategies, encouraging investors to hold assets for longer periods to benefit from lower tax rates.