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Budget 2024-26 Rules

LTCG/STCG Tax Harvesting & Capital Gains Calculator

Verified Indian financial mathematics, statutory regulations, and step-by-step actionable breakdowns.

Tags:#Tax Harvesting#LTCG 12.5%#STCG 20%#₹1.25L Exemption#Capital Gains#Tax Saving

LTCG/STCG Tax Harvesting & Capital Gains Calculator

Updated for Budget rules: ₹1.25L LTCG annual exemption, 12.5% LTCG & 20% STCG

Section 112A: ₹1.25L Free / FY
Unrealized Long-Term Gains (Held > 12 Mo)₹2,50,000
Unrealized Short-Term Gains (Held < 12 Mo)₹50,000
Tax Harvesting Optimization
Annual Tax-Gain Harvest Saving₹16,250100% Tax-Free Exemption Utilized: ₹1,25,000
15-Yr Compounded Tax Alpha+₹6,78,491Reinvested tax savings @ 12% CAGR
Current LTCG Tax Liability:

₹16,250

Current STCG Tax Liability:

₹10,400

Tax-Free: ₹1,25,000
Taxable LTCG (12.5%): ₹1,25,000
STCG (20%): ₹50,000

Mathematical Formula & Calculation Engine

Computes tax liability on equity and equity mutual funds based on the ₹1.25 Lakh annual tax-free LTCG threshold, 12.5% LTCG above ₹1.25L, 20% STCG, and models long-term compounded savings from resetting cost basis annually before March 31.

Taxable LTCG = max(0, Total LTCG - 125000) × 12.5% | STCG Tax = Gains × 20% | Harvest Savings = min(Gains, 125000) × 12.5%

Why Use the Tax Harvesting Engine?

Updated with current Union Budget tax rules (₹1.25 Lakh annual tax-free exemption & 12.5% LTCG)
Calculates instant tax saved each year (up to ₹15,625/yr tax-free)
Simulates 10-20 year compounded wealth boost from resetting cost acquisition price
Guides strategic rebalancing before March 31 financial year close

Tax Harvesting Engine FAQs

Under Section 112A, long-term capital gains up to ₹1.25 Lakhs per financial year are 100% tax-free. By selling and immediately rebuying mutual fund units with up to ₹1.25L profit every March, you reset your purchase price higher at zero tax, saving 12.5% tax (₹15,625) permanently.

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