---
title: "Long-Term Capital Gains Tax (LTCG): Rules & Rates"
description: "Long-Term Capital Gains Tax (LTCG) is a tax on profits from assets held over a statutory period, crucial for investors in India and the US."
url: "https://modeldiplomat.com/learn/glossary/long-term-capital-gains-tax"
---

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Model Diplomat Research Team · Last reviewed June 22, 2026

TL;DR

- Long-Term Capital Gains Tax is a direct tax levied on profit from the sale of capital assets held beyond a statutory holding period.
- What holding period qualifies a gain as long-term in India after the 2024 changes?
- Is indexation still available for computing long-term capital gains?
- How is LTCG on listed equity shares taxed differently from other assets?
- Can long-term capital gains be exempted by reinvestment?

[Civil Service & Diplomatic Exams](https://modeldiplomat.com/learn/civil-services/glossary)Updated June 22, 2026

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## Timeline

1. 23 July 2024

   The Finance Act, 2024 rationalised these thresholds, reducing the holding period for all listed financial assets to 12 months and for all other assets to 24…

2. 31 January 2018

   Listed equity shares and equity-oriented mutual fund units are taxed separately under Section 112A, where gains above an exempt threshold—raised from ₹1 lakh…

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Example

In the Union Budget presented on 23 July 2024, Finance Minister Nirmala Sitharaman set the LTCG rate at 12.5 per cent across asset classes and raised the equity exemption under Section 112A to ₹1.25 lakh.

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