LTCG
Long-Term Capital Gains
TaxationTax on profits from selling assets held for more than 12 months (equity). Currently 12.5% for equity above ₹1.25 lakh exemption.
Formula
LTCG Tax = 12.5% on gains above ₹1.25 lakh (from July 2024)
Why it matters
Lower tax rate incentivizes long-term investing. First ₹1.25 lakh of LTCG per year is tax-free.
Indian example
Related terms
From the research
What Three Years of a Cash Flow Statement Reveals That One Year Hides
A single year of cash flow is a snapshot. Three years is a story. Learn what the trend reveals about earnings quality, funding, and sustainability.
ValuationComparing Two Companies on ROE, and Why the Higher One Is Not Always Better
Two companies can report the same ROE for very different reasons. DuPont analysis shows why an ROE built on leverage is not the same as one built on quality.
ValuationWhat a High P/E Actually Implies, and When It Is a Trap
A high P/E is not simply 'expensive'. It is the market pricing in expectations. Learn how to read what a P/E implies, and the two traps that catch beginners.