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Finance Dictionary

LTCG

Long-Term Capital Gains — profits from selling a capital asset held beyond the prescribed holding period. For equity in India: >1 year attracts 12.5% tax above ₹1.25 lakh.

Example

Selling equity MF units held for 2 years with ₹3 lakh profit: tax = 12.5% on ₹1.75 lakh = ₹21,875.