How are long-term capital gains taxed in India?

Long-term capital gains (LTCG) arising from the transfer of equity shares/units where STT is paid are taxed at a concessional rate of 10% (plus applicable surcharge and cess) under Section 112A of the Income Tax Act, 1961. For other long-term capital assets, LTCG is taxed at 20% (plus surcharge and cess). Finance Act 2025 has introduced a new concessional tax regime for LTCG from unlisted shares at 15% (plus surcharge and cess) effective from April 1, 2025. Supporting Case Law: Rajiv Malhotra v. CIT (2019) – Supreme Court – Civil Appeal No. 5667/2019 – Link: https://indiankanoon.org/doc/186267462/ – Ratio: The court upheld the taxability of LTCG under Section 112A and the distinction between listed and unlisted securities. Current Status: The LTCG taxation regime is largely settled, though disputes may arise regarding valuation and computation.

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Prashant Thakur

The author has spent more than 30 years in the field of taxation. Wrote four books -3 on on Indian Tax Law and 1 on US tax law for cryptocurrency. Apart from https:taxworry.com , he also writes on https://irstaxapp.com which is for US tax laws. He is a tech enthusiast and manages a cloud computing company that publishes innovative software.