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    Everything You Need to Know About CAS Before August 3, 2026
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    General Queries

    What is long term capital gain tax? How is it calculated?

    Any profit or gain arising from stock investment are considered as long term capital gains, if the holding period is more than 1 year. Until 23rd July, 2024, Long term capital gains up to Rs. 1 Lakh in a financial year were exempted from tax. As per the new budget announced on 23rd July 2024, the exemption has been increased from Rs.1,00,000 to Rs. 1,25,000. The tax rates on long-term capital gains have been increased from the earlier rate of 10% to a new rate of 12.5%.

    Example:

    Mr P bought 200 shares of Titan Ltd. At Rs. 800 per share on 1st May, 2023.

     

    Case 1: Shares sold before 23rd July, 2024

    Mr. P sold the same 200 shares of Titan at Rs. 1500 per share on 3rd June, 2024. Holding period of the shares is more than 12 months.

     

    Long Term Capital Gain = 1,40,000 (Up to Rs 1,25,000 is not taxed as per the provision)

    Long term capital Gain Tax= (140000-125000)    = 15,000 X 10% = 1,500

    Case 2: Shares sold after 23rd July, 2024

    Mr. P sold the same 200 shares of Titan at Rs. 1500 per share on 25th July, 2024. Holding period of the shares is more than 12 months.

     

    Long Term Capital Gain = 1,40,000 (Up to Rs 1,25,000 is not taxed as per the provision)

    Long term capital Gain Tax= (140000-125000)    = 15,000 X 12.5% = 1,875

     

    Case 3: Shares sold before 23rd July, 2024 and also after 23rd July, 2024

    Mr. P sold the 90 shares of Titan at Rs. 1500 per share on 3rd June, 2024. He sold the remaining 110 shares of Titan at Rs. 2000 per share on 25th July, 2024.

    Long Term Capital Gain on 90 shares = 63,000 (Up to Rs 1,25,000 is not taxed as per the provision)

    Long Term Capital Gain on 110 shares = 1,32,000 (Up to Rs 1,25,000 is not taxed as per the provision)

    In this case, Rs. 70,000 will be taxed at the new rate of 12.5%.

    (Computation of 70,000 = 1,25,000 – 63,000 – 1,32,000 = 70,000)

    What is Tax Loss Harvesting? What do you mean by capital gains? What is short term capital gain tax? How is it calculated? Help me understand the Tax Loss Harvesting Tool on ICICI Direct Website. How is dividend income taxed?
    What steps do I need to complete on MF Central? What is CUSPA? (Client Unpaid Securities Pledgee Account) What actions does ICICI Securities take to liquidate CUSPA shares if I do not fulfil my outstanding payment obligations? How will my shares be released from CUSPA? Why am I unable to place certain orders when that stocks are present under CUSPA holdings?
    What is Reverse Trade Cancellation Mechanism (RTCM)? When are funds credited to customers account? Can we do trading in BSE – Derivatives from ICICIdirect mobile apps? How do I protect myself against financial fraud (Investor alert – Unauthorised use of ICICI Securities brand name)? By when the profit will be credited to my bank account? Why Periodic Call Auctions (PCA) for Illiquid Stocks? What is the impact of the Settlement Holiday? Can a client trade in all scrips during Pre- Opening session? What is Periodic Call Auction (PCA), and how does it work?
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    When will I get limits for my sell transactions in delivery? Why is Early pay-in of securities done? Is this EPI benefit allowed for all demat accounts? I have NSDL Demat Account, when will the cash sell trade value be released to my limits? Is this facility available for both Resident Individual and Non-Resident Individual clients who have NSDL Demat account? Is this facility available for CDSL Demat account holders? Are there any additional scenarios where limits from sale of securities will be withheld? What are Demat Charges for Early-pay in of securities?
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    How does SEBI’s “SEBI Check” tool help verify UPI IDs? Who issues validated UPI IDs? Are there transaction limits for UPI in the capital market? How can investors ensure they don’t fall for fake UPI IDs? By when will old UPI IDs be phased out? Why are new @valid UPI IDs being introduced by SEBI? Do I (as an investor) have to use these validated UPI IDs? What happens to payments made using old UPI IDs? How do I know if a UPI ID is valid? What should I do if a payment fails with the validated UPI ID? Can an intermediary (broker) have more than one validated UPI ID? Do I always have to scan a QR code to transfer funds via UPI? How can I add funds to my ICICI Direct trading account via UPI?
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    How are mutual funds taxed? How are delisted shares taxed? Can I carry forward my capital losses? Can I offset short-term loss against long-term gain? What happens if I don’t report my losses? How are bonus shares taxed? How are stock splits reflected in capital gains? What is the difference between realized and unrealized gains? What documents should I keep before filing my ITR? What if I traded through multiple brokers? Why are pledged shares not shown in my capital gains report? How do I report foreign shares or ETFs in my ITR? What is Short-Term Capital Gain (STCG)? What is Long-Term Capital Gain (LTCG)? How are capital gains calculated? Why is my capital gain different from my actual profit? How are ETFs taxed? Are sovereign gold bonds taxable? How are REITs and InvITs taxed? What documents are required to report income/loss from derivative trades in ITR? Does brokerage get deducted while calculating capital gains? Where can I view my dividend income Why is the dividend amount in my bank different from the report? Has TDS been deducted from my income? Is dividend income taxable? Where can I check TDS deducted? Which ITR form should I file? Which income should I report while filing ITR? Can I revise my ITR if I entered incorrect capital gains? Is intraday trading treated as capital gain? How is Futures & Options (F&O) income taxed? Is STT deductible? How is inheritance of shares taxed? How are rights issues treated for tax purposes? How are ESOPs taxed? How is gift of shares taxed? What happens if I sell shares bought through IPO? What is the holding period for different asset classes?