Long Term Capital Gain taxation for equity


Friends, I have a LTCG of more than 10 lakhs from the equity for this year.

  1. Is there a way to avoid tax?. If Yes how?
  2. If No. Do I have to pay the tax in advance?. If I don’t pay tax in advance,what will be the penalty/interest percentage I have to pay during my tax filing in 2020

Thanks in advance




Hi @Malarraj,

LTCG up to INR 1 Lakh is exempt from taxes. LTCG above INR 1 Lakh is taxable at 10%.

  1. You can set off against non-speculative business loss like F&O for the current year. Long-term capital losses for previous as well as the current year.
  2. Yes, you are required to pay advance tax in case your tax liability is more than INR 10,000 for the FY. The penalties for non-payment of advance tax are:

small question, ELSS funds included for 10% LTCG?


Thanks a lot for your response. Appreciate it. It’s pretty clear

One more question related to this. Do we have to pay advance tax for Short term capital gain as well?.


Hi @niranjan77,

If ELSS funds consist of listed equity shares then STT (Security Transaction Tax) would have been paid and the LTCG above INR 1 lakh is taxable at 10%.

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Hi @Malarraj,

Yes, Advance Tax is required to be paid on Short term capital gains.
You can refer our article on Advance Tax for details.