Claim audit · FY 2026-27
“Equity LTCG up to ₹1 lakh is tax-free”
The condition that decides it
Stale number: the exemption is ₹1.25 lakh (since 23-Jul-2024), and the rate above it is 12.5%. Applies only to STT-paid listed equity/equity MF u/s 112A — never to property, gold, debt or unlisted shares. Once gains exceed the limit, only the excess is taxed (unlike the ₹50k gift rule).
What the department sees
Broker capital-gains statement, AIS
Data the Income-tax Department already receives automatically — the reel doesn't mention this part.
The real math
The reel uses the stale ₹1,00,000 figure. For eligible section 112A equity LTCG, the current threshold is ₹1,25,000 and the rate above it is 12.5%. If eligible gain is ₹3,25,000, the taxable base is ₹3,25,000 − ₹1,25,000 = ₹2,00,000. Tax on that base is ₹2,00,000 × 12.5% = ₹25,000 before surcharge or cess. If gain is ₹1,00,000, the threshold covers it and the base is ₹0. The rule applies only to STT-paid listed equity or equity MF within section 112A, not property, gold, debt or unlisted shares. Once gains exceed the threshold, only the excess is taxed; the whole gain is not taxed. The statute therefore produces a ₹1.25 lakh threshold and 12.5% excess rate, not the viral ₹1 lakh/10% rule.
Questions people actually ask
There's a right way to do this
What tax do I pay on my equity gains after Budget 2024?
Sections: 112A, 111A · We audit claims, not creators. Reviewed by Harun Raaj & Associates, Chartered Accountants · All audited claims