https://v2.webnotes.in/tags/rs-1.25-lakh/Recent content in Rs 1.25 Lakh on WebNotesHugoen-INTue, 12 May 2026 00:00:00 +0000https://v2.webnotes.in/ltcg-equity-mutual-fund-112a/Tue, 12 May 2026 00:00:00 +0000https://v2.webnotes.in/ltcg-equity-mutual-fund-112a/<p><strong>Long-term capital gains (LTCG) on equity-oriented mutual funds</strong> are taxed under Section 112A of the Income Tax Act 1961 at a flat rate of <strong>12.5%</strong> on gains exceeding <strong>Rs 1,25,000</strong> per financial year, as revised by the Finance Act 2024 effective 23 July 2024. Section 112A was introduced by the Finance Act 2018 to reimpose LTCG tax on listed equity after a 14-year exemption and is the primary charging section for long-term redemptions of equity mutual fund units, ELSS, balanced hybrid funds, and arbitrage funds that qualify as equity-oriented. Indexation is not available under Section 112A. The grandfathering provision in Section 55(2)(ac) ensures that gains accrued before 1 February 2018 are excluded from the taxable base.</p>