How the order of LTCG set-off can cost you more than you think while filing Income-Tax returns

 

Since the tax rate on long-term capital gains (LTCG) other than equity has been reduced from 20% to 12.5%, we now have two categories of LTCG taxed at the same rate of 12.5%: equity and non-equity. However, only capital gains from equity enjoy the exemption of ₹1.25 lakhs under Section 112A.

Which LTCG should be set off first – equity or non-equity – when both are taxed at the same 12.5% rate?

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