Long Term Capital Gain Exemption of Rs.1.25 Lakh

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Student (Querist)
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29 December 2024 Dear Sir / Madam
Kindly inform that if my Long Term Capital Gain on Debt Mutual Funds which were purchased before 01.04.2023 and sold after July-24 after holding 36 months period then will it be exempted in the category of Rs.1.25 Lakh. I had purchased debt fund in April-21 and sold them in Sep-24 i.e. after holding more than 36 months period and capital gain is about Rs.40000/- on it. Will it be exempted if my total Long Term in Equity Fund in FY 24-25 is 0 and as this is under Rs.1.25 Lakh or I have to pay tax @ 12.5 % on it. Kindly guide.
Thanks in Advance.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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29 December 2024 The exemption is applicable only for LTCG u/s. 112A IT act, that is for equity based units and sell of equity only, not over debt fund, where the gain is u/s. 112 IT act. In your case you will have to pay 12.5% over the LTCG, without any exemption.