# LTCG Tax Harvesting Calculator

> Free tax harvesting calculator for equity mutual funds. See how much long-term gain you can book tax-free this year under the ₹1.25 lakh exemption, how much to redeem, and the tax saved over the years.

Every year the first **₹1.25 lakh of long-term gains** on equity funds is tax-free. Book that much gain, reinvest the same day, and you pay less tax later. See **how much to redeem** now and the **tax saved** over the years.

Use the free tool here: https://saraltools.in/ltcg-tax-harvesting-calculator/

## How to harvest gains, step by step

1. Check your capital gains statement (from CAMS or KFintech) for units held over 12 months.
2. Redeem units with total long-term gains of up to ₹1.25 lakh, minus any gains already booked this financial year.
3. Reinvest the money in the same fund on the same or next day.
4. Do this before 31 March every year.

## How the redemption amount is worked out

Gains are spread across your units, so the calculator assumes each rupee redeemed carries the same share of gain: **amount to redeem = current value × gain to book ÷ total gain**. Funds actually redeem the oldest units first, which usually carry more gain, so you may need to redeem a little less. Your fund's capital gains statement shows the exact figure.

## Why it adds up

Each harvest raises your purchase cost by the gain booked. When you finally sell after many years, the taxable gain is smaller by the total you harvested. Over 10 years that can mean well over ₹1 lakh less tax for a single investor.

Need the tax on a specific sale? Use the [mutual fund capital gains tax calculator](https://saraltools.in/mutual-fund-capital-gains-tax-calculator/).

## Frequently asked questions

### What is tax harvesting?

Selling equity fund units with long-term gains of up to ₹1.25 lakh in a financial year and buying them back immediately. The gain is tax-free and your purchase cost goes up, so the taxable gain when you finally sell is smaller.

### Is tax harvesting legal in India?

Yes. Indian law has no rule against buying back the same fund after selling. Remember that the reinvested units start a fresh 12-month holding period.

### What are the costs?

Check the exit load (usually nil after 1 year) and a tiny stamp duty of 0.005% on the purchase. Do not harvest ELSS units still in their 3-year lock-in.

### How much tax can I save each year?

Up to ₹15,625 a year (12.5% of ₹1.25 lakh), or ₹16,250 with 4% cess, per person. A family with several investors can each use their own exemption.

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Last updated: 2026-11-01

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SaralTools (https://saraltools.in/): Free Indian calculators, document makers and photo tools. Contact: help@saraltools.in. Results are estimates, not tax, legal or financial advice.