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Long-Term Capital Gains — profit from an investment held beyond the specified long-term threshold (12 months for equity, 24 months for most other assets).
The government's reward for patience — long-term gains are usually taxed at a lower rate than short-term ones.
For equity/equity funds, LTCG above ₹1.25L/year is taxed at 12.5% — plan redemptions to use this exemption each year where possible.