Can you explain the calculation of capital gains on equity mutual fund units with a real example?

The latest Union Budget 2019 taxes Long-term capital Gains on sale of Equity shares/units of Equity oriented Fund if more than Rs 1 lakh at @ 10% without the benefit of indexation. However, relief to existing investors to exempt amount of capital gains up to 31 Jan 2018. The amount of gains made thereafter this cut-off date will be taxed. Let us understand these reliefs in greater detail.

Geeta purchased shares worth Rs. 10,000 on 30th September 2017 and sold them on 31st December 2018 at Rs 12,000. The Value of the holding was Rs. 11,000 as on 31st January 2018. Out of the capital gains of Rs. 2,000 (i.e. 12,000-10,000), Rs. 1,000 (i.e. 11,000-10,000) is not taxable. The balance will be taxed at 10%. This formula is only available for shares bought prior to Jan 31^st 2018. Any shares purchased after that date will not have this benefited extended to them. Also this benefit is only offered for the fiscal year 2017-18 since the Union Budget was announced on February 01^st and hence January 31^st was taken as the cut off date.

Remember, there is no benefit of indexation available in case of equity funds even if the shares are sold after 20 years. The 10% flat tax on LTCG has to be paid on any annual LTCG beyond Rs. 1 lakh.