Long term capital gains arise when the shares are held by the investor for a period of more than 1 year. Here the taxation becomes slightly more complicated. In case of STCG tax, there is no change in the taxation rules. However, in case of LTCG, it was made taxable effective from April 01st 2018. Prior to that any amount of long term capital gains were entirely tax free in the hands of the investor. Not any longer. Any LTCG that arises after April 01st 2018 will be taxable in the hands of the investor at the rate of 10%. Of course, this will be subject to the capital gains being more than Rs.1 lakh overall in any financial year. This Rs.1 lakh is the basic exemption that investors will be eligible to claim each financial year from, their total long term capital gains from equities. If the total capital gains in a year are more than Rs.1 lakh then the excess capital gains will be taxed at 10%. Effective tax on LTCG will be 11.648% (which includes 10% basic tax + 12% surcharge + 4% cess). This surely reduces the advantage that the LTCG enjoyed over STCG on equities.