Capital Gains Tax Calculator India
Calculate Short-Term (STCG) and Long-Term (LTCG) capital gains tax on listed stocks, equity mutual funds, and real estate for Tax Year 2026-27.
Transaction Details
Equity LTCG applies for ≥ 12 months. Property & Debt LTCG applies for ≥ 24 months.
Total tax liability including 4% Health & Education Cess.
Tax Breakdown & Exemptions
- Covers listed Indian equities, equity mutual funds, and immovable property (real estate)
- Equity: STCG (<12 months) at 20%, LTCG (>=12 months) at 12.5% with ₹1,25,000 annual exemption
- Real Estate: LTCG (>=24 months) at 12.5% without indexation; for acquisitions before 23 July 2024, resident individuals/HUFs can pay the lower of 12.5% unindexed vs 20% indexed (Sec 112(1) second proviso)
- Real Estate: STCG (<24 months) taxed at applicable individual slab rates (20% used as illustrative benchmark)
- Includes statutory 4% Health & Education Cess
- Explicitly excludes unlisted shares, specialized debt mutual funds under Section 50AA, cryptocurrency, and Section 54 reinvestment exemptions
Capital Gains Statutory Fact Triples (Post-Budget 2024)
Revised equity LTCG/STCG tax rates, exemption limits, and real estate indexation grandfathering.
- Listed Equity LTCG Rate & Exemption Limit
- Long-term capital gains on listed equity shares and equity mutual funds (holding ≥ 12 months) are taxed at 12.5%, with the first ₹1,25,000 of aggregate LTCG per financial year 100% tax-free.
- Listed Equity STCG Rate
- Short-term capital gains on listed equity securities subject to Securities Transaction Tax (STT) (holding < 12 months) are taxed at a flat rate of 20% (increased from 15%).
- Real Estate Pre-July 23, 2024 Indexation Grandfathering
- For immovable property purchased before July 23, 2024, resident individual/HUF taxpayers can compute tax under both regimes and pay the lower of: (1) 12.5% without indexation, or (2) 20% with Cost Inflation Index (CII) indexation.
Frequently Asked Questions
What is the difference between STCG and LTCG?
Short-Term Capital Gain (STCG) arises from selling assets held for less than specified holding period. Long-Term Capital Gain (LTCG) arises from assets held longer. Holding period: Equity/Equity MF - 12 months, Debt MF/Bonds - 24 months, Real Estate - 24 months. LTCG gets preferential tax rates (lower tax); STCG is taxed higher.
What are the capital gains tax rates for FY 2025-26?
Equity: STCG @15%, LTCG @12.5% (exemption removed). Debt/other assets: STCG at slab rates, LTCG @20% with indexation benefit (or 12.5% without indexation). Real estate: LTCG @20% with indexation. Listed bonds: Same as equity. Unlisted shares: LTCG @20%. Rates updated as per latest budget provisions.
What is indexation and how does it reduce tax?
Indexation adjusts the purchase price of an asset for inflation using Cost Inflation Index (CII) published annually by government. Higher indexed cost means lower taxable gains. Available for debt mutual funds and real estate held long-term. Formula: Indexed Cost = Purchase Price × (CII of sale year / CII of purchase year).
Can I set off capital losses against capital gains?
Yes. STCG loss can offset both STCG and LTCG. LTCG loss can only offset LTCG, not STCG. If losses exceed gains, carry forward for 8 years (must file ITR on time). Example: Equity STCG loss ₹1L can offset Equity LTCG of ₹1L, making both tax-free.
Do I need to pay tax on equity mutual fund gains?
Yes. From FY 2024-25 onwards, equity mutual funds: STCG (holding < 12 months) taxed @15%, LTCG (holding ≥ 12 months) taxed @12.5% without any exemption. Previously, LTCG up to ₹1L was exempt, but this exemption has been removed as per the latest tax regime.
How is capital gain calculated on inherited property?
For inherited property, purchase price is taken as the price at which previous owner (from whom inherited) acquired it, not the market value at time of inheritance. Holding period includes previous owner's holding. If property acquired before April 1, 2001, Fair Market Value as on 01/04/2001 can be used as cost.
How to Use This Calculator
- 1
Select asset type: Equity/Equity Mutual Funds, Debt Mutual Funds, Real Estate, Gold, Bonds, or Unlisted Shares.
- 2
Choose transaction type: STCG (Short-Term) or LTCG (Long-Term) based on your holding period for the asset.
- 3
Enter purchase price, sale price, and any expenses incurred (brokerage, registration, improvement costs). These reduce taxable gains.
- 4
For LTCG on debt/real estate, enter Cost Inflation Index (CII) for purchase and sale years to calculate indexed cost and see your tax liability.
Key Terms & Definitions
- Capital Asset
- Any property held by you, including land, building, house, vehicles, patents, trademarks, shares, mutual funds, jewelry, etc. Gains from sale are taxable.
- STCG (Short-Term Capital Gain)
- Gain from selling assets held for short period: Equity < 12 months, Debt/Real Estate < 24 months. Taxed higher than LTCG.
- LTCG (Long-Term Capital Gain)
- Gain from assets held long-term: Equity ≥ 12 months, Debt/Real Estate ≥ 24 months. Gets preferential lower tax rates.
- Indexation
- Adjustment of asset's purchase price for inflation using Cost Inflation Index (CII). Reduces taxable gains on debt funds and real estate.
- Cost Inflation Index (CII)
- Index published annually by government to measure inflation. Used to calculate indexed cost of acquisition for LTCG computation.
- Exemption under Section 54
- Exemption from LTCG tax on residential property if proceeds reinvested in another residential property within specified time. Conditions apply.
Formulas & Calculations
Capital Gain Calculation
Transfer expenses include brokerage, registration, legal fees. Improvement cost is major additions/renovations (not repairs). Example: Sell at ₹50L, bought at ₹30L, expenses ₹2L → Gain = ₹50L - ₹32L = ₹18L.
Indexed Cost of Acquisition (for LTCG with Indexation)
Example: Debt MF bought in 2020 (CII 301) for ₹10L, sold in 2026 (CII 363) for ₹15L. Indexed Cost = ₹10L × (363/301) = ₹12.06L. Gain = ₹15L - ₹12.06L = ₹2.94L. Tax @20% = ₹58.8K.
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