Capital gains tax is what the Income Tax Department charges on the profit you make from selling a capital asset -- shares, mutual funds, property, gold, bonds, unlisted equity.
About this calculator
Capital gains tax is what the Income Tax Department charges on the profit you make from selling a capital asset -- shares, mutual funds, property, gold, bonds, unlisted equity. The two big variables are the holding period (which decides whether the gain is long-term or short-term) and the asset class (which decides the rate). India revamped the regime in Budget 2024-25, harmonising LTCG to 12.5% across most listed assets, raising STCG on listed equity to 20%, and removing indexation for property and debt funds.
This calculator covers the most common scenarios. For listed equity shares (with STT paid) and equity mutual funds, the holding threshold is 12 months: LTCG above Rs 1.25 lakh per year is taxed at 12.5%; STCG is at 20%. For debt mutual funds purchased on or after 1 April 2023, all gains are taxed at slab rates regardless of holding period. For real estate, gold and unlisted shares, the threshold is 24 months: LTCG is taxed at 12.5% (flat, no indexation in the new regime); STCG is taxed at slab rates. The calculator adds the standard 4% Health and Education Cess on the tax amount.
A practical reminder: capital losses can be set off and carried forward for up to 8 assessment years against future capital gains -- but only if you file your ITR by the due date. STCG losses can offset both STCG and LTCG; LTCG losses can offset only LTCG. To plan tax-efficient redemptions, time mutual-fund switches just past the 12-month mark, harvest equity LTCG annually up to the Rs 1.25L exempt limit, and hold property at least 24 months. Use this with the [[income-tax]] calculator to see total annual tax, the [[elss]] calculator to plan equity that comes with an 80C deduction, and the [[normal-sip]] calculator to project the maturity amount whose redemption will trigger this tax.
Common uses
- Estimating tax before redeeming a long-held mutual-fund SIP
- Planning property sale timing to cross the 24-month LTCG threshold
- Annual equity-LTCG harvesting up to the Rs 1.25 lakh exempt limit
- Comparing post-tax returns of equity vs debt funds before reallocating
- Pre-filling ITR Schedule CG with the right gain bifurcation
Frequently asked questions
What is the LTCG tax rate on equity in 2026?
12.5% on long-term gains above Rs 1.25 lakh per financial year, plus 4% cess. Gains within the Rs 1.25 lakh exempt threshold are tax-free. The asset must be a listed equity share or equity-oriented mutual fund where STT has been paid at sale.
Has indexation been removed for property?
Yes -- Budget 2024 removed indexation for property sales after 23 July 2024 in exchange for a lower flat 12.5% LTCG rate. Owners who purchased before that date can opt for the old 20% with-indexation rate if it gives a lower tax outgo.
How is debt-fund taxation different now?
Debt mutual funds purchased on or after 1 April 2023 are taxed at your slab rate on all gains, with no LTCG concession. Units purchased before that grandfathered date still follow the old indexation rule for long-term gains.
Can I claim Section 54 exemption to avoid LTCG on property?
Yes -- Section 54 lets an individual or HUF reinvest the LTCG (or sale proceeds for 54F) in another residential property within specified time limits to claim full or partial exemption. Section 54EC allows investment up to Rs 50 lakh in NHAI or REC bonds within 6 months for the same effect.
What if I made a loss instead of a gain?
Capital losses can offset capital gains in the same year, with any unabsorbed loss carried forward for up to 8 assessment years. Long-term losses can only offset long-term gains; short-term losses can offset both. Filing your ITR on time is mandatory to preserve the carry-forward right.