Quick Answer
In India, listed shares and equity mutual funds held over 12 months pay 12.5% long-term capital gains tax on gains above ₹1.25 lakh a year; held 12 months or less, the gain is taxed at 20%. Property and gold become long-term after 24 months (12.5% without indexation). Debt funds bought from April 2023 are taxed at your slab. Example: equity bought for ₹5 lakh and sold for ₹8 lakh after 3.5 years — gain ₹3 lakh, taxable ₹1.75 lakh, tax ₹22,750 including 4% cess.
What is a Capital Gains Tax Calculator?
A capital gains tax calculator (कैपिटल गेन टैक्स कैलकुलेटर) estimates the tax you owe when you sell an investment for a profit. In India the rate depends on two things: what you sold — shares, mutual funds, property or gold — and how long you held it. Hold beyond a threshold and the gain becomes long-term, usually taxed at a lower rate; sell sooner and it is short-term.
This free tool works out the holding period from your purchase and sale dates, decides whether the gain is short- or long-term, applies the ₹1.25 lakh equity exemption, uses the right rate and adds 4% cess. It covers listed shares and equity funds, debt mutual funds, and property, gold and other assets, using the rates for sales on or after 23 July 2024, which continue for FY 2026-27.
Key Features
- Three asset groups with their own rules.
- Holding period from dates — no counting months by hand.
- Short- or long-term decided automatically.
- ₹1.25 lakh equity LTCG exemption, with a box if you have already used it.
- Expenses such as brokerage, stamp duty and improvements.
- Your slab rate for gains taxed at slab.
How to Use It
- Choose the asset type.
- Enter the total purchase price and sale price.
- Pick the purchase date and sale date.
- Enter expenses connected with the purchase or sale.
- Choose your income tax slab (used for debt funds and short-term property or gold gains).
- Read the gain, the type, the taxable gain, the rate and the estimated tax.
Capital Gains Tax Rates in India (FY 2026-27)
| Asset | Long-term after | LTCG rate | STCG rate |
|---|---|---|---|
| Listed shares, equity mutual funds | 12 months | 12.5% above ₹1.25 lakh | 20% |
| Debt mutual funds bought on/after 1 Apr 2023 | — | Slab rate | Slab rate |
| Land, buildings, house property | 24 months | 12.5% (no indexation)* | Slab rate |
| Physical gold, jewellery | 24 months | 12.5% | Slab rate |
| Unlisted shares | 24 months | 12.5% | Slab rate |
*For land or buildings bought before 23 July 2024, resident individuals and HUFs may choose 20% with indexation if that gives lower tax. The calculator shows the 12.5% figure. All rates attract 4% health and education cess, and surcharge at high incomes.
How the Tax is Calculated
- Capital gain = Sale price − Purchase price − Expenses.
- Holding period = months between purchase and sale dates.
- Type = long-term if the holding period is more than the threshold.
- Taxable gain = gain, minus ₹1.25 lakh for long-term equity (if not already used).
- Tax = Taxable gain × rate × 1.04 (cess).
Worked Examples
1. Long-term gain on shares
Shares bought for ₹5,00,000 in April 2023 and sold for ₹8,00,000 in October 2026 — held 3 years 6 months.
- Gain: ₹3,00,000 — long-term (over 12 months)
- Taxable: ₹3,00,000 − ₹1,25,000 = ₹1,75,000
- Tax: ₹1,75,000 × 12.5% × 1.04 = ₹22,750
2. Short-term gain on shares
The same ₹3,00,000 gain, but the shares were held for only 8 months: ₹3,00,000 × 20% × 1.04 = ₹62,400. Waiting a few months longer would have saved ₹39,650.
3. Debt fund
A ₹1,00,000 gain on a debt fund bought in 2024, for someone in the 30% slab: ₹1,00,000 × 30% × 1.04 = ₹31,200, whether held for 6 months or 6 years.
4. Property
A flat bought for ₹50 lakh and sold for ₹80 lakh after 5 years, with ₹2 lakh of stamp duty and brokerage. Gain: ₹28 lakh. Long-term tax at 12.5%: ₹28,00,000 × 12.5% × 1.04 = ₹3,64,000 — before any reinvestment exemption or the indexation option.
Using the ₹1.25 Lakh Equity Exemption
Every financial year, the first ₹1.25 lakh of long-term gains from listed shares and equity mutual funds is tax-free. Many investors "harvest" this: they sell long-held units with gains up to ₹1.25 lakh before 31 March and buy them back, resetting the purchase price higher at no tax cost. Over a decade this can save a meaningful amount of tax. The exemption is per person, so family members each have their own.
What Counts as Expenses?
- Brokerage and transaction charges on buying and selling.
- Stamp duty, registration and legal fees on property.
- Cost of improvement — a new floor or major renovation, not routine repairs.
- Not allowed: securities transaction tax (STT), interest on a loan used to buy shares, routine maintenance.
Legal Ways to Reduce Capital Gains Tax
- Wait for long-term status — especially for equity near the 12-month mark.
- Harvest the ₹1.25 lakh exemption every year.
- Set off losses: short-term losses against any capital gain; long-term losses only against long-term gains. Unused losses carry forward for 8 years if you file on time.
- Reinvest property gains in another residential house or in specified capital gains bonds within the time limits to claim an exemption.
- Use the basic exemption limit: residents whose total income is below the exemption limit can use the unused part against some capital gains.
Reporting Capital Gains in Your Return
Capital gains must be reported in your income tax return even when no tax is due — for example, when long-term equity gains stay within ₹1.25 lakh. Salaried people with capital gains usually file ITR-2 (ITR-3 if they also have business income). Download the capital gains statement from your broker and from the mutual fund registrars, check the purchase dates and costs, and match them with your Annual Information Statement (AIS). Tax on large gains may also require advance tax instalments during the year to avoid interest.
Why the Holding Period Matters
The holding period runs from the date of purchase to the date of sale. For equity, more than 12 months makes a gain long-term; for property and gold, more than 24 months. For mutual fund SIPs, each instalment has its own purchase date, and units are redeemed first-in, first-out. So if you redeem a SIP started 14 months ago, the earliest instalments may be long-term while recent ones are short-term. Your fund's capital gains statement shows the split.
What This Calculator Does Not Include
- Surcharge for high incomes (capped at 15% on equity and most capital gains).
- Grandfathering for shares and equity funds bought before 1 February 2018.
- The 20%-with-indexation option for older land and buildings.
- Reinvestment exemptions and loss set-off.
- Special cases such as buy-backs, bonus shares, inherited assets and foreign shares.
- Crypto and other virtual digital assets, which are taxed separately at a flat 30% with no deduction except cost — see our Crypto Profit Calculator for profit figures.
The Income-tax Act, 2025 replaced the 1961 Act from 1 April 2026 with renumbered sections, so official forms may use different section numbers from older articles. Treat this result as a planning estimate and confirm the final figure with a chartered accountant or the Income Tax Department's resources before filing.
Quick Glossary
- LTCG: long-term capital gain.
- STCG: short-term capital gain.
- Cost of acquisition: what you paid for the asset.
- Indexation: raising the purchase cost for inflation (now limited to older land and buildings).
- Tax harvesting: booking gains up to the exemption each year.
Why Use This Capital Gains Calculator?
The 2024 changes moved several thresholds and rates, and many older articles still quote the old 10% and 15% figures. This calculator uses the current rules, works out the holding period from the dates you enter and shows each step — gain, type, taxable amount and rate — so you can see exactly how the figure is reached. It is free, private and runs entirely in your browser. For your full tax picture, use our Income Tax Calculator.
Capital Gains Tax Calculator — Key Facts
| Equity LTCG | 12.5% above ₹1.25 lakh/yr (held over 12 months) |
|---|---|
| Equity STCG | 20% (held 12 months or less) |
| Debt funds (from Apr 2023) | Slab rate, any holding period |
| Property, gold | LTCG 12.5% after 24 months; STCG at slab |
| Cess | 4% on the tax |
| Example | ₹3 lakh equity LTCG → ₹22,750 tax |
Frequently Asked Questions
What is capital gains tax?
Tax on the profit you make when you sell a capital asset — shares, mutual fund units, property, gold and so on — for more than you paid. The gain is sale price minus purchase price minus allowed expenses.
What is the LTCG tax rate on shares in 2026?
12.5% on long-term gains above ₹1.25 lakh in a financial year, for listed shares and equity mutual funds held for more than 12 months. Add 4% cess. These rates apply to sales on or after 23 July 2024.
What is the STCG tax rate on shares?
20% plus 4% cess on gains from listed shares and equity funds held for 12 months or less (where securities transaction tax is paid).
How is the ₹1.25 lakh exemption applied?
The first ₹1.25 lakh of total long-term gains from listed equity and equity funds in a financial year is tax-free. Only the excess is taxed at 12.5%. If you have already used it on other sales, tick the box in the calculator.
How are debt mutual funds taxed?
Gains on debt funds bought on or after 1 April 2023 are added to your income and taxed at your slab rate, whatever the holding period. There is no long-term benefit or indexation for these units.
When does property become long-term?
Land, buildings and other immovable property become long-term after more than 24 months. The long-term gain is taxed at 12.5% without indexation. For land or buildings bought before 23 July 2024, resident individuals and HUFs can choose 20% with indexation if that is lower.
How is gold taxed?
Physical gold and gold jewellery become long-term after 24 months and are taxed at 12.5%. Listed gold ETFs become long-term after 12 months. Short-term gains are taxed at your slab rate.
What expenses can I deduct?
Costs directly connected with the purchase or sale — such as brokerage, stamp duty, registration and legal fees — and, for property, the cost of improvements. Securities transaction tax (STT) is not deductible.
How can I save capital gains tax?
Use the ₹1.25 lakh equity exemption each year, hold assets beyond the long-term threshold, set off capital losses against gains, and for property consider reinvestment exemptions such as buying another house or capital gains bonds within the time limits.
What if I made a loss?
A short-term capital loss can be set off against short- or long-term gains; a long-term loss only against long-term gains. Unused losses can be carried forward for 8 years if you file your return on time.
Does the calculator include surcharge?
No. Surcharge applies at high incomes, and it does not handle grandfathering for shares bought before 1 February 2018 or reinvestment exemptions. Treat the result as an estimate and confirm with a tax professional.
Is the capital gains calculator free?
Yes, completely free and private. Nothing you type leaves your browser.
Know Your Tax Before You Sell!
Free capital gains calculator for shares, funds, property and gold.
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