Capital Gains Tax Calculator India
Free capital gains calculator India (FY 2025-26 / AY 2026-27) — use as an STCG calculator or LTCG calculator for equity, stocks, mutual funds and debt funds. Covers capital gains tax on shares, equity mutual funds and property. Auto-detects holding period, applies current ₹1.25L exemption and FY-specific tax rates.
- Equity Definition: Funds with ≥65% domestic equity exposure.
- Debt Rule: Debt Funds purchased on/after 1 April 2023 have no LTCG benefit - gains taxed at slab regardless of holding period.
- Grandfathering: This tool does not account for the Jan 31, 2018 grandfathering clause.
- Cess/Surcharge: This tool shows base tax only. Add 4% Health & Education Cess and applicable surcharge when filing.
How to Calculate Capital Gains Tax India - Holding Period by Asset Type
The single most important factor in capital gains tax India is your holding period — it determines whether you need a short term capital gains calculator (STCG, higher tax) or a long term capital gains calculator (LTCG, lower tax or exempt). For equity shares and equity mutual funds, gains fall under Section 112A of the Income Tax Act; for other assets including property, Section 112 applies — with different holding period thresholds and the option to use the cost inflation index (CII) in certain cases. Unlike most tax calculators, we cover all major asset types in one place.
| Asset Type | STCG Threshold | STCG Rate | LTCG Rate | LTCG Exemption | Indexation |
|---|---|---|---|---|---|
| Equity Shares | ≤ 12 months | 20% | 12.5% | ₹1.25L/year | None |
| Equity Mutual Funds (>65% equity) | ≤ 12 months | 20% | 12.5% | ₹1.25L/year | None |
| Immovable Property (Land/Building) | ≤ 24 months | Slab rate | 12.5% | No exemption | Optional* (20%) |
| Debt Mutual Funds (post Apr 2023) | Always STCG | Slab rate | No LTCG | None | None |
| Gold ETFs / Gold MF | ≤ 24 months | Slab rate | 12.5% | No exemption | None |
| Unlisted Shares | ≤ 24 months | Slab rate | 12.5% | No exemption | None |
*For property acquired before July 23, 2024: taxpayer can choose either 12.5% without indexation OR 20% with the cost inflation index (CII) benefit — whichever is more beneficial. This option exists only for individuals and HUFs. For lumpsum investments in equity funds, the same 12-month LTCG threshold under Section 112A applies as for SIPs.
Old vs New Capital Gains Tax Rates India - FY 2023-24 vs FY 2025-26 (AY 2026-27)
The Finance Act 2024 (Union Budget 2024, effective July 23, 2024) significantly revised capital gains tax on shares, equity mutual funds and property in India. This comparison table shows exactly what changed across all asset types — no competitor clearly presents this side by side. This is critical context when deciding the optimal time to sell your investments and whether to switch tax regimes.
| Asset | Gain Type | FY 2023-24 Rate | FY 2025-26 Rate | Change |
|---|---|---|---|---|
| Equity Shares / Equity MF | STCG | 15% | 20% | ▲ +5% |
| Equity Shares / Equity MF | LTCG | 10% | 12.5% | ▲ +2.5% |
| LTCG Exemption (Equity) | - | ₹1 Lakh | ₹1.25 Lakh | ▲ +₹25K |
| Property LTCG | LTCG | 20% + indexation | 12.5% (no indexation) | Changed |
| Debt MF (post Apr 2023) | STCG | Slab rate | Slab rate | No change |
| Gold ETF / Gold MF | LTCG | 20% + indexation | 12.5% (no indexation) | Changed |
Key takeaway for equity investors: While the LTCG rate on shares rose from 10% to 12.5%, the exemption also rose from ₹1L to ₹1.25L. Net impact: investors with LTCG under ₹5–6 Lakh per year often pay the same or less tax than before due to the higher exemption. Use our Mutual Fund Tax Calculator to model your exact SIP tax impact with FIFO breakdown.
Key takeaway for property: The shift to 12.5% without indexation benefits investors who bought property recently (where CII adjustment would not significantly reduce gains) and hurts investors who bought 15–20+ years ago and would have benefited from large cost inflation index reductions.
Capital Gains Tax Exemptions India - Section 54, 54EC and 54F Explained
You can legally reduce or eliminate capital gains tax on property India and other assets by using capital gains tax exemptions under specific sections of the Income Tax Act. Most competitors only mention these sections by name — here is the full condition-by-condition breakdown so you know exactly what qualifies.
Property → Property
Who: Individual / HUF selling a residential house property (long-term).
Invest in: New residential property in India.
Timeline: Buy within 1 year before or 2 years after sale. Build within 3 years.
Cap: Exemption limited to LTCG amount. Max 2 properties if LTCG ≤ ₹2 Cr.
Lock-in: New property cannot be sold for 3 years.
Any Asset → Bonds
Who: Any taxpayer selling a long-term capital asset (property, unlisted shares, etc.).
Invest in: NHAI, RECL, PFC or IRFC specified bonds.
Timeline: Within 6 months of sale date.
Cap: Maximum ₹50 Lakh per financial year.
Lock-in: 5 years. Selling before 5 years cancels exemption.
Any Asset → Property
Who: Individual / HUF selling any long-term capital asset except residential property.
Invest in: New residential property in India.
Timeline: Buy within 1 year before or 2 years after. Build within 3 years.
Cap: Full exemption if full net proceeds invested. Partial if partial.
Condition: Must not own more than 1 other residential property at sale date.
Capital Gains Account Scheme (CGAS) - Important
If you cannot reinvest before the ITR filing deadline (typically July 31), you can deposit the gains in a Capital Gains Account Scheme (CGAS) at any PSU bank. This preserves your exemption claim until you actually reinvest. The amount must be used within the original timelines or it becomes taxable. For investors managing multiple asset classes simultaneously, our Portfolio Rebalancing Calculator can help plan exits and re-entries in a tax-efficient sequence.
Capital Gains Loss Set-Off - How to Use Losses to Reduce Tax
If your investments go down in value and you sell at a loss, the Income Tax Act allows you to use those losses to offset your taxable gains — a core element of smart capital gains tax planning in India. Here is the exact set-off logic with a worked example showing exactly how much tax you can save.
Set-Off Rules
| Loss Type | Can Be Set Off Against | Carry Forward |
|---|---|---|
| Short Term Capital Loss (STCL) | STCG + LTCG both | Up to 8 assessment years |
| Long Term Capital Loss (LTCL) | LTCG only | Up to 8 assessment years |
Worked Example - Set-Off in Action
Suppose in FY 2025-26 you have the following:
| Transaction | Amount |
|---|---|
| LTCG on Equity Fund A (held 2 years) | +₹3,00,000 |
| LTCL on Equity Fund B (held 18 months, at loss) | −₹80,000 |
| STCL on Stocks C (held 6 months, at loss) | −₹40,000 |
| Net LTCG after set-off | ₹1,80,000 |
| Less: ₹1.25L LTCG exemption | −₹1,25,000 |
| Taxable LTCG at 12.5% | ₹55,000 × 12.5% = ₹6,875 |
Without the STCL of ₹40,000, the taxable LTCG would have been ₹75,000 × 12.5% = ₹9,375. The loss saved ₹2,500 in tax directly. Critical rule: You must file your ITR before the due date to carry forward losses to the next year — if you miss the deadline, the losses lapse permanently.
To understand how these returns compound before tax, use our CAGR Calculator to model growth rates. For planning SIP redemptions around tax-loss harvesting, use our Mutual Fund Tax Calculator. For retirement-specific tax planning on withdrawals, use our Retirement Withdrawal Planner.
Frequently Asked Questions
- Section 54: Sell a residential property → reinvest in another residential property within 2 years (or build within 3 years).
- Section 54EC: Sell any long-term capital asset → invest up to ₹50L in specified bonds (NHAI, RECL) within 6 months.
- Section 54F: Sell any long-term asset (not property) → invest full net proceeds in residential property.
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