Capital Gains Tax Calculator

What is capital gains tax in India?

When you sell an asset — shares, mutual funds, property, or gold — the profit you make is called a capital gain. India taxes these gains differently depending on the asset type and how long you held it. Short-term gains (STCG) apply when you sell before the holding-period threshold; long-term gains (LTCG) apply after. Budget 2024 (effective July 23, 2024) unified and simplified rates across most assets.

There are two broad categories: gains taxed at flat rates (equity, property, gold) and gains taxed at your income slab rate (debt mutual funds purchased on or after April 1, 2023, and short-term property/gold). This calculator handles all categories and automatically picks the lower-tax option where available (property with vs without indexation).

Capital gains tax rates — FY 2025-26 (AY 2026-27)

A 4% health and education cess applies on all capital gains tax amounts.

Budget 2024 changes (effective July 23, 2024)

The Finance Act 2024 made significant changes that affect FY 2025-26 filings:

• STCG on equity raised from 15% to 20%. Any equity shares or equity MF units sold after July 23, 2024 with a holding period under 12 months are taxed at 20%.
• LTCG on equity raised from 10% to 12.5%. The ₹1 lakh annual exemption was simultaneously raised to ₹1.25 lakh. This benefits small investors but increases tax on large gains.
• Indexation removed for property (with grandfathering). New purchases on/after July 23, 2024 get only 12.5% without indexation. Properties purchased before that date can still use indexation at 20% — or opt for 12.5% without it, whichever is lower.
• Debt MF Section 50AA (from April 1, 2023, not July 2024): All debt MFs purchased on or after April 1, 2023 are taxed at slab rate regardless of holding period — there is no LTCG treatment available.

Worked example 1: Equity mutual fund — LTCG with ₹1.25L exemption

You invested ₹5,00,000 in an equity MF on January 1, 2024 and sold on March 1, 2025 for ₹7,50,000 (held 14 months → LTCG).

• Total gain: ₹7,50,000 − ₹5,00,000 = ₹2,50,000
• Less: ₹1.25L annual LTCG exemption (Section 112A) = ₹1,25,000
• Taxable LTCG: ₹2,50,000 − ₹1,25,000 = ₹1,25,000
• Tax @ 12.5%: ₹1,25,000 × 12.5% = ₹15,625
• Cess @ 4%: ₹625
• Total tax: ₹16,250

Worked example 2: Property with indexation choice

You bought a property in FY 2015-16 for ₹40,00,000 and sold in FY 2025-26 for ₹90,00,000. Since it was purchased before July 23, 2024, you can pick either option:

• Option A — 12.5% without indexation: Gain = ₹50L, Tax = ₹6,25,000
• Option B — 20% with indexation: CII 2015-16 = 254, CII 2025-26 = 380. Indexed cost = ₹40L × (380/254) = ₹59.84L. Gain = ₹90L − ₹59.84L = ₹30.16L. Tax @ 20% = ₹6,03,150
• Verdict: Option B (with indexation) gives lower tax — ₹6,03,150 vs ₹6,25,000.This calculator performs this comparison automatically.

Loss set-off rules

Capital losses can offset gains within the same year, reducing your total tax bill:

• Short-term capital loss (STCL) can offset STCG first, then LTCG (both equity and other categories).
• Long-term capital loss (LTCL) can only offset LTCG — it cannot offset STCG.
• Unabsorbed losses can be carried forward for up to 8 assessment years, but only if you file your ITR on time (by the due date).
• Losses on equity (LTCG under Section 112A) cannot be offset by the ₹1.25L exemption retroactively — the exemption only applies to gains.