Updated for FY 2025-26 · post-23 July 2024 rules
Capital Gains Tax Calculator (India): LTCG & STCG
Enter what you bought and sold — the tool applies the right holding period and the latest 23 July 2024 rates, and for property it works out whether 12.5% without indexation or 20% with indexation costs you less.
Listed shares / Equity mutual funds
Capital gains tax you owe
Your long-term capital gains tax is ₹9,750 on a gain of ₹2 L — taxed at 12.5% (above ₹1.25L).
Total gain
₹2 L
Taxable gain
₹75,000
Effective rate
4.9%
How this is calculated
Estimates for transfers in FY 2025-26 under Finance Act 2024 rules (effective 23 Jul 2024). Surcharge on equity (111A/112A) gains is capped at 15%. Indexation uses the notified CII (FY 2025-26 = 376; FY 2026-27 falls back to this until notified). Debt funds assume purchase on/after 1 Apr 2023. This is general information, not tax advice — confirm with a CA before filing, especially for property exemptions and loss set-off.
The rules changed on 23 July 2024 — most calculators didn't
India's capital gains tax was rewritten in the July 2024 Budget, and a surprising number of online calculators still quote the old 10% and 15% rates with full indexation. Getting this wrong can mean thousands — or, on a property sale, lakhs — of rupees of error. This tool is built around the current regime: equity short-term gains are now 20%, equity long-term gains 12.5% above a ₹1.25 lakh exemption, and most other long-term assets a flat 12.5% without indexation. Pick what you sold, enter the dates, and it applies the correct holding period and rate automatically.
The property choice that confuses everyone
The trickiest part of the new law is property. When indexation was removed, there was an outcry, so the government added a relief: if you bought your property before 23 July 2024and you're a resident individual or HUF, you can pay either 12.5% without indexation or 20% with indexation — and keep whichever is lower. NRIs don't get this choice. The maths isn't obvious because indexation inflates your purchase price using the Cost Inflation Index, so the 20% option can sometimes beat the headline 12.5%. This calculator computes both, side by side, and tells you which one saves money and by how much — the single most useful thing it does for a property seller.
Short-term, long-term — and why the date matters
Whether a gain is short or long-term depends entirely on how long you held the asset. Listed shares and equity funds turn long-term after just 12 months; property, gold and unlisted shares need 24 months. Long-term is almost always taxed more gently, so a sale a few weeks early can cost you real money. Debt mutual funds bought on or after 1 April 2023 are the exception — there is no long-term benefit at all, and the whole gain is taxed at your slab rate however long you hold. The tool reads your buy and sell dates and labels each gain correctly so you're never guessing.
Cutting the bill legally
The biggest savings come from reinvestment. Sell a house and put the gain into another house (Section 54), or any long-term asset's proceeds into a house (Section 54F), or up to ₹50 lakh of gains into government-backed bonds within six months (Section 54EC). Sections 54 and 54F are capped at ₹10 crore. For shares, the quiet winner is harvesting up to ₹1.25 lakh of long-term gains every year tax-free and setting off any losses against your gains. Enter your reinvestment in the advanced panel to see the tax fall.
Worked example: a flat bought in 2015, sold in 2025
Setup: Rahul, a resident, bought a flat in FY 2015-16 for ₹50,00,000 and sells it in FY 2025-26 for ₹1,20,00,000. Held over 24 months, so it's long-term, and because he bought before 23 July 2024 he gets the indexation choice.
Option A — 12.5% without indexation. Gain = ₹1,20,00,000 − ₹50,00,000 = ₹70,00,000. Tax = 12.5% × ₹70,00,000 = ₹8,75,000, plus 4% cess = ₹9,10,000.
Option B — 20% with indexation. Indexed cost = ₹50,00,000 × (376 ÷ 254) = ₹74,01,575. Indexed gain = ₹1,20,00,000 − ₹74,01,575 = ₹45,98,425. Tax = 20% × that = ₹9,19,685, plus cess = ₹9,56,472.
Verdict: Option A (12.5%) is cheaper by about ₹46,000, because his sale price is well over 4× the purchase price. The tool flags Option A as the cheaper choice automatically — had Rahul sold for, say, ₹85 lakh instead, the indexed 20% route would have won, and it would have told him that too.
Frequently asked questions
What are the capital gains tax rates in India for 2026?
Since 23 July 2024, listed shares and equity mutual funds are taxed at 20% short-term (held up to 12 months) and 12.5% long-term (held over 12 months) on gains above ₹1.25 lakh a year. Property, gold and unlisted shares held over 24 months are long-term and taxed at 12.5% without indexation — though property bought before 23 July 2024 has a special choice (see below). Short-term gains on property, gold and unlisted shares, and all gains on debt mutual funds bought on or after 1 April 2023, are taxed at your normal income-tax slab rate. A 4% cess applies on top, plus surcharge for high incomes.
Can I still get indexation benefit on property?
Only if you bought the property before 23 July 2024 and you are a resident individual or HUF. In that case you can choose to pay either 12.5% without indexation or 20% with indexation, and pay whichever is lower — the calculator computes both and picks the cheaper one for you. For property bought on or after 23 July 2024, indexation is gone and the rate is a flat 12.5%. NRIs do not get the choice at all and pay 12.5% without indexation. As a rough guide, the 12.5% option wins once your sale price is more than about four times your purchase price.
How is long-term capital gains tax on property calculated?
Long-term gain is your sale value minus the cost of acquisition and any transfer or improvement costs. Under the new rule the tax is simply 12.5% of that gain. If you qualify for the indexation choice, the alternative is to inflate your purchase cost by the Cost Inflation Index (indexed cost = cost × CII of sale year ÷ CII of purchase year), subtract it from the sale value, and pay 20% on the smaller indexed gain. You then pay the lower of the two. You can further reduce the tax by reinvesting under Sections 54, 54F or 54EC.
What is the ₹1.25 lakh exemption on equity gains?
For listed shares and equity-oriented mutual funds, the first ₹1.25 lakh of long-term capital gains in a financial year is tax-free; only the gains above that are taxed at 12.5%. This limit was raised from ₹1 lakh by the July 2024 Budget. It applies per financial year across all your equity LTCG combined, not per transaction, and it does not apply to short-term gains or to other assets like property or gold.
How are debt mutual funds taxed now?
Debt mutual funds bought on or after 1 April 2023 have no long-term benefit at all — the entire gain is added to your income and taxed at your slab rate, no matter how long you held them, and there is no indexation. This is why the calculator asks for your slab rate rather than a holding period for debt funds. Units bought before 1 April 2023 follow the older rules and can still qualify for long-term treatment, which is a separate calculation best checked with a CA.
How can I reduce or save capital gains tax legally?
The main routes are reinvestment exemptions. Section 54 lets you reinvest the gain from selling a house into another house; Section 54F lets you put the net sale proceeds of any other long-term asset into a house; and Section 54EC lets you invest up to ₹50 lakh of gains in NHAI, REC, PFC or IRFC bonds within six months, with a five-year lock-in. Sections 54 and 54F are capped at ₹10 crore. For equity, simply harvesting up to ₹1.25 lakh of long-term gains each year tax-free, and setting off losses against gains, are the simplest tools.