Capital Gains Tax Calculator

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How it is calculated

For listed shares and equity mutual funds, gains held over 12 months are long-term (LTCG), taxed at 12.5% above a ₹1.25 lakh yearly exemption; held 12 months or less they are short-term (STCG), taxed at 20%. For land and house property, gains held over 24 months are long-term at 12.5% without indexation (for property bought before 23 July 2024 you may instead choose 20% with indexation, whichever is lower); shorter holdings are taxed at your slab rate. Debt mutual funds bought on or after 1 April 2023 are always taxed at your slab rate. Exemptions under sections 54, 54F and 54EC can reduce property gains.

The rules changed on 23 July 2024

For listed equity and equity-oriented mutual funds, long-term gains are taxed at 12.5% above the ₹1.25 lakh annual exemption and short-term gains at 20%. Indexation was withdrawn for most asset classes at the same time, with limited relief for certain immovable property acquired before that date. A year spanning the change has to be split rather than totalled, and any source still quoting 10% and 15% describes the superseded regime.

Holding periods differ by asset class

Listed equity shares and equity-oriented mutual funds turn long-term after 12 months; immovable property and most other assets require 24 months. Debt mutual funds have their own treatment depending on acquisition date. Because the whole tax outcome turns on this classification, verify the actual acquisition and sale dates rather than trusting a summary column in a broker statement, which may use the broker's own convention.

Build the cost of acquisition properly

The cost is more than the purchase price. It includes stamp duty and registration, brokerage, legal fees and capital improvements to the asset, provided you hold the evidence, and brokerage on the sale is deductible too. For inherited or gifted assets the previous owner's cost and holding period generally carry across. This is why purchase papers are worth keeping for decades — without them the cost cannot be evidenced and the gain is overstated.

Exemptions on property have hard deadlines

Section 54 allows relief where the gain from a residential house is reinvested in another — bought one year before or two years after the sale, or constructed within three years. If the money is not deployed by the return filing date it must be parked in the Capital Gains Account Scheme, or the exemption is lost. Section 54EC allows investment in specified bonds within six months, capped at ₹50 lakh in a financial year, with a five-year lock-in. Both windows are absolute.

Losses, and the filing condition attached to them

A long-term loss offsets only long-term gains; a short-term loss offsets either, making it more useful. Unabsorbed losses carry forward eight assessment years — but only if the return for the loss year was filed by the due date, and a belated return forfeits that right permanently. Before filing, reconcile against the AIS, which independently reports your securities transactions. The loss set-off rules set out the full order.

Frequently asked questions

What is the LTCG tax on shares now?

Long-term capital gains on listed shares and equity mutual funds (held over 12 months) are taxed at 12.5% on the amount above a ₹1.25 lakh exemption per year, under the rules effective 23 July 2024.

What is the capital gains tax on selling property?

Long-term gains (property held over 24 months) are taxed at 12.5% without indexation. If you bought the property before 23 July 2024, you can instead opt for 20% with indexation — choose whichever gives the lower tax. Sections 54/54F/54EC can exempt the gain if reinvested.

How are debt mutual funds taxed?

Debt mutual funds bought on or after 1 April 2023 are taxed at your income-tax slab rate regardless of how long you hold them — there is no long-term capital gains benefit.

Is there any exemption on equity gains?

Yes — the first ₹1.25 lakh of long-term capital gains on listed equity and equity mutual funds each year is exempt; only the excess is taxed at 12.5%.

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