Capital Gains Tax Calculator

Capital Gains Tax Calculator: work out STCG and LTCG on shares, mutual funds, property and gold

This calculator estimates the capital gains tax you owe when you sell a capital asset in India for more than it cost you. A capital gain is simply the profit on sale. What you pay on that profit depends on two things: what the asset is (listed equity, mutual fund, house, gold, land) and how long you held it. Get those two right and the tax almost writes itself. It is built for retail investors, property sellers, salaried taxpayers filing their ITR, and anyone planning a sale who wants to know the tax hit before signing the deal.

The formula in words

Start with your sale value (the amount received), then subtract the cost of acquisition, the cost of any improvement, and transfer expenses such as brokerage, stamp duty or legal fees. What remains is your capital gain. Next, classify it by holding period into short-term (STCG) or long-term (LTCG), apply any indexation you are eligible for, deduct exemptions under Sections 54, 54F or 54EC if you reinvest, and finally apply the correct tax rate to the taxable gain.

Holding periods (as of FY 2025-26)

• Listed shares and equity mutual funds: long-term if held for more than 12 months, otherwise short-term.
• All other assets (immovable property, gold, unlisted shares): long-term if held for more than 24 months, otherwise short-term. Debt mutual funds bought on or after 1 April 2023 are a special case explained below.

Tax rates (as of FY 2025-26, post Budget 2024)

• Equity STCG (Section 111A): 20% on gains from sales on or after 23 July 2024 (it was 15% before that date).
• Equity LTCG (Section 112A): 12.5% on gains above the annual exemption of Rs. 1.25 lakh (raised from Rs. 1 lakh); no indexation.
• LTCG on property, gold and other assets: 12.5% without indexation. Special relief: for land or buildings acquired before 23 July 2024 and sold on or after that date, a resident individual or HUF may pay the lower of 12.5% without indexation or 20% with indexation.
• STCG on non-equity assets and debt mutual funds bought after 1 April 2023: added to income and taxed at your slab rate.

A fully worked example

Suppose you bought a residential plot in FY 2015-16 for Rs. 30,00,000 and sold it after 23 July 2024 (in FY 2024-25) for Rs. 80,00,000. You held it for about 9 years, well over 24 months, so this is a long-term gain. Because you bought before 23 July 2024, you may compare both methods.

Method 1 - 20% with indexation. Using the notified Cost Inflation Index (CII 254 for 2015-16 and 363 for 2024-25), your indexed cost is Rs. 30,00,000 x 363 / 254 = Rs. 42,87,402. Indexed gain = Rs. 80,00,000 - Rs. 42,87,402 = Rs. 37,12,598. Tax at 20% = Rs. 7,42,520.

Method 2 - 12.5% without indexation. Plain gain = Rs. 80,00,000 - Rs. 30,00,000 = Rs. 50,00,000. Tax at 12.5% = Rs. 6,25,000.

You are allowed the lower figure, so your tax is Rs. 6,25,000 plus applicable surcharge and 4% cess. This example shows why you must always run both methods on pre-July-2024 property rather than assuming indexation always wins.

Exemptions that reduce or wipe out the tax

• Section 54: LTCG on sale of a residential house is exempt if you reinvest the gain in another residential house (buy one year before or within 2 years of the sale, or construct within 3 years). The exemption is capped at a reinvestment of Rs. 10 crore.
• Section 54F: LTCG on any long-term asset other than a house (for example gold or a plot) is exempt if you invest the net sale consideration in one residential house, subject to conditions and the Rs. 10 crore cap.
• Section 54EC: invest LTCG from land or building in specified bonds of REC, PFC or IRFC within 6 months, up to Rs. 50 lakh per financial year, with a 5-year lock-in.

Edge cases and tax treatment

• Debt mutual funds purchased on or after 1 April 2023 are always taxed at slab rates as short-term, with no LTCG benefit regardless of holding period. Debt funds bought earlier still follow the 24-month rule.
• Set-off of losses: short-term capital loss can offset both STCG and LTCG; long-term capital loss can offset only LTCG. Unabsorbed losses carry forward for 8 years if you file your return on time.
• The equity LTCG exemption of Rs. 1.25 lakh is a per-year, per-person limit, not per transaction.

Common mistakes to avoid

• Forgetting to add stamp duty, brokerage and registration costs to the cost of acquisition or to transfer expenses - they legitimately reduce your gain.
• Applying the old Rs. 1 lakh equity exemption; it is Rs. 1.25 lakh from FY 2024-25 onward.
• Assuming indexation still applies to gold, shares or post-July-2024 property - it does not.
• Confusing the 12-month rule for equity with the 24-month rule for property and gold.
• Missing reinvestment deadlines under 54/54F, which requires parking unspent money in the Capital Gains Account Scheme before the ITR due date.

Treat the output as a planning estimate. Surcharge (capped at 15% on capital gains under Sections 111A, 112A and 112), cess, and your personal slab can shift the final number, so confirm with a tax professional before a large sale.

Frequently asked questions

What is the difference between STCG and LTCG?

Short-term capital gain (STCG) arises when you sell an asset within the short holding window - 12 months for listed shares and equity funds, 24 months for property, gold and most other assets. Long-term capital gain (LTCG) arises when you hold beyond that period and usually enjoys a lower tax rate.

How much LTCG on equity shares is tax-free in FY 2025-26?

Long-term gains on listed shares and equity mutual funds are exempt up to Rs. 1.25 lakh per person per financial year. Gains above that are taxed at 12.5% without indexation.

Is indexation still available on property sales?

For land or buildings acquired before 23 July 2024 and sold on or after that date, a resident individual or HUF can choose 20% tax with indexation or 12.5% without indexation, whichever is lower. For assets acquired on or after 23 July 2024, indexation is not available and the rate is 12.5%.

How are debt mutual funds taxed now?

Debt mutual fund units bought on or after 1 April 2023 are taxed at your income tax slab rate as short-term capital gains, no matter how long you hold them, with no indexation or long-term benefit. Units bought before that date still follow the 24-month long-term rule.

Can I avoid capital gains tax by buying another house?

Yes. Under Section 54 you can reinvest long-term gains from a house into another residential house, and under Section 54F you can reinvest the net sale consideration of other long-term assets into a house. Both are subject to time limits and a Rs. 10 crore reinvestment cap.

What is Section 54EC and how much can I invest?

Section 54EC lets you save LTCG tax on land or buildings by investing the gain in specified capital gains bonds of REC, PFC or IRFC within 6 months of sale. The limit is Rs. 50 lakh per financial year and the bonds carry a 5-year lock-in.