Capital Gains Calculator
Calculate short-term and long-term capital gains tax on listed shares, mutual funds, property, gold and bonds under the rules effective from 23 July 2024.
What is the Capital Gains Calculator?
A capital gain is the profit from selling a capital asset. Whether it is short-term or long-term depends on how long you held it, and each has different tax rates.
How does it work?
Listed shares and equity funds are long-term after 12 months: STCG at 20% and LTCG at 12.5% above the ₹1.25 lakh annual exemption. Property, gold and unlisted shares are long-term after 24 months: LTCG at 12.5% without indexation. For land or buildings bought before 23 July 2024, individuals can instead pay 20% with indexation — the calculator shows whichever is lower. Debt funds bought after 1 April 2023 are always taxed at slab rates.
Formula
Gain = Sale value − Cost − Expenses
Indexed cost = Cost × CII(sale year) ÷ CII(purchase year)
Example
Shares bought for ₹5 lakh and sold for ₹9 lakh after 3 years: gain ₹4 lakh, taxable after exemption ₹2.75 lakh, tax 12.5% = ₹34,375 plus cess.
Holding periods and rates
Whether a gain is short-term or long-term depends on how long you held the asset. These rates apply to transfers on or after 23 July 2024.
- Cess of 4%, and surcharge for high incomes, apply on top. Surcharge on these capital gains is capped at 15%.
| Asset | Long-term after | Short-term rate | Long-term rate |
|---|
| Listed shares, equity mutual funds | 12 months | 20% | 12.5% above ₹1.25 lakh a year |
| Land, building, house property | 24 months | Slab rate | 12.5% (or 20% with indexation for property bought before 23 July 2024) |
| Physical gold, jewellery | 24 months | Slab rate | 12.5% |
| Unlisted shares | 24 months | Slab rate | 12.5% |
| Debt mutual funds bought on or after 1 April 2023 | Not applicable | Slab rate | Slab rate |
Example: listed shares
You bought shares for ₹5,00,000 and sold them three years later for ₹9,00,000. The ₹4,00,000 gain is long-term. After the ₹1,25,000 yearly exemption, ₹2,75,000 is taxed at 12.5%: ₹34,375, plus 4% cess, ₹35,750 in total.
Had you sold within 12 months, the whole ₹4,00,000 would be short-term and taxed at 20%: ₹80,000 plus cess.
Property bought before 23 July 2024
For land or buildings, individuals and HUFs can choose the lower of two calculations: 12.5% on the gain without indexation, or 20% on the gain after indexing the purchase cost with the Cost Inflation Index (CII).
Indexed cost = purchase price × CII of the year of sale ÷ CII of the year of purchase. For property held for many years, indexation often gives the lower tax. For property bought recently, 12.5% without indexation usually wins. The calculator works out both.
Ways to reduce or save capital gains tax
- Equity: realise up to ₹1.25 lakh of long-term gains each year to use the annual exemption, a practice often called tax-gain harvesting.
- Set off capital losses: short-term losses can be set off against both short- and long-term gains; long-term losses only against long-term gains. Unused losses can be carried forward for eight years if you file your return on time.
- Residential property: reinvest the long-term gain in another house in India within the time limits (Section 54) or in specified bonds within six months (Section 54EC), subject to the caps in the law.
- Keep records of purchase price, improvement costs and brokerage; they all reduce the taxable gain.
Frequently asked questions
Is the ₹1.25 lakh exemption per sale?
No, it is per financial year across all listed equity and equity fund LTCG.
What is the Cost Inflation Index?
A yearly index notified by CBDT (2001-02 = 100, 2025-26 = 376) used to inflate the purchase cost for indexation.
Do I pay capital gains tax if my income is below the taxable limit?
Resident individuals can use any unused basic exemption limit against short-term gains under Section 111A and long-term gains under Section 112A. In the new regime, the Section 87A rebate cannot be used against tax on these special-rate gains.
How are mutual fund SIPs treated?
Each SIP instalment is a separate purchase with its own holding period, so selling an entire SIP holding can create both short-term and long-term gains.
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