Capital Gains Tax Calculator India - Calculate LTCG & STCG Tax Online
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Calculate short-term and long-term capital gains tax on equity, property, mutual funds, and other assets for FY 2025-26.
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Understanding Capital Gains Tax in India
What is Capital Gains Tax?
Capital Gains Tax is the tax levied on the profit earned from the sale of a capital asset. A capital asset includes stocks, mutual funds, property, gold, bonds, and other investments. The gain is calculated as the difference between the sale price and the purchase price (adjusted for expenses and indexation where applicable).
Types of Capital Gains
Capital gains are classified into two categories based on the holding period of the asset:
Short-Term Capital Gains (STCG)
Gains from assets held for a short period. The holding period varies by asset type:
- Equity Shares/Equity Mutual Funds: Held for 12 months or less
- Property/Real Estate: Held for 24 months or less
- Debt Mutual Funds/Other Assets: Held for 36 months or less
Long-Term Capital Gains (LTCG)
Gains from assets held for longer periods:
- Equity Shares/Equity Mutual Funds: Held for more than 12 months
- Property/Real Estate: Held for more than 24 months
- Debt Mutual Funds/Other Assets: Held for more than 36 months
Tax Rates for Capital Gains (FY 2025-26)
| Asset Type | STCG Tax Rate | LTCG Tax Rate |
|---|---|---|
| Equity Shares/Equity MF | 15% (plus cess) | 10% on gains above ₹1 lakh |
| Property/Real Estate | As per income tax slab | 20% with indexation |
| Debt Mutual Funds | As per income tax slab | 20% with indexation |
| Gold/Other Assets | As per income tax slab | 20% with indexation |
What is Indexation?
Indexation is a method to adjust the purchase price of an asset for inflation. It uses the Cost Inflation Index (CII) published by the Income Tax Department. Indexation benefit is available for long-term capital gains on assets like property, debt mutual funds, and gold.
Indexed Cost of Acquisition = Purchase Price × (CII of Sale Year / CII of Purchase Year)
This reduces the taxable capital gains, thereby reducing your tax liability.
How to Save Tax on Capital Gains
For Equity Investments
- ₹1 Lakh Exemption: LTCG up to ₹1 lakh per year is exempt from tax
- Tax Loss Harvesting: Offset gains with losses from other equity investments
- Hold for Long Term: LTCG rate (10%) is lower than STCG rate (15%)
For Property/Real Estate
- Section 54: Reinvest capital gains in another residential property to claim exemption
- Section 54EC: Invest in specified bonds (NHAI/REC) within 6 months, up to ₹50 lakhs
- Section 54F: For non-residential property, invest in residential property
- Indexation Benefit: Reduces taxable gains significantly for long-term holdings
General Strategies
- Plan your asset sales to stay within lower tax brackets
- Consider selling over multiple financial years to utilize annual exemptions
- Maintain proper documentation of purchase price, improvements, and expenses
- Consult a tax advisor for complex transactions
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SIP CalculatorFrequently Asked Questions (FAQ)
What is the difference between STCG and LTCG?
STCG (Short-Term Capital Gains) applies to assets held for a short period, while LTCG (Long-Term Capital Gains) applies to assets held longer. For equity shares and equity mutual funds, short-term means less than 12 months. For property, it's less than 24 months. Tax rates differ: STCG on equity is taxed at 15%, while LTCG on equity exceeding ₹1 lakh is taxed at 10%.
How is capital gains tax calculated on property?
For property held less than 24 months, STCG is taxed as per your income tax slab. For property held more than 24 months, LTCG is taxed at 20% with indexation benefit, which adjusts the purchase price for inflation. You can also claim exemptions under Section 54, 54EC, or 54F by reinvesting in another property or specified bonds.
What is indexation in capital gains?
Indexation is a benefit available for long-term capital gains on certain assets like property and debt mutual funds. It adjusts the purchase price of the asset for inflation using the Cost Inflation Index (CII) published by the government, thereby reducing the taxable capital gain and your tax liability.
Is LTCG on equity shares taxable?
Yes, LTCG on equity shares and equity-oriented mutual funds is taxable at 10% on gains exceeding ₹1 lakh per financial year. Gains up to ₹1 lakh are exempt from tax. LTCG applies when the holding period is more than 12 months and Securities Transaction Tax (STT) has been paid.
Can I save tax on capital gains?
Yes, you can save tax on capital gains through various exemptions: Section 54 for residential property, Section 54EC by investing in specified bonds (NHAI/REC), Section 54F for other assets, and Section 112A exemption of ₹1 lakh for equity LTCG. For equity, consider tax-loss harvesting to offset gains with losses.
How to calculate capital gains on mutual funds?
For equity mutual funds: If held less than 12 months, STCG is taxed at 15%. If held more than 12 months, LTCG exceeding ₹1 lakh is taxed at 10%. For debt mutual funds: If held less than 36 months, STCG is taxed as per your slab. If held more than 36 months, LTCG is taxed at 20% with indexation.