Capital Gains Tax Calculator · FY 2026-27

STCG, LTCG &
indexation, sorted.

Calculate capital gains tax on equity, mutual funds, property, and gold. Covers Budget 2024 changes - 12.5% LTCG without indexation vs grandfathered 20% with indexation.

Last updated: FY 2026-27 / AY 2027-28

Calculate Your Capital Gains Tax

Calculate short-term and long-term capital gains tax on equity, property, mutual funds, and other assets for FY 2026-27.

Different assets have different holding periods and tax rates

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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
  • Gold/Other Assets: Held for 24 months or less
  • Debt Mutual Funds: Always taxed at slab rate regardless of holding period (post April 2023)

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
  • Gold/Other Assets: Held for more than 24 months (Budget 2024)
  • Debt Mutual Funds: No LTCG benefit post April 2023 - taxed at slab rate

Tax Rates for Capital Gains (FY 2026-27)

Asset Type STCG Tax Rate LTCG Tax Rate
Equity Shares/Equity MF 20% (plus cess) 12.5% on gains above ₹1.25 lakh
Property/Real Estate As per income tax slab 12.5% without indexation (or 20% with indexation for pre-Jul 2024 purchases)
Debt Mutual Funds As per income tax slab Slab rate (no LTCG benefit post Apr 2023)
Gold/Other Assets As per income tax slab 12.5% without 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

  • ₹1.25 Lakh Exemption: LTCG up to ₹1.25 lakh per year is exempt from tax
  • Tax Loss Harvesting: Offset gains with losses from other equity investments
  • Hold for Long Term: LTCG rate (12.5%) is lower than STCG rate (20%)

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

Capital Gains Tax on Property - Worked Example with Indexation

Property held for more than 24 months qualifies as long-term. From Budget 2024, property LTCG is taxed at 12.5% without indexation. For property purchased before 23 July 2024, taxpayers can opt for the older 20% with indexation method - whichever results in lower tax.

Example: Flat purchased 2010, sold 2026

  • Purchase price (June 2010): ₹40,00,000
  • Sale price (May 2026): ₹1,20,00,000
  • Holding period: ~16 years (long-term)
Method Without Indexation (12.5%) With Indexation (20%)
Sale price ₹1,20,00,000 ₹1,20,00,000
Cost (or indexed cost) ₹40,00,000 ₹40,00,000 × (363/167) = ₹86,94,610
Capital gain ₹80,00,000 ₹33,05,390
Tax ₹10,00,000 (12.5%) ₹6,61,078 (20%)

For this 2010-purchased property, the 20% with indexation method saves ₹3,38,922 in tax. The indexation method is better when inflation has eroded the real value of the purchase price significantly. For property purchased after 23 July 2024, only the 12.5% no-indexation method is available.

Cost Inflation Index (CII) Reference

Selected CII values (base year 2001-02 = 100):

  • FY 2001-02: 100
  • FY 2005-06: 117
  • FY 2010-11: 167
  • FY 2015-16: 254
  • FY 2020-21: 301
  • FY 2024-25: 363
  • FY 2025-26: 376 (estimated)

Use the formula: Indexed cost = Purchase price × (CII of sale year / CII of purchase year). The result is your inflation-adjusted cost base for calculating long-term capital gain.

Capital Gains Tax on Mutual Funds (Equity, Debt, Hybrid)

Mutual fund taxation depends on fund category and holding period. The Budget 2024 changes apply from 23 July 2024.

Equity Mutual Funds (>65% equity allocation)

  • Holding ≤12 months (STCG): 20% on gains (raised from 15% in Budget 2024)
  • Holding >12 months (LTCG): 12.5% on gains above ₹1.25 lakh per year (limit raised from ₹1 lakh in Budget 2024)
  • Securities Transaction Tax (STT) is already deducted at source

Debt Mutual Funds (purchased after April 2023)

  • Always taxed at your income tax slab rate, regardless of holding period
  • No LTCG benefit, no indexation
  • Applies to debt funds, gilt funds, FoF (debt-oriented), gold ETFs purchased post Apr 2023

Debt Mutual Funds (purchased before April 2023)

  • STCG (held <36 months): Slab rate
  • LTCG (held >36 months): 20% with indexation benefit (under grandfathering)

Hybrid Funds

  • Equity-oriented hybrid (>65% equity): Taxed like equity funds (20% STCG, 12.5% LTCG)
  • Debt-oriented hybrid (<35% equity): Taxed at slab rate (no LTCG benefit if purchased post Apr 2023)
  • Balanced hybrid (35-65% equity): Taxed at slab rate for STCG; 12.5% without indexation for LTCG held >24 months

Worked Example: Equity Fund LTCG

SIP of ₹10,000/month in an equity mutual fund for 7 years. Total invested ₹8,40,000. Sale value at end of year 7: ₹15,60,000.

  • Capital gain: ₹15,60,000 - ₹8,40,000 = ₹7,20,000
  • Exemption: ₹1,25,000 (annual LTCG limit)
  • Taxable LTCG: ₹5,95,000
  • Tax at 12.5%: ₹74,375 (plus 4% cess = ₹77,350 total)

Note: For SIP units, each instalment is a separate purchase with its own holding period (FIFO method applies). For accurate per-unit tax, your AMC or broker provides a Capital Gains Statement at year-end.

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Frequently 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 and gold, it is less than 24 months. Tax rates differ: STCG on equity is taxed at 20%, while LTCG on equity exceeding ₹1.25 lakh is taxed at 12.5% (post Budget 2024).

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 12.5% without indexation (post Budget 2024). For properties purchased before 23 July 2024, you can opt for 20% with indexation. You can 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 12.5% on gains exceeding ₹1.25 lakh per financial year (post Budget 2024). Gains up to ₹1.25 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 ₹1.25 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 20%. If held more than 12 months, LTCG exceeding ₹1.25 lakh is taxed at 12.5% (post Budget 2024). For debt mutual funds purchased after April 2023: gains are always taxed at your income slab rate regardless of holding period (no LTCG benefit).

What is the STCG tax rate for equity in 2026?

STCG on listed equity shares and equity-oriented mutual funds is taxed at 20% (raised from 15% in Budget 2024). This applies when STT has been paid and holding period is 12 months or less. Cess of 4% is applied on top. For non-equity STCG, the rate is your income tax slab.

What is the LTCG tax rate on property in India 2026?

12.5% without indexation for property sold after 23 July 2024. For property purchased before 23 July 2024 and sold thereafter, taxpayers can choose between 12.5% without indexation OR 20% with indexation - whichever results in lower tax. Holding period must exceed 24 months to qualify as long-term.

How to calculate capital gains tax on property with indexation?

Use the formula: Indexed cost = Purchase price × (CII of sale year / CII of purchase year). Subtract indexed cost from sale price to get long-term capital gain. Apply 20% tax rate. Example: Property bought 2010 for ₹40 lakh, sold 2026 for ₹1.2 crore. Indexed cost = 40L × (363/167) = ₹86.94L. Gain = ₹33.06L. Tax at 20% = ₹6.61L. CII values are published by the Income Tax Department each year.

Is gratuity or fixed deposit interest taxed as capital gains?

No. Gratuity is taxed under salary income (with exemption up to ₹20 lakh under Section 10(10)). FD interest is taxed under "Income from Other Sources" at your slab rate. Capital gains tax applies only to the sale of capital assets like stocks, mutual funds, property, gold, and bonds - not to interest income or salary components.

What is the difference between STCG and LTCG tax calculator?

STCG calculator computes tax on assets held for short periods (typically ≤12 months for equity, ≤24 months for property/gold). LTCG calculator computes tax on long-held assets (typically >12 months for equity, >24 months for property/gold). The tax rates and exemption limits differ - LTCG generally gets concessional treatment. Our capital gains calculator handles both automatically based on the holding period you enter.

Related Resources & Scenarios

Disclaimer: This capital gains tax calculator is provided for estimation purposes only. Actual tax liability may vary based on your total income, applicable deductions, surcharge, cess, and specific circumstances. The calculator uses standard tax rates and does not account for all possible exemptions or special situations. Always consult with a chartered accountant or tax advisor for accurate tax planning and filing.