Capital gains taxation in India was substantially overhauled by Budget 2024, effective 23 July 2024. Equity LTCG moved from 10% to 12.5% (with the exemption raised from ₹1 lakh to ₹1.25 lakh), equity STCG from 15% to 20%, and indexation was removed for almost all assets - except a grandfathered choice for properties acquired before the cut-off. Holding periods were also rationalised.
The guides below cover the three asset classes most retail investors deal with: listed equity and mutual funds (where the FIFO rule on SIP units catches many people off-guard), real estate (where Sections 54 and 54EC can wipe the entire LTCG bill), and the often-overlooked tax-loss harvesting strategy that lets you carry forward losses for 8 years to offset future gains. The FAQ at the bottom answers the most-asked questions.
All Capital Gains Guides
Capital Gains Tax on Equity & Mutual Funds India 2026
STCG 20%, LTCG 12.5% above ₹1.25 lakh. Debt funds at slab rates. SIP FIFO rules explained for FY 2025-26.
Read Guide →LTCG on Property India 2026 | Real Estate Capital Gains Tax
12.5% without indexation. Pre-July 2024 property: 20% with indexation available. Section 54 and 54EC exemptions explained.
Read Guide →Tax Loss Harvesting India 2026 | Offset Capital Gains Tax
Set off capital losses against gains. 8-year carry forward allowed. No wash sale rule. Equity and mutual fund examples.
Read Guide →Calculate Your Capital Gains
Use our free Capital Gains calculator to plan your investments with accurate projections.
Open Capital Gains Calculator →Frequently Asked Questions
What is the LTCG tax rate on equity in India for FY 2025-26?
Long-term capital gains on listed equity and equity-oriented mutual funds are taxed at 12.5% (post 23 July 2024) on gains above the ₹1.25 lakh annual exemption. Short-term gains on the same assets are taxed at 20%. Rates apply plus 4% cess.
How is LTCG on property calculated?
For property sold on or after 23 July 2024, you have two options: 12.5% on gains without indexation, or 20% with indexation (only if the property was acquired before 23 July 2024). Calculate under both methods and pay the lower tax. Sale consideration minus indexed cost of acquisition and improvement gives the taxable gain.
What is the holding period for long-term capital gains?
Listed equity and equity mutual funds: 12 months or more. Immovable property (land, house) and unlisted shares: 24 months or more. Other assets including debt mutual funds, gold, and unlisted bonds: 36 months or more. Gains below the threshold are treated as short-term.
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