Capital gains tax in India varies significantly by asset type, holding period, and whether gains are short-term or long-term. These scenarios walk through the exact tax calculation for common gain amounts across asset classes.
Three concepts drive every calculation: holding period (decides STCG vs LTCG), asset class (equity, debt, property, gold each have different rules), and the date of sale (Budget 2024 changed rates effective 23 July 2024). Each scenario shows the gain, the applicable rate, the deductible base if any (₹1.25 lakh for equity LTCG), and the final tax including 4% cess.
How to use these scenarios: identify your asset type and holding period, then match the gain amount to the closest scenario. For property, additional sections like 54 (reinvestment in another house) and 54EC (capital gains bonds up to ₹50 lakh) can reduce the liability to zero. The FAQ below covers the post-Budget 2024 rules and the indexation grandfather choice for older properties.
Browse All Scenarios
Frequently Asked Questions
What are the LTCG and STCG rates on equity?
From 23 July 2024 (Budget 2024 changes): equity LTCG (held >12 months) is taxed at 12.5% above ₹1.25 lakh per FY, and equity STCG (held <12 months) is taxed at 20%. Before that date, the rates were 10% and 15% respectively. The scenarios on this page use the latest 12.5%/20% rates. STT-paid listed equities and equity mutual funds qualify for these concessional rates.
How is property capital gains taxed?
Property held over 24 months is LTCG. Budget 2024 gave taxpayers a choice: 12.5% on the gain without indexation, or 20% with indexation, whichever is lower. Property held under 24 months is STCG and added to your slab-rate income. Long-term gains can be saved entirely by reinvesting in another residential property under section 54, or in capital gains bonds (54EC) up to ₹50 lakh.
Does indexation still apply?
Indexation was removed for most assets from 23 July 2024 - equity, mutual funds, gold, and properties bought after this date all use the new 12.5% flat rate without indexation. Properties bought before 23 July 2024 retain a grandfathered choice between 12.5% without indexation and 20% with indexation. Debt mutual funds bought after April 2023 are taxed at slab rate without LTCG benefit at all.
How does the ₹1.25 lakh LTCG exemption work?
Each financial year, the first ₹1.25 lakh of equity LTCG (combined across stocks and equity mutual funds) is tax-free. Only the gain above ₹1.25 lakh is taxed at 12.5%. Couples can effectively double this by holding equity in both names. The exemption was raised from ₹1 lakh to ₹1.25 lakh in Budget 2024 alongside the rate change from 10% to 12.5%.
Want to Calculate with Your Own Numbers?
Every scenario uses standard assumptions. Use the calculator to input your exact figures.
Use Capital Gains Calculator