Capital Gains Tax Calculator India 2026 — STCG & LTCG on Stocks, MF, Property
Calculate Short Term and Long Term Capital Gains Tax on equity shares, mutual funds, property, gold and other assets using FY 2025-26 rates (AY 2026-27).
Calculate Capital Gains Tax
Tax Calculation Results
Indexation Comparison (Property pre-Jul 2024)
Capital Gains Tax Rates — FY 2025-26 (AY 2026-27)
| Asset Type | Holding Period for LTCG | STCG Tax Rate | LTCG Tax Rate | Exemption |
|---|---|---|---|---|
| Listed Equity Shares | 12 months | 20% | 12.5% (above ₹1.25L) | ₹1.25 lakh/year |
| Equity Mutual Funds | 12 months | 20% | 12.5% (above ₹1.25L) | ₹1.25 lakh/year |
| Debt Mutual Funds (post Apr 2023) | N/A | At slab rate | N/A (always STCG) | None |
| Property | 24 months | At slab rate | 12.5% without indexation | Sec 54/54EC |
| Gold (physical/digital) | 24 months | At slab rate | 12.5% | None |
| Unlisted Shares | 24 months | At slab rate | 12.5% | None |
What is Capital Gains Tax?
Capital Gains Tax is a tax levied on the profit (gain) you earn when you sell a capital asset for more than its purchase price. Capital assets include stocks, mutual funds, real estate, gold, bonds, and other investments. In India, capital gains are taxed under the Income Tax Act, 1961, and the rates depend on the type of asset and how long you held it before selling.
If the sale price exceeds the purchase price, the difference is your capital gain and is taxable. If you sell at a loss, it is called a capital loss, which can be set off against other capital gains to reduce your tax liability.
The tax treatment varies based on the holding period. Assets held for a shorter duration attract Short Term Capital Gains (STCG) tax, while those held for a longer duration attract Long Term Capital Gains (LTCG) tax at generally lower rates.
STCG vs LTCG — Key Differences
The primary distinction between STCG and LTCG lies in the holding period of the asset before it is sold. The holding period threshold varies by asset type:
- Listed Equity Shares & Equity Mutual Funds: 12 months. Sold before 12 months = STCG; sold after 12 months = LTCG.
- Debt Mutual Funds (purchased after 1 Apr 2023): No LTCG benefit. All gains are STCG regardless of holding period.
- Property (Real Estate): 24 months. Sold before 24 months = STCG; sold after 24 months = LTCG.
- Gold, Unlisted Shares, Other Assets: 24 months threshold.
Tax Rate Comparison
STCG on equity is taxed at a flat 20%, while STCG on other assets is taxed at your income tax slab rate. LTCG on equity above the exemption limit of Rs 1.25 lakh is taxed at 12.5%, and LTCG on other assets is taxed at 12.5% without indexation benefit (for most transactions from FY 2024-25 onwards).
How to Save Capital Gains Tax in India
There are several legal ways to reduce or eliminate your capital gains tax liability:
- Section 54 — Reinvest in Residential Property: If you sell a residential property and reinvest the LTCG in purchasing or constructing another residential property within 2 years (purchase) or 3 years (construction), the capital gain is exempt.
- Section 54EC — Invest in Specified Bonds: Invest LTCG up to Rs 50 lakh in NHAI or REC bonds within 6 months of the sale. These bonds have a 5-year lock-in period.
- Section 54F — Reinvest Sale Proceeds: If you sell any capital asset (other than a residential property) and invest the net sale consideration in a residential property, the proportionate LTCG is exempt.
- Tax-Loss Harvesting: Sell loss-making investments to book capital losses, which can be set off against capital gains. Short-term losses can offset both STCG and LTCG. Long-term losses can only offset LTCG.
- Utilize the ₹1.25 Lakh LTCG Exemption: For equity and equity mutual funds, LTCG up to Rs 1.25 lakh per year is tax-free. Plan your redemptions to stay within this limit each financial year.
- Capital Gains Account Scheme (CGAS): If you cannot reinvest before the ITR filing deadline, deposit the capital gains amount in a CGAS account at a designated bank to claim exemption under Section 54/54F.
Related Tools
Frequently Asked Questions — Capital Gains Tax India
What is Capital Gains Tax in India?
Capital Gains Tax is a tax levied on the profit earned from selling a capital asset such as stocks, mutual funds, property, or gold. The tax rate depends on the type of asset and the holding period. If you sell an asset for more than its purchase price, the profit is called a capital gain and is taxable under the Income Tax Act, 1961. Capital losses can be set off against capital gains to reduce your tax liability.
What is the difference between STCG and LTCG?
STCG (Short Term Capital Gains) applies when an asset is sold before the specified holding period — 12 months for listed equity and equity mutual funds, 24 months for property and other assets. LTCG (Long Term Capital Gains) applies when the asset is held beyond these thresholds. LTCG generally attracts a lower tax rate than STCG. For equity, STCG is 20% while LTCG is 12.5% on gains above Rs 1.25 lakh.
What is the LTCG exemption limit for equity shares?
For listed equity shares and equity mutual funds, long term capital gains up to Rs 1.25 lakh per financial year are exempt from tax under Section 112A. Only the gains exceeding Rs 1.25 lakh are taxed at 12.5%. This exemption applies per taxpayer per financial year, so you can plan your equity redemptions to stay within this limit each year.
How are Debt Mutual Funds taxed after April 2023?
Debt mutual funds purchased after 1st April 2023 no longer get the benefit of indexation or long-term capital gains treatment. All gains, regardless of holding period, are taxed as short-term capital gains at your income tax slab rate. This change was introduced in the Finance Act 2023 and applies to all debt-oriented mutual funds including liquid, ultra-short, and gilt funds.
What is the capital gains tax on property sale?
For property held less than 24 months, gains are treated as STCG and taxed at your slab rate. For property held 24 months or more, LTCG tax is 12.5% without indexation for properties acquired after 23 July 2024. For properties acquired before that date, you can choose between 20% with indexation or 12.5% without indexation, whichever results in lower tax. You can also claim exemption under Section 54 by reinvesting in another property.
How can I save Capital Gains Tax in India?
You can save capital gains tax through: (1) Section 54 — reinvest property LTCG in another residential property within 2-3 years. (2) Section 54EC — invest LTCG up to Rs 50 lakh in NHAI/REC bonds within 6 months. (3) Section 54F — reinvest sale proceeds of non-property assets into a residential property. (4) Tax-loss harvesting — sell loss-making investments to offset gains. (5) Use the Rs 1.25 lakh annual LTCG exemption on equity by planning redemptions across financial years.
Is there any surcharge on capital gains tax?
Yes, if your total income including capital gains exceeds Rs 50 lakh, a surcharge applies: 10% for income between Rs 50 lakh and Rs 1 crore, 15% for Rs 1 crore to Rs 2 crore. For capital gains, the maximum surcharge is capped at 15%. Additionally, Health and Education Cess of 4% applies on the total tax including surcharge. This calculator shows the base tax rate; your effective rate may be slightly higher with surcharge and cess.
Do I need to pay advance tax on capital gains?
Yes, if your total tax liability for the financial year exceeds Rs 10,000, you are required to pay advance tax. Capital gains should be included in advance tax calculations in the quarter in which the gain arises. Failure to pay advance tax can attract interest under Sections 234B and 234C. Use our Advance Tax Calculator to determine the exact quarterly instalments and due dates.
This capital gains tax calculator is for educational purposes only. Actual tax liability depends on your total income, applicable surcharge, cess, exemptions claimed, and other factors. Tax rules are subject to change as per budget announcements. Please consult a qualified Chartered Accountant or tax professional for accurate tax calculations.