Capital Gains Tax Calculator
Calculate LTCG and STCG tax on shares, mutual funds, property, and gold for FY 2026-27.
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Choose the type of asset you sold.
Equity Mutual Fund Capital Gains Tax — FY 2026-27
Equity mutual funds are one of the most common capital-gains scenarios for Indian investors. When you redeem equity fund units, the gain is classified as either Short-Term Capital Gains (STCG) or Long-Term Capital Gains (LTCG) based on how long you held the units.
If you held the units for 12 months or less, the gain is STCG and taxed at 20% plus 4% cess under Section 196 of the Income Tax Act, 2025 (previously Section 111A). If you held for more than 12 months, the gain is LTCG. The first ₹1.25 lakh of LTCG per financial year is exempt. Gains above this threshold are taxed at 12.5% plus 4% cess under Section 198 of the Income Tax Act, 2025 (previously Section 112A).
The ₹1.25 lakh exemption applies per person, per financial year, across all your equity fund and listed equity holdings combined. Unused exemption does not carry forward to the next year. To make the most of the exemption, many investors review their equity gains annually and redeem units strategically before the financial year ends.
Note: Each SIP instalment is treated as a separate purchase for holding-period purposes. When you redeem units from a systematic investment plan, the holding period is calculated separately for each instalment.
Worked Example — Equity Mutual Fund LTCG
Here is a verified example using FY 2026-27 rules:
| Item | Amount |
|---|---|
| Asset | Equity Mutual Fund |
| Purchase Value | ₹2,00,000 |
| Sale Value | ₹5,00,000 |
| Holding Period | 18 months (qualifies as LTCG) |
| Capital Gain | ₹3,00,000 |
| LTCG Exemption (FY 2026-27) | ₹1,25,000 |
| Taxable Gain | ₹1,75,000 |
| Tax Rate | 12.5% (Section 198, Income Tax Act 2025) |
| Base Tax | ₹21,875 |
| Health & Education Cess @ 4% | ₹875 |
| Estimated Total Tax | ₹22,750 |
Surcharge not included. Grandfathering provisions not applied. Example uses verified FY 2026-27 rates.
What is Capital Gains Tax?
Capital Gains Tax is the tax levied on the profit earned from the sale of a capital asset such as shares, mutual funds, property, or gold. When you sell a capital asset for more than its purchase price, the profit is called a capital gain and is subject to tax under the Income Tax Act. The tax rate and applicable exemptions depend on the type of asset and how long you held it before selling.
Capital gains are classified as Long-Term (LTCG) or Short-Term (STCG) based on the holding period. LTCG generally attracts a lower tax rate. For FY 2026-27, these rules are governed by the Income Tax Act, 2025 — the section numbering has changed from the Income Tax Act, 1961, but the underlying tax rates and thresholds remain the same.
How This Calculator Works
- 1Calculate the capital gain: Sale price minus purchase cost (and improvement cost or transfer expenses where applicable).
- 2Determine the holding period: The number of months between the purchase date and sale date.
- 3Classify as STCG or LTCG: Based on asset type and holding period — 12 months for equity, 24 months for property and gold.
- 4Apply the relevant exemption: For equity LTCG, the first ₹1.25 lakh per financial year is exempt from tax (FY 2026-27).
- 5Apply the applicable tax rate: Fixed rates for equity (12.5% LTCG / 20% STCG) and property/gold LTCG (12.5%). Slab rate for STCG on property, gold, and debt mutual funds — this calculator uses 30% as an indicative upper-bound estimate.
- 6Calculate 4% Health & Education Cess: Added to the base tax. Shown as a separate line in the result.
- 7Display estimated tax: Base tax, cess, and total are shown separately. Surcharge is not included.
Holding Period and Tax Rates — FY 2026-27
| Asset | LTCG Threshold | LTCG Rate | STCG Rate |
|---|---|---|---|
| Listed Equity Shares | > 12 months | 12.5% on gains above ₹1.25L | 20% |
| Equity Mutual Funds | > 12 months | 12.5% on gains above ₹1.25L | 20% |
| Property | > 24 months | 12.5% (no indexation) | Slab rate* |
| Gold | > 24 months | 12.5% (no indexation) | Slab rate* |
| Debt MF (post Apr 2023) | Not applicable | Slab rate* | Slab rate* |
| Debt MF (pre Apr 2023) | > 36 months | 20% | Slab rate* |
* Slab rate scenarios use 30% as an indicative upper-bound estimate. + 4% cess on all scenarios. Surcharge not included. Rates verified for FY 2026-27 (AY 2027-28).
Common Mistakes When Calculating Capital Gains
- 1Not including brokerage and transaction costs in the purchase price, which reduces your actual gain.
- 2Forgetting the ₹1.25 lakh LTCG exemption on equity shares and equity mutual funds — available per person, per financial year.
- 3Assuming debt mutual funds purchased after 1 April 2023 still get indexation benefit — this was removed.
- 4Confusing total investment value with purchase price when SIP units were bought in multiple instalments.
- 5Not accounting for improvement costs when calculating gains on property sales.
- 6Filing under the wrong ITR form — capital gains require ITR-2 or ITR-3, not ITR-1.
- 7Forgetting to add 4% Health and Education Cess on top of the base tax.
Official Sources
The tax rules and rates in this calculator are based on the following authoritative sources, verified for FY 2026-27 (AY 2027-28):
- Income Tax Department — Tax Rates(incometaxindia.gov.in)
- Income Tax India — Individual Taxpayer Guide(incometax.gov.in)
From FY 2026-27, capital gains are governed by the Income Tax Act, 2025. Section 196 corresponds to old Section 111A; Section 197 corresponds to old Section 112; Section 198 corresponds to old Section 112A.
Frequently Asked Questions
What is the LTCG exemption limit for equity mutual funds in FY 2026-27?
The Long-Term Capital Gains exemption for equity mutual funds and listed equity shares is ₹1.25 lakh per financial year for FY 2026-27. This threshold is unchanged from FY 2025-26. Gains above this limit are taxed at 12.5% plus 4% cess under Section 198 of the Income Tax Act, 2025 (previously Section 112A).
What is the STCG tax rate on equity mutual funds?
Short-Term Capital Gains (STCG) on equity-oriented mutual funds and listed equity shares are taxed at 20% (plus 4% cess) when held for 12 months or less, under Section 196 of the Income Tax Act, 2025 (previously Section 111A). This rate applies where Securities Transaction Tax (STT) has been paid.
Is 4% cess included in this calculator?
Yes. From V2 onwards, this calculator includes 4% Health and Education Cess in the estimated total tax. The tax breakdown shows the base tax and cess separately so you can see both figures. Surcharge is not included — it may apply when your total income exceeds ₹50 lakh.
What is the holding period for LTCG on property?
For property (land or building), the holding period for Long-Term Capital Gains is more than 24 months. If you sell property within 24 months of purchase, the gain is classified as Short-Term Capital Gain and taxed at your applicable income-tax slab rate.
Do debt mutual funds still get indexation benefit?
No. For debt mutual funds purchased on or after 1 April 2023, all gains are taxed at your applicable income-tax slab rate regardless of holding period — there is no LTCG benefit or indexation. For debt funds purchased before 1 April 2023, the old 36-month holding-period rule applies with a base LTCG rate of 20%, but indexed cost calculation is not supported in this version.
What happens if I have a capital loss?
If your sale price is lower than your purchase cost, you incur a capital loss. No tax is payable on a capital loss. Short-term capital losses can be set off against both short-term and long-term capital gains. Long-term capital losses can only be set off against long-term capital gains. Unadjusted losses can be carried forward for up to 8 assessment years.
Why does the calculator use 30% for property and gold STCG?
STCG on property, gold, and post-April 2023 debt mutual funds is taxed at your applicable income-tax slab rate — which depends on your total income from all sources. Since the calculator only covers capital gains, it uses 30% as an indicative upper-bound estimate. Your actual tax may be lower if your total income falls in a lower slab.
Does this calculator support grandfathering for pre-2018 equity?
No. Pre-31 January 2018 grandfathering provisions are not applied. If grandfathering applies to your investment, enter your effective purchase price after applying the grandfathering provision. Your cost of acquisition under Section 112A grandfathering rules is the higher of actual cost or fair market value as on 31 January 2018.
Is surcharge included in the tax estimate?
No. Surcharge calculation requires total income information from all sources, which this calculator does not collect. Surcharge may apply when your total income exceeds ₹50 lakh. The capital gains tax rates for equity (Sections 196/198 of the Income Tax Act, 2025) carry a surcharge cap of 15%. Consult a tax professional if surcharge may apply to your situation.
Which ITR form should I file if I have capital gains?
If you have capital gains, you cannot file ITR-1. You need to file ITR-2 (for individuals with capital gains but no business income) or ITR-3 (if you also have business income). Use our ITR Form Finder for a personalised recommendation.