Capital Gains Tax Calculator
Calculate LTCG and STCG tax on shares, mutual funds, property, and gold for FY 2025-26.
Select Asset Type
Choose the type of asset you sold.
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 broadly classified into two categories — Long-Term Capital Gains (LTCG) and Short-Term Capital Gains (STCG) — based on the holding period of the asset. LTCG generally attracts a lower tax rate than STCG, which is why understanding the holding period is critical before selling any capital asset.
Difference Between LTCG and STCG
The classification of a capital gain as long-term or short-term depends on the holding period — the time between the purchase date and the sale date. Different asset classes have different holding period thresholds.
Holding Period and Tax Rates for FY 2025-26
| Asset | LTCG Threshold | LTCG Rate | STCG Rate |
|---|---|---|---|
| Listed Equity Shares | > 12 months | 12.5% (₹1.25L exempt) | 20% |
| Equity Mutual Funds | > 12 months | 12.5% (₹1.25L exempt) | 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% with indexation | Slab rate |
Tax rates for FY 2025-26. Surcharge and 4% cess not included. Post Budget 2024, indexation benefit on property and gold has been removed.
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.
- 3Assuming debt mutual funds still get indexation benefit — this was removed for funds purchased after 1 April 2023.
- 4Confusing total investment value with purchase price when units were bought in multiple tranches.
- 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.
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Frequently Asked Questions
What is the LTCG exemption limit for equity shares in FY 2025-26?
The LTCG exemption limit for listed equity shares and equity mutual funds is ₹1.25 lakh per financial year. This was increased from ₹1 lakh in Budget 2024. Gains above this limit are taxed at 12.5%.
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 income slab rate.
Do debt mutual funds still get indexation benefit?
No. For debt mutual funds purchased on or after 1 April 2023, the indexation benefit has been removed. All gains — regardless of holding period — are taxed at your applicable income slab rate. For debt funds purchased before 1 April 2023, the old rules apply with indexation for holdings exceeding 36 months.
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.
Is surcharge and cess included in the calculator?
No. The calculator shows the base tax rate only. Surcharge (applicable on higher income levels) and the 4% Health and Education Cess are not included. Your actual tax liability may be higher after adding surcharge and cess.
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 to get a personalised recommendation.
What is the STCG tax rate on equity shares?
Short-Term Capital Gains on listed equity shares and equity mutual funds are taxed at 20% (increased from 15% in Budget 2024). This rate applies when you sell equity within 12 months of purchase.
Can I claim improvement costs on property?
Yes. The cost of improvement — such as renovation or construction expenses — can be added to the purchase price to arrive at the total cost of acquisition. This reduces your taxable capital gain. Transfer expenses such as registration fees and brokerage can also be deducted.
Does this calculator account for grandfathering on pre-2018 equity investments?
No. For listed equity shares and equity mutual funds held before 31 January 2018, a grandfathering provision applies where the cost of acquisition is deemed to be the higher of the actual cost or the fair market value as on 31 January 2018. This calculator does not account for grandfathering — enter your actual effective purchase price after applying the grandfathering provision if applicable.
How accurate is this calculator?
This calculator provides estimates based on the rules and rates for FY 2025-26. It covers common scenarios for the five supported asset types. Complex situations such as grandfathering, bonus shares, rights issues, gifts, inheritance, ESOP taxation, or non-resident scenarios are not covered. Always verify with a qualified tax professional before filing your ITR.