Calculate Indian capital gains tax on shares, equity funds, property, debt funds, and other assets using the post-July-2024 rates: equity LTCG at 12.5% above Rs 1.25 lakh, equity STCG at 20%, other long-term gains at 12.5%, plus 4% cess. Grandfathered property automatically gets the lower of 12.5% flat or 20% with indexation.
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India taxes capital gains differently depending on what you sold and how long you held it. Since 23 July 2024, listed shares and equity funds held for more than 12 months are long-term and taxed at 12.5% on gains above Rs 1.25 lakh a year. Sold within 12 months, they are short-term and taxed at 20%. Most other assets, including property and gold, become long-term after 24 months and are taxed at 12.5% without indexation.
Property bought before 23 July 2024 keeps a special choice for residents: pay 12.5% without indexation, or 20% after increasing your purchase cost in line with the Cost Inflation Index (384 for FY 2026-27). This calculator works out both and applies whichever gives the lower tax. Debt mutual fund units bought on or after 1 April 2023 are simply added to your income and taxed at your slab rate.
From 1 April 2026, the Income-tax Act 2025 replaces the Income-tax Act 1961 and renumbers its sections. The rates and rules for FY 2026-27 stay the same, but Section 111A becomes Section 196, Section 112 becomes Section 197, and Section 112A becomes Section 198 of the new Act. This page keeps the familiar 1961 numbers because most people still search and file using them.
How long must I hold shares to pay the lower long-term rate?
For listed shares and equity mutual funds, more than 12 months counts as long-term. Long-term gains above the Rs 1.25 lakh yearly exemption are taxed at 12.5%. If you sell within 12 months, the gain is short-term and taxed at 20%.
What changed for property capital gains in July 2024?
For sales on or after 23 July 2024, long-term property gains are taxed at a flat 12.5% without indexation. If you bought the property before 23 July 2024 and you are a resident, you can instead pay 20% with indexation if that works out cheaper. This calculator checks both and picks the lower tax for you.
How are debt mutual funds taxed?
Units bought on or after 1 April 2023 are always taxed at your income tax slab rate, no matter how long you hold them. Units bought before that date and held for more than 24 months are long-term and taxed at 12.5% without indexation.
Do I pay cess and surcharge on capital gains?
Yes. A 4% Health and Education Cess applies to all capital gains tax. If your total income is above Rs 50 lakh, a surcharge also applies, but on equity and long-term gains it is capped at 15% even for very high incomes.
Can I use my basic exemption limit against capital gains?
Residents can. If your other income is below the Rs 4 lakh basic exemption limit (new regime), the unused part reduces your taxable gains. But the Section 87A rebate does not apply to gains taxed at special rates, even if your total income is under Rs 12 lakh.
What happens if I sell at a loss?
You pay no tax on a loss. You can set capital losses against capital gains in the same year. Long-term losses can only be set against long-term gains. Unused losses can be carried forward for up to 8 years if you file your return on time.
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Disclaimer: This calculator provides estimates based on common Indian income tax, EPF, HRA, and GST assumptions for FY 2026-27 / AY 2027-28. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on surcharge, state rules, product classification, employer policy, and individual circumstances. Always consult a qualified tax adviser before making financial decisions. Read our terms