Tax & Compliance Calculators

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Capital Gains Tax Calculator (India)

Additional Costs (Optional)
Capital Gains
50,000
Holding Period: 22 months
Classification: Long-term Capital Gains
Tax Rate: 12.5%
Total Cost
1,00,000
Capital Gains
50,000
Tax Amount
0
Net Profit
50,000

Capital Gains Breakdown

Capital Gains Tax Rules

Asset TypeLTCG PeriodLTCG Tax RateSTCG Tax Rate
Equity Shares12 months12.5% (above ₹1.25L)20%
Mutual Funds (Equity)12 months12.5%As per tax slab
Real Estate/Property24 months12.5%As per tax slab
Gold & Precious Metals24 months12.5%As per tax slab
Debt Mutual Funds36 months12.5%As per tax slab

How Capital Gains Tax Works?

Capital gains tax is levied on the profit earned from the sale of capital assets like stocks, mutual funds, property, or gold. The tax rate depends on the holding period and type of asset.

  • Long-term Capital Gains (LTCG): Assets held for longer periods get preferential tax rates.
  • Short-term Capital Gains (STCG): Assets held for shorter periods are taxed at higher rates.
  • Indexation: For property and gold, you can adjust the purchase price for inflation to reduce tax liability.

This calculator provides estimates based on current tax rules. Consult a tax advisor for complex scenarios.

Which Holding Period Rule Applies to Your Asset?

Whenever you sell a capital asset — shares, mutual funds, property, gold or debt funds — for more than you paid, the profit is a capital gain and is taxed differently depending on how long you held the asset and what type of asset it is. This calculator applies the current holding-period thresholds and tax rates for each asset class.

Holding Period & Tax Rate Used

  • Equity shares & equity mutual funds: long-term if held 12 months or more — 12.5% LTCG (first ₹1,25,000 of gains exempt); otherwise 20% STCG.
  • Property & gold: long-term if held 24 months or more — 12.5% LTCG, with an optional indexation adjustment; otherwise taxed as short-term.
  • Debt mutual funds: long-term if held 36 months or more — 12.5% LTCG; otherwise taxed as short-term.
Capital Gains = Sale Price − (Purchase Price + Improvement Cost + Brokerage), optionally adjusted for indexation on eligible long-term property/gold transactions.

Capital gains tax rates, exemption limits and indexation rules are set by the government and can change from one Budget to the next. Always confirm the applicable rate for your transaction on the official Income Tax Department website or with a qualified tax advisor before filing.

Capital Gains Tax Calculator FAQs

What counts as long-term vs short-term for equity and mutual funds?

For equity shares and equity mutual funds, holding the asset for 12 months or more classifies the gain as long-term (LTCG), taxed at 12.5% with the first ₹1,25,000 of gains in a year exempt. Holding for less than 12 months is short-term (STCG), taxed at 20%.

How is the holding period different for property, gold and debt funds?

Property and gold need to be held for 24 months or more to qualify as long-term, while debt mutual funds require 36 months or more. Below these thresholds, gains are treated as short-term and taxed as per your applicable slab rate.

What is indexation and when can I use it?

Indexation lets you adjust your purchase cost upward for inflation before calculating the taxable gain, which reduces your tax liability. It is only available for long-term gains on property and gold in this calculator, not for equity or debt investments.

Is the ₹1,25,000 LTCG exemption available every year?

Yes, the ₹1,25,000 exemption on long-term capital gains from equity shares and equity mutual funds is available in every financial year — it is not a one-time or lifetime limit, and unused exemption cannot be carried forward.

Does brokerage or improvement cost reduce my capital gains?

Yes. Brokerage, transaction charges and, for property, the cost of improvements are added to your purchase cost before computing capital gains, which reduces the taxable gain and the resulting tax amount.