Capital Gain Tax Calculator
Capital Gain Tax Calculator India 2026
Calculate LTCG & STCG Tax on Property, Stocks, Mutual Funds
Capital Gains Tax: Capital Gains Tax is levied on profit arising from the transfer of capital assets including property, stocks, mutual funds, gold, and bonds. Based on the holding period, gains are classified as Short-Term Capital Gains (STCG) or Long-Term Capital Gains (LTCG). STCG on equity is taxed at 20%, while LTCG on equity above ₹1.25 lakh is taxed at 12.5% (Budget 2024, unchanged in Budget 2026). Property LTCG is taxed at 12.5% (without indexation) or 20% (with indexation for older acquisitions). Various exemptions under Sections 54, 54EC, and 54F help reduce capital gains tax liability.
Source: Income Tax Act, 2025 - Capital Gains Chapters
📊 Capital Gains Statistics India 2025-26
Capital Gain Tax Calculator
Calculate capital gains tax on property, stocks, mutual funds, and other assets. Supports LTCG/STCG with indexation benefit as per Union Budget 2024 & Budget 2026.
Capital Gain Computation
| Particulars | Amount |
| Asset Type | - |
| Holding Period | - |
| Gain Type | - |
| Gross Capital Gain | ₹0 |
| Taxable Capital Gain | ₹0 |
| Applicable Tax Rate | - |
| Capital Gain Tax Payable | ₹0 |
Capital Gain Tax Rates Comparison 2026
Short-Term Capital Gains (STCG)
- Equity Shares/MFs: 20% flat rate
- Property/Land/Gold: As per income slab
- Debt Mutual Funds: As per income slab (Budget 2023)
Long-Term Capital Gains (LTCG)
- Equity Shares/MFs: 12.5% (above ₹1.25L)
- Property/Land: 12.5% (no indexation) / 20% (with indexation)
- Gold/Jewellery: 12.5% / 20% (with indexation)
| Asset Type | STCG Rate | LTCG Rate | Holding Period for LTCG |
|---|---|---|---|
| Equity Shares | 20% | 12.5% (above ₹1.25L) | > 12 months |
| Equity Mutual Funds | 20% | 12.5% (above ₹1.25L) | > 12 months |
| Residential Property | As per slab | 12.5% (no indexation) / 20% (with indexation) | > 24 months |
| Commercial Property | As per slab | 12.5% (no indexation) / 20% (with indexation) | > 24 months |
| Land | As per slab | 12.5% (no indexation) / 20% (with indexation) | > 24 months |
| Gold/Jewellery | As per slab | 12.5% | > 36 months |
| Debt Mutual Funds | As per slab | As per slab | N/A (Budget 2023) |
* Tax rates as per Union Budget 2024 (confirmed unchanged in Budget 2026). LTCG on property acquired after July 23, 2024 is taxed at 12.5% without indexation. For earlier acquisitions, taxpayers can choose between 12.5% without indexation or 20% with indexation.
Understanding Capital Gains Tax in India: Complete Guide for 2026
Capital gains tax is one of the most important aspects of personal finance that every investor and property owner in India must understand. Whether you're selling stocks, mutual funds, property, or gold, knowing how capital gains tax works can help you plan your investments better and save significant amounts in taxes. This comprehensive guide explains everything you need to know about short-term and long-term capital gains, applicable tax rates, and available exemptions.
Short-Term vs Long-Term Capital Gains: Key Differences
The classification of capital gains into short-term (STCG) and long-term (LTCG) depends entirely on the holding period of the asset. For equity shares and equity mutual funds, holding the asset for more than 12 months qualifies as long-term, while anything less is short-term. For residential and commercial property, the threshold is 24 months. For gold and jewellery, assets held beyond 36 months are considered long-term.
The tax treatment differs significantly between STCG and LTCG. Short-Term Capital Gains on equity are taxed at a flat 20% rate under Section 111A, regardless of your income tax slab, as per Budget 2024 changes. However, STCG on non-equity assets like property and gold is added to your income and taxed according to your applicable slab rate. Long-Term Capital Gains enjoy preferential tax rates and various exemptions, making long-term investing more tax-efficient.
Capital Gains Tax Rates for Different Assets
The tax rates for capital gains vary based on the asset type and holding period. Equity shares and equity mutual funds (listed) have the following treatment: STCG is taxed at 20%, while LTCG above ₹1.25 lakh per financial year is taxed at 12.5% without indexation benefit, as per Budget 2024 changes applicable from FY 2024-25. The first ₹1.25 lakh of LTCG on equity is completely tax-free, making it an excellent choice for long-term wealth creation.
For residential property and land, LTCG is taxed at 12.5% without indexation (as per Budget 2024) or 20% with indexation benefit for properties acquired before July 23, 2024. This gives taxpayers the option to choose whichever calculation results in lower tax liability. STCG on property is taxed according to your income tax slab rate.
Gold and jewellery LTCG is taxed at 12.5% without indexation or 20% with indexation. Debt mutual funds purchased after April 1, 2023, are always taxed as short-term capital gains at your slab rate, regardless of holding period, due to changes in Budget 2023.
Indexation Benefit: How It Reduces Your Tax Burden
Indexation is a powerful tool that adjusts your purchase price for inflation, effectively reducing your taxable capital gain. The Cost Inflation Index (CII) is notified by the Central Board of Direct Taxes (CBDT) each year. The indexed cost of acquisition is calculated as: (Purchase Price × CII of Sale Year) ÷ CII of Purchase Year.
For example, if you purchased a property in 2015-16 for ₹50 lakh and sold it in 2024-25 for ₹1.2 crore, the indexed cost would be significantly higher than the actual purchase price, thereby reducing your taxable gain. With CII of 254 for 2015-16 and 363 for 2024-25, your indexed cost would be approximately ₹71.5 lakh, reducing your taxable gain from ₹70 lakh to about ₹48.5 lakh.
Tax-Saving Exemptions: Sections 54, 54EC, and 54F
The Income Tax Act provides several exemptions to help you save on capital gains tax. Section 54 allows exemption on LTCG from residential property if the gains are reinvested in another residential property within 2 years (for purchase) or 3 years (for construction). This is the most commonly used exemption for property sellers.
Section 54EC offers exemption by investing up to ₹50 lakh in specified bonds issued by NHAI (National Highways Authority of India) or REC (Rural Electrification Corporation) within 6 months of sale. These bonds have a 5-year lock-in and offer around 5-5.5% annual interest, making them suitable for those who don't want to buy another property.
Section 54F provides exemption on LTCG from any capital asset (except residential property) if the entire sale proceeds are invested in a residential property. This is particularly useful for those selling stocks, mutual funds, or gold to buy a house. However, you must not own more than one residential property to claim this exemption.
Related Tax Tools
To optimize your overall tax liability, use our related calculators: Income Tax Calculator to compute your total tax under both old and new regimes, and our Old vs New Tax Regime Comparison tool to find which regime saves you more tax. For property investments, understanding capital gains is crucial for effective tax planning.
"Many taxpayers miss the opportunity to save LTCG tax through Section 54EC bonds. With a 5-year lock-in and ₹50 lakh investment limit, these bonds can save up to ₹10 lakh in taxes on property sales. Always calculate whether indexation or the new 12.5% flat rate is better for your property transaction."
Frequently Asked Questions about Capital Gains Tax
Find answers to common questions about capital gain calculator. These FAQs are designed to help you understand key concepts and make informed decisions.
1. What is the LTCG exemption limit for equity in 2026?
Long-term capital gains up to ₹1.25 lakh per financial year on equity shares and equity mutual funds are completely tax-free. Only gains above ₹1.25 lakh are taxed at 12.5% without indexation benefit. STCG on equity is taxed at 20%. These rates, introduced in Budget 2024, remain unchanged under the Income Tax Act, 2025 for FY 2026-27 (Tax Year 2026-27).
2. How can I save tax on property capital gains?
You can save LTCG tax on property through: (1) Section 54 - Invest in another residential property within 2 years, (2) Section 54EC - Invest up to ₹50 lakh in 54EC bonds (NHAI, REC) within 6 months, (3) Section 54F - Invest entire sale proceeds in residential property if you don't own another house.
3. What is the holding period for LTCG on different assets?
Equity shares & equity mutual funds: More than 12 months. Property (residential & commercial): More than 24 months. Gold & jewelry: More than 36 months. Debt mutual funds (purchased after April 1, 2023): Always treated as short-term regardless of holding period.
4. What changed for debt mutual funds in Budget 2023?
From April 1, 2023, debt mutual funds (with less than 35% equity exposure) are treated as short-term capital assets regardless of holding period. This means they are taxed at your income slab rate, eliminating the earlier LTCG benefit with indexation.
5. What is the LTCG tax rate on property in 2026?
As per the applicable provisions carried forward under the Income Tax Act, 2025, LTCG on property is taxed at 12.5% without indexation benefit (earlier 20% with indexation). Taxpayers can choose between old regime (20% with indexation) or new regime (12.5% without indexation) for properties acquired before July 23, 2024.
6. Has Budget 2026 made any changes to capital gains tax?
No, Budget 2026 has not made any changes to capital gains tax rates. The rates introduced in Budget 2024 (STCG equity at 20%, LTCG equity at 12.5% with ₹1.25 lakh exemption) continue to apply under the Income Tax Act, 2025 for FY 2026-27.
This Capital Gain Tax Calculator is for informational and educational purposes only. The calculations are based on Income Tax Act, 2025 provisions. Budget 2026 confirmed no changes to capital gains tax structure. Tax rates, exemption limits, and indexation benefits may change based on government notifications. The calculator provides estimates and should not be considered as professional tax advice. Capital gains taxation involves complex rules regarding grandfathering provisions, cost improvements, and exemption conditions. We recommend consulting a qualified Chartered Accountant or tax professional for accurate assessment of your capital gains tax liability. Always verify calculations with the official Income Tax Department portal (incometax.gov.in) before filing your returns.