Capital Gains Tax Calculator — Shares, Mutual Funds & Property

Quick answer

For sales on or after 23 July 2024, short-term gains on listed shares and equity mutual funds are taxed at 20%, and long-term gains at 12.5% on the amount above ₹1.25 lakh a year. Long-term gains on property, gold and unlisted shares are taxed at 12.5% without indexation. Debt funds bought on or after 1 April 2023 are taxed at your slab rate. Short-term gains on non-equity assets are also taxed at slab rates. Add 4% cess.

How to use this capital gains calculator

The calculator handles one sale at a time. Enter the details from your contract note, mutual fund statement or sale deed.

1. What did you sell? Choose one of four options: listed shares or equity mutual fund; debt mutual fund bought on or after 1 April 2023; land or house; or gold, jewellery, unlisted shares and other assets. The choice decides the holding period and the tax rate.
2. Purchase date and Sale date — used to work out how many months you held the asset and whether the gain is short-term or long-term. The sale date also decides which set of rates applies.
3. Purchase cost (incl. stamp duty) — what you paid, including stamp duty, registration and brokerage on purchase.
4. Cost of improvement — for property, money spent on capital improvements such as adding a floor or a major renovation. Leave it at zero for shares and funds.
5. Sale value — the full amount you sold for.
6. Sale expenses — brokerage, transfer charges, legal fees or agent commission paid on the sale.
7. Your tax slab — the slab rate on your other income. It is used only for short-term gains taxed at slab rates and for debt funds.

If you sold several holdings during the year, run the calculator once for each sale, or once for each group of similar sales, and then combine the results. Short-term and long-term figures must be kept separate.

The result shows the holding period, whether the gain is long-term or short-term, the capital gain, and the tax including 4% cess. For land or a house bought before 23 July 2024, it also shows both tax options — 12.5% without indexation and 20% with indexation — and picks the lower one. If the sale is at a loss, it tells you the loss amount and how it can be used.

Short-term or long-term: the holding period

Whether a gain is short-term or long-term depends only on how long you held the asset. The calculator uses these periods:

"More than" matters. If you bought shares on 10 September 2025 and sell on 10 September 2026, you have held them for exactly 12 months, not more, so the gain is short-term. Sell on 11 September 2026 and it becomes long-term. On a large gain, waiting one extra day can change the rate from 20% to 12.5%.

Capital gains tax rates

Sales on or after 23 July 2024

All rates are plus 4% health and education cess, and surcharge if your income is high. On capital gains, surcharge is capped at 15%.

Sales before 23 July 2024

For listed equity sold before 23 July 2024, the calculator uses the older rates: 15% for short-term gains and 10% for long-term gains above ₹1 lakh. For other long-term assets sold before that date, the older rule of 20% with indexation applied; the calculator flags this and suggests getting the computation checked.

A note on the new law: the Income-tax Act, 2025 applies from 1 April 2026 and uses the term "tax year". From tax year 2026-27 it renumbers sections such as 111A, 112, 112A and 54. This calculator keeps the familiar section numbers and follows the rates shown here.

How the gain is worked out

The basic formula is the same for every asset:

Capital gain = Sale value − Sale expenses − Purchase cost − Cost of improvement

What counts as cost and expenses

Purchase cost is more than the price. For property, it includes stamp duty, registration charges and brokerage paid at the time of purchase. For shares, it includes brokerage and other charges on the buy contract note. Securities transaction tax (STT) is not part of the cost.

Improvement cost covers capital spending that adds to the asset, such as building an extra room or a major structural change. Routine repairs, painting and maintenance do not count. Sale expenses are costs paid wholly for the transfer: brokerage, agent commission, legal fees for the sale deed and similar charges. Keep bills for all of these. Without proof, the department may not accept them.

For a long-term gain on listed equity, the first ₹1.25 lakh of gains in a year is exempt, and the rest is taxed at 12.5%. The calculator applies this exemption to the sale you enter. Remember that the ₹1.25 lakh is a single yearly limit across all your equity long-term gains, not per sale.

For property bought before 23 July 2024, there is a second way of computing the gain, using indexation.

Indexation for older property

Indexation raises your purchase cost to account for inflation, using the Cost Inflation Index (CII) notified by the department each year:

Indexed cost = Cost × (CII of year of sale ÷ CII of year of purchase)

Selected CII values the calculator uses:

The gain with indexation is taxed at 20%; the gain without indexation is taxed at 12.5%. Resident individuals and HUFs selling land or a building bought before 23 July 2024 can pay whichever is lower. As a rough guide, indexation tends to win for property held a long time with modest price growth, and 12.5% tends to win when the price has risen sharply. The calculator does both computations for you.

The calculator indexes the improvement cost from the purchase year. Under the rules, each improvement is indexed from the year it was actually made, which gives a smaller indexed figure for later improvements. If you have significant improvement costs from later years, get the exact computation done.

Worked examples with real numbers

Example 1: Long-term gain on shares

Ravi bought listed shares on 10 March 2024 for ₹4,00,000 and sold them on 20 August 2026 for ₹6,50,000, paying ₹1,000 in brokerage.

• Holding: 29 months — long-term (more than 12 months).
• Gain: ₹6,50,000 − ₹1,000 − ₹4,00,000 = ₹2,49,000.
• Exempt: ₹1,25,000. Taxable: ₹1,24,000.
• Tax: 12.5% × ₹1,24,000 = ₹15,500. With 4% cess: ₹16,120.

If Ravi has no other equity long-term gains this year, that is his full tax on this sale.

Example 2: Short-term gain on an equity fund

Sneha invested ₹2,00,000 in an equity mutual fund on 5 January 2026 and redeemed it on 10 September 2026 for ₹2,60,000, with ₹500 of charges.

• Holding: 8 months — short-term.
• Gain: ₹2,60,000 − ₹500 − ₹2,00,000 = ₹59,500.
• Tax: 20% × ₹59,500 = ₹11,900. With cess: ₹12,376.

Her slab rate does not matter here. Short-term gains on listed equity are taxed at a flat 20%, whatever the slab.

Example 3: Selling a flat bought in 2012

Mr. Gupta, a resident individual, bought a flat on 15 June 2012 for ₹30,00,000 including stamp duty. He sells it on 10 November 2026 for ₹95,00,000 and pays ₹1,00,000 as brokerage.

Option A — 12.5% without indexation

• Gain: ₹95,00,000 − ₹1,00,000 − ₹30,00,000 = ₹64,00,000.
• Tax: 12.5% = ₹8,00,000. With cess: ₹8,32,000.

Option B — 20% with indexation

• CII: 200 for 2012-13, 384 for 2026-27.
• Indexed cost: ₹30,00,000 × 384 ÷ 200 = ₹57,60,000.
• Gain: ₹95,00,000 − ₹1,00,000 − ₹57,60,000 = ₹36,40,000.
• Tax: 20% = ₹7,28,000. With cess: ₹7,57,120.

Option B is lower by ₹74,880, so the calculator picks it. He could reduce the tax further by reinvesting under Section 54 or 54EC, explained below.

Example 4: Selling gold jewellery

Lata bought gold jewellery on 1 May 2020 for ₹3,00,000 and sold it on 1 August 2026 for ₹5,60,000.

• Holding: 75 months — long-term (more than 24 months).
• Gain: ₹5,60,000 − ₹3,00,000 = ₹2,60,000.
• Tax: 12.5% = ₹32,500. With cess: ₹33,800.

Indexation is not available for gold, even though it was bought before 23 July 2024. The choice between 20% with indexation and 12.5% without applies only to land and buildings.

Example 5: One day that changes the tax

Deepak bought shares for ₹1,00,000 on 10 September 2025. They are now worth ₹1,50,000, a gain of ₹50,000, and he has no other equity gains this year.

• Sold on 10 September 2026: held exactly 12 months, so short-term. Tax: 20% × ₹50,000 = ₹10,000, with cess ₹10,400.
• Sold on 11 September 2026: held more than 12 months, so long-term. The ₹50,000 gain is within the ₹1.25 lakh exemption. Tax: nil.

Enter both dates in the calculator and you will see the difference. Before selling equity close to the one-year mark, always check the exact purchase date.

Example 6: Debt fund

Imran invested ₹5,00,000 in a debt fund on 1 June 2023 and redeemed it on 1 August 2026 for ₹6,00,000. He is in the 30% slab.

• Gain: ₹1,00,000. Holding period does not matter.
• Tax: 30% = ₹30,000. With cess: ₹31,200.

Special cases to watch

Shares bought before 1 February 2018

For listed equity bought before 1 February 2018, gains up to 31 January 2018 are protected. The cost is taken as the higher of your actual cost and the fair market value on 31 January 2018 (capped at the sale value). The calculator uses your actual cost only, so for such old holdings, enter the higher figure as the purchase cost, or ask an expert. Your broker's capital gains statement usually shows this "grandfathered" cost.

Property bought before 1 April 2001

You can use the fair market value as on 1 April 2001 as your cost instead of the original price. The calculator applies the 2001-02 index of 100 in such cases and reminds you to enter that fair market value as the purchase cost. A registered valuer's report is normally needed for the value.

Inherited or gifted assets

If you inherited or received an asset as a gift from a relative, your cost is the previous owner's cost, and the holding period includes the time the previous owner held it. Enter the original owner's purchase date and cost. For property inherited from a parent who bought it decades ago, this often makes the gain long-term with a choice of indexation.

Sale below the stamp duty value

If you sell land or a building for less than its stamp duty (circle rate) value, and the difference is more than 10% of the sale value, the stamp duty value is treated as your sale value for capital gains. Enter the stamp duty value as the sale value in that case.

Debt funds bought before 1 April 2023

The slab-rate rule covers debt funds bought on or after 1 April 2023. Older debt fund units held for more than 24 months are taxed like other long-term assets at 12.5% without indexation. To compute them here, choose "Gold / jewellery / unlisted shares / others".

Bonus shares and share splits

Bonus shares have a cost of nil, and their holding period starts from the date of allotment, not from when you bought the original shares. When you sell bonus shares, the whole sale value (less expenses) is the gain. In a split, the original cost is divided across the new shares and the holding period continues from the original purchase date.

Jointly owned property

When a property is owned jointly, each owner computes capital gains on their own share, usually in proportion to their contribution to the purchase. Each owner can claim exemptions such as Section 54 separately for their share, subject to the conditions. Run the calculator once for each owner using that owner's share of the cost and sale value.

Hybrid and international funds

The equity rates apply to equity-oriented funds, which broadly means funds that invest at least 65% in shares of Indian companies. Hybrid funds with lower equity, international funds and fund-of-funds can fall into other categories, and their tax depends on the fund type and when you bought the units. Check the fund's category in your statement, or ask an expert, before choosing an option in the calculator.

Low total income

If you are a resident and your other income is below the basic exemption limit, the unused part of the limit can be adjusted against special-rate capital gains, which reduces the tax. The calculator does not make this adjustment. Also note that the Section 87A rebate does not apply to tax on special-rate capital gains.

Crypto and other virtual digital assets

Crypto is not covered by this calculator. It is taxed at a flat 30% with no deduction except cost, and 1% TDS on sales. Use our crypto tax calculator for that.

Capital losses: set-off and carry forward

If your sale value is less than your cost, you have a capital loss. It is not wasted.

• A short-term capital loss can be set off against both short-term and long-term capital gains.
• A long-term capital loss can be set off only against long-term capital gains.
• Capital losses cannot be set off against salary, business or other income.
• Unused capital losses can be carried forward for 8 years, but only if your return for the year of the loss is filed by the due date.

A set-off example

Kavita made a long-term gain of ₹2,00,000 on equity funds this year. She also sold some shares at a short-term loss of ₹40,000.

• Without the loss: ₹2,00,000 − ₹1,25,000 exemption = ₹75,000 taxable. Tax 12.5% plus cess = ₹9,750.
• With the loss set off: ₹2,00,000 − ₹40,000 = ₹1,60,000 net long-term gain. Less ₹1,25,000 exemption = ₹35,000 taxable. Tax 12.5% plus cess = ₹4,550.

The short-term loss saved her ₹5,200. The calculator works one sale at a time, so for set-off across several sales, add up the results or ask an expert to prepare the full computation.

Investors sometimes sell loss-making holdings before 31 March to set them off against gains in the same year. Do this with a clear view of the rules and your overall portfolio, not only for tax.

Saving tax on long-term gains

The law offers exemptions if you reinvest long-term gains in specified ways. These are the main ones:

If you have not reinvested by the time your return is due, you can deposit the amount in the Capital Gains Account Scheme with an authorised bank before the due date and claim the exemption. The money must then be used within the time allowed.

Under Section 54 and 54EC, the exemption is limited to the amount actually reinvested, up to the capital gain. Under Section 54F, if you invest only part of the net sale consideration, the exemption is proportionate. In Example 3, if Mr. Gupta invests ₹36,40,000 or more of the indexed gain in a new house within the time limit, his tax on this sale can fall to nil.

These exemptions have detailed conditions, and a mistake can make the whole exemption fail. Plan before you sell.

TDS and advance tax on capital gains

When you sell immovable property worth ₹50 lakh or more, the buyer must deduct TDS of 1% from the payment if you are a resident. Non-resident sellers face TDS on the gain at higher rates. This TDS appears in your Form 26AS and is credited against your final tax.

TDS rarely covers the full capital gains tax. The balance becomes part of your advance tax for the year. If you have a large gain, pay advance tax in the next instalment after the sale to avoid interest. Our advance tax calculator shows how much to pay and by when.

Reporting capital gains in your return

Capital gains, other than small long-term equity gains up to ₹1.25 lakh allowed in ITR-1 and ITR-4, need ITR-2 (no business income) or ITR-3 (with business income). Our ITR form finder confirms the right form.

In the return, gains are reported in the capital gains schedule, separately for each type of asset. For listed equity long-term gains, the form asks for details of each scrip or fund sold. Property sales need the buyer's details and the stamp duty value. Your AIS on the income tax e-filing portal shows the sales reported by brokers, mutual fund registrars and property registration offices, so match your figures with it before filing.

Common mistakes

• Leaving out stamp duty and brokerage. These are part of the purchase cost and sale expenses. Leaving them out overstates the gain.
• Counting the ₹1.25 lakh exemption more than once. It is a yearly limit for all equity long-term gains together.
• Using indexation for gold or shares. After 23 July 2024, indexation is available only for land and buildings bought before that date, and only for resident individuals and HUFs.
• Misjudging the holding period by a day. Long-term means more than 12 or 24 months. Check the exact dates.
• Ignoring the stamp duty value. Selling property below the circle rate can raise the taxable sale value.
• Forgetting to file on time when you have a loss. A belated return loses the right to carry forward capital losses.

Documents to keep ready

• Capital gains statement from your broker, and consolidated statements from mutual fund registrars.
• Contract notes for share purchases and sales, if the statement is not detailed.
• Purchase and sale deeds for property, with stamp duty and registration receipts.
• Bills for improvement costs, with dates.
• Brokerage and legal fee receipts on sale.
• Valuation report for property bought before 1 April 2001, if using fair market value.
• Proof of reinvestment — new house documents, 54EC bond certificates or Capital Gains Account Scheme deposit receipt.
• Form 26AS and AIS showing TDS and reported sales.

When to take expert help

Take expert help before you sell if the gain is large or the asset is property, so you can plan reinvestment within the time limits. After the sale, get help if you have shares bought before 2018, inherited property, improvements made over many years, a sale below the circle rate, or gains and losses across many transactions. Our income tax filing service prepares the capital gains computation and files your ITR-2 or ITR-3.

Get it checked by an expert

Capital gains tax often runs into lakhs, and the right choice of indexation, exemption or cost figure can make a real difference. A TaxCaller expert can review your purchase and sale documents, compute the gain correctly, check exemptions you may claim, plan advance tax and file your return. The fee is told upfront before we start, and the first call is free. Share your broker statement or sale deed to begin.