When you sell an investment for more than you paid, the profit is a capital gain, and it is taxed. The rate depends on what you sold and how long you held it. This calculator applies the FY 2026-27 rules and shows the tax, including the 4% cess.
Capital gains tax rates (FY 2026-27)
| Asset | Long-term if held | Long-term tax | Short-term tax |
|---|---|---|---|
| Listed shares, equity mutual funds | More than 12 months | 12.5% on gains above ₹1.25 lakh a year | 20% |
| Property, gold, unlisted shares | More than 24 months | 12.5% (no indexation) | Your slab rate |
| Debt mutual funds bought from April 2023 | Always taxed as short-term | – | Your slab rate |
A 4% cess is added to the tax. Surcharge may apply at high incomes.
How to use the capital gains calculator
- Choose what you sold.
- Enter the purchase value and the sale value.
- Enter how many months you held it.
- For short-term gains on property or gold, enter your income tax slab.
Examples
Equity: you bought shares for ₹5,00,000 and sold them for ₹8,00,000 after 18 months.
- Long-term capital gain = ₹3,00,000
- Taxable after the ₹1.25 lakh exemption = ₹1,75,000
- Tax = 12.5% plus cess = ₹22,750
If you had sold within 12 months, the short-term tax at 20% plus cess would be ₹62,400. Waiting a few months can save a lot.
Property: a flat bought for ₹40,00,000 and sold for ₹60,00,000 after 5 years has a ₹20,00,000 long-term gain, taxed at 12.5% plus cess, which is ₹2,60,000.
Things to know
- Property bought before 23 July 2024: individuals and HUFs can choose 20% with indexation instead of 12.5% without it, whichever is lower.
- Exemptions: reinvesting a long-term gain in a new house or specified bonds can reduce or remove the tax, subject to conditions.
- Losses: capital losses can be set off against gains, and unused losses can be carried forward for 8 years.
- The ₹1.25 lakh exemption on equity is for all your equity gains in the year together, not per sale.
FAQ
What is the LTCG tax on shares and mutual funds?
12.5% on long-term gains above ₹1.25 lakh in a year, for listed shares and equity mutual funds held for more than 12 months.
What is the STCG tax on shares?
20% on gains from listed shares and equity mutual funds sold within 12 months, plus cess.
Is indexation allowed on property?
Only for property bought before 23 July 2024, where individuals can choose 20% with indexation. Otherwise the rate is 12.5% without indexation.
How is my holding period counted?
From the date of purchase to the date of sale. For SIPs, each instalment has its own purchase date. Track your investment's growth with the CAGR calculator.