Last reviewed: — Section 50AA treatment now applied by acquisition date.
Capital Gains Tax Calculator: FY 2026-27
Statutory source: Income Tax Department (CBDT) · Sections 111A, 112, 112A.
Input Error
Determines statutory LTCG threshold and applicable tax rate
Gross value realized upon sale or redemption
Original cost incurred to buy the asset
Total months held from acquisition date to transfer date
Results
Reflects Budget 2024 changes: 20% STCG, 12.5% LTCG with ₹1.25L annual exemption on equity. Debt fund slab estimate uses 30% conservative rate.
For information only. Not tax advice. Verify with a Chartered Accountant before filing.
How Indian Capital Gains Taxation Works (Post-Budget 2024)
Capital gains tax is levied under Chapter IV-E (Sections 45 to 55A) of the Indian Income-tax Act, 1961, upon profits realized from the transfer of a capital asset. The Finance (No. 2) Act, 2024, enacted a historic structural overhaul of India's capital gains regime (effective July 23, 2024), standardizing holding periods and tax rates across asset classes while removing indexation benefits.
1. Total Capital Gain: Gain = Full Value of Consideration (Sale Price) − Cost of Acquisition − Transfer Expenses
2. Holding Period Classification:
• Listed Equities & Equity Mutual Funds: Short-Term if ≤12 months; Long-Term if >12 months.
• Real Estate, Physical Gold & Unlisted Shares: Short-Term if ≤24 months; Long-Term if >24 months.
• Debt Mutual Funds (<35% equity): Deemed Short-Term under Section 50AA regardless of holding duration.
3. Statutory Tax Rates (Budget 2024):
• Section 111A (Equity STCG): Flat 20.00% (raised from 15%).
• Section 112A (Equity LTCG): Flat 12.50% (raised from 10%) on gains exceeding annual exemption threshold of ₹1,25,000.
• Section 112 (Non-Equity LTCG): Flat 12.50% without indexation for assets acquired post-July 23, 2024.
4. Final Tax Obligation (with Cess): Total Tax = [ Base Tax Amount × 1.04 ] (reflecting mandatory 4% Health & Education Cess)
5. Net Retained Capital Gain: Net Realized Gain = Total Capital Gain − Total Tax
Step-by-Step Worked Example (Default Scenario)
Consider an investor who sells listed equity mutual fund units for ₹5,00,000 after holding them for 24 months, having originally purchased them for ₹3,00,000:
| Statutory Step / Component | Legal Basis / Calculation | Computed Output | Regulatory Explanation |
|---|---|---|---|
| Full Sale Consideration | Gross Redemption Value | ₹5,00,000 | Total gross value realized upon redemption of units. |
| Cost of Acquisition | Original Purchase Capital | ₹3,00,000 | Original purchase price paid by investor. |
| Total Gross Capital Gain | ₹5,00,000 − ₹3,00,000 | ₹2,00,000 | Gross capital profit before exemptions and deductions. |
| Classification & Governing Section | 24 Months > 12-Month Threshold | LTCG (Section 112A) | Exceeds the 12-month statutory threshold for listed equities/mutual funds. |
| Annual Statutory Exemption | Finance Act 2024 Threshold | −₹1,25,000 | Expanded from ₹1,00,000 to ₹1,25,000 per financial year under Section 112A. |
| Net Taxable Capital Gain | ₹2,00,000 − ₹1,25,000 | ₹75,000 | Portion of capital gain subject to tax. |
| Base LTCG Tax (12.50%) | ₹75,000 × 12.50% | ₹9,375 | Rationalized uniform rate under Section 112A (formerly 10%). |
| Health & Education Cess (4%) | ₹9,375 × 4.00% | ₹375 | Statutory cess levied on all income tax liabilities under Indian tax law. |
| Total Capital Gains Tax Payable | ₹9,375 + ₹375 | ₹9,750 | Final tax liability payable via advance tax or self-assessment tax. |
| Net Retained Gain (After Tax) | ₹2,00,000 − ₹9,750 | ₹1,90,250 (95.12%) | Effective tax rate on gross capital gain is just 4.88% due to the ₹1.25L exemption. |
Asset Class Comparison (Post-July 23, 2024)
- Listed Equity & Equity Funds: STCG (≤12 mos) taxed at 20.00% (Sec 111A). LTCG (>12 mos) taxed at 12.50% above ₹1.25 Lakh exemption (Sec 112A).
- Immovable Property (Real Estate): STCG (≤24 mos) taxed at individual slab rates. LTCG (>24 mos) taxed at 12.50% without indexation for transfers post-July 23, 2024; for property acquired before 23 July 2024, resident individuals/HUFs pay the lower of that and 20% with indexation (enter the acquisition date).
- Physical Gold & Gold ETFs: STCG (≤24 mos) taxed at slab rate. LTCG (>24 mos) taxed at 12.50% without indexation.
- Debt Mutual Funds (Sec 50AA): Funds with ≤35% equity acquired on/after April 1, 2023 are deemed STCG and taxed at marginal income tax slab rates regardless of holding period.
Exemptions & Tax Reinvestment Options
Taxpayers can legally eliminate or reduce long-term capital gains tax by reinvesting profits under statutory exemption sections:
- Section 54 (Residential House): Reinvest LTCG from sale of a residential house into acquiring another residential house in India within 1 year before or 2 years after sale (3 years for construction).
- Section 54F (Any Non-House Asset): Reinvest the net sale consideration from equity, gold, or land into one residential property.
- Section 54EC (Capital Gains Bonds): Invest up to ₹50,00,000 within 6 months of sale in specified bonds (REC, PFC, NHAI) with a 5-year lock-in period.
- Capital Gains Account Scheme (CGAS): If unutilized before the ITR filing due date (July 31), deposit funds into a CGAS account to claim exemption.
Loss Set-Off & Carry-Forward Framework
- Short-Term Capital Loss (STCL): Can be set off against both Short-Term and Long-Term Capital Gains in the same assessment year.
- Long-Term Capital Loss (LTCL): Can strictly be set off only against Long-Term Capital Gains; it cannot offset STCG or any other head of income.
- Carry-Forward Window: Unabsorbed capital losses can be carried forward for up to 8 assessment years, provided the Income Tax Return (ITR) is filed on or before the statutory due date under Section 139(1).
- Surcharge Cap: Surcharge on capital gains arising under Sections 111A and 112A is statutorily capped at 15.00%, even for high-net-worth individuals in the highest income brackets.
Frequently asked questions
What are the capital gains tax rates after Budget 2024?
How is holding period determined for LTCG vs STCG?
Is indexation benefit still available for real estate?
How are debt mutual funds taxed in India?
Is Health and Education Cess added to capital gains tax?
Related tax calculators
Income Tax Calculator (India)
Compare Old vs New Tax Regime tax liability per Finance Act 2024-25.
TaxesAdvance Tax Calculator
Calculate quarterly advance tax installments and Section 234B/234C interest liability.
TaxesTDS Calculator
Determine Tax Deducted at Source withholding amounts across commercial and professional sections.
Regulatory baseline, assumptions & legal safety
Operational boundaries and statutory provenance governing this calculation model.
Key Operational Assumptions
- Reflects statutory capital gains rates for FY 2026-27 (TY 2026-27); Finance Act 2026 did not change them.
- Listed equity shares and equity-oriented mutual funds: Short-Term Capital Gains (STCG) taxed at 20%; Long-Term Capital Gains (LTCG) taxed at 12.5% on gains exceeding the ₹1,25,000 annual exemption.
- Immovable property held for more than 24 months qualifies as LTCG and is taxed at 12.5% without indexation. If acquired before 23 July 2024, a resident individual/HUF pays the lower of 12.5% without indexation and 20% with indexation (CBDT Cost Inflation Index).
- A mandatory 4% Health and Education Cess is added to computed tax.
Authoritative Source & Regulatory Baseline
- Authoritative Source
- CBDT FAQs on Budget 2026 (Finance Bill 2026)(Income Tax Department (CBDT))
- Governing Framework
- Income-tax Act, 2025
- Applicable Period
- TY 2026-27
- Jurisdiction & Verification
- Republic of India • Verified 2026-10-17
Statutory context: Finance Act 2026 made no change to the STCG (20%), LTCG (12.5%) or ₹1,25,000 exemption rates; its capital gains change is the tax treatment of share buy-backs. For land or buildings acquired before 23 July 2024, resident individuals/HUFs pay the lower of 12.5% without indexation or 20% with indexation. Cost Inflation Index per CBDT (2026-27: 384). Cess is 4%.
Model Scope & Specific Limitations
This calculator does not model the following scenarios or provisions:
- Does not calculate statutory rollover exemptions under Section 54, Section 54EC, or Section 54F for reinvestment into property or specified bonds.
- Does not compute Fair Market Value (FMV) grandfathering adjustments for equity assets acquired prior to 1 February 2018.
- Does not compute set-off of capital losses against capital gains or inter-year loss carry-forward balances under Section 70 and 71.
- High-net-worth surcharge (>₹50L income) is excluded.
- Estimated tax computation; consult Schedule CG of official ITR-2 form for definitive filing.
- For property acquired before 1 April 2001, indexation uses CII 100 and the cost should be the fair market value as on 1 April 2001.
Educational & Legal Disclaimer
This calculator uses the rules and published rates by Income Tax Department (CBDT) for TY 2026-27. Estimated result based on the inputs and assumptions provided.
This calculator uses the rules/data published by Income Tax Department (CBDT) for FY 2026-27 (TY 2026-27). Estimated result based on the inputs and assumptions provided. Educational tool only; not legal or filing advice. Check official guidance for your specific situation.
Estimated Capital Gains Tax
₹9,750