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Capital Gains Tax Calculator: FY 2026-27

Last verified: 24 Sept 2026

Statutory source: Income Tax Department (CBDT) · Sections 111A, 112, 112A.

⚠️ Surcharge Disclaimer:Computations calculate 12.5% LTCG, 20% STCG, ₹1.25 Lakh exemption, and 4% Health & Education Cess. Surcharge on taxable capital gains where total taxable income exceeds ₹50 Lakh (capped at 15% for Section 111A/112A) is not modeled.

Determines statutory LTCG threshold and applicable tax rate

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Gross value realized upon sale or redemption

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Original cost incurred to buy the asset

Months

Total months held from acquisition date to transfer date

Results

Total Tax Liability (with Cess)
₹9,750
Net Gain After Tax₹1,90,250
Total Capital Gain₹2,00,000
Gain ClassificationLTCG
Applicable Tax Rate12.5%
Health & Education Cess (4%)₹375
Statutory ProvisionSection 112A

Reflects Budget 2024 changes: 20% STCG, 12.5% LTCG with ₹1.25L annual exemption on equity. Debt fund slab estimate uses 30% conservative rate.

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 / ComponentLegal Basis / CalculationComputed OutputRegulatory Explanation
Full Sale ConsiderationGross Redemption Value₹5,00,000Total gross value realized upon redemption of units.
Cost of AcquisitionOriginal Purchase Capital₹3,00,000Original purchase price paid by investor.
Total Gross Capital Gain₹5,00,000 − ₹3,00,000₹2,00,000Gross capital profit before exemptions and deductions.
Classification & Governing Section24 Months > 12-Month ThresholdLTCG (Section 112A)Exceeds the 12-month statutory threshold for listed equities/mutual funds.
Annual Statutory ExemptionFinance Act 2024 Threshold−₹1,25,000Expanded from ₹1,00,000 to ₹1,25,000 per financial year under Section 112A.
Net Taxable Capital Gain₹2,00,000 − ₹1,25,000₹75,000Portion of capital gain subject to tax.
Base LTCG Tax (12.50%)₹75,000 × 12.50%₹9,375Rationalized uniform rate under Section 112A (formerly 10%).
Health & Education Cess (4%)₹9,375 × 4.00%₹375Statutory cess levied on all income tax liabilities under Indian tax law.
Total Capital Gains Tax Payable₹9,375 + ₹375₹9,750Final 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.
  • 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.
Selling property bought before July 23, 2024?Learn how the dual indexation option works and see a step-by-step worked comparison in our in-depth guide: Capital Gains Tax in India (Post-Budget 2024): Rates, Holding Periods, and the Real Estate Indexation Rule.

Frequently asked questions

What are the capital gains tax rates after Budget 2024?
Effective July 23, 2024, Short-Term Capital Gains (STCG) on listed equity and equity mutual funds are taxed at 20% (Section 111A). Long-Term Capital Gains (LTCG) on all financial and non-financial assets are taxed at 12.5% (Section 112A), with the annual equity LTCG exemption limit increased to ₹1.25 lakh.
How is holding period determined for LTCG vs STCG?
Under the simplified holding period framework, listed equities and equity mutual funds qualify as long-term if held for more than 12 months. All other assets (including real estate, physical gold, and unlisted shares) qualify as long-term if held for more than 24 months.
Is indexation benefit still available for real estate?
For properties acquired on or after 23 July 2024, indexation benefit is eliminated and LTCG is taxed at a flat 12.5%. For properties acquired before 23 July 2024 by resident individuals/HUFs, taxpayers can compute tax under both 12.5% without indexation and 20% with indexation, paying whichever is lower.
How are debt mutual funds taxed in India?
Per Section 50AA introduced in Finance Act 2023, gains from mutual funds investing less than 35% in domestic equities (pure debt funds) purchased after 1 April 2023 are treated as deemed short-term capital gains and taxed at the investor applicable slab rate regardless of holding duration.
Is Health and Education Cess added to capital gains tax?
Yes, a mandatory 4% Health and Education Cess is levied on the aggregate amount of capital gains income tax and applicable surcharge.

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Estimated Capital Gains Tax

₹9,750