Taxation
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Capital Gains Tax Calculator
Estimate short and long-term tax on equity or property gains. Adjust any input below and your results update instantly.
Understanding capital gains tax
The concept, the motivation, and what to watch out for.
What you actually owe depends on what you sold, and for how long you held it
Capital gains tax isn't one flat rate — it depends on the asset (equity, property, or something else) and how long you held it before selling. Budget 2024 reshaped these rules significantly: rates rose for equity, indexation was removed for most assets, and holding periods simplified to just two buckets.
This calculator covers the three most common cases: listed equity shares and equity mutual funds, real estate, and other assets like gold, unlisted shares, or debt mutual funds — each computed under its own current rules.
Two holding-period buckets, not three
Listed equity uses a 12-month cutoff for long-term status; everything else here — property, gold, unlisted shares, debt funds — uses 24 months.
Indexation mostly doesn't apply anymore
Budget 2024 removed indexation for transfers on or after 23 July 2024 — except immovable property acquired before that date, which can still choose whichever of two tax methods is cheaper.
How this calculator helps
Pick the asset type, enter your purchase and sale details, and see whether it's short or long-term, at what rate, and what you owe.
Calculate your capital gains tax
Fill in the starred fields on the left — your results update instantly on the right.
Your details
e.g. Equity shares / equity mutual funds
≈ ₹5.00 L
e.g. ₹5,00,000
≈ ₹8.00 L
e.g. ₹8,00,000
e.g. 18 months
These are example numbers. Edit any input on the left to see your own.
Total tax on this gain
₹22,750
12.5% — Long-term
Capital gain
₹3.00 L
Taxable gain
₹1.75 L
Long-term gain on equity shares / equity mutual funds, taxed at 12.5% — total tax ₹22,750.
Compare scenarios
See how crossing the holding-period threshold changes your total tax.
Your plan
Long-term
₹22,750
Total tax
Baseline
Just short-term
12 months held
₹62,400
Total tax
Short-term rate
Just long-term
13 months held
₹22,750
Total tax
Long-term rate
Worked example, using your numbers
A step-by-step walkthrough for equity shares / equity mutual funds (Section 111A/112A).
Step 1 · Capital gain
Sale price minus purchase price gives
₹3.00 L
Step 2 · Classification
Based on your holding period, this gain is
Long-term
Step 3 · Total tax
At 12.5% plus 4% cess, you owe
₹22,750
✓
Your long-term gain of ₹3.00 L owes ₹22,750 in tax at 12.5%.
Personalised insights
What your numbers reveal, and what changing them would do.
Long-term gain — taxed at 12.5%
Your ₹3.00 L gain on equity shares / equity mutual funds is classified long-term under Section 111A/112A.
Total tax comes to ₹22,750
₹21,875 at 12.5%, plus ₹875 in 4% health & education cess.
The ₹1,25,000 exemption already applied
Only the amount above ₹1,25,000 is taxed — ₹1.75 L out of your ₹3.00 L gain.
Crossing the holding-period threshold changes everything
The same gain taxed just short of long-term status, versus just past it, can mean a very different total — see the scenario comparison below.
How this is calculated
Every step of the math behind your result, shown in the open.
Your capital gain
S = sale price, P = purchase price, G = capital gain
The starting point for every case here — sale price minus purchase price, before any rate or exemption is applied.
Example: ₹8.00 L − ₹5.00 L → ₹3.00 L gain
Short vs. long-term
Threshold = 12 months for listed equity; 24 months for everything else here
Cross the threshold for your asset type and the gain is long-term, taxed at a flat rate. Stay under it, and it's short-term — taxed at 20% for equity, or your income tax slab rate for everything else.
Example: 18 months > 12 → long-term
Tax on the gain
E = the ₹1,25,000 annual exemption (equity LTCG only, zero otherwise), r = the applicable rate, Tax = tax before cess
Equity's long-term gains get an annual exemption before the rate applies; every other case here taxes the full gain from the first rupee.
Example: ₹3.00 L gain − ₹1.25 L exemption → ₹1.75 L taxable × 12.5% → ₹21,875 tax
Indexation choice — property only
CII = Cost Inflation Index for that financial year, Indexed Cost = purchase price adjusted for inflation
If the property was acquired before the indexation cutoff, this inflates the purchase cost using the CBDT's published index — taxed at 20% instead of 12.5%, whichever total comes out lower.
Example: Indexation doesn't apply here — not offered for this asset type or acquisition date
Assumptions
- Property's holding period is approximated from the financial-year gap between purchase and sale, not exact calendar dates — treat results near the 24-month boundary as indicative.
- The indexation choice's availability is approximated using financial year, not the exact 23 July 2024 cutoff date within FY 2024-25.
- Surcharge isn't modeled — it depends on your total income across every source, not just this gain. Only the flat capital gains rate plus 4% cess is included.
- Capital loss set-off and carry-forward aren't modeled — this computes tax on a single transaction in isolation.
- Figures are indicative only — not tax advice. Consult a chartered accountant for your actual capital gains liability.
Did you know?
A few facts behind India's capital gains rules.
2024
The biggest capital gains overhaul in years
Budget 2024 raised equity rates, scrapped indexation for most assets, and cut three holding-period buckets down to two — all effective from 23 July 2024.
₹1.25L
Equity's exemption grew, but only for equity
The Section 112A exemption rose from ₹1 lakh to ₹1.25 lakh a year — but it's exclusive to long-term listed equity and equity mutual fund gains.
Choice
Older property purchases keep a rare choice
Property bought before the cutoff can pick whichever of two tax methods — 12.5% flat or 20% with indexation — actually costs less, a carve-out no other asset here gets.
2023
Debt funds lost long-term status a year earlier
Debt mutual funds bought on or after 1 April 2023 are always short-term — a Finance Act 2023 change that predates and is separate from the broader Budget 2024 overhaul.
15%
Equity gains get their own surcharge ceiling
However high your total income, surcharge on equity capital gains under Sections 111A/112A is capped at 15% — lower than the 25–37% that can apply to regular income.
Frequently asked questions
Straight answers to the questions we hear most about capital gains.
Why did capital gains rates change so much recently?
Budget 2024 (effective 23 July 2024) raised equity rates, removed indexation for most assets, and simplified holding periods to two buckets instead of three — the biggest capital gains overhaul in years.
What's the ₹1,25,000 exemption, and does it apply everywhere?
It's an annual exemption that applies only to long-term equity gains under Section 112A — listed shares and equity mutual funds. Property and other assets don't get this exemption; the full gain is taxed.
I bought my property years ago — do I still get indexation?
If it was acquired before the FY 2024-25 cutoff, yes — you can choose between 12.5% without indexation or 20% with it, whichever works out cheaper. This calculator computes both and picks the lower one automatically. Property acquired since then only gets the 12.5% no-indexation rate.
Are debt mutual funds treated the same as other assets here?
Mostly, but with one exception: debt mutual funds (funds with under 35% equity) bought on or after 1 April 2023 are always treated as short-term, taxed at your slab rate, no matter how long you hold them. Units bought before that date follow the normal 24-month rule modeled under "Gold, unlisted shares, debt funds."
Does this include surcharge, not just cess?
No — surcharge depends on your total income across every source, not just this one gain, which this calculator doesn't collect. Only the flat capital gains rate plus 4% cess is included; surcharge on equity gains under Sections 111A/112A is separately capped at 15% even for very high incomes.
Can I offset a loss against other gains?
Yes, under real tax rules — short and long-term losses can offset gains of the same or certain other types, and carry forward for years. This calculator only computes tax on a single transaction and doesn't model loss set-off across your full portfolio.
Is this tax advice?
No. This tool provides indicative estimates based on your inputs and the rates in force at the time. Consult a chartered accountant for your actual capital gains liability.
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Learn more
Articles to go deeper on the ideas behind this calculator.
Fundamentals
What Budget 2024 changed about capital gains
Rate hikes, the indexation removal, and the two-bucket holding period.
6 min read
Strategy
The property indexation choice, worked through
When 20% with indexation actually beats 12.5% without.
6 min read
Reference
Capital loss set-off and carry-forward rules
What this calculator doesn't cover — and where to look instead.
5 min read