Capital Gains Tax Calculator
Calculate tax on profits from selling stocks, mutual funds, or property
✨ Updated for FY 2025-26 (Budget 2025)
Capital Gains Tax Calculator: A capital gains tax calculator computes the tax owed when you sell a capital asset (shares, property, gold, mutual funds) at a profit. For FY 2025-26, equity STCG is taxed at 20% (held <12 months) and equity LTCG at 12.5% on gains above ₹1.25 lakh/year (Budget 2024). Property LTCG is 12.5% without indexation or 20% with indexation for assets acquired before 23 July 2024.
📊 Capital Gains — CBDT & Budget Data
- Equity STCG (held <12 months): 20% flat tax. Equity LTCG (held ≥12 months): 12.5% on gains above ₹1.25L/year. (Finance Act, Budget 2024 — effective 23 July 2024)
- Property LTCG: 12.5% without indexation (new default) or 20% with indexation for properties acquired before 23 July 2024. (CBDT circular, July 2024)
- STT revenue to government: ₹44,000 crore+ in FY 2024-25, up 30% YoY, reflecting record retail equity participation. (CBDT, April 2025)
- Demat accounts in India: 18.5 crore as of March 2025 — up from 3.6 crore in 2020, reflecting equity investment boom. (SEBI/CDSL/NSDL, March 2025)
⚡ Try Quick Scenarios
Reviewed by
CA Arjun Mehta
CA (ICAI) · B.Com (Hons) · 9+ years · Income Tax, GST & Investment Planning
Last reviewed: June 2026 · Capital Gains Tax FY 2025-26
Capital Loss: ₹
Can be set off against other capital gains or carried forward up to 8 years
Long-Term Capital Gains (LTCG)
Holding Period:
Total Tax Payable
📊 Tax Breakdown
📌 Property STCG Tax Calculation:
Short-term gains on property are added to your total income and taxed at your applicable income tax slab rate plus cess and surcharge. The calculator shows estimated tax based on your total income.
💼 Real Capital Gains Tax Examples for Indians
See how capital gains tax works in real scenarios (FY 2025-26)
📈 Example 1: Profit from Selling Stocks (LTCG)
Transaction Details:
- • Stock: Reliance Industries shares
- • Purchase: ₹5,00,000 (Jan 2022)
- • Sale: ₹8,00,000 (March 2025)
- • Holding Period: 38 months (>1 year = LTCG)
- • Capital Gain: ₹3,00,000
- • Annual Income: ₹10 lakh
Tax Calculation:
Capital Gain: ₹3,00,000
Exemption: -₹1,25,000 (first ₹1.25L exempt)
Taxable: ₹1,75,000
Tax @ 12.5%: ₹21,875
Cess @ 4%: ₹875
Total Tax: ₹22,750
Net Profit After Tax: ₹2,77,250
⚡ Example 2: Quick Stock Sale (STCG)
Transaction Details:
- • Stock: TCS shares
- • Purchase: ₹2,00,000 (Jan 2025)
- • Sale: ₹2,50,000 (Aug 2025)
- • Holding Period: 7 months (≤1 year = STCG)
- • Capital Gain: ₹50,000
- • Annual Income: ₹8 lakh
Tax Calculation:
Capital Gain: ₹50,000
STCG Rate: 20%
Tax @ 20%: ₹10,000
Cess @ 4%: ₹400
Total Tax: ₹10,400
Net Profit After Tax: ₹39,600
💡 Holding for 5 more months would save ₹10,400 tax!
🏠 Example 3: Selling Residential Property (LTCG)
Property Details:
- • Type: 2BHK Flat in Mumbai
- • Purchase: ₹50,00,000 (2020)
- • Renovation: ₹5,00,000 (2022)
- • Sale: ₹75,00,000 (2025)
- • Transfer Expenses: ₹1,50,000
- • Holding: 5 years (>2 years = LTCG)
- • Annual Income: ₹15 lakh
Tax Calculation:
Sale Price: ₹75,00,000
– Purchase: ₹50,00,000
– Improvement: ₹5,00,000
– Expenses: ₹1,50,000
Gain: ₹18,50,000
Tax @ 12.5%: ₹2,31,250
Cess @ 4%: ₹9,250
Total Tax: ₹2,40,500
Net Gain After Tax: ₹16,09,500
💡 Can save tax by reinvesting in another house (u/s 54)
📉 Example 4: Selling at Loss
Transaction Details:
- • Stock: Yes Bank shares
- • Purchase: ₹3,00,000 (2023)
- • Sale: ₹2,00,000 (2025)
- • Holding: 2 years (LTCG)
- • Capital Loss: ₹1,00,000
Tax Implications:
Capital Loss: ₹1,00,000
No tax payable
Loss Utilization:
• Set off against other capital gains in same year
• LTCG loss can offset any capital gains
• Carry forward for 8 years if unused
📌 Must file ITR to carry forward losses, even if no tax payable
📋 Tax Rates Quick Reference (FY 2025-26)
| Asset Type | Holding Period | STCG Tax Rate | LTCG Tax Rate | Special Benefits |
|---|---|---|---|---|
| Listed Equity Shares | ≤12 months = STCG >12 months = LTCG |
20% + 4% cess | 12.5% + 4% cess | ₹1.25L exemption (LTCG) |
| Equity Mutual Funds | ≤12 months = STCG >12 months = LTCG |
20% + 4% cess | 12.5% + 4% cess | ₹1.25L exemption (LTCG) |
| Residential Property | ≤24 months = STCG >24 months = LTCG |
Slab Rate + cess | 12.5% + 4% cess | Section 54, 54EC exemptions |
| Commercial Property | ≤24 months = STCG >24 months = LTCG |
Slab Rate + cess | 12.5% + 4% cess | Section 54EC only |
STCG = Short-Term
Higher tax rates, no exemptions
LTCG = Long-Term
Lower rates, exemptions available
💡 Pro Tip
Hold assets longer for better tax rates
🔧 How Capital Gains Tax Works – Detailed Guide
Step 1: Determine Asset Type
Capital assets are classified as:
📈 Stocks/Equity MF
Listed equity shares, equity mutual funds, equity ETFs
🏠 Property
Land, building, house, apartment, commercial property
Step 2: Calculate Holding Period
Holding Period = Sale Date – Purchase Date
For Stocks/Equity MF:
• STCG: ≤ 12 months
• LTCG: > 12 months
For Property:
• STCG: ≤ 24 months (2 years)
• LTCG: > 24 months
Step 3: Calculate Capital Gains
For Stocks/Mutual Funds:
Capital Gain = Sale Price – Purchase Price – Brokerage
For Property:
Capital Gain = Sale Price – Purchase Price – Improvement Cost – Transfer Expenses
Improvement: Major repairs, additions | Transfer: Brokerage, registration, legal fees
Step 4: Apply Tax Rates (FY 2025-26)
| Asset Type | STCG Rate | LTCG Rate | Special Notes |
|---|---|---|---|
| Stocks/Equity MF | 20% | 12.5% | ₹1.25L exemption for LTCG |
| Property | Slab Rate | 12.5% | No indexation from FY 2023-24 |
Step 5: Add Surcharge & Cess
Surcharge (on Base Tax):
≤₹50L
0%
>₹50L-1Cr
10%
>₹1Cr-2Cr
15%
>₹2Cr-5Cr
25%
>₹5Cr
37%
Health & Education Cess:
4% on (Base Tax + Surcharge)
Final Tax = Base Tax + Surcharge + Cess
Capital Gains Tax Rates — FY 2025-26 (AY 2026-27)
Rates set by Finance (No.2) Act 2024 effective Jul 23, 2024 · Confirmed unchanged in Budget 2025 & Budget 2026 · Source: CBDT / Income Tax Act
| Asset Type | Holding Period (LTCG) | LTCG Rate ✅ | LTCG Exemption | STCG Rate ✅ | Key Note |
|---|---|---|---|---|---|
| Listed Equity Shares | >12 months | 12.5% | ₹1.25L/yr | 20% | Section 112A. STT must be paid. |
| Equity Mutual Funds | >12 months | 12.5% | ₹1.25L/yr | 20% | Equity >65% AUM qualifies. |
| Gold / Silver / ETFs | >24 months | 12.5% | Nil | Slab rate | No indexation. Section 112. |
| Immovable Property | >24 months | 12.5% or 20%* | Nil | Slab rate | *Pre-Jul 23 purchase: can opt for 20%+indexation if lower tax. |
| Listed Bonds / NCDs | >12 months | 12.5% | Nil | Slab rate | Corrected from 10% in Budget 2025 (AY 2026-27). |
| Unlisted Shares | >24 months | 12.5% | Nil | Slab rate | NRIs: FX adjustment allowed on LTCG. |
| Debt Mutual Funds | Any | Slab rate | Nil | Slab rate | Debt MF bought after Apr 1, 2023 always taxed at slab. |
| ULIPs >₹2.5L premium | Any | 12.5% 🆕 | ₹1.25L/yr | Slab rate | Budget 2025 change. Effective from April 1, 2026. |
Source: Finance (No.2) Act 2024 · Union Budget 2025 · Union Budget 2026 · CBDT Circular · Income Tax Act Sections 111A, 112, 112A. This is for informational purposes only. Surcharge, cess, and special provisions for NRIs/FIIs may alter effective rates. Consult a Chartered Accountant for personalised tax advice.
❓ Comprehensive FAQ on Capital Gains Tax
What is the difference between STCG and LTCG?
Short-Term Capital Gains (STCG) apply when you sell assets within a short period (≤1 year for stocks, ≤2 years for property). Taxed at higher rates. Long-Term Capital Gains (LTCG) apply after longer holdings, with lower tax rates and exemptions (₹1.25 lakh for stocks).
What are the updated capital gains tax rates for FY 2025-26?
Stocks/Equity MF: STCG at 20% + 4% cess | LTCG at 12.5% + 4% cess (after ₹1.25L exemption)
Property: STCG at your income tax slab rate | LTCG at 12.5% + 4% cess (no indexation benefit)
Is indexation benefit available for property sales?
No. The indexation benefit (adjusting purchase cost for inflation using Cost Inflation Index) has been removed for property LTCG from FY 2023-24 onwards. Property LTCG is now taxed at a flat 12.5% without indexation. This applies to FY 2025-26 as well.
How is the holding period calculated accurately?
Holding period = Number of days between purchase date and sale date. For stocks/equity MF: >365 days = LTCG, ≤365 days = STCG. For property: >730 days (2 years) = LTCG, ≤730 days = STCG. Use exact transaction dates from contract notes/sale deed.
What exemptions or deductions are available for capital gains?
Stocks LTCG: First ₹1.25 lakh gains in a financial year are completely tax-free.
Property LTCG: Reinvest in residential house (Section 54) or NHAI/REC bonds (Section 54EC) to claim exemption. Maximum ₹50 lakh in bonds.
Capital Losses: Can offset against other capital gains or carry forward up to 8 assessment years.
How does surcharge and cess apply to capital gains?
Surcharge is calculated on total taxable income (salary + capital gains + other income). Rates: 10% (>₹50L-1Cr), 15% (>₹1Cr-2Cr), 25% (>₹2Cr-5Cr), 37% (>₹5Cr). After adding surcharge to base tax, 4% health and education cess is applied on (tax + surcharge) to arrive at final tax liability.
Can I set off capital losses from stocks against property gains?
Yes, with conditions: LTCG losses can be set off against both STCG and LTCG. STCG losses can only be set off against STCG (not LTCG). Losses from equity/stocks can offset property gains and vice versa as long as STCG/LTCG type matches.
Do I need to file ITR if I have only capital losses?
Yes, you must file Income Tax Return to carry forward capital losses even if total income is below taxable limit. Losses can be carried forward for 8 assessment years, but only if ITR is filed before the due date for that year.
What expenses can be deducted while calculating property capital gains?
Allowed Deductions: (1) Cost of improvement – major repairs, renovations, additions made after purchase, (2) Transfer expenses – brokerage, stamp duty, registration fees, legal fees paid during sale. Regular maintenance and minor repairs are NOT allowed.
How is STCG on property taxed?
Property STCG is added to your total income and taxed at your applicable income tax slab rate (5%/20%/30% depending on total income) plus surcharge (if applicable) plus 4% cess. It’s not taxed separately like stocks STCG at 20%.
Is TDS deducted on property sale proceeds?
Yes. Buyer must deduct TDS @ 1% on property sale value if sale consideration exceeds ₹50 lakh. For resident sellers, TDS is 1%. For NRI sellers, TDS is 20% (plus surcharge and cess). TDS certificate (Form 16B) must be issued within 15 days.
Can I claim Section 54 exemption if I already own a house?
Yes, but with conditions: You can own ONE other residential house on the date of sale. If you purchase/construct new house, you cannot buy another house within 3 years (1 year prior to sale + 2 years after sale). Violating this attracts tax on previously exempted gains.
When should I consult a Chartered Accountant?
Consult CA for: (1) Property sales with complex improvement costs or inherited property, (2) Multiple asset sales in same year, (3) Claiming Section 54/54EC exemptions, (4) Capital gains >₹10 lakh, (5) International property transactions, (6) Setting off/carrying forward losses, (7) TDS refund claims or advance tax planning.
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❓ Frequently Asked Questions
Everything you need to know about Capital Gains Tax Calculator
Q1. Which tax regime is better — Old or New for FY 2025-26?
New regime is better if your total deductions (80C + 80D + HRA + home loan interest) are less than ₹3.75 lakh. Old regime wins if deductions exceed ₹3.75 lakh. For most salaried employees under ₹12L income, the new regime gives zero tax due to ₹12L threshold (₹12.75L with standard deduction). Always calculate both.
Q2. Is income up to ₹12 lakh truly tax-free in FY 2025-26?
Under the new regime, the ₹12L threshold works via Section 87A tax rebate — it applies to normal income (salary, rent, FD interest). Special rate income (capital gains on shares, lottery winnings) is NOT eligible for the rebate. So LTCG from equity can attract tax even if total income is under ₹12L.
Q3. What is the 30% tax bracket and who does it apply to?
The 30% income tax slab applies to income above ₹15 lakh in the new regime (above ₹10L in old regime). With 4% Health & Education Cess, effective rate becomes 31.2%. For income above ₹50 lakh, additional 10-25% surcharge applies, pushing effective rates to 34-42.7%.
Q4. How does Section 80C work and what qualifies?
Section 80C provides deduction up to ₹1.5 lakh per year for specific investments: EPF/VPF, ELSS, PPF, NSC, tax-saving FD (5-year), LIC premium, home loan principal repayment, SSY, NPS (within 80C), and tuition fees for 2 children. Available in old regime only.
Q5. What is TDS and how to check if correct TDS is being deducted?
TDS (Tax Deducted at Source) is advance tax deducted by your employer/bank. Check Form 26AS on the Income Tax portal (incometax.gov.in) to see total TDS deposited against your PAN. If employer deducts excess TDS, you get a refund when filing ITR. Under-deduction means you pay the balance while filing.
Q6. Can I claim home loan deduction in the new tax regime?
Section 24(b) home loan interest deduction (up to ₹2L for self-occupied property) is NOT available in the new regime. However, for let-out (rented) properties, actual interest paid can be claimed against rental income even in the new regime. If you have a large home loan, old regime is likely better.
Q7. What is advance tax and who needs to pay it?
If your total tax liability exceeds ₹10,000 in a year (after TDS), you must pay advance tax in installments: 15% by June 15, 45% by Sept 15, 75% by Dec 15, and 100% by March 15. Freelancers, consultants, and those with income from multiple sources typically need to pay advance tax.
Q8. How is HRA exemption calculated?
HRA exemption is the MINIMUM of: (1) Actual HRA received, (2) 50% of basic salary for metro cities (40% for non-metro), (3) Actual rent paid minus 10% of basic salary. If you pay rent to parents, you can claim HRA — parents must declare it as rental income in their ITR.
Q9. What is LTCG and STCG tax on mutual funds and shares?
LTCG (holding >1 year) on equity and equity MF: 12.5% on gains above ₹1.25L/year (as of Budget 2024-25). STCG (holding ≤1 year) on equity: 20%. For debt mutual funds (held any period): taxed at your income tax slab rate (as per 2023 amendment). No indexation benefit for any category now.
Q10. What deductions are available for senior citizens?
Senior citizens (60-79 years): higher basic exemption ₹3L (old regime), 80TTB deduction up to ₹50,000 on FD/RD interest, 80D health insurance ₹50,000. Super seniors (80+): basic exemption ₹5L, no advance tax obligation, can file ITR-1 even for capital gains from equity up to ₹5L.
Q11. How to file ITR correctly if you switched jobs mid-year?
Collect Form 16 from both employers. Combine income from both. Clubbing income often means TDS was calculated on each job separately without knowing full-year income — resulting in underpayment that you must pay while filing ITR. Use Form 26AS to verify total TDS deducted. File ITR-1 (if only salary) by July 31.
Q12. What happens if I miss the ITR filing deadline?
Last date for ITR without penalty: July 31 (salaried). Belated return (Aug 1 to Dec 31) attracts ₹1,000-5,000 penalty under Section 234F. Interest under 234A (1%/month) applies on unpaid tax. Not filing also carries risk of notice, scrutiny assessment, and losses (equity LTCG exemption cannot be carried forward).
Calculator Disclaimer
For Informational Purposes Only: The Capital Gains Tax Calculator provides estimates based on the inputs you enter and standard financial formulas. Results are indicative only and do not constitute financial advice.
Not a Guarantee: Actual returns, tax liability, or financial outcomes may differ due to market conditions, regulatory changes, or individual circumstances not captured in the calculator.
Professional Advice: For significant financial decisions, please consult a SEBI-registered Investment Advisor, Chartered Accountant, or certified financial planner.
Data Currency: All rates, slabs, and parameters are updated periodically. Verify current rates from official sources (RBI, SEBI, Income Tax Department, IRDAI) before making decisions.
Last Updated: 17 Jun 2026 | Data Source: RBI, SEBI, Income Tax Act 1961, IRDAI | Maintained by CalcWise.Finance