Capital Gains Tax Calculator
Calculate tax on profits from selling stocks, mutual funds, or property
✨ Updated for FY 2025-26 (Budget 2025)
⚡ Try Quick Scenarios
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
❓ 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.