March 28, 20265 min read

Capital Gains Tax Calculator India — STCG, LTCG, Equity & Property

Calculate capital gains tax on equity, mutual funds, property, and gold in India. Updated for FY 2025-26 with new 12.5% LTCG rate and removal of indexation for property.

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Capital gains tax in India saw its biggest overhaul in Budget 2024 — new rates, new exemption limits, and the removal of indexation for property sales (with conditions). If you're selling shares, mutual funds, property, or gold, you need to know what you'll actually owe.

Use the CalcHub Capital Gains Tax Calculator to compute your exact liability before you sell.

Capital Gains Tax Rates — FY 2025-26

Equity and Equity Mutual Funds

Type	Holding Period	Tax Rate	Exemption
STCG (Short Term)	< 12 months	20%	Nil
LTCG (Long Term)	≥ 12 months	12.5%	₹1.25 lakh/year

The LTCG rate changed from 10% to 12.5% in Budget 2024. The exemption limit increased from ₹1 lakh to ₹1.25 lakh simultaneously.

Debt Mutual Funds, FDs (Non-Equity)

Type	Holding Period	Tax Rate
All gains	Any period	Slab rate (20% or 30%)

Indexation benefit for debt funds was removed from April 2023. All debt fund gains are now taxed at slab rate regardless of holding period.

Property (Real Estate)

Type	Holding Period	Tax Rate	Indexation
STCG	< 24 months	Slab rate	No
LTCG (post-July 2024)	≥ 24 months	12.5%	No (removed)
LTCG (pre-July 2024 purchases, option)	≥ 24 months	20%	With indexation

Budget 2024 removed indexation for property but reduced the rate to 12.5%. Properties purchased before July 23, 2024 can choose: either 20% with indexation or 12.5% without — whichever is lower.

Gold and Other Capital Assets

Type	Holding Period	Tax Rate
STCG	< 24 months (physical gold), < 12 months (Gold ETF)	Slab rate
LTCG	≥ 24 months (physical gold), ≥ 12 months (Gold ETF)	12.5%

Worked Examples

Example 1 — Equity LTCG

Bought shares in 2022: ₹5,00,000
Sold in 2025: ₹8,50,000
Gain = ₹3,50,000
Exempt = ₹1,25,000
Taxable gain = ₹2,25,000
Tax = ₹2,25,000 × 12.5% = ₹28,125

Example 2 — Property sale (purchased post-July 2024)

Purchase price: ₹40,00,000 (FY 2024-25)
Sale price: ₹60,00,000 (FY 2026-27)
Gain = ₹20,00,000
Tax = ₹20,00,000 × 12.5% = ₹2,50,000 (no indexation available)

Example 3 — Property sale (purchased pre-July 2024, choosing best option)

Purchase price: ₹20,00,000 (2018)
Sale price: ₹60,00,000 (2026)
Option A (12.5%, no indexation): Gain ₹40L, Tax = ₹5,00,000
Option B (20%, with indexation): Indexed cost ~₹28,00,000 (CII adjustment), Gain ₹32L, Tax = ₹6,40,000
Choose Option A — saves ₹1.4 lakh in this case

Section 54 — Property Capital Gains Exemption

If you sell a residential property and reinvest the gains in another residential property within 2 years (3 years if constructing), you can claim Section 54 exemption on the LTCG. Conditions:

Only one new property (within India, post-2014 restriction)

New property must not be sold within 3 years

Unused gains must be deposited in Capital Gains Account Scheme (CGAS) before ITR filing deadline

Section 54EC: Invest LTCG (from property) in NHAI/REC bonds within 6 months, up to ₹50 lakh, locked for 5 years. Exempts the entire invested gain.

LTCG Harvesting — Tax Optimisation

Since equity LTCG up to ₹1.25 lakh is tax-free each year, a smart strategy is to harvest gains annually:

Before March 31: sell enough equity holdings to realise exactly ₹1.25 lakh gain

On April 1: buy back the same units (no wash sale rule in India — unlike the US)

Next year: cost basis resets higher, reducing future tax liability

Over a 20-year period, this annual harvesting can save lakhs in tax for a large equity portfolio.

Is LTCG on mutual funds calculated on each unit separately?

Yes — FIFO (First In, First Out) is the default method for mutual fund redemptions. Units purchased earliest are considered sold first. This means your oldest units (with potentially larger gains) are redeemed first. Consider this when planning redemptions across tax years.

Do NRIs pay the same capital gains tax?

Mostly yes for rates, but NRIs have TDS deducted at source — 20% TDS on LTCG from equity, 30% on STCG. They can claim refund if actual tax liability is lower when filing ITR. Double Taxation Avoidance Agreements (DTAA) may reduce liability for NRIs from treaty countries.

What's the surcharge on capital gains for high-income earners?

LTCG on equity above ₹1.25 lakh is taxed at 12.5% flat — no surcharge applies on this (surcharge was removed from equity LTCG). For STCG and other capital gains, surcharge applies normally if total income exceeds ₹50 lakh.

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