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Capital Gains Tax Calculator India 2025-26

Calculate LTCG and STCG tax on property sale, shares, equity mutual funds, and debt investments. Compare short-term vs long-term capital gains, use indexation benefits, and optimize your tax liability with step-by-step calculations.

Property Tax CalculatorShares & Mutual FundsIndexation CalculatorLTCG vs STCG₹1 Lakh Exemption

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Capital Gains Tax on Sale of Property in India

Calculating capital gains tax on property sale in India requires understanding the holding period, purchase price, sale price, and applicable tax rates. For long-term capital gain tax on property (holdings of 24 months or more), you can use indexation to significantly reduce your tax liability. The capital gain tax calculator on property helps you estimate your tax obligations accurately.

When you sell a property in India, the capital gains are classified as short-term (holdings under 24 months) or long-term (holdings of 24 months or more). Short-term capital gains on property are added to your total income and taxed at your applicable income tax slab rate. Long-term capital gains on property are taxed at 20% with indexation benefits, which adjusts your purchase price for inflation, reducing your taxable gains. Using a capital gain tax calculator on property with indexation can help you understand the tax savings potential.

Short-Term Capital Gains on Property

Holding Period

Less than 24 months

Tax Rate

As per Income Tax Slab

5%, 20%, or 30% based on total income

Indexation

Not Available

Long-Term Capital Gains on Property

Holding Period

24 months or more

Tax Rate

20%

With indexation benefits

Indexation

Available - Reduces Taxable Gains

Example: Capital Gains Tax Calculation on Property Sale in India

Property Purchase (2019-20)

₹50,00,000

Property Sale (2024-25)

₹75,00,000

CII (Purchase Year): 289

CII (Sale Year): 363

Holding Period: 60 months (LTCG)

With Indexation:

Indexed Cost = ₹50,00,000 x (363 / 289) = ₹62,80,277

Taxable Gain = ₹75,00,000 - ₹62,80,277 = ₹12,19,723

Tax @ 20% = ₹2,43,945

Without Indexation (if applicable):

Capital Gain = ₹75,00,000 - ₹50,00,000 = ₹25,00,000

Tax @ 20% = ₹5,00,000

Savings with Indexation: ₹2,56,055

Capital Gains Tax Rules FY 2025-26

Equity & Equity Mutual Funds

Short-term (< 12 months)20%
Long-term (≥ 12 months)12.5%
LTCG Exemption₹1 Lakh/year

Debt & Other Assets

Short-term (< 36 months)As per slab
Long-term with indexation20%
Long-term without indexation25%

How to Calculate Capital Gains Tax in India - Step by Step Guide

Calculating capital gains tax involves three main steps: determining your cost basis, computing your gain or loss and holding period, and applying the correct tax rate with any applicable exemptions. Our capital gains tax calculator automates this process, but understanding the calculation method helps you make informed decisions.

1

Determine Cost Basis

Your cost basis is the original purchase price of the asset, including any additional expenses like brokerage fees, stamp duty, or legal fees. For property sales, include registration charges and improvement costs.

Example:

Purchase Price: ₹10,00,000
+ Brokerage: ₹5,000
= Cost Basis: ₹10,05,000

2

Compute Gain & Holding Period

Calculate your capital gain by subtracting cost basis from sale price. Determine the holding period (days/months between purchase and sale) to classify as STCG or LTCG.

Example:

Sale Price: ₹15,00,000
- Cost Basis: ₹10,05,000
= Capital Gain: ₹4,95,000

Holding: 24 months = LTCG

3

Apply Tax Rate & Exemptions

Apply the appropriate tax rate based on asset type and holding period. For LTCG on equity, subtract ₹1 lakh exemption. For debt/property, use indexation if beneficial (20% vs 25%).

Example (Equity LTCG):

Gain: ₹4,95,000
- Exemption: ₹1,00,000
= Taxable: ₹3,95,000
Tax @ 12.5%: ₹49,375

Important Notes for Capital Gains Tax Calculation in India

  • For property sales, include stamp duty, registration charges, and improvement costs in your cost basis
  • STT (Securities Transaction Tax) paid on equity sales cannot be deducted from capital gains
  • Long-term capital gains on property can benefit from indexation, reducing taxable gains significantly
  • Short-term capital gains are added to your total income and taxed at your applicable slab rate
  • Keep all purchase receipts, sale contracts, and expense documents for tax filing and potential audits

How Much Capital Gain is Tax Free in India?

As per Section 112A of the Income Tax Act, sale of listed equity shares, equity-oriented mutual funds, or units of business trust after 12 months (24 months for units) attracts long-term capital gains tax of 12.5%. However, taxpayers can claim exemption up to ₹1 lakh on long-term capital gains from equity investments every financial year. This means any LTCG up to ₹1 lakh is completely tax-free, and only gains above this threshold are taxed at 12.5%.

Long-Term Capital Gains (LTCG) Exemption

Annual Exemption Limit

₹1,00,000

Per financial year for equity LTCG

Applicable for:

  • Listed equity shares held for 12+ months
  • Equity-oriented mutual funds held for 12+ months
  • Units of business trust held for 24+ months

Example: If you have LTCG of ₹3,50,000 from equity investments, you pay tax only on ₹2,50,000 (₹3,50,000 - ₹1,00,000) at 12.5% = ₹31,250.

Short-Term Capital Gains (STCG)

No Exemption Available

0

Full gains are taxable

Tax Rates:

  • Equity: 20% (holdings < 12 months)
  • Debt/Property: As per income tax slab
  • No exemption for short-term gains

Important: STCG on equity is always taxable at 20% with no exemption. For debt and property, STCG is added to your total income and taxed at your applicable slab rate (5%, 20%, or 30%).

Tax-Free Capital Gains Strategies

  • Plan your equity sales to stay within ₹1 lakh LTCG exemption each year
  • Spread large gains across multiple financial years to maximize exemptions
  • Use tax-loss harvesting to offset capital gains with capital losses
  • Consider holding equity investments for 12+ months to qualify for LTCG benefits
  • For property sales, use reinvestment exemptions (Section 54, 54F, 54EC) for complete tax exemption
  • Keep track of all capital gains throughout the year to optimize tax planning

Understanding Indexation Benefits for Capital Gains Tax

Indexation is a powerful tax-saving mechanism available for long-term capital gains on debt instruments, bonds, fixed deposits, and real estate properties. The concept of indexation recognizes that inflation erodes the purchasing power of money over time. Indexation adjusts your purchase price for inflation using the Cost Inflation Index (CII) published by the Income Tax Department, effectively reducing your taxable capital gains and resulting in significant tax savings.

For debt investments and real estate held for more than 36 months (or 24 months for property), you have the option to choose between two tax calculation methods: 20% tax with indexation or 25% tax without indexation. In most cases, choosing indexation results in lower tax liability because it reduces the taxable capital gains amount.

The Cost Inflation Index is updated annually by the government to reflect inflation trends. Indexation is particularly valuable for investors in debt mutual funds, bonds, and real estate, where holding periods are typically longer and inflation impact is more significant.

Indexation Calculation Example

Scenario: Debt Mutual Fund Investment

Purchase Date

April 2020 (FY 2020-21)

Sale Date

March 2025 (FY 2024-25)

Purchase Price

₹10,00,000

Sale Price

₹15,00,000

CII (Purchase Year - 2020-21)

301

CII (Sale Year - 2024-25)

363

Without Indexation (25% Tax Rate)

Capital Gains

₹15,00,000 - ₹10,00,000 = ₹5,00,000

Tax @ 25%

₹1,25,000

With Indexation (20% Tax Rate)

Indexed Cost of Acquisition

₹10,00,000 x (363 / 301) = ₹10,00,000 x 1.206

₹12,06,000

Indexed Capital Gains

₹15,00,000 - ₹12,06,000

₹2,94,000

Tax @ 20%

₹58,800

Tax Savings with Indexation

₹66,200

(₹1,25,000 - ₹58,800)

Savings Percentage

53%

Lower tax with indexation

Key Takeaway: By using indexation, your taxable capital gains reduced from ₹5,00,000 to ₹2,94,000, and even with a lower tax rate (20% vs 25%), you save ₹66,200 in taxes.

Tax Exemptions on Reinvestment of Capital Gains

The Income Tax Act provides several exemptions when you reinvest your capital gains from property sales into specified assets within prescribed time limits.

54

Section 54

Reinvestment in Residential Property

  • -Exemption on LTCG from property sale
  • -Must purchase new residential property within 1 year before or 2 years after sale
  • -Or construct within 3 years of sale
  • -Full exemption up to reinvestment amount
54F

Section 54F

Reinvestment for Non-Resident Property

  • -Exemption on LTCG from any asset (not just property)
  • -Must purchase residential property within 1 year before or 2 years after sale
  • -Or construct within 3 years of sale
  • -Full exemption if entire sale proceeds reinvested
54EC

Section 54EC

Investment in Specified Bonds

  • -Exemption on LTCG from property sale
  • -Invest in REC, NHAI, or PFC bonds
  • -Must invest within 6 months of sale
  • -Maximum exemption: ₹50 lakh per financial year
  • -Lock-in period: 5 years

Important Points to Remember

  • You cannot claim multiple exemptions for the same capital gains
  • If you sell the new property within 3 years, the exemption is reversed
  • For Section 54EC bonds, premature withdrawal results in loss of exemption
  • Keep all purchase/construction documents and investment proofs for tax filing
  • Consult a tax advisor to determine the best exemption strategy for your situation

Capital Gains Tax Scenarios

Short Term Capital Gains (STCG)

Equity Investments

20%

Holding period < 12 months

Debt/Other Assets

As per income tax slab

Holding period < 36 months

Long Term Capital Gains (LTCG)

Equity Investments

12.5%

Holding period ≥ 12 months

₹1 Lakh annual exemption

Debt/Other Assets

20%

(with indexation)

or

25%

(without indexation)

Holding period ≥ 36 months

Important Notes & Compliance

  • Advance Tax Payment

    Advance tax payment is required if your total tax liability including capital gains tax exceeds ₹10,000. The advance tax should be paid by March 15th for the last quarter.

  • Transaction Costs

    STT (Securities Transaction Tax) and brokerage costs can be adjusted from the sale price when calculating capital gains, reducing your taxable amount.

  • Documentation

    Maintain proper documentation for all transactions including purchase receipts, sale contracts, and investment proofs for tax filing and potential audits.

  • Professional Advice

    Consult a qualified tax advisor or chartered accountant for complex scenarios, especially when dealing with multiple exemptions, reinvestment options, or cross-border transactions.

Complete Capital Gains Tax Guide for Indian Investors — FY 2025-26

Everything you need to know about calculating capital gains tax, claiming exemptions, and legally reducing your tax liability on investments and property sales.

How Is Capital Gains Tax Calculated in India? (FY 2025-26)

Capital gains tax in India is levied on the profit you earn from selling a capital asset — shares, mutual funds, real estate, gold, bonds, or any other investment. The tax you pay depends on two key factors: the type of asset and the holding period. Getting this right is critical because the difference between short-term and long-term classification can change your tax rate from 20% to 12.5%, or even make a portion of your gains completely tax-free.

Step 1 — Determine the cost basis. Your cost basis (also called cost of acquisition) includes the purchase price plus any directly attributable expenses like brokerage, stamp duty, registration charges, and improvement costs. For inherited assets, the cost basis is the price at which the previous owner acquired the asset. For gifted assets, the cost to the person who gifted it becomes your cost basis. Securities Transaction Tax (STT) paid at the time of purchase can also be included in the cost basis.

Step 2 — Classify as short-term or long-term. The holding period varies by asset class: for listed equity shares and equity mutual funds, the threshold is 12 months; for debt mutual funds and bonds, it is 36 months; for immovable property, it is 24 months; and for gold, jewellery, and unlisted shares, it is 24 months. If you hold the asset beyond these periods, the gain qualifies as Long-Term Capital Gain (LTCG); otherwise it is Short-Term Capital Gain (STCG).

Step 3 — Apply the correct tax rate. For equity STCG, the flat rate is 20% under Section 111A. For equity LTCG, gains up to ₹1.25 lakh per financial year are exempt, and gains above that are taxed at 12.5% under Section 112A — no indexation benefit is available. For debt instruments and property, STCG is added to your income and taxed at slab rates, while LTCG is taxed at 20% with indexation (using Cost Inflation Index) or 12.5% without indexation, whichever is lower. Finally, add 4% Health and Education Cess on the computed tax.

A common mistake investors make is forgetting to account for advance tax obligations. If your total tax liability including capital gains exceeds ₹10,000 in a financial year, you must pay advance tax in quarterly instalments — failing to do so attracts interest under Sections 234B and 234C. Our income tax calculator can help you estimate your total liability including capital gains.

Capital Gains Tax Rates for Different Asset Classes in FY 2025-26

India's capital gains tax framework is asset-class specific — what works for equity does not apply to property, and debt instruments follow their own rules entirely. Understanding these distinctions prevents costly errors at the time of filing your income tax return.

Equity Shares & Equity Mutual Funds. Listed equity shares and equity-oriented mutual funds (including ELSS after the 3-year lock-in) attract 20% STCG if sold within 12 months and 12.5% LTCG if sold after 12 months. The first ₹1.25 lakh of LTCG in a financial year is completely exempt — this annual exemption is per individual and resets every April. Crucially, STT must have been paid on the transaction for these concessional rates to apply.

Debt Mutual Funds & Bonds. Debt funds purchased after April 2023 are taxed at slab rates regardless of holding period — the indexation benefit has been removed for new investments. However, for units purchased before April 2023, LTCG (holding > 36 months) can still be computed at 20% with indexation or 12.5% without, whichever results in lower tax. STCG on debt is always taxed at your income tax slab rate.

Real Estate (Immovable Property). Property held for less than 24 months is taxed at slab rates as STCG. Property held for 24 months or more qualifies for LTCG at 20% with indexation benefit — or 12.5% without indexation, at the taxpayer's choice. The Cost Inflation Index (CII) adjusts the purchase price for inflation, significantly reducing the taxable gain for properties held over many years. Use our calculator above to compare both options.

Gold & Precious Metals. Physical gold, gold ETFs, and sovereign gold bonds have a 24-month holding threshold. STCG is taxed at slab rates, and LTCG at 12.5%. Sovereign Gold Bonds (SGBs) held until maturity (8 years) enjoy complete tax exemption on capital gains — making them the most tax-efficient way to invest in gold. If redeemed before maturity, standard LTCG rules apply after the 24-month holding period.

How to Claim Exemptions Under Sections 54, 54F, and 54EC

The Income Tax Act provides several reinvestment-based exemptions that can eliminate or significantly reduce your capital gains tax on property and other long-term assets. These are not deductions — they are full exemptions that remove the gain from your taxable income entirely, provided you meet strict reinvestment conditions and timelines.

Section 54 — Exemption on sale of residential property. If you sell a residential house and use the long-term capital gains to purchase or construct another residential property, the gain is exempt. You must purchase the new property within 1 year before or 2 years after the sale, or construct within 3 years. If the new property costs less than the capital gain, only the proportionate amount is exempt. The new property cannot be sold within 3 years — if you do, the exemption is reversed and added back to your income in the year of sale. This section is available only to individuals and HUFs.

Section 54F — Exemption on sale of any long-term asset (other than a residential house). This is broader than Section 54 — it covers gains from selling equity shares, gold, land (non-residential), or any other long-term capital asset. The entire net sale consideration (not just the gain) must be invested in a new residential property to claim full exemption. The same timelines apply: purchase within 1 year before or 2 years after, or construct within 3 years. A critical condition — you must not own more than one residential property (other than the new one) on the date of sale.

Section 54EC — Exemption by investing in specified bonds. Instead of buying property, you can invest up to ₹50 lakh in bonds issued by NHAI (National Highways Authority of India) or REC (Rural Electrification Corporation) within 6 months of the sale. These bonds have a 5-year lock-in and currently offer around 5% annual interest. While the return is modest, the tax saving on high-value property sales can be substantial — a ₹50 lakh exemption in the 20% LTCG bracket saves ₹10 lakh in tax plus cess.

Capital Gains Account Scheme (CGAS). If you cannot identify or complete the purchase of a new property before the ITR filing deadline, deposit the unutilised capital gains in a Capital Gains Account Scheme with a nationalised bank. This deposit preserves your exemption claim. You must utilise the deposited amount within the prescribed timelines (2 years for purchase, 3 years for construction). Unused amounts after the deadline are taxed as capital gains in the year the deadline expires.

Tax-Loss Harvesting to Reduce Capital Gains Tax

Tax-loss harvesting is a completely legal strategy to reduce your capital gains tax bill by strategically booking losses on underperforming investments to offset gains from profitable ones. This technique is widely used by sophisticated investors and can save thousands of rupees in tax every year — yet most retail investors in India overlook it.

How set-off rules work. Short-term capital losses (STCL) can be set off against both short-term and long-term capital gains — making them the most flexible losses for tax planning. Long-term capital losses (LTCL) can only be set off against long-term capital gains — not against short-term gains or any other income. If your total losses exceed gains in a year, you can carry forward the unabsorbed loss for 8 years and set it off against future capital gains. However, to carry forward losses, you must file your ITR before the due date — belated returns do not preserve the carry-forward right.

Practical example with the ₹1.25 lakh LTCG exemption. Suppose you have ₹3 lakh in equity LTCG and ₹80,000 in unrealised losses on another stock. By selling the losing stock before March 31, you book ₹80,000 LTCL. Net LTCG = ₹3,00,000 − ₹80,000 = ₹2,20,000. After the ₹1.25 lakh exemption, taxable LTCG = ₹95,000. Without harvesting, taxable LTCG would have been ₹1,75,000 — saving you approximately ₹10,000 in tax at 12.5%. You can immediately repurchase the same stock (there is no wash-sale rule in India), resetting your cost basis at the lower price.

Year-end harvesting strategy. Every February–March, review your portfolio for unrealised losses. If you have gains that will cross the ₹1.25 lakh exemption threshold, consider booking losses to bring your net LTCG below the exemption limit. This is especially powerful for SIP investors in equity mutual funds where individual units purchased over months have different cost bases — some may be in profit while others are at a loss. Use our income tax calculator to model the impact of tax-loss harvesting on your overall tax liability.

Important caveat for debt funds. Since April 2023, new investments in debt mutual funds are taxed at slab rates regardless of holding period. Tax-loss harvesting still works for debt funds — book losses to offset gains — but the LTCG benefit no longer applies to new purchases. For existing units bought before April 2023, the old rules (indexation at 20% or 12.5% flat) continue, making tax-loss harvesting particularly valuable for this grandfathered portfolio.

Reporting Capital Gains in Your ITR and Avoiding Common Mistakes

Incorrect reporting of capital gains is one of the top reasons for income tax notices in India. The Income Tax Department receives transaction data from stock exchanges, mutual fund registrars, and property registration offices — every sale you make is already in their system. Accurate reporting is not optional; it is essential to avoid penalties, interest, and scrutiny under Sections 270A and 271(1)(c).

Choosing the correct ITR form. If you have capital gains, you must file ITR-2 (salaried with capital gains) or ITR-3 (if you also have business income). ITR-1 (Sahaj) does not accommodate capital gains — filing ITR-1 when you have gains is a defective return that the CPC will reject. Within ITR-2/3, Schedule CG is where all capital gains and losses are reported, and Schedule 112A requires scrip-wise details of every equity transaction attracting LTCG.

Reconcile with Form 26AS and Annual Information Statement (AIS). Before filing, download your Form 26AS from the income tax portal and cross-check with the AIS. The AIS now captures mutual fund redemptions, share sales, property transactions, and even foreign remittances. Any mismatch between your ITR and the AIS will trigger an automated notice. Common mismatches include: forgetting to report systematic withdrawal plans (SWPs) from mutual funds, not accounting for bonus shares (cost basis is zero), and ignoring capital gains distributions from mutual fund houses.

Advance tax on capital gains. If you sell a significant asset mid-year and your total tax liability (including capital gains) will exceed ₹10,000, you are required to pay advance tax. Unlike salary income where TDS is deducted by the employer, capital gains require self-assessment. The advance tax instalment in which the gain arises must include the capital gains tax — for example, if you sell shares in October, the December 15th instalment should cover the tax. Late payment attracts interest at 1% per month under Section 234C. Use our TDS calculator to understand how TDS interacts with your capital gains liability.

Common mistakes that invite IT notices. (1) Reporting only the net gain instead of the full sale consideration and cost basis separately. (2) Claiming the ₹1.25 lakh LTCG exemption on debt funds — it only applies to listed equity and equity mutual funds. (3) Forgetting to report property sale when TDS under Section 194IA has already been deducted by the buyer. (4) Not reporting capital gains from NRI accounts. (5) Mixing up FIFO (First In First Out) and specific identification methods for mutual fund unit selection. Careful preparation using our capital gains tax calculator above and cross-checking with AIS data will help you file an accurate, notice-proof return.

Capital Gains Tax Calculation Formulas

Understand the mathematical formulas used to calculate capital gains tax on investments.

Capital Gains = Sale Price - Purchase Price - Indexation

Example:

Sale ₹10L, Purchase ₹5L, Indexation ₹1L

10,00,000 - 5,00,000 - 1,00,000
= ₹4,00,000

Variables:

Sale Price - Price at which asset is sold
Purchase Price - Original purchase price
Indexation - Indexation benefit (for LTCG)

Tax = Capital Gains × Tax Rate

Example:

₹4L LTCG at 10% tax rate

4,00,000 × 0.10
= ₹40,000

Variables:

Capital Gains - Calculated capital gains amount
Tax Rate - 10% for LTCG, 15% for STCG

These formulas provide the mathematical foundation for the calculations. Actual results may vary based on rounding, compounding frequency, and specific lender policies.

Capital Gains Tax Calculator FAQs

Everything you need to know about capital gains tax, STCG, LTCG, and investment tax planning

How do you calculate capital gains tax?

To calculate capital gains tax: (1) Determine your cost basis (purchase price + expenses), (2) Compute your capital gain by subtracting cost basis from sale price and determine holding period, (3) Apply the correct tax rate - 20% for equity STCG, 12.5% for equity LTCG (with ₹1 lakh exemption), or use indexation for debt/property LTCG. Use our capital gains tax calculator for accurate calculations.

What is the difference between short-term and long-term capital gains?

Short-term capital gains (STCG) apply when you hold equity investments for less than 12 months (36 months for debt, 24 months for property). Long-term capital gains (LTCG) apply when you hold equity investments for 12 months or more (36 months or more for debt, 24 months or more for property). Long-term gains generally have lower tax rates and additional exemptions like ₹1 lakh for equity or indexation for debt/property.

How much amount of capital gain is tax free?

As per Section 112A of the Income Tax Act, long-term capital gains from equity investments (listed shares, equity mutual funds) are tax-free up to ₹1 lakh per financial year. Any LTCG above ₹1 lakh is taxed at 12.5%. Short-term capital gains have no exemption and are fully taxable at 20% for equity or as per income tax slab for debt/property.

What is the LTCG exemption limit for equity investments?

For equity investments held for more than 12 months, you get an annual exemption of ₹1 lakh on long-term capital gains. Any gains above ₹1 lakh are taxed at 12.5%. This exemption is available every financial year and applies to listed equity shares, equity-oriented mutual funds, and units of business trust held for 24+ months.

How is capital gains tax calculated on sale of property in India?

For property sales in India: (1) Calculate capital gain = Sale price - (Purchase price + improvement costs + expenses), (2) Determine holding period - STCG if less than 24 months (taxed as per income tax slab), LTCG if 24+ months (taxed at 20% with indexation), (3) Apply indexation to purchase price using CII for LTCG to reduce taxable gains. Use our property capital gains tax calculator for accurate calculations with indexation benefits.

How does indexation benefit work for debt investments?

Indexation adjusts your purchase price for inflation using the Cost Inflation Index (CII). This reduces your taxable capital gains. For debt investments, you can choose between 20% tax with indexation or 25% tax without indexation, whichever is lower.

What is the tax rate on short-term capital gains from equity?

Short-term capital gains from equity investments (held for less than 12 months) are taxed at 20%. This includes stocks, equity mutual funds, and ELSS funds sold before completing 12 months.

Do I need to pay advance tax on capital gains?

Yes, if your total tax liability including capital gains tax exceeds ₹10,000, you need to pay advance tax. The advance tax should be paid by March 15th for the last quarter. You can also pay the entire amount by March 31st.

Can I set off capital losses against capital gains?

Yes, you can set off capital losses against capital gains. Short-term capital losses can be set off against both short-term and long-term capital gains. However, long-term capital losses can only be set off against long-term capital gains. Losses can be carried forward for 8 years.

Are there any exemptions for long-term capital gains on property?

Yes, there are several exemptions for property sales like Section 54 (reinvestment in residential property), Section 54F (reinvestment for non-resident property), and Section 54EC (investment in specified bonds). These can help you save or defer capital gains tax.

How are capital gains from mutual funds taxed?

Equity mutual funds are taxed like equity shares - STCG at 20% (if held <12 months) and LTCG at 12.5% on gains above ₹1 lakh (if held ≥12 months). Debt mutual funds have STCG taxed at income tax slab rates and LTCG at 20% with indexation or 25% without indexation. Use indexation for debt funds as it typically results in lower tax liability.

How do you calculate taxes on capital gains?

Calculate taxes on capital gains in three steps: (1) Figure out your cost basis (purchase price + expenses), (2) Compute your gain or loss and holding period (STCG vs LTCG classification), (3) Apply the correct rate - 20% for equity STCG, 12.5% for equity LTCG (minus ₹1 lakh exemption), or use indexation (20%) vs non-indexation (25%) for debt/property LTCG. Our calculator automates this process.

What is capital gains tax calculator with indexation?

A capital gains calculator with indexation helps you calculate long-term capital gains tax on debt instruments and property by adjusting your purchase price for inflation using the Cost Inflation Index (CII). This reduces your taxable gains and typically results in lower tax (20% with indexation vs 25% without indexation). Indexation is beneficial for holdings of 36+ months (debt) or 24+ months (property).
Capital Gains Tax Calculator User Reviews and Ratings

Disclaimer: Results are estimates for financial planning purposes only and do not constitute financial, tax, investment, or legal advice. Actual values may vary based on your lender, market conditions, and individual circumstances. Consult a qualified CA, CFP, or financial advisor before making any financial decisions.