Capital Gains Tax Calculator
Use this capital gains tax calculator to compute the tax on the sale of shares, mutual funds, property or other assets for FY 2026-27. The calculator applies the post-Budget 2024 rules — uniform 12.5% LTCG, 20% STCG on listed equity, ₹1.25 lakh annual exemption under Section 112A, and the no-indexation regime for most assets sold on or after 23 July 2024. Property acquired before that date still has the option of 20% with indexation if it works out lower.
This LTCG STCG calculator covers all major asset classes — listed equity, equity mutual funds, debt mutual funds, residential property, unlisted shares, gold, and bonds — applying the correct holding-period thresholds and tax rates for each. It also factors in the 4% Health and Education Cess that applies on top of the calculated tax. Whether you're harvesting equity gains within the ₹1.25 lakh exempt zone or computing tax on a property sale, the calculator gives you an accurate liability estimate.
How this calculator works
The big shift — Budget 2024 changed everything
The Union Budget 2024 (effective 23 July 2024) overhauled India's capital gains tax framework, and FY 2026-27 continues under those rules with no further changes from Budget 2026. The three biggest changes:
- STCG on equity rose from 15% to 20% under Section 111A
- LTCG rate became uniform at 12.5% across asset classes (was 10% for equity, 20% with indexation for property)
- Indexation benefit was removed for almost all assets, with a transitional option for property bought before 23 July 2024
Capital gains rates for FY 2026-27
| Asset | STCG (held under threshold) | LTCG (held above threshold) | Holding threshold |
|---|---|---|---|
| Listed equity / equity MF | 20% (Section 111A) | 12.5% above ₹1.25L exemption | 12 months |
| Property (post-July 2024) | Slab rate | 12.5%, no indexation | 24 months |
| Property (pre-July 2024) | Slab rate | Lower of 12.5% no-indexation OR 20% with indexation | 24 months |
| Unlisted shares / gold / other | Slab rate | 12.5%, no indexation | 24 months |
| Debt MF (post-April 2023) | Slab rate | Slab rate (no LTCG benefit) | N/A |
| Bonds, debentures (listed) | Slab rate | 12.5% | 12 months |
4% Health and Education Cess applies on the calculated tax across all categories.
The ₹1.25 lakh equity LTCG exemption
Section 112A allows resident individuals to claim an annual exemption of ₹1.25 lakh on long-term capital gains from listed equity shares and equity-oriented mutual funds. So a ₹1,50,000 LTCG generates only ₹3,125 in tax (12.5% of ₹25,000 above the threshold), not ₹18,750. The exemption resets every financial year, so investors regularly use tax harvesting — selling equity to realise gains up to ₹1.25 lakh, immediately repurchasing, and resetting the cost base — to grow corpus tax-free over years.
The grandfathering clause for pre-2018 equity
For listed equity shares and equity mutual fund units acquired before 1 February 2018, gains accrued up to 31 January 2018 are tax-exempt. The deemed cost of acquisition is the higher of: (a) actual purchase price, or (b) fair market value as on 31 January 2018. So if you bought ITC shares for ₹50 in 2010 and they were ₹250 on 31 Jan 2018, your deemed cost for tax purposes is ₹250 — only gains above that are taxed when you sell.
The property indexation choice (pre-July 2024 property)
Individuals and HUFs selling residential or commercial property acquired before 23 July 2024 can choose between two methods:
- Method A: 12.5% on the full gain, no indexation
- Method B: 20% on the inflation-adjusted gain (using Cost Inflation Index)
Whichever produces lower tax wins. For older properties (purchased 15+ years ago) with high inflation impact, Method B with indexation often saves more. For recent property purchases with limited inflation, Method A wins. The CII for FY 2025-26 is 363 (base year 2001-02 = 100). For property sold on or after 23 July 2024 but acquired before that date, this choice applies.
Section 54 reinvestment exemption
If you sell residential property and reinvest the LTCG in another residential property within 2 years (purchase) or 3 years (construction), the entire LTCG can be exempted under Section 54. Alternative: invest up to ₹50 lakh in NHAI/REC bonds within 6 months under Section 54EC for full exemption. Section 54F applies similar logic to the sale of any non-house long-term asset where proceeds are reinvested in residential property.
Capital loss set-off rules
STCL (short-term capital loss) can be set off against any capital gain — short or long term. LTCL (long-term capital loss) can only be set off against LTCG. Unutilised losses can be carried forward for 8 assessment years, provided you file your ITR before the due date. One-time relief for FY 2026-27: LTCL incurred up to 31 March 2026 can be set off against STCG in AY 2027-28 — a unique planning opportunity introduced for the transition to the new Income Tax Act 2025.
Worked example
Example 1 — Equity LTCG within exemption (tax harvesting):
- Purchased Nifty 50 ETF in 2022: ₹5,00,000
- Sold in November 2026 (held > 12 months): ₹6,20,000
- LTCG = ₹1,20,000
- Section 112A exemption: ₹1,25,000 → entire gain falls within
- Tax: ₹0 (zero tax — perfect for annual harvesting)
Example 2 — Equity LTCG above exemption:
- Mutual fund purchased 2020: ₹8,00,000; sold 2026: ₹15,00,000
- LTCG = ₹7,00,000
- Less ₹1,25,000 exemption: taxable = ₹5,75,000
- Tax @ 12.5% = ₹71,875; cess @ 4% = ₹2,875
- Total tax: ₹74,750
Example 3 — Property sold by individual (pre-July 2024 purchase, indexation choice):
- Purchased flat in 2010: ₹40,00,000 (CII for FY 2010-11 = 167)
- Sold in May 2026: ₹1,20,00,000 (CII for FY 2025-26 = 363)
- Method A (12.5% no indexation): Gain ₹80,00,000 → Tax = ₹10,00,000 + cess ₹40,000 = ₹10,40,000
- Method B (20% with indexation): Indexed cost = ₹40L × 363/167 = ₹86,94,611. Gain = ₹33,05,389. Tax = ₹6,61,078 + cess ₹26,443 = ₹6,87,521
- Choose Method B — saves ₹3,52,479
- Better still, reinvest the gain in another residential property under Section 54 → tax = ₹0
Frequently asked questions
How does the ₹1.25 lakh LTCG exemption actually work?
It applies annually to long-term capital gains from listed equity shares and equity-oriented mutual funds combined. Gains up to ₹1.25 lakh in a financial year are exempt; only the portion above is taxed at 12.5%. The exemption resets every April 1. Smart investors harvest gains up to this limit each year by selling and immediately repurchasing — building wealth completely tax-free over decades.
Is indexation completely gone for property?
Mostly, but not for everyone. For property sold on or after 23 July 2024 by an individual or HUF, the rule depends on when the property was acquired: if before 23 July 2024, you have a choice between 12.5% without indexation OR 20% with indexation (pick the lower). If acquired on or after 23 July 2024, only 12.5% without indexation is available. For companies and other entities, indexation is fully removed regardless of acquisition date.
Can I claim Section 87A rebate against capital gains?
Only for slab-rate-taxed gains. The Section 87A rebate of ₹60,000 (new regime) or ₹12,500 (old regime) is NOT available for tax computed under Section 112A (LTCG on equity at 12.5%) or Section 111A (STCG on equity at 20%). It also does not apply to flat-rate property LTCG. For LTCG/STCG on assets taxed at slab rates (debt funds, unlisted shares STCG), the rebate works normally.
How are debt mutual funds taxed now?
Debt funds purchased on or after 1 April 2023 lose all special LTCG benefits. All gains, regardless of holding period, are taxed at your slab rate as Income from Other Sources. So a 30%-slab investor pays effectively 31.2% (with cess) on debt fund returns — making them less attractive than FDs (similar tax) for short tenures and PPF/EPF (tax-free) for long tenures. Pre-April 2023 debt fund investments still get LTCG at 12.5% after 24 months.
What is grandfathering for equity?
For listed equity shares and equity mutual fund units acquired before 1 February 2018, gains accrued up to 31 January 2018 are tax-free. When you sell, the deemed cost is the higher of: (a) actual purchase price, or (b) fair market value as on 31 January 2018 (which was the day before the new tax took effect). So an investor who bought Infosys at ₹100 in 2005 and saw it at ₹1,200 on 31 Jan 2018 uses ₹1,200 as the cost — paying tax only on gains above that.
How do I save tax on property LTCG?
Three main routes: (1) Section 54 — reinvest the gain in another residential property within 2 years (purchase) or 3 years (construction); full exemption for the reinvested portion. (2) Section 54EC — invest up to ₹50 lakh in NHAI or REC bonds within 6 months; 5-year lock-in but tax-free. (3) Section 54F — for non-house long-term asset sales (gold, shares), reinvest the entire net consideration in residential property. You cannot own more than one other residential property to claim 54F.
Are F&O profits capital gains?
No. Profits and losses from futures and options trading are treated as <strong>business income</strong>, not capital gains. F&O profits are taxed at slab rates under the head Profits and Gains of Business or Profession (PGBP). Tax audit may apply if turnover exceeds ₹10 crore (₹2 crore if presumptive taxation under 44AD is opted out). F&O traders should maintain proper books — broker contract notes alone are not enough.
What is the one-time LTCL set-off relief for FY 2026-27?
Long-term capital losses (LTCL) incurred up to 31 March 2026 can be set off against short-term capital gains (STCG) in AY 2027-28 (FY 2026-27) — a one-time provision. Historically, LTCL could only be set off against LTCG. This relief was introduced as a transitional measure for the new Income Tax Act 2025. If you have carried-forward LTCL, this is a strategic year to realise STCG to absorb them.
Do I pay tax on capital gains from RSUs and ESOPs?
Two events: (1) When RSUs vest or you exercise ESOPs, the difference between fair market value and exercise price is taxed as salary perquisite at slab rate (employer deducts TDS). (2) When you sell the shares later, the gain over the FMV at vesting/exercise is capital gain — short-term (slab/20%) if held under 12 months, long-term (12.5% above ₹1.25L) if held over 12 months. Listed Indian shares qualify for Section 112A; foreign-listed shares (US tech, etc.) are taxed at 12.5% LTCG flat without the ₹1.25L exemption.
How do I file ITR with capital gains?
If you have capital gains, you cannot use ITR-1 (Sahaj). Use ITR-2 (no business income) or ITR-3 (with business income, including F&O). Capital gains are reported in Schedule CG with detailed scrip-wise data for Section 112A claims. Keep records: purchase date, purchase price, sale date, sale price, STT paid (proves equity classification), broker contract notes. Mistakes in CG schedule are a top reason for ITR notices and rectification requests.