Capital Gains Tax Calculator
Estimate capital gains tax on equity, debt funds, or property based on holding period.
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📘 What is the Capital Gains Tax Calculator?
Capital gains tax in India depends heavily on three factors: what type of asset you sold, how long you held it, and whether the gain falls within an available exemption threshold. This calculator applies the correct holding-period rule and tax rate for equity, debt, and property separately, rather than a single generic estimate.
⚙️ How Capital Gains Tax is calculated
Equity — the most favourable treatment, with conditions
Equity shares and equity mutual funds held over 12 months qualify for long-term treatment: 12.5% tax on gains above a ₹1,25,000 annual exemption (since the July 2024 Budget). Held under 12 months, gains are short-term and taxed at 20%.
Debt — no long-term preferential rate since 2023
Debt mutual fund units purchased on or after 1 April 2023 are taxed at your income tax slab rate regardless of holding period — the long-term capital gains benefit for debt funds was removed by that rule change.
Property — a 24-month threshold and no indexation since mid-2024
Property held over 24 months qualifies as long-term, taxed at 12.5% without indexation for transfers after 23 July 2024 (a simplified estimate is used here; consult a tax professional for property sold before that date, where indexation rules may still apply).
Equity LTCG tax
Tax = max(0, gain − ₹1,25,000) × 12.5%
Equity STCG (under 12 months): gain × 20%
🧮 Worked examples
Example — equity, long-term
Equity shares purchased for ₹3,00,000, sold 18 months later for ₹5,00,000.
→ Gain = ₹2,00,000. Taxable gain after exemption = ₹75,000. Tax = ₹9,375 at 12.5%
Example — equity, short-term
Same shares, but sold after only 8 months instead.
→ Gain = ₹2,00,000, fully taxed at the short-term rate of 20% (no exemption applies) = ₹40,000 tax
💡 Original insights & how to use this calculator
Why holding period alone can save a meaningful amount of tax
The equity example above shows the same ₹2 lakh gain taxed at either ₹9,375 or ₹40,000 depending purely on whether the holding period crossed 12 months.
Spreading gains across financial years to use the exemption repeatedly
The ₹1,25,000 equity exemption applies per financial year — spreading a large redemption across two financial years can let you use the exemption twice instead of once.
Why debt funds lost their tax advantage
Before April 2023, debt funds held over 36 months received indexation-adjusted long-term treatment. This benefit was removed for units purchased after that date.
💡 Expert Tips
Holding equity investments past the 12-month mark shifts gains from STCG (20%) to the more favorable LTCG (12.5%) rate.
Harvest long-term equity gains up to the ₹1.25 lakh annual exemption each year if you don't need the funds immediately — it's a use-it-or-lose-it allowance.
How to read your result
Holding period is the single biggest lever here — crossing from short-term to long-term status (12 months for equity, 24 months for property, 36 months for debt funds pre-2023) can cut your tax rate significantly, so timing a sale near that boundary is often worth the wait.
⚠️ Common Mistakes
✕ Selling equity investments just before the 12-month long-term threshold.
✓ Waiting even a few extra days to cross 12 months can shift equity gains from the 20% STCG rate to the more favorable 12.5% LTCG rate (with the first ₹1.25L exempt) — check the exact holding period before selling.
✕ Assuming debt fund taxation still works like equity.
✓ Since the 2023 rule change, debt funds no longer get favorable long-term capital gains treatment — gains are taxed at your income slab rate regardless of holding period, a meaningful shift from the old rules.
✕ Not harvesting the ₹1.25L annual LTCG exemption on equity when it's available.
✓ This exemption doesn't carry forward — if you have unrealized long-term equity gains and don't need the funds, selling and rebuying up to the exempt amount each year can reduce future tax with no real cost.
Frequently Asked
What is the LTCG exemption limit for equity?▾
₹1,25,000 per financial year — long-term equity gains above this are taxed at 12.5%.
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