Capital Gains Tax Calculator

Capital Gains Tax Calculator: LTCG and STCG on Investments

Our capital gains calculator computes the tax on profit from selling stocks, mutual funds, or property. Understanding capital gains tax is essential for investment planning and tax optimization.

The LTCG STCG calculator differentiates between short-term and long-term gains and applies the correct tax rates as per current Indian tax laws. Enter your purchase and sale details to calculate exact tax liability.

Capital gains taxation changed significantly in Budget 2024. LTCG exemption limit increased to ₹1.25 lakh per year for equity, and the holding period for property LTCG reduced to 24 months.

STCG (Equity <12mo): 20%. LTCG (Equity >12mo): 12.5% above ₹1.25L. Debt LTCG (>36mo): 20% with indexation.

Capital Gains Tax Examples

Example 1: Equity LTCG

Bought shares: ₹5,00,000
Sold after 2 years: ₹8,00,000
Capital Gain: ₹3,00,000
Taxable (above ₹1.25L): ₹1,75,000
Tax at 12.5%: ₹21,875

Example 2: Property LTCG with Indexation

Bought in 2018: ₹50,00,000
Sold in 2026: ₹1,00,00,000
Indexed Cost: ~₹65,00,000
Capital Gain: ₹35,00,000
Tax at 20%: ₹7,00,000

Frequently Asked Questions

What is capital gains tax?

Capital gains tax is levied on profit from selling assets like stocks, mutual funds, or property. Tax rate depends on holding period: Short-Term Capital Gains (STCG) for assets held less than a specified period, and Long-Term Capital Gains (LTCG) for longer holdings.

STCG vs LTCG difference?

STCG: Sold within 12 months (equity) or 36 months (debt/property). Taxed at higher rates. LTCG: Sold after qualifying period. Taxed at lower rates with exemptions. For equity: 12 months. For property: 24 months.

Current LTCG tax rate?

Equity LTCG (after 12 months): 12.5% above ₹1.25 lakh exemption per year (changed in Budget 2024). Debt LTCG (after 36 months): 20% with indexation benefit. Property LTCG: 20% with indexation.

What is indexation?

Indexation adjusts your purchase price for inflation using Cost Inflation Index (CII). This reduces your taxable gain. For example, if you bought property for ₹50L in 2015 and sell for ₹1Cr in 2026, indexation may reduce taxable gain significantly.

How to save capital gains tax?

Ways to save: (1) Use Section 80C for LTCG up to ₹1.5L, (2) Invest in specified bonds under Section 54EC, (3) Buy new house under Section 54 (property), (4) Use loss harvesting to offset gains, (5) Stay invested longer for LTCG benefits.

Is LTCG on mutual funds exempt?

Equity mutual fund LTCG above ₹1.25 lakh per year is taxed at 12.5%. Below ₹1.25L is exempt. Debt mutual funds taxed as per income slab if sold before 36 months. After 36 months: 20% with indexation.