Capital Gains Tax Calculator
Key takeaways
- Held 18 months (more than 12), this equity sale is long-term — 12.5% above the ₹1,25,000 exemption, under FY 2025-26 and 2026-27 rules as coded.
- Of the ₹3.00 L gain, ₹1.25 L is exempt and ₹1.75 L is taxed — ₹22,750.00 of tax with the 4% cess leaves ₹2.77 L of the gain behind.
- Sold within 12 months instead, the same gain would be short-term: ₹62,400.00 of tax against ₹22,750.00 — ₹39,650.00 more.
From sale price to tax
Long-term: equity held 18 months (more than 12) — 12.5% above the ₹1,25,000 exemption. FY 2025-26 and 2026-27 rules as coded.
| Step | Amount |
|---|---|
| Sale value | ₹8,00,000.00 |
| Purchase value | ₹5,00,000.00 |
| Capital gain | ₹3,00,000.00 |
| Exemption applied | ₹1,25,000.00 |
| Taxable gain | ₹1,75,000.00 |
| Tax @ 12.5% | ₹21,875.00 |
| Cess @ 4% | ₹875.00 |
| Tax payable | ₹22,750.00 |
About the Capital Gains Tax Calculator
The Capital Gains Tax Calculator estimates the tax due on selling an asset under the rules for FY 2025-26 and FY 2026-27 (the 2026 Budget left them unchanged), applying the post-Budget-2024 capital gains regime as coded on this page. Whether long-term (LTCG) or short-term (STCG) treatment applies depends on both the asset type and how long it was held, and the two are taxed differently.
Choose the asset type, enter the purchase and sale values and the holding period in months, and — only where it actually matters, which is debt mutual funds always and a short-term sale of property or gold — your income-tax slab rate. Listed equity and equity mutual funds become long-term only when held for more than 12 months — the law treats a holding of 12 months or less as short-term, so a sale exactly a year after the purchase is still short-term, and a holding of 12 months and a few days is entered as 13. Property and gold or other physical assets need more than 24 months. Debt mutual funds are never long-term under the rules in force since 1 April 2023 and are taxed at your slab rate however long they were held. Gold ETFs are listed units: they turn long-term after 12 months but pay your slab rate before that, a mix none of the four choices matches exactly.
"Capital gain" is sale value minus purchase value, shown even when negative. "Taxable gain" is what is actually taxed, after the ₹1,25,000 exemption where it applies, which is equity LTCG only. "Tax payable" is the headline. "Effective tax rate on gain" expresses that tax as a percentage of the whole capital gain, which is usually lower than the nominal 12.5%, 20% or slab rate once the exemption or a small gain is factored in. The ledger below the result walks the same figures step by step, from sale price to tax.
This applies the FY 2025-26 and 2026-27 rules literally and does not model the indexation-benefit transition option available on certain property acquired before 23 July 2024, surcharge, or set-off of losses against other gains. The 4% health and education cess is included in the tax payable. Capital gains rules change with Budgets, so confirm the current position before filing. This is an estimate, not a substitute for a tax professional on an actual return.
Frequently asked questions
What are the LTCG and STCG rates for FY 2025-26 and 2026-27?
As coded on this page for both years: listed equity and equity mutual funds held for more than 12 months pay 12.5% on the gain above a ₹1,25,000 exemption, and held 12 months or less pay 20% flat with no exemption. Property and gold held for more than 24 months pay 12.5% with no indexation, and held 24 months or less are taxed at your slab rate. Debt mutual fund units bought on or after 1 April 2023 are taxed at your slab rate regardless of holding period; units bought before then follow the property and gold rule.
How does the ₹1,25,000 exemption work?
It applies to long-term gains on listed equity and equity mutual funds only, and only the gain above it is taxed. A ₹1,00,000 long-term equity gain therefore attracts no tax at all. In law the exemption is a single yearly allowance across all your equity LTCG; this calculator applies it in full to the one gain entered, so if you have realised other equity gains in the same year your real taxable figure is higher.
Why does the holding period make no difference for debt mutual funds?
Because since 1 April 2023 debt-oriented mutual funds get no long-term classification and no indexation benefit at all — the gain is added to income and taxed at your slab rate however long the units were held. The holding-period field is simply not used for that asset type, which is why the ledger note says so explicitly.
Is indexation available on property?
Not under the regime this page implements. Budget 2024 withdrew the indexation benefit on property LTCG and set a uniform 12.5% rate instead. A transition option exists for certain property acquired before 23 July 2024, allowing a comparison with the old indexed 20% computation — that option is not modelled here.
What happens if I sold at a loss?
Taxable gain and tax are both zero, and the capital gain is reported as the negative figure it is. Set-off of that loss against other capital gains, and carry-forward to later years, are real provisions but are not modelled on this page — it computes the tax on one transaction in isolation.
Does this include surcharge and cess?
No. The figure is the base tax on the gain only. Surcharge applies above certain income thresholds and the 4% Health and Education Cess applies on top of tax generally, so the amount actually payable on a return can be higher than what this page shows.
Disclaimer: This calculator is for information and education only. It is not investment advice and not a recommendation, and it is not tax or legal advice. It applies the tax rules the calculator describes, in simplified form; the rules change with each Budget and notification, and the actual liability depends on your full facts, the deductions you are entitled to and the law in force. Every figure is computed solely by applying the formula and assumptions stated on this page to the inputs you entered.