Capital Gains Tax Calculator
Calculate STCG & LTCG tax on stocks, mutual funds, property, gold & bonds. Supports indexation and exemptions.
Capital Gains Calculator
Tax Calculation Results
Cost Inflation Index (CII) Reference
| Financial Year | CII |
|---|---|
| FY 2001-02 (Base) | 100 |
| FY 2005-06 | 117 |
| FY 2010-11 | 167 |
| FY 2015-16 | 254 |
| FY 2020-21 | 301 |
| FY 2021-22 | 317 |
| FY 2022-23 | 331 |
| FY 2023-24 | 348 |
| FY 2024-25 | 363 |
| FY 2025-26 | 376 |
FY 2025-26 CII is estimated. Official notification expected from CBDT.
What are Capital Gains?
Capital gains refer to the profit earned when you sell a capital asset — such as stocks, mutual funds, real estate, gold, or bonds — at a price higher than what you paid for it. Under the Indian Income Tax Act, 1961, capital gains are classified as taxable income and must be reported in your income tax return for the financial year in which the sale occurs.
Capital gains are categorized into two types based on how long you hold the asset before selling: Short-Term Capital Gains (STCG) and Long-Term Capital Gains (LTCG). The tax rate, exemptions, and benefits differ significantly between these two categories. Understanding the distinction is essential for effective tax planning and investment strategy.
Not all assets are treated equally under capital gains tax rules. For instance, equity shares enjoy preferential LTCG rates with a ₹1.25 lakh annual exemption, while debt mutual funds are taxed at your slab rate regardless of the holding period (since FY 2023-24). Real estate has its own set of rules, including indexation benefits for older properties and the option of a flat 12.5% rate for newer purchases.
STCG vs LTCG
The holding period — the duration between purchase and sale — determines whether your gain is classified as short-term or long-term. The thresholds vary by asset class:
| Asset Type | STCG Period | LTCG Period | STCG Rate | LTCG Rate |
|---|---|---|---|---|
| Equity Shares | < 12 months | ≥ 12 months | 20% | 12.5% (above ₹1.25L) |
| Equity Mutual Funds | < 12 months | ≥ 12 months | 20% | 12.5% (above ₹1.25L) |
| Debt Mutual Funds | Any period | N/A | Slab rate | Slab rate |
| Real Estate | < 24 months | ≥ 24 months | Slab rate | 12.5% / 20% with indexation |
| Gold | < 12 months | ≥ 12 months | Slab rate | 12.5% |
| Bonds / Debentures | < 12 months | ≥ 12 months | Slab rate | 12.5% |
For debt mutual funds, the Finance Act 2023 removed the indexation benefit for investments made on or after April 1, 2023. All gains from debt MFs are now taxed at your applicable income tax slab rate, regardless of the holding period.
How Indexation Works
Indexation is a method to adjust the purchase price of an asset for inflation, thereby reducing the taxable capital gain. The Central Government publishes the Cost Inflation Index (CII) every year. The indexed cost of acquisition is calculated as:
Indexed Cost = Purchase Price × (CII of Sale Year ÷ CII of Purchase Year)
For example, if you purchased a property for ₹30,00,000 in FY 2010-11 (CII = 167) and sold it in FY 2025-26 (CII = 376), the indexed cost would be ₹30,00,000 × (376 ÷ 167) = ₹67,54,491. If you sold it for ₹80,00,000, your taxable gain would be only ₹12,45,509 instead of ₹50,00,000 without indexation.
However, under the new rules effective from July 23, 2024, real estate purchased after this date is taxed at a flat 12.5% without indexation. Properties bought before this date can still opt for 20% with indexation or 12.5% without — whichever is more beneficial.
Capital Gains Tax Rates 2026
For FY 2026-27 (Assessment Year 2027-28), the following capital gains tax rates apply as per the Union Budget 2024 and subsequent amendments:
- Equity & Equity MFs (STCG): 20% flat on gains from sale within 12 months. No deductions or exemptions allowed.
- Equity & Equity MFs (LTCG): 12.5% on gains exceeding ₹1,25,000 per financial year. The ₹1.25 lakh exemption is per individual, not per transaction.
- Debt Mutual Funds: Taxed at your income tax slab rate for all investments made on or after April 1, 2023. No indexation benefit. No LTCG classification.
- Real Estate (STCG): Taxed at your applicable income tax slab rate if sold within 24 months of purchase.
- Real Estate (LTCG): 12.5% without indexation for properties bought after July 23, 2024. For older properties, taxpayers can choose between 12.5% without indexation or 20% with indexation.
- Gold (STCG): Taxed at slab rate if sold within 12 months.
- Gold (LTCG): 12.5% if held for 12 months or more (from FY 2024-25).
- Bonds & Debentures (STCG): Slab rate if sold within 12 months.
- Bonds & Debentures (LTCG): 12.5% if held for 12 months or more.
Additionally, LTCG on listed equity shares and equity-oriented mutual funds is subject to a Securities Transaction Tax (STT) condition — STT must have been paid on both purchase and sale for the 12.5% LTCG rate to apply. Without STT, gains may be taxed differently.
Surcharge and cess are applicable over and above these rates. A 4% Health and Education Cess is levied on the total tax amount. For high-income taxpayers, surcharge rates vary from 10% to 37% depending on the total income and type of gain.