What are Capital Gains?
Capital Gains Tax is the tax you pay on the profit earned from selling assets like stocks, mutual funds, or property. Short-term gains (STCG) are taxed at higher rates, while long-term gains (LTCG) enjoy lower rates and exemptions. Use this calculator to plan your investments and withdrawals smartly.
Latest Budget 2026 Rules
The Union Budget 2024-25 brought major simplifications to capital gains taxation:
- Equity STCG: Increased to 20% (was 15%)
- Equity LTCG: Increased to 12.5% with ₹1.25 Lakh exemption per year
- Real Estate LTCG: 12.5% without indexation (with transitional lower-of option for eligible older properties)
- Debt Funds: Taxed at your slab rate (no LTCG benefit after April 2023)
Holding Period Cheat Sheet
| Asset | Short Term | Long Term |
|---|---|---|
| Equity / Mutual Funds | ≤ 12 months → 20% | > 12 months → 12.5% (after ₹1.25L exemption) |
| Real Estate | ≤ 24 months → Slab Rate | > 24 months → 12.5% (with transitional lower-of option for eligible older properties) |
| Debt Funds | Taxed at your Income Tax Slab Rate (no LTCG benefit) | |
Capital Gains Tax Formula
Capital gains tax is calculated in two steps — first find the gain, then apply the applicable tax rate for the asset class and holding period:
Capital Gain = Sale Value − Purchase Value
Tax = (Taxable Gain × Tax Rate) × 1.04 (incl. 4% cess)
Equity STCG= 20% flat on gain (held ≤ 12 months)
Equity LTCG= 12.5% on (gain − ₹1.25L exemption) (held > 12 months)
Debt Funds= Taxed at your income tax slab rate
Real Estate= Slab rate if held ≤ 24 months; otherwise 12.5% without indexation, or (for property bought before 23 July 2024) the lower of 12.5% without indexation vs 20% with indexation
Note: A 4% Health & Education Cess is added on top of the base tax in every case. This calculator applies the exact rules from the latest Union Budget.
🧮Example: Equity LTCG on ₹3,00,000 Gain
Purchase Value:
₹5,00,000
Sale Value:
₹8,00,000
Holding Period:
Long Term (> 12 months)
Unused ₹1.25L Exemption:
₹1,25,000 (fully available)
Step 1: Calculate Total Gain
8,00,000 − 5,00,000 = ₹3,00,000
Step 2: Apply ₹1.25L Exemption
Taxable Gain = 3,00,000 − 1,25,000 = ₹1,75,000
Step 3: Apply 12.5% LTCG + 4% Cess
Base Tax = 1,75,000 × 12.5% = ₹21,875
Cess = 21,875 × 4% = ₹875
Total Tax = ₹22,750
Net Gain After Tax:
₹2,77,250
Total Capital Gain:₹3,00,000
Total Tax Payable:₹22,750