Capital Gains Tax Calculator
Calculate LTCG & STCG on stocks, mutual funds, property & gold
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Understanding Capital Gains Tax in India FY 2025-26
Capital gains tax is levied on the profit earned from selling a capital asset such as stocks, mutual funds, real estate, gold, or other investments. The tax treatment depends on the type of asset and the holding period. Our Capital Gains Tax Calculator helps you accurately compute your tax liability for FY 2025-26 (AY 2026-27) with the latest Budget 2025 updates.
Types of Capital Gains
Short-Term Capital Gains (STCG): Applies when you sell an asset after holding it for a short duration. For listed equity and equity mutual funds, this means less than 12 months. STCG on equity is taxed at 20%, while other assets are taxed at your applicable income tax slab rate.
Long-Term Capital Gains (LTCG): Applies to assets held for longer periods. Listed equity and equity MFs need 12+ months, property and gold require 24+ months, and other assets need 36+ months to qualify as long-term.
Budget 2024-25 Key Changes
The Union Budget 2024 introduced significant changes to capital gains taxation. The LTCG tax rate on equity and equity mutual funds increased from 10% to 12.5%, though the exemption limit was raised from ₹1 lakh to ₹1.25 lakh annually. For property, the indexation benefit was removed, and a flat 12.5% tax rate applies to long-term gains without inflation adjustment.
Cost Inflation Index (CII) Benefits
For assets where indexation is still allowed (gold, other assets), CII helps reduce taxable gains by adjusting the purchase price for inflation. The CII for FY 2024-25 is 363, with base year 2001-02 set at 100. However, remember that property sales no longer benefit from indexation as per the latest budget changes.
Tax Saving Strategies
Investors can legally reduce capital gains tax through various strategies. Utilize the ₹1.25 lakh LTCG exemption by booking gains strategically across financial years. Consider Section 54/54F exemptions by reinvesting property sale proceeds into residential property. Set off capital losses against gains, and carry forward unadjusted losses for up to 8 years.
Frequently Asked Questions
What is the difference between LTCG and STCG?
LTCG (Long-Term Capital Gains) applies when you hold an asset for a specified period (12+ months for equity, 24+ months for property/gold, 36+ months for other assets). STCG (Short-Term Capital Gains) applies for shorter holding periods. LTCG typically has lower tax rates and indexation benefits (where applicable).
What is Cost Inflation Index (CII) and how does it work?
CII is used to adjust the purchase price of an asset for inflation, reducing your taxable capital gains. The formula is: Indexed Cost = Purchase Price × (CII of sale year / CII of purchase year). Note: Budget 2024 removed indexation benefit for property - now LTCG on property is taxed at flat 12.5% without indexation.
What is the ₹1.25 lakh LTCG exemption on equity?
For listed equity shares and equity mutual funds, LTCG up to ₹1.25 lakh per financial year is exempt from tax. Gains above this threshold are taxed at 12.5%. This exemption is per assessee per year, not per transaction.
Can capital losses be set off against gains?
Yes, short-term capital losses can be set off against both short-term and long-term capital gains. Long-term capital losses can only be set off against long-term capital gains. Unadjusted losses can be carried forward for 8 assessment years.
What is Section 54/54F exemption?
Section 54 allows exemption on LTCG from property sale if you reinvest in another residential property within specified timelines (1 year before or 2 years after sale, or construct within 3 years). Section 54F provides similar exemption for gains from assets other than residential property.
How are debt mutual funds taxed after Budget 2023?
For debt mutual funds purchased after April 1, 2023, gains are always treated as short-term capital gains and taxed at your applicable income tax slab rate, regardless of holding period. Indexation benefit is not available.