Calculate LTCG and STCG on shares, mutual funds, property, and crypto, and see your exact tax liability instantly.
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What is capital gains?
Capital gains arise when you sell a capital asset for a price higher than its purchase cost.
Capital Gains = Sale Price – Purchase Cost – Allowed Expenses
For long-term assets where indexation applies, the purchase cost is replaced by the indexed cost of acquisition (purchase cost × CII of sale year ÷ CII of purchase year).
Common capital assets include:
Equity shares & ETFs
Mutual funds (equity, debt, hybrid)
Real estate (land, house, buildings)
Bonds & debentures
Gold, jewellery
Cryptocurrencies & other Virtual Digital Assets (VDAs)
Important: Personal-use items like furniture, clothes, or rural agricultural land are not treated as capital assets under the Income-tax Act, 2025.
Types of capital gains
Capital gains are classified as short term or long term based on the holding period of the asset. The applicable tax rate depends on which category the gain falls into under the Income-tax Act, 2025.
Holding period classification:
Asset Type | Short Term Capital Gains (STCG) | Long Term Capital Gains (LTCG) |
|---|---|---|
Listed equity shares, equity mutual funds | ≤ 12 months | > 12 months |
Unlisted shares, real estate, debt mutual funds, gold | ≤ 24 months | > 24 months |
Other capital assets | ≤ 24 months | > 24 months |
Note: Units of Specified Mutual Funds (debt-heavy funds with more than 65% in debt instruments) purchased on or after 1 April 2023 are always treated as short-term capital gains regardless of holding period, under Section 76 of the Income-tax Act, 2025.
LTCG and STCG tax rates in India
Below is a simplified capital gains tax rate table covering the most common scenarios:
Assets | Key conditions | Tax rate | Section |
|---|---|---|---|
Listed equity shares, equity MFs, equity ETFs | Long term, domestic, STT paid | 12.5% (up to ₹1.25 lac is tax-free) | 198 |
Listed and unlisted equity shares | Long term, STT not paid | 12.5% | 197 |
Listed equity shares, equity MFs, equity ETFs | Short term, domestic, STT paid | 20% | 196 |
Specified debt mutual funds | Gains treated as STCG regardless of holding period; acquired on or after 01-04-2023 | Slab rate | 76 |
Land, building, house property | Long term, sold on or after 23-07-2024, non-indexed option chosen | 12.5% | 197 |
Land, building, house property | Long term, property purchased before 23-07-2024, indexed option chosen (eligible cases) | 20% with indexation | 197 |
Crypto, NFTs, VDAs | Holding period not relevant | 30% | 194 |
Other capital assets | Residual or non-special rate cases | Slab rate | 67 |
How is capital gains calculated?
Base formula
Capital Gains = Sale Value − Buy Value − Transfer expenses (if allowed) − Cost of Improvement (if allowed)
If indexation is applicable Buy Value will be indexed as below:
Buy Value × (CII of Sale Year ÷ CII of Purchase Year)
Example 1: LTCG on listed equity shares
Suppose you bought 2,000 listed equity shares at ₹750 per share in May 2022.
Buy Value = ₹15,00,000
You sold these shares in August 2025 at ₹2,250 per share.
Sale Value = ₹45,00,000
Since the holding period exceeds 12 months, the gain is long term capital gains.
Long Term Capital Gains = ₹30,00,000
Tax Payable at 12.5% = ₹3,75,000
Section = 198
Example 2: LTCG on property- indexed vs non-indexed
Suppose you bought a residential plot in April 2015 for ₹40,00,000 and sold it in October 2025 for ₹90,00,000.
The holding period exceeds 24 months, so the gain is long term capital gains under Section 197 of the Income-tax Act, 2025.
Since the property was purchased before 23 July 2024, you can choose between:
Option A: 12.5% without indexation
LTCG = ₹90,00,000 − ₹40,00,000 = ₹50,00,000
Tax Payable = ₹50,00,000 × 12.5% = ₹6,25,000
Option B: 20% with indexation (CII FY 2015–16: 254, CII FY 2025–26: 363)
Indexed Cost = ₹40,00,000 × (363 ÷ 254) = ₹57,16,535
LTCG = ₹90,00,000 − ₹57,16,535 = ₹32,83,465
Tax Payable = ₹32,83,465 × 20% = ₹6,56,693
In this case, Option A results in lower tax. The calculator automatically compares both options and shows the lower tax outcome.
Key concepts
What is indexation?
Indexation adjusts the purchase cost of a long term capital asset for inflation using the Cost Inflation Index (CII).
After the changes effective from 23 July 2024, indexation is limited. For property purchased before 23 July 2024, resident individuals and HUFs may be eligible to choose between:
12.5% tax without indexation, or
20% tax with indexation
What is FMV for capital gains?
FMV (Fair Market Value) is relevant for listed equity shares and equity mutual funds purchased before 31 January 2018 under grandfathering provisions.
The cost of acquisition is computed using prescribed rules so that gains up to 31 January 2018 remain protected from tax and only the post-2018 appreciation is taxed.
What is STT?
STT (Securities Transaction Tax) is required for availing preferential capital gains tax rates on listed equity shares and equity mutual funds. If STT conditions are not met, gains may be taxed at slab rates instead of special rates.
