Capital Gains Tax Calculator
Estimate short-term (STCG) and long-term (LTCG) capital gains tax in India for listed equity and equity mutual funds (STT paid), immovable property, and a simplified other-asset scenario. Includes ₹1.25 lakh annual LTCG exemption on qualifying equity, grandfathering FMV (31 Jan 2018), and optional indexation for property long-term gains.
If securities were acquired on or before 31 Jan 2018, enable grandfathering and enter FMV as on 31 Jan 2018.
Estimated tax
₹82,500
LTCG (gain)
₹7,85,000
Taxable after ₹1.25L exemption
₹6,60,000
Effective rate on taxable
12.5%
LTCG exemption used (up to ₹1.25L): ₹1,25,000
Where the money goes
Cost of acquisition
₹10,00,000 • 54%
Capital gain
₹7,85,000 • 42%
Estimated tax
₹82,500 • 4%
Capital gains tax in India: keywords and concepts
Capital gains tax is the tax on profit when you sell a capital asset—such as listed shares, equity mutual funds, land, or residential property—for more than its cost of acquisition (adjusted where the law allows). Searchers often look for an LTCG calculator, STCG calculator, capital gains on shares, tax on mutual fund redemption, or house sale tax; this page explains those ideas in plain language and pairs them with an interactive estimator.
Classification depends on holding period: for many equity-oriented instruments, a holding beyond twelve months counts as long term; for immovable property, the long-term threshold is typically twenty-four months. Rates changed over successive Union Budgets, so always confirm the year of transfer, applicable sections, and whether STT was paid where equity is concerned.
Listed equity and equity mutual funds (STT paid)
Long-term gains on qualifying listed shares and equity-oriented mutual funds often receive an annual exemption of ₹1,25,000 before a flat rate applies to the remainder. Short-term gains on the same classes are frequently taxed at a flat STCG rate (commonly 20% in recent amendments) rather than at slab. Our calculator implements the grandfathering mechanic for acquisitions on or before 31 January 2018 by comparing your actual cost, fair market value on 31 Jan 2018, and sale value.
| Topic | Typical rule (verify) |
|---|---|
| Holding for LTCG | Listed equity / equity MF: more than twelve months |
| LTCG exemption | Up to ₹1,25,000 gain per year for many resident individuals on eligible long-term gains |
| STCG flat rate | Often 20% when STT and other conditions are met |
Immovable property (land, building)
Short-term property gains are generally taxed at your income-tax slab rates. Long-term gains may offer a choice between 12.5% without indexation and 20% with indexation for eligible taxpayers and transactions—the better option depends on facts and figures. Indexation uses the government’s Cost Inflation Index (CII) table; we ship FY-wise values in-tool and refresh them when new notifications arrive.
Frequently asked questions
What is a capital gains tax calculator?
A capital gains tax calculator helps you estimate tax when you sell a capital asset for more than its cost of acquisition (after allowable deductions like transfer expenses). It separates short-term and long-term gains where applicable and applies common rates for listed equity, mutual funds, and property scenarios in India.
What is the difference between STCG and LTCG?
Short-term capital gain (STCG) and long-term capital gain (LTCG) depend on how long you held the asset. For listed equity and equity-oriented mutual funds, holding beyond twelve months is usually long term; for immovable property and many other assets, holding beyond twenty-four months is long term. Tax rates differ materially between STCG and LTCG.
What is grandfathering for shares bought before 1 February 2018?
For listed equity and equity-oriented funds acquired on or before 31 January 2018, tax on long-term gains considers a cost of acquisition that incorporates fair market value as on 31 January 2018, so that gains built up before that date are not taxed again. Our tool applies the standard comparison: higher of actual cost and the lower of that FMV and the sale consideration.
How much LTCG on listed equity is tax-free each year?
For long-term capital gains on listed equity shares and equity-oriented mutual funds (where securities transaction tax conditions are met), many taxpayers can claim an annual exemption on gains up to ₹1,25,000. Gains above that threshold are commonly taxed at 12.5% for recent years—confirm the exact rate for your year of transfer.
What rate applies to STCG on listed equity with STT paid?
Short-term capital gains on listed equity shares and equity-oriented mutual funds where STT is paid are generally taxed at a flat rate (often 20% under recent amendments), without the ₹1,25,000 exemption that applies to long-term listed equity gains. Surcharge, cess, and reporting still apply on your return.
How does indexation work for property?
Indexation increases your purchase cost (and eligible improvement cost) for inflation using the notified Cost Inflation Index (CII) from the year of purchase to the year of sale. A higher indexed cost reduces taxable gain. Where you choose 20% tax with indexation versus 12.5% without indexation, you must compare both options where the law allows.
Are transfer expenses like brokerage deducted?
Yes. Brokerage, stamp duty on sale, and other expenses wholly and exclusively incurred for the transfer are typically deducted from sale consideration when computing capital gains, subject to the Income-tax Act and relevant rules.
Is tax on crypto and virtual digital assets covered here?
Virtual digital assets (VDA) such as cryptocurrency have separate provisions and rates (commonly a flat rate on gains without usual STCG/LTCG classification). This calculator focuses on equity, property, and a simplified ‘other asset’ mode—not on VDA-specific tax.
Will this match my Form 26AS or ITR exactly?
This is an educational estimator only. Actual tax may differ due to loss set-off, brought-forward losses, surcharge, health and education cess, rebates, treaty positions, special sections, and facts specific to your case. Use a qualified professional or the official e-filing utilities for filing.
What is STT and why does it matter for equity?
Securities Transaction Tax (STT) is levied on transactions on recognised stock exchanges and certain mutual fund redemptions. Preferential STCG/LTCG rates for listed equity and equity-oriented funds generally require that applicable STT conditions are satisfied; otherwise gains may fall under normal slab or other provisions.
Disclaimer: This page is for education and rough estimation only. Tax law is detailed and changes with notifications and judicial interpretation. For transactions involving NRI status, ESOP, bonus shares, rights issues, section 54/54F exemptions, or business income characterisation, consult a qualified professional.