Capital Gains Tax Calculator
Estimate capital gains tax on equity, debt funds, or property based on holding period.
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Example 1 โ Lump sum, no contributions
A = 1,00,000 ร (1.10)^10 โ โน2,59,374 โ more than 2.5ร growth
๐ What is the Capital Gains Tax Calculator?
Capital gains tax in India depends heavily on three factors: what type of asset you sold, how long you held it, and whether the gain falls within an available exemption threshold. This calculator applies the correct holding-period rule and tax rate for equity, debt, and property separately, rather than a single generic estimate.
โ๏ธ How Capital Gains Tax is calculated
Equity โ the most favourable treatment, with conditions
Equity shares and equity mutual funds held over 12 months qualify for long-term treatment: 12.5% tax on gains above a โน1,25,000 annual exemption (since the July 2024 Budget). Held under 12 months, gains are short-term and taxed at 20%.
Debt โ no long-term preferential rate since 2023
Debt mutual fund units purchased on or after 1 April 2023 are taxed at your income tax slab rate regardless of holding period โ the long-term capital gains benefit for debt funds was removed by that rule change.
Property โ a 24-month threshold and no indexation since mid-2024
Property held over 24 months qualifies as long-term, taxed at 12.5% without indexation for transfers after 23 July 2024 (a simplified estimate is used here; consult a tax professional for property sold before that date, where indexation rules may still apply).
Equity LTCG tax
Tax = max(0, gain โ โน1,25,000) ร 12.5%
Equity STCG (under 12 months): gain ร 20%
๐งฎ Worked examples
Example โ equity, long-term
Equity shares purchased for โน3,00,000, sold 18 months later for โน5,00,000.
โ Gain = โน2,00,000. Taxable gain after exemption = โน75,000. Tax = โน9,375 at 12.5%
Example โ equity, short-term
Same shares, but sold after only 8 months instead.
โ Gain = โน2,00,000, fully taxed at the short-term rate of 20% (no exemption applies) = โน40,000 tax
๐ก Original insights & how to use this calculator
Why holding period alone can save a meaningful amount of tax
The equity example above shows the same โน2 lakh gain taxed at either โน9,375 or โน40,000 depending purely on whether the holding period crossed 12 months.
Spreading gains across financial years to use the exemption repeatedly
The โน1,25,000 equity exemption applies per financial year โ spreading a large redemption across two financial years can let you use the exemption twice instead of once.
Why debt funds lost their tax advantage
Before April 2023, debt funds held over 36 months received indexation-adjusted long-term treatment. This benefit was removed for units purchased after that date.
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๐ก Expert tips
Holding equity investments past the 12-month mark shifts gains from STCG (20%) to the more favorable LTCG (12.5%) rate.
Harvest long-term equity gains up to the โน1.25 lakh annual exemption each year if you don't need the funds immediately โ it's a use-it-or-lose-it allowance.
โ Common questions
What is the LTCG exemption limit for equity?
โน1,25,000 per financial year โ long-term equity gains above this are taxed at 12.5%.
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