Capital Gains Tax Calculator – Stocks & Mutual Funds

The Union Budget 2026 introduced significant changes to the capital gains tax structure in India to simplify the holding periods and tax rates across different asset classes.

Reducing your tax liability legally is possible by following these strategies:

• Annual LTCG Exemption: Book profits up to ₹1.25 Lakh every financial year to utilize the tax-free limit on equity assets.
• Tax Loss Harvesting: Offset your capital gains by selling underperforming stocks at a loss. Learn more about Tax Loss Harvesting strategies.
• Holding Period Planning: Ensure you hold equity for more than 12 months and other assets for more than 24 months to qualify for the lower LTCG rates instead of high STCG rates.
• Reinvestment (Section 54/54F): For real estate gains, reinvest the proceeds into a new residential property to claim complete exemption.

Tax Loss Harvesting is a method used to reduce your net capital gains tax liability by intentionally selling assets at a loss. These "booked losses" are then adjusted against your taxable "booked gains."

• Offset Gains with Losses: STCG losses can be adjusted against both STCG and LTCG gains. LTCG losses, however, can only be adjusted against LTCG gains.
• Timing Strategy: Most investors perform this activity in March to optimize their taxes before the financial year ends.
• Re-entry: Investors often sell a loss-making asset and immediately buy a similar asset to maintain their portfolio allocation.

Use our dedicated Tax Loss Harvesting tool to calculate your exact savings.

Capital Gains Tax is the tax you pay on the profit earned from the sale of an asset (like stocks, mutual funds, gold, or real estate). If the sale price is higher than the purchase price, the difference is your Capital Gain.

In India, these gains are divided into Short Term (STCG) and Long Term (LTCG) based on how long you held the asset. For a deeper look at your overall annual taxes, use our Income Tax Calculator.

Equity-oriented mutual funds (where equity exposure is >65%) are taxed like stocks. Debt-oriented mutual funds bought after April 1, 2023, no longer enjoy LTCG benefits and are taxed at your income tax slab rate regardless of holding period. You can track your investment growth with our SIP Calculator or Lumpsum Calculator.