Asset Details
Total commissions, STT and turnover charges.
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Final Tax Payable (incl. Cess)
₹0Total Capital Gain
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Net Profit (Post-Tax)
₹0
Holding Duration
0 Years, 0 Months, 0 Days
Tax Category
STCG (20%)This calculator is based on current Indian capital gains taxation rules as of Budget 2025-26.
Amount After Tax
₹0
Effective Tax Rate
Note: Surcharge not included for income above ₹50L.
Budget 2026: Capital Gains Tax Rate Card
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.
| Asset Class | Holding Period (LTCG) | STCG Rate | LTCG Rate | Exemption / Notes |
|---|---|---|---|---|
| Equity Shares & Equity MFs | > 12 Months | 20% | 12.5% | ₹1.25 Lakh annual LTCG exemption |
| Debt Mutual Funds (Post Apr-23) | N/A (Slab Rate) | Slab Rate | Slab Rate | No indexation; taxed as normal income |
| Real Estate / Immovable Property | > 24 Months | Slab Rate | 12.5% | Section 54/54EC rollover available |
| Physical Gold & Gold ETFs | > 24 Months | Slab Rate | 12.5% | Standard 12.5% LTCG without indexation |
How to Save Capital Gains Tax in India
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.
What is Tax Loss Harvesting?
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.
LTCG vs STCG – Key Differences
| Feature | Short Term (STCG) | Long Term (LTCG) |
|---|---|---|
| Equity Holding Period | Up to 12 Months | More than 12 Months |
| Equity Tax Rate | 20% | 12.5% |
| Annual Exemption | None | ₹1.25 Lakh (Equity) |
| Property Period | Up to 24 Months | More than 24 Months |
What is Capital Gains Tax in India?
Capital Gains Tax is the tax you owe on the profits made from selling an asset—such as shares, mutual funds, property, or gold. If you sell for more than what you originally paid, your profit is classified as a capital gain.
Under the latest Indian tax rules, capital gains are split into Short Term (STCG) and Long Term (LTCG) based on your holding period. You can lower your tax bill legally by offsetting profits against portfolio dips using our tax loss harvesting calculator. To see how taxes impact your overall salary and total income, check our income tax calculator, calculate quarterly installment dues with our advance tax calculator, and plan your net post-tax retirement withdrawals on our SWP calculator.
Tax on Stocks & Mutual Funds
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.