Use this free capital gains tax calculator to work out the tax on selling shares, mutual funds, property, gold or other assets in India. It follows the rules that took effect on 23 July 2024, which changed the rates and removed indexation for most assets, and it applies to financial year 2025-26 and financial year 2026-27.
Pick the asset type, enter your purchase and sale details, and the calculator shows whether the gain is short term or long term, the section it falls under, the rate, and an estimate of the tax.
How capital gains tax works in India now
When you sell a capital asset for more than it cost you, the profit is a capital gain. How it is taxed depends on the type of asset and how long you held it. Hold an asset long enough and the gain is long term, otherwise it is short term.
Holding period to become long term
| Asset | Long term after |
|---|---|
| Listed shares, equity mutual funds, business trust units | 12 months |
| Everything else (property, gold, unlisted shares, debt) | 24 months |
Rates from 23 July 2024
| Asset | Short term | Long term |
|---|---|---|
| Listed shares and equity mutual funds (STT paid) | 20 percent, Section 111A | 12.5 percent over Rs 1.25 lakh a year, Section 112A |
| Land or building | Your slab rate | 12.5 percent without indexation, Section 112 |
| Gold, debt funds, unlisted shares, other | Your slab rate | 12.5 percent without indexation, Section 112 |
The first Rs 1.25 lakh of long term gains on listed equity in a year is exempt. This special rate income does not get the Section 87A rebate.
The choice you have on older property
If you are a resident individual or HUF and you sell land or a building that you bought before 23 July 2024, you can pay the lower of two amounts: 12.5 percent without indexation, or 20 percent with indexation. The calculator works this out for you when you enter your indexed cost of acquisition. Property bought on or after 23 July 2024 is taxed at 12.5 percent without indexation only.
Ways to lower capital gains tax
The law allows you to save long term capital gains tax by reinvesting, within the time limits set in the Act:
- Section 54: gains from a residential house reinvested in another residential house.
- Section 54F: gains from any asset other than a house, reinvested in a residential house.
- Section 54EC: gains from land or building invested in specified bonds, up to Rs 50 lakh.
Conditions apply to each, so check your eligibility before you rely on them.
How to report capital gains in your return
Capital gains are reported in Schedule CG of ITR-2 (or ITR-3 if you also have business income). If your total tax for the year crosses Rs 10,000, you may also owe advance tax in instalments. You can plan that with our advance tax estimator, and compare your overall tax with the old vs new regime calculator.
For the exact legal text and the official FAQs, see the Income Tax Department pages on capital gains and file through the income tax e-filing portal.
This calculator gives an estimate of the base tax for general guidance. Surcharge and 4 percent health and education cess are extra, special situations are not covered, and this is not tax advice. Please confirm your figures with a qualified professional.
Frequently asked questions
What is the capital gains tax rate in India for FY 2026-27?
For transfers on or after 23 July 2024, long term gains are taxed at 12.5 percent for most assets, with the first Rs 1.25 lakh of listed equity gains exempt each year. Short term gains on listed equity are taxed at 20 percent, and other short term gains are taxed at your slab rate.
Is indexation still allowed?
Indexation has been removed for most assets. The only exception is land or a building bought before 23 July 2024 by a resident individual or HUF, who can choose 20 percent with indexation if it gives a lower tax than 12.5 percent without indexation.
How much long term equity gain is tax free?
Up to Rs 1.25 lakh of long term capital gains on listed shares and equity mutual funds is exempt in a financial year. Gains above that are taxed at 12.5 percent.
When does a gain become long term?
Listed shares, equity mutual funds and business trust units become long term after 12 months. All other assets, including property, gold and unlisted shares, become long term after 24 months.
Which ITR form reports capital gains?
Capital gains are reported in Schedule CG of ITR-2, or ITR-3 if you also have business or professional income.
Official reference: Income-tax Act, 2025 (as amended by the Finance Act, 2026), Income Tax Department.