Capital Gains Tax Calculator
Calculate your tax liability on short-term and long-term capital gains from various assets
Capital Gains Tax in India is levied on profits earned from the sale of capital assets such as property, shares, mutual funds, and more. The tax rate depends on whether the gains are short-term (assets held for less than specified period) or long-term (assets held for longer periods). This calculator helps you determine your tax liability based on the type of asset, holding period, and applicable exemptions.
Capital Gains Tax Calculation Results
Capital Gains Type
Net Capital Gains
Tax Payable
Including applicable surcharge and cess
| Sale Consideration | ₹ 0 |
|---|---|
| Purchase Cost | ₹ 0 |
| Indexed Cost of Acquisition | ₹ 0 |
| Expenses on Transfer | ₹ 0 |
| Holding Period | 0 days |
| Applicable Exemption | ₹ 0 |
| Tax Rate Applied | 0% |
Tax Calculation Breakdown
Understanding your calculation
Your capital gains classification is based on the holding period of your asset. The applicable tax rate depends on the type of asset and the duration for which it was held.
Disclaimer: This calculator provides an estimate based on current tax laws. For precise tax planning, please consult a tax professional.
Capital Gains Tax Guide & Tutorial
Understanding Capital Gains Tax in India
Capital Gains Tax is levied on the profit earned from the sale of capital assets such as real estate, shares, mutual funds, bonds, jewelry, and other investments. The tax calculation depends on the type of asset, holding period, and the applicable tax rate.
Capital gains tax calculations involve various factors depending on the type of asset sold and the duration of ownership. Our Capital Gains Tax Calculator is designed to navigate these complexities for you.
The calculator distinguishes between short-term and long-term capital gains based on your asset holding period. It then applies the appropriate tax rates, including indexation benefits for long-term gains where applicable under the law.
Different asset classes have different holding period requirements and tax implications:
- Equity shares and equity-oriented mutual funds held for more than 12 months qualify for long-term capital gains tax at 10% (for gains exceeding ₹1 lakh)
- Property and gold require a holding period of 24 months to qualify for long-term gains treatment
- Debt mutual funds now require a holding period of 36 months for long-term classification
Our calculator also incorporates exemptions available under sections 54, 54EC, 54F, and 54GB of the Income Tax Act.
Revenue Secretary Tarun Bajaj stated after Budget 2022: "The government has maintained consistency in the capital gains tax structure while providing indexation benefits for certain asset classes to account for inflation, making the system more equitable for long-term investors."
For detailed information on capital gains taxation rules, please check the FAQ's on Income Tax Department's website Income Tax Department's official FAQs on Capital Gains Tax.
Our Capital Gains Tax Calculator provides accurate calculations based on current tax laws to help you plan your investments and asset sales effectively.
Short-Term Capital Gains (STCG)
Gains from assets held for a short period (typically less than 24/36 months depending on the asset type). Generally taxed at higher rates than long-term gains.
Long-Term Capital Gains (LTCG)
Gains from assets held for a longer period. These enjoy preferential tax treatment including indexation benefits and lower tax rates in many cases.
Holding Period and Asset Classification
| Asset Type | Short-Term Period | Long-Term Period | STCG Tax Rate | LTCG Tax Rate |
|---|---|---|---|---|
| Listed Equity Shares & Equity Mutual Funds (with STT paid) | ≤ 12 months | > 12 months | 15% | 10% above ₹1 lakh (without indexation) |
| Unlisted Shares & Equity-oriented Mutual Funds (without STT) | ≤ 24 months | > 24 months | As per income tax slab | 20% with indexation |
| Debt Mutual Funds | ≤ 36 months | > 36 months | As per income tax slab | 20% with indexation |
| Real Estate/Property | ≤ 24 months | > 24 months | As per income tax slab | 20% with indexation |
| Gold/Jewelry/Commodities | ≤ 36 months | > 36 months | As per income tax slab | 20% with indexation |
How to Calculate Capital Gains Tax: Step-by-Step
Determine the Sale Consideration
This is the full value of consideration received or accruing as a result of the transfer of the capital asset.
Calculate the Cost of Acquisition
The price at which you originally purchased the asset, including any expenses for the purchase.
Add Cost of Improvement (if any)
Any expenditure incurred to improve the value of the asset after acquisition (mainly applicable for property).
Deduct Transfer Expenses
Expenses related to the transfer such as brokerage, commission, legal fees, etc.
Apply Indexation (for LTCG where applicable)
Adjust the purchase cost and improvement cost using the Cost Inflation Index (CII) to account for inflation.
Calculate Capital Gains
Subtract the indexed cost of acquisition (and improvement) and transfer expenses from the sale consideration.
Apply Applicable Exemptions (if eligible)
Deduct any eligible exemptions under sections like 54, 54EC, 54F, etc. (mainly for property).
Apply the Relevant Tax Rate
Apply the applicable tax rate based on the type of asset and holding period to calculate final tax liability.
Understanding Indexation Benefit
Indexation is a method to adjust the purchase price of an asset to account for inflation over the holding period. This helps reduce the tax burden on long-term capital gains.
Indexation Formula
Indexed Cost of Acquisition =
Original Cost × (CII for the year of sale ÷ CII for the year of purchase)
Example:
If you purchased an asset for ₹1,00,000 in FY 2010-11 (CII: 167) and sold it in FY 2023-24 (CII: 348), the indexed cost would be:
= ₹1,00,000 × (348 ÷ 167) = ₹2,08,383
Recent Cost Inflation Index (CII)
| Financial Year | CII |
|---|---|
| 2023-24 | 348 |
| 2022-23 | 331 |
| 2021-22 | 317 |
| 2020-21 | 301 |
| 2019-20 | 289 |
| 2018-19 | 280 |
| 2017-18 | 272 |
Common Exemptions for Capital Gains
Section 54: Investment in Residential House
- Applicable for: LTCG from sale of residential house property
- Exemption: Invest capital gains in purchasing/constructing one residential house in India
- Time limit: Purchase within 1 year before or 2 years after sale; construction within 3 years after sale
- Condition: New house should not be sold within 3 years
Section 54F: Investment in Residential House
- Applicable for: LTCG from sale of any asset other than residential house
- Exemption: Proportionate exemption if net sale consideration is invested in residential house
- Time limit: Same as Section 54
- Condition: Should not own more than one residential house (other than new house) on date of transfer
Section 54EC: Investment in Specified Bonds
- Applicable for: LTCG from land or building or both
- Exemption: Investment in specified bonds (e.g., REC, NHAI bonds)
- Limit: Up to ₹50 lakhs
- Time limit: 6 months from date of transfer
- Lock-in period: 5 years
Section 54EE: Investment in Specified Fund
- Applicable for: LTCG from any asset
- Exemption: Investment in units of specified fund notified by Central Government
- Limit: Up to ₹50 lakhs
- Time limit: 6 months from date of transfer
- Lock-in period: 3 years
Frequently Asked Questions
For inherited property, the cost of acquisition is the cost at which the previous owner acquired it. If the property was acquired by the previous owner before April 1, 2001, you have the option to consider either the actual cost or the fair market value (FMV) as of April 1, 2001. The holding period starts from the date the previous owner acquired the property, not from the date you inherited it.
For indexation purposes, if you choose the FMV as of April 1, 2001, the CII for 2001-02 (100) will be used as the base. Otherwise, the CII for the year in which the previous owner acquired the property will be used.
For NRIs, capital gains tax rules are largely similar to those for residents, with some key differences:
- TDS on Sale: When an NRI sells property in India, the buyer must deduct TDS at the rate of 20% (for LTCG) or 30% (for STCG)
- Repatriation Restrictions: Specific regulations govern repatriation of sale proceeds outside India
- DTAA Benefits: NRIs may be eligible for benefits under Double Taxation Avoidance Agreements between India and their country of residence
- Tax Filing: NRIs must file income tax returns in India if they have capital gains from Indian assets
NRIs are also eligible for the same exemptions (Sections 54, 54EC, etc.) as residents.
For shares and mutual funds, capital gains calculation depends on whether they are listed or unlisted, equity or non-equity, and the holding period:
- Listed Equity Shares & Equity Mutual Funds (with STT paid):
- STCG (≤ 12 months): Taxed at 15% under Section 111A
- LTCG (> 12 months): Taxed at 10% under Section 112A for gains exceeding ₹1 lakh, without indexation benefit
- Unlisted Shares & Non-equity Mutual Funds:
- STCG: Taxed as per your income tax slab
- LTCG: Taxed at 20% with indexation benefit
For listed securities, the calculation method depends on the acquisition date. For shares acquired before January 31, 2018, the fair market value as on January 31, 2018, can be considered as the cost of acquisition under certain conditions.
From the financial year 2022-23 (assessment year 2023-24), cryptocurrencies and digital assets are classified as "Virtual Digital Assets" (VDAs) and have a specific tax treatment:
- All income from transfer of VDAs is taxed at a flat rate of 30%, regardless of holding period
- No deduction for any expenses (except cost of acquisition) is allowed
- Losses from VDAs cannot be set off against any other income
- TDS of 1% applies on transfer of VDAs above specified thresholds
Indexation benefits are not available for VDAs. Each transfer is treated as a separate transaction for tax calculation.
Capital losses can be set off according to specific rules:
- Short-term capital loss (STCL): Can be set off against both short-term capital gains (STCG) and long-term capital gains (LTCG)
- Long-term capital loss (LTCL): Can be set off only against LTCG, not against STCG or any other income
Important points:
- Capital losses (both STCL and LTCL) cannot be set off against any other head of income like salary, business, etc.
- Unabsorbed capital losses can be carried forward for up to 8 assessment years
- To carry forward losses, you must file your income tax return within the due date