Capital gains tax is the tax you pay on the profit earned from selling assets like property, stocks, mutual funds, gold, or bonds. The tax rate depends on how long you've held the asset before selling it. If you sell within 24 months for property (36 months for immovable property), or within 12 months for shares and mutual funds, it's treated as short-term capital gains (STCG). If held longer, it's long-term capital gains (LTCG).
For FY 2025-26, long-term capital gains on listed equity shares and equity-oriented mutual funds are taxed at 10% above ₹1 lakh exemption. Short-term gains are taxed at 15%. For property, long-term gains are taxed at 20% with indexation benefit, while short-term gains are taxed at your income tax slab rate. The calculation becomes complex because of factors like indexation, exemptions under Section 54, 54F, and 54EC, and the cost inflation index (CII).
The classification of capital gains as short-term or long-term depends on the holding period of the asset. Different assets have different holding period rules under the Income Tax Act.
| Asset Type | Short-Term Holding Period | Long-Term Holding Period |
|---|---|---|
| Equity Shares (Listed) | Up to 12 months | More than 12 months |
| Equity Mutual Funds | Up to 12 months | More than 12 months |
| Immovable Property | Up to 24 months | More than 24 months |
| Debt Mutual Funds, Bonds, Gold | Up to 24 months | More than 24 months |
One of the biggest advantages for long-term capital gains is indexation benefit. This adjusts your purchase price for inflation, reducing your taxable gains significantly. For example, if you bought property in 2015 for ₹50 lakh and sold it in 2025, the indexed cost would be much higher than the original purchase price due to inflation adjustment, which reduces your taxable capital gain.
There are also several exemptions available under the Income Tax Act. Section 54 allows you to claim exemption if you sell a property and buy another residential property within specified time limits. Section 54F provides similar benefits for selling any long-term capital asset to buy residential property. These exemptions can significantly reduce or even eliminate your tax liability.
Calculating capital gains tax can be complicated, especially with indexation benefits and various exemptions. That's why you need an accurate capital gains calculator that takes into account all these factors. If you're also dealing with other income sources and need to calculate your overall tax liability, use our income tax calculator to get a complete picture.
If you've sold property or other assets during the year and earned capital gains, you might also need to pay advance tax on those gains. Make sure to use our advance tax calculator to estimate your quarterly tax payments to avoid interest penalties from the Income Tax Department.
For detailed information about capital gains tax rates, exemptions, and rules, check out the official Income Tax Department's capital gains guide for FY 2025-26, including information about cost inflation index, exemptions, and special provisions for various types of assets.
Choose the type of asset you sold from the options: Property, Equity Shares, Mutual Funds, Bonds/Debentures, or Gold/Commodities. Each has different tax rates and holding periods.
Input the purchase price, sale price, purchase date, and sale date. Make sure the sale date is after the purchase date for accurate calculations.
Press the "Calculate Capital Gains Tax" button to get instant results with detailed breakdown and tax calculations.
Check the summary cards showing total gain, taxable gain, tax amount, and net gain. Review the detailed calculation breakdown.
View the visual charts showing gain breakdown, tax impact analysis, and understand your investment performance.
Review the comprehensive guide below to understand exemption limits, tax saving options, and important deadlines.
For Property Sales:
For Equity/Mutual Funds:
This calculator provides estimates based on current FY 2025-26 tax rates. For complex transactions or multiple assets, consult a tax professional. Always verify calculations with your CA or tax advisor before filing returns.
Capital gains tax rates vary based on asset type and holding period. The table below provides a quick summary of applicable tax rates.
| Asset Type | Short-Term Capital Gains | Long-Term Capital Gains |
|---|---|---|
| Equity Shares / Equity MF | 15% | 10% above ₹1 lakh |
| Immovable Property | As per income tax slab | 20% with indexation |
| Debt MF, Bonds, Gold | As per income tax slab | 20% with indexation |
Cost Inflation Index (CII) adjustment reduces tax burden on long-term gains
Property: ₹2.5L, Equity/MF: ₹1L exemption on long-term gains
Equity: 1 year, Others: 2 years for long-term classification
Updated for FY 2025-26 with latest CII values
Many taxpayers unintentionally overpay capital gains tax due to lack of awareness. Avoid the following common mistakes to reduce your tax liability legally.
1. Misclassifying short-term and long-term capital gains
2. Forgetting to apply indexation benefit on long-term assets
3. Missing exemption opportunities under Sections 54, 54F, and 54EC
4. Not including stamp duty and registration costs in property purchase price
5. Ignoring advance tax liability on large capital gains
6. Using incorrect Cost Inflation Index (CII) values
Use a reliable capital gains calculator to avoid these errors and ensure accurate tax computation.
CII is used to adjust the purchase price for inflation, reducing the tax burden on long-term capital gains. For FY 2025-26, the CII is 348.
Property sales have ₹2.5L exemption under Section 54F. Equity shares and mutual funds have ₹1L exemption on long-term capital gains.
For equity shares, the holding period is 1 year. For all other assets including property, mutual funds, bonds, and gold, it's 2 years.
Yes, you can invest in specified assets like bonds, new property, or capital gains bonds to save tax on capital gains under various sections.