Capital Gains Tax Calculator

    Calculate your capital gains tax for FY 2025-26

    Taxpayer Status

    Listed Equity & Equity Mutual Funds

    Holding Period: 1 Year

    Tax Rules:

    • • STCG (≤1 year): 20%
    • • LTCG (>1 year): 12.5% on gains over ₹1,25,000

    Important Information

    • • This calculator uses tax rules for FY 2025-26
    • • Calculations are for educational purposes only
    • • Please consult a tax professional for accurate tax planning
    • • CII values are official up to 2024-25, projected for 2025-26

    What are Capital Gains?

    Any profit or gain that arises from the sale of a 'capital asset' is classified as income from capital gains. Such capital gains are taxable in the year in which the transfer of the capital asset takes place. Capital assets can be real estate, stocks, mutual funds, gold, or other investments.

    Short-Term vs. Long-Term

    • Short-Term Capital Gains (STCG): Gains from selling an asset held for a short duration. The holding period definition varies by asset class (e.g., 12 months for equity, 24 months for real estate). STCG is usually taxed at a higher rate.
    • Long-Term Capital Gains (LTCG): Gains from selling an asset held for a longer duration. LTCG typically enjoys lower tax rates and, in some cases, the benefit of indexation.

    What is Indexation Benefit?

    Indexation is a mechanism that allows you to adjust the purchase price of an asset to account for inflation over the period you held it. This adjusted price (indexed cost of acquisition) is higher than the original purchase price, which effectively reduces your taxable capital gain and your tax liability.

    Frequently Asked Questions

    Are capital gains applicable on inheritance?

    No, receiving an asset as an inheritance or gift is not considered a transfer, so it does not attract capital gains tax. However, when you eventually sell the inherited asset, capital gains tax will apply.

    Can I offset capital losses against gains?

    Yes. Short-Term Capital Losses (STCL) can be set off against both STCG and LTCG. However, Long-Term Capital Losses (LTCL) can only be set off against Long-Term Capital Gains (LTCG).