Capital Gains Tax Calculator
Calculate short-term and long-term capital gains tax on sale of assets like property, stocks, and gold.
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Capital gains tax can take a significant bite out of your investment returns if not planned properly. Whether you are selling stocks, mutual funds, real estate, or gold, the tax treatment varies based on holding period and asset type. Use a SIP calculator to plan long-term investments or check the SWP calculator for withdrawal strategies that minimize tax impact.
Capital Gains Tax Rates for Different Assets
| Asset Type | Short-Term Holding | STCG Tax Rate | Long-Term Holding | LTCG Tax Rate |
|---|---|---|---|---|
| Listed Equity Shares | ≤ 12 months | 15% | > 12 months | 10% over ₹1L |
| Equity Mutual Funds | ≤ 12 months | 15% | > 12 months | 10% over ₹1L |
| Debt Mutual Funds | ≤ 36 months | Slab rate | > 36 months | 20% with indexation |
| Real Estate / Property | ≤ 24 months | Slab rate | > 24 months | 20% with indexation |
| Gold / Silver | ≤ 36 months | Slab rate | > 36 months | 20% with indexation |
| Unlisted Shares | ≤ 24 months | Slab rate | > 24 months | 20% with indexation |
Indexation Benefit: How CII Reduces Your Tax
| Purchase Year | Purchase Price | CII (Purchase Year) | CII (Sale Year) | Indexed Cost | Tax Saved |
|---|---|---|---|---|---|
| 2010 | ₹30L | 167 | 363 | ₹65.2L | ₹4.3L |
| 2013 | ₹40L | 220 | 363 | ₹66.0L | ₹3.7L |
| 2016 | ₹50L | 264 | 363 | ₹68.8L | ₹2.9L |
| 2019 | ₹60L | 289 | 363 | ₹75.4L | ₹2.1L |
CII values are for illustration. Actual CII for the current year may vary. Indexation applies only to long-term capital assets.
Ways to Save Capital Gains Tax
Section 54 — Buy Another House
If you sell a residential property and buy another within 2 years (or construct within 3 years), the LTCG is fully exempt.
Section 54EC — 54EC Bonds
Invest LTCG from property in specified bonds (like REC, NHAI) within 6 months. Limit: ₹50 lakh. Holding: 5 years.
Section 54F — Any Asset to House
If you sell any long-term asset (not just house) and buy a residential house, gains are exempt. Must not own >1 house on sale date.
Harvest Losses to Offset Gains
Tax-loss harvesting: sell underperforming stocks to realize losses, which can offset your capital gains and reduce tax liability.
How to Calculate Capital Gains Tax
In plain words
Capital gains tax applies when you sell an asset for more than its purchase price. The tax rate depends on the holding period (short-term vs long-term) and the asset type (equity, property, gold, etc.). For long-term assets, indexation adjusts the purchase price for inflation, reducing the taxable gain significantly.
Short-Term Capital Gains (STCG) = Sale Price - Cost of Acquisition
Long-Term Capital Gains (LTCG) = Sale Price - Indexed Cost of Acquisition
Equity LTCG Tax: 10% on gains above ₹1,00,000 (holding > 12 months)
Equity STCG Tax: 15% (holding ≤ 12 months)
Property LTCG Tax: 20% with indexation (holding > 24 months)
Property STCG Tax: As per income tax slab (holding ≤ 24 months)A quick example
Let us calculate capital gains on property and equity:
Step by step
- 1.CII for FY 2015-16: 254, CII for FY 2025-26: ~363
- 2.Indexed Cost = 50,00,000 × (363/254) = ₹71,45,669
- 3.LTCG = 90,00,000 - 71,45,669 = ₹18,54,331
- 4.Tax at 20% with indexation = ₹3,70,866
- 5.If not indexed: LTCG = 40,00,000, tax = ₹8,00,000
- 6.Indexation saved ₹4,29,134 in taxes!
So the answer is: Capital Gain = ₹18,54,331 (after indexation) | Tax = ₹3,70,866 | Effective Tax Rate = 4.1% of sale profit