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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 Calculator

Asset Details

Asset Type
Purchase Price
₹5.00 L
5,00,000
₹10K₹5.0Cr
Sale Price
₹8.00 L
8,00,000
₹10K₹10.0Cr
Holding Period
3.0 yrs
36m (3.0yr)
1m240m
ExpensesBrokerage, legal, registration
₹10,000
10,000
₹0₹5.0L
Long Term Capital Gains
No Tax Due
₹0
Total Gains
-₹9.50 L
Gross Gains
₹2.90 L
Indexed Cost
₹17.50 L
Indexed Gains
₹-9,50,000
Holding Period
36mo (3.0yr)

Tax Rules

STCG >12mo → 15% | LTCG >12mo → 10% (>₹1L)

Purchase Price₹5.00 L
Sale Price₹8.00 L
Expenses₹10,000
Indexed Cost of Acquisition₹17.50 L
Capital Gains₹-9,50,000
Tax Rate Applied0%
No Tax Due₹0

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 TypeShort-Term HoldingSTCG Tax RateLong-Term HoldingLTCG Tax Rate
Listed Equity Shares≤ 12 months15%> 12 months10% over ₹1L
Equity Mutual Funds≤ 12 months15%> 12 months10% over ₹1L
Debt Mutual Funds≤ 36 monthsSlab rate> 36 months20% with indexation
Real Estate / Property≤ 24 monthsSlab rate> 24 months20% with indexation
Gold / Silver≤ 36 monthsSlab rate> 36 months20% with indexation
Unlisted Shares≤ 24 monthsSlab rate> 24 months20% with indexation

Indexation Benefit: How CII Reduces Your Tax

Purchase YearPurchase PriceCII (Purchase Year)CII (Sale Year)Indexed CostTax Saved
2010₹30L167363₹65.2L₹4.3L
2013₹40L220363₹66.0L₹3.7L
2016₹50L264363₹68.8L₹2.9L
2019₹60L289363₹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.

How the calculation works
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:

Asset Type:Residential Property
Purchase Price (2015):₹50,00,000
Sale Price (2026):₹90,00,000
Holding Period:10 years (Long-Term)

Step by step

  1. 1.CII for FY 2015-16: 254, CII for FY 2025-26: ~363
  2. 2.Indexed Cost = 50,00,000 × (363/254) = ₹71,45,669
  3. 3.LTCG = 90,00,000 - 71,45,669 = ₹18,54,331
  4. 4.Tax at 20% with indexation = ₹3,70,866
  5. 5.If not indexed: LTCG = 40,00,000, tax = ₹8,00,000
  6. 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

Frequently Asked Questions

What is the difference between short-term and long-term capital gains?
For equity: holdings under 12 months are STCG (taxed at 15%), over 12 months are LTCG (taxed at 10% above ₹1L). For property: under 24 months is STCG (slab rate), over 24 months is LTCG (20% with indexation).
What is indexation?
Indexation adjusts the purchase price for inflation using CII (Cost Inflation Index), reducing the taxable capital gains for long-term assets.
Are capital gains tax-free?
LTCG on equities up to ₹1 lakh per year is tax-free. Gains from agricultural land in rural areas are also exempt.
Can I avoid capital gains tax?
Yes, you can reinvest in specified bonds (Section 54EC) within 6 months, or purchase another residential property (Section 54) to claim exemption.