Capital Gains Tax Calculator (India)
Estimate capital gains tax for transfers on or after 23 July 2024 under the Finance (No. 2) Act 2024 — listed-equity STCG at 20%, LTCG at 12.5% above the ₹1.25 lakh exemption, and 12.5% without indexation on other long-term assets, with the transitional 20%-with-indexation option for older property.
How capital gains are taxed after the 2024 overhaul
The Finance (No. 2) Act 2024 reset India's capital-gains rules for every transfer made on or after 23 July 2024, so the rate that applies to a sale now depends on the asset, how long you held it, and — for property — when you bought it. This calculator applies the post-23-July-2024 rates. Pick the asset type, say whether the gain is short-term or long-term (the tool reminds you of the holding-period cut-off), enter the gain, and it returns the taxable amount, the rate applied, and the tax plus cess.
For listed shares and equity mutual funds on which securities transaction tax is paid, a gain on a holding of twelve months or less is short-term and taxed at 20% under section 111A; a gain on a longer holding is long-term and taxed at 12.5% under section 112A, but only on the amount above a ₹1.25 lakh annual exemption. For land, buildings, gold, unlisted shares and other assets, the long-term holding threshold is 24 months; long-term gains are taxed at a flat 12.5% without indexation, while short-term gains are added to income and taxed at your slab rate.
The property transition option
Because the move to 12.5%-without-indexation could raise the bill for people who had held property for a long time, the law kept a transitional choice: a resident individual or HUF who acquired land or a building before 23 July 2024 and sells it on or after that date may pay the lower of 12.5% without indexation or 20% with indexation. The calculator offers this — tick the box, enter your indexed gain, and it applies whichever is cheaper and tells you which one won. The option does not extend to other asset classes or to non-residents.
A worked example
Say you sold listed equity mutual funds you had held for three years and booked a gain of ₹5,00,000. Because the holding is long-term, section 112A applies: the first ₹1.25 lakh is exempt, leaving ₹3,75,000 taxable at 12.5% = ₹46,875, plus 4% cess of ₹1,875, for ₹48,750 in all. Had you sold within twelve months instead, the whole ₹5,00,000 would be short-term under section 111A at 20% = ₹1,00,000 plus cess — which is why holding period matters so much for equity.
This is an estimate of the headline capital-gains tax for general guidance, not tax advice. It does not apply the section 54 reinvestment exemptions, loss set-off, grandfathering of pre-February-2018 listed-equity gains, or surcharge. Confirm with a chartered accountant before you file.
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Frequently asked questions
- What changed for capital gains on 23 July 2024?
- The Finance (No. 2) Act 2024 rationalised capital-gains tax with effect from 23 July 2024. Short-term gains on listed equity and equity mutual funds (with STT) rose from 15% to 20% under section 111A. Long-term gains on listed equity under section 112A are taxed at 12.5% (up from 10%) on gains above the ₹1.25 lakh annual exemption (raised from ₹1 lakh). Long-term gains on other assets moved to a flat 12.5% without indexation, replacing the old 20%-with-indexation regime — with one transitional option for property, below.
- What are the holding periods for long-term vs short-term?
- Listed shares and equity mutual funds are long-term if held for more than 12 months. Immovable property, gold, unlisted shares and most other assets are long-term if held for more than 24 months. Below those thresholds the gain is short-term.
- How are short-term gains on property or gold taxed?
- Short-term gains on property, gold, unlisted shares and similar assets are not taxed at a flat rate — they are added to your total income and taxed at your applicable slab rate. That is why the calculator asks for your slab rate when you select a short-term, non-equity asset.
- I bought my property before 23 July 2024 — can I still use indexation?
- Yes, under a transitional option. A resident individual or HUF who acquired land or a building before 23 July 2024 and sells it on or after that date can pay the lower of 12.5% without indexation or 20% with indexation. The calculator offers this choice: enter your indexed gain and it applies whichever is lower. This option is not available for assets other than land and buildings, nor to non-residents.
- How are debt mutual funds taxed?
- Debt mutual funds purchased on or after 1 April 2023 are taxed at your slab rate regardless of holding period, under section 50AA (treated as short-term). Units bought before that date follow the earlier rules. This calculator's "other asset" option uses the slab rate for short-term treatment, which matches the post-April-2023 debt-fund position.
- Does this include surcharge, cess and exemptions like section 54?
- The 4% health and education cess is included. Surcharge is not modelled, but on sections 111A, 112 and 112A it is capped at 15%. Reinvestment exemptions (the section 54 series), set-off and carry-forward of capital losses, and grandfathering of pre-2018 listed-equity gains are not applied — those need a chartered accountant. Treat the result as an estimate of the headline tax, not your final liability.