Capital Gains Tax Calculator

Capital Gains Calculator — What You Actually Owe After Selling Shares, Property or Gold

Most investors discover their capital gains tax liability only when they're filing their return — by which point the sale is complete, the tax is owed, and any planning opportunity has passed. Understanding how gains are classified and taxed before you sell changes that entirely.

The Fundamental Split: Short-Term vs Long-Term

Capital gains are classified based entirely on how long you held the asset before selling. For listed equity shares and equity mutual funds, gains from assets sold within 12 months are Short-Term Capital Gains (STCG), taxed at 20%. Gains from assets held beyond 12 months are Long-Term Capital Gains (LTCG), taxed at 12.5%

For property and gold, the threshold is different — assets held for less than 24 months produce STCG taxed at your applicable income slab rate. Assets held beyond 24 months produce LTCG taxed at a flat 12.5%

The LTCG and STCG rates were significantly updated in the Union Budget 2024, effective July 23, 2024, and no further changes were made in Budget 2025 or Budget 2026. These rates continue to apply for FY 2025-26

The ₹1.25 Lakh Annual Exemption — But Only for Equity

Long-term capital gains on listed equity shares and equity mutual funds enjoy an annual exemption of ₹1.25 lakh per financial year. Gains above this threshold are taxed at 12.5% without indexation. This exemption resets every April 1 — it cannot be carried forward to the next year if unused

This exemption applies only to equity LTCG. It does not apply to STCG, property gains, gold gains, or debt fund gains. LTCG on equity does not qualify for the Section 87A rebate — meaning even if your total income is below ₹12 lakh and you would otherwise owe zero tax, you still pay 12.5% on equity LTCG above ₹1.25 lakh. This surprises many first-time investors

Indexation Is Gone for Most Assets

One of the most significant changes from Budget 2024 is the removal of the indexation benefit for most assets. Investors can no longer adjust the cost of acquisition for inflation when calculating long-term capital gains. Previously, a property bought in 2010 for ₹30 lakh and sold in 2024 for ₹90 lakh could have its purchase price indexed to inflation, significantly reducing the taxable gain. Under current rules, the full ₹60 lakh difference is the taxable gain at 12.5%

For long-held real estate especially, this change increases the effective tax burden considerably compared to the previous 20% with indexation regime.

How Losses Can Be Set Off

Capital losses can reduce your tax liability, but the rules on what can offset what are specific. Short-term capital losses can be set off against both STCG and LTCG. Long-term capital losses can only be set off against LTCG — not against STCG or other income. From FY 2025-26, a long-term capital loss can be adjusted only once against gains in the same year — unused losses can be carried forward for 8 assessment years

A practical implication: if you have unrealised losses in your portfolio near year-end, selling those positions before March 31 to book the loss and set it off against your realised gains is a legitimate and commonly used tax planning strategy. Re-buying the same position after April 1 resets your holding period, so this works best when you genuinely want to exit the position anyway.

Debt Funds: A Category With Changing Rules

Debt mutual funds no longer enjoy LTCG treatment regardless of holding period — gains are taxed at your income slab rate. This change, effective from April 2023, made debt funds tax-equivalent to fixed deposits for most investors, removing their earlier tax advantage. If you have debt fund investments made before April 2023, separate rules may apply — check with a tax advisor for the specific treatment of those older units.

A Quick Reference for Common Asset Classes

For listed equity shares and equity mutual funds: hold beyond 12 months for LTCG at 12.5% with ₹1.25 lakh exemption; sell within 12 months for STCG at 20%.

For property and gold: hold beyond 24 months for LTCG at 12.5% without indexation; sell within 24 months for STCG at your applicable slab rate.

For unlisted shares: hold beyond 24 months for LTCG at 12.5%; sell within 24 months for STCG at slab rate.

Use FinBuddy's Capital Gains Calculator to enter your purchase price, sale price, asset type, and holding period to instantly see your exact tax liability — and whether you're better off holding a few more months to cross the long-term threshold before selling.