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For individualsRates reviewed September 2026

Capital Gains Tax Calculator: STCG and LTCG FY 2026-27

This capital gains calculator applies the rates that Finance (No.2) Act 2024 put in place and that Budget 2025 and Budget 2026 left untouched: long-term gains at 12.5 percent, short-term gains on listed equity at 20 percent, indexation withdrawn for most assets, and only two holding periods, 12 months and 24 months. The numbers below apply to transfers in FY 2026-27 (AY 2027-28) and equally to FY 2025-26 (AY 2026-27).

From 1 April 2026 the governing provisions moved into the Income-tax Act, 2025. Short-term gains on listed equity are now section 196 (section 111A of the 1961 Act), long-term gains on other assets are section 197 (section 112) and long-term gains on listed equity and equity funds are section 198 (section 112A). The rates and the ₹1,25,000 exempt slice under the last of these did not change with the renumbering.

One concession survives from the old law. For land or a building acquired before 23 July 2024 and held long term, a resident individual or HUF may pay the lower of 12.5 percent without indexation or 20 percent with indexation, so that computation is worth running both ways before you file.

Capital Gains Calculator

Including cost of improvement and expenses on the transfer.

₹
₹

Total tax on the gain

₹29,250

long term at 12.5% plus 4% cess

Holding period10 Jun 2025 to 20 Aug 2026
1 year 2 months
Classificationlong term after 12 months for this asset
Long term
Sale consideration₹9.5 lakh
₹9,50,000
Cost of acquisition
₹6,00,000
Capital gain
₹3,50,000
Exemption u/s 112Afirst ₹1,25,000 of long-term equity gains in a year
₹-1,25,000
Taxable gain
₹2,25,000
Rate appliedlong-term gain, no indexation
12.5%
Tax on the gain
₹28,125
Health and education cess at 4%
₹1,125
  • Rates are those in force for transfers in FY 2026-27 (AY 2027-28).
  • Surcharge on these gains is capped at 15% and is not included above; the section 87A rebate cannot be set against them.

The formula

Capital gain = Full value of consideration − (Cost of acquisition + Cost of improvement + Transfer expenses) − Exemptions claimed

Holding period
12 months for listed securities and units, 24 months for everything else, counted from the date of acquisition to the date of transfer.
STCG
20% on listed equity and equity funds where STT is paid; slab rates for all other short-term gains.
LTCG
12.5% without indexation, with the first ₹1,25,000 of listed equity and equity fund gains exempt in a year.
Indexation option
Only for land or a building acquired before 23 July 2024, where the lower of 12.5% flat and 20% indexed may be paid.

Surcharge on capital gains taxed under sections 196, 197 and 198 of the Income-tax Act, 2025 is capped at 15 percent, and the section 87A rebate cannot be set against these special-rate gains.

How to calculate it

  1. 1

    Fix the holding period and classify the gain

    Count from acquisition to transfer. Listed shares, listed bonds, listed debentures, equity mutual fund units and listed gold ETFs turn long term after 12 months. Unlisted shares, immovable property, physical gold and unlisted funds need 24 months. Anything shorter is short term.

  2. 2

    Compute the gain

    Deduct cost of acquisition, cost of improvement and expenses wholly incurred on the transfer, such as brokerage or stamp duty borne by the seller, from the sale consideration. For immovable property, section 50C substitutes the stamp duty value if it exceeds the actual consideration by more than the permitted tolerance.

  3. 3

    Apply the rate for the asset class

    Long-term gains are 12.5 percent without indexation. Short-term gains on listed equity and equity funds with STT are 20 percent; other short-term gains are added to total income and taxed at slab rates. Gains on specified mutual funds that hold more than 65 percent in debt are treated as short-term whatever the holding period and taxed at slab rates.

  4. 4

    Test the indexation option on older property

    If the land or building was acquired before 23 July 2024, compute the tax twice, once at 12.5 percent on the unindexed gain and once at 20 percent on the indexed gain, and pay the lower. The choice is available to resident individuals and HUFs and only reduces tax; it does not create a larger loss to carry forward.

  5. 5

    Claim the exemptions you qualify for

    Section 54 covers a long-term gain on a residential house reinvested in another residential house, section 54F covers a gain on any other long-term asset where the whole net consideration is reinvested in a house, and both count the new house cost only up to ₹10 crore. Section 54EC allows up to ₹50 lakh into notified bonds within six months, with a five-year lock-in.

  6. 6

    Add surcharge and cess, and check advance tax

    Surcharge on these gains is capped at 15 percent, and cess at 4 percent applies on tax plus surcharge. Capital gains attract advance tax from the instalment falling due after the sale, so a large gain late in the year can still trigger interest if the instalment is missed.

Holding period and rates by asset class for transfers in FY 2026-27 (AY 2027-28)

Holding period and rates by asset class for transfers in FY 2026-27 (AY 2027-28)
AssetLong term afterShort-term rateLong-term rate
Listed equity shares and equity mutual funds with STT12 months20%12.5% on gains above ₹1,25,000 a year
Listed bonds, debentures and listed gold ETFs12 monthsSlab rate12.5%
Unlisted shares24 monthsSlab rate12.5%
Immovable property (land or building)24 monthsSlab rate12.5%, or 20% with indexation if acquired before 23 July 2024
Physical gold, jewellery and unlisted gold funds24 monthsSlab rate12.5%
Specified mutual funds holding more than 65% in debtNot applicableSlab rateSlab rate, treated as short term regardless of holding period

Worked example: listed equity sold after 14 months

Listed equity shares bought
10 June 2025 for ₹6,00,000
Sold
20 August 2026 for ₹9,50,000
STT
Paid on purchase and sale
Other capital gains in the year
Nil
  • Holding period is 14 months, more than 12 months, so the gain is long term
  • Long-term capital gain = ₹9,50,000 − ₹6,00,000 = ₹3,50,000
  • Less exempt slice of ₹1,25,000 = taxable gain of ₹2,25,000
  • Tax at 12.5% on ₹2,25,000 = ₹28,125
  • Cess at 4% on ₹28,125 = ₹1,125

Total tax on the gain = ₹29,250

Frequently asked questions

Long-term capital gains are taxed at 12.5 percent without indexation across asset classes. For listed equity shares and equity mutual funds where STT has been paid, the first ₹1,25,000 of long-term gains in a year is exempt and the balance is taxed at 12.5 percent. Surcharge on these gains is capped at 15 percent and 4 percent cess applies on top.
Short-term gains on listed equity shares and equity mutual fund units on which STT has been paid are taxed at 20 percent, up from 15 percent before 23 July 2024. This is section 196 of the Income-tax Act, 2025, which carries forward section 111A of the 1961 Act. Short-term gains on every other asset, including unlisted shares, property and gold, are added to total income and taxed at your slab rate.
Only in one situation. If the land or building was acquired before 23 July 2024 and the gain is long term, a resident individual or HUF may pay the lower of 12.5 percent on the unindexed gain or 20 percent on the indexed gain. Property acquired on or after 23 July 2024, and every other asset class, is taxed at 12.5 percent with no indexation at all.
There are only two periods now. Listed securities, including listed shares, listed bonds and debentures, units of equity mutual funds and listed gold ETFs, become long term after 12 months. Unlisted shares, immovable property, physical gold and unlisted funds become long term after 24 months.
₹1,25,000 of long-term capital gains on listed equity shares and equity-oriented mutual funds where STT has been paid is exempt in a financial year. The exemption is per taxpayer per year, not per transaction, and the balance gain is taxed at 12.5 percent. It does not extend to long-term gains on property, gold, unlisted shares or debt funds.
Under sections 54 and 54F the cost of the new residential house that can be counted for exemption is capped at ₹10 crore. Under section 54F the entire net sale consideration, not just the gain, has to be reinvested for full exemption, with proportionate relief otherwise. Section 54EC allows investment of up to ₹50 lakh in notified bonds within six months of transfer, and those bonds are locked in for five years.
No. The rebate cannot be set off against income taxed at the special rates, which covers short-term gains on listed equity and long-term gains generally. So a taxpayer whose total income is within ₹12,00,000 still pays tax on those gains even though the slab tax on the rest of the income is rebated. Plan the timing of a sale with this in mind.

Sources

Rates and rules on this page come from the following. This is a working aid, not professional advice: confirm anything material with your Chartered Accountant before you act on it.

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