Capital Gains Tax Calculator (post Budget 2024 rules)
The Finance (No. 2) Act 2024 rewrote capital gains taxation for transfers on or after 23 July 2024: holding periods were simplified to 12 months (listed securities) and 24 months (everything else), LTCG on all assets moved to a uniform 12.5% without indexation, and STCG on equity rose to 20%. This calculator applies the correct rule based on asset type and dates, including the special 20%-with-indexation option still available on property bought before the cut-off.
Rates at a glance (transfers on/after 23 July 2024)
- Listed equity shares / equity mutual funds (STT paid): STCG 20% (held ≤ 12 months); LTCG 12.5% on gains above ₹1,25,000 per year
- Property, gold, unlisted shares, other assets: STCG at slab rate (held ≤ 24 months); LTCG 12.5% without indexation
- Land/building bought before 23 July 2024 (resident individuals/HUF): pay the lower of 12.5% without indexation or 20% with indexation
- Debt mutual funds bought on/after 1 April 2023: always taxed at slab rate regardless of holding period (s.50AA)
Formula
Capital gain = Sale consideration − transfer expenses − cost of acquisition − cost of improvement. For the indexed option, indexed cost = cost × CII of sale year ÷ CII of purchase year. For equity bought before 1 February 2018, cost is the higher of actual cost and the lower of FMV on 31 January 2018 and sale price (grandfathering).
Worked example
Equity mutual fund units bought in June 2021 for ₹5,00,000 and sold today for ₹9,00,000: holding over 12 months, so LTCG = ₹4,00,000. After the ₹1,25,000 exemption, taxable LTCG = ₹2,75,000 × 12.5% = ₹34,375 plus 4% cess = ₹35,750.
A flat bought in FY 2010-11 for ₹30 lakh and sold in FY 2025-26 for ₹90 lakh: without indexation gain ₹60 lakh × 12.5% = ₹7.5 lakh; with indexation cost = 30 × 376/167 = ₹67.5 lakh, gain ₹22.5 lakh × 20% = ₹4.5 lakh — the indexed option is cheaper and the tool picks it automatically.
Exemptions under sections 54, 54F and 54EC (reinvestment in a house or bonds) can reduce property gains further and are not applied here. Surcharge on capital gains is capped at 15%.
Frequently Asked Questions
What is the LTCG exemption limit on shares?
For listed equity shares and equity-oriented mutual funds, LTCG up to ₹1,25,000 per financial year is exempt (raised from ₹1 lakh for transfers on/after 23 July 2024). Gains above that are taxed at 12.5%.
Can I still use indexation on property?
Only resident individuals and HUFs, and only for land or buildings acquired before 23 July 2024. They may pay 20% on indexed gains if that is lower than 12.5% on unindexed gains. Indexation cannot be used to create or increase a loss.
How are debt mutual funds taxed now?
Units purchased on or after 1 April 2023 are deemed short-term and taxed at your slab rate however long you hold them. Units bought earlier are long-term after 24 months and taxed at 12.5% without indexation.
What is grandfathering of equity gains?
For shares or equity funds bought before 1 February 2018, the cost of acquisition is taken as the higher of actual cost and the lower of the fair market value on 31 January 2018 and the sale price. This protects gains accrued before LTCG tax was introduced.
Does the calculator include surcharge?
No. Surcharge (capped at 15% on capital gains) and the set-off of capital losses are not included. Cess at 4% is included.
Disclaimer: This tool is for general information and estimation only. Tax rates and rules change — verify with official sources or a professional before acting. Read full disclaimer.