How is capital gains tax on shares calculated in India?

For listed equity shares and equity mutual funds held 12 months or less, the gain is short-term (STCG) and taxed at 20% under Section 111A. Held longer, it is long-term (LTCG) under Section 112A: the first ₹1.25 lakh of gains each year is exempt and the rest is taxed at 12.5% without indexation.

What are the rules for property?

Land and buildings are long-term if held more than 24 months. Under the current regime LTCG on property is taxed at 12.5% without indexation (an option to use 12.5% no-index or 20% with indexation applies to older purchases). Short-term property gains are added to income and taxed at your slab rate.

What is the ₹1.25 lakh LTCG exemption?

Under Section 112A, long-term gains on listed equity and equity mutual funds are exempt up to ₹1.25 lakh in aggregate each financial year. Only the gains above that threshold are taxed at 12.5%, so small investors often pay no LTCG at all.

Does indexation still apply?

For most assets the new regime removed indexation in favour of a flat 12.5% LTCG rate. Property bought before 23 July 2024 keeps a choice between 12.5% without indexation and 20% with indexation. This tool uses the flat 12.5% no-indexation method for long-term gains.

Is this an exact tax figure?

No, it is an estimate of the headline CGT. It does not add surcharge or the 4% health and education cess, set-offs of capital losses, or exemptions like reinvestment under Sections 54/54F. Confirm your final liability with a chartered accountant.

India Capital Gains Tax Calculator

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This India capital gains tax calculator works out the tax on disposing of listed shares / equity mutual funds or property, applying the holding-period split between short-term and long-term and the rates that came in under the 2024 regime. For long-term listed equity it deducts the ₹1.25 lakh annual exemption before charging tax.

How it works

The tool first computes the gain:

gain = sale value − purchase value

then classifies it by holding period. Listed equity is long-term after 12 months; property is long-term after 24 months.

Listed equity STCG (≤12 months): taxed at 20% under Section 111A.
Listed equity LTCG (>12 months): first ₹1.25 lakh exempt under Section 112A, remainder taxed at 12.5% without indexation.
Property LTCG (>24 months): taxed at 12.5% without indexation.
Property STCG (≤24 months): added to income and taxed at your slab rate (you enter your slab).

Example

Sell listed shares bought for ₹4,00,000 at ₹7,00,000 after 18 months: the gain is ₹3,00,000, long-term. Deduct the ₹1.25 lakh exemption to leave ₹1,75,000 taxable at 12.5%, giving ₹21,875 in LTCG tax (before cess).

Notes

This is an estimate of the headline tax. It excludes the surcharge and the 4% health and education cess, loss set-offs, and reinvestment exemptions under Sections 54/54F. Property bought before 23 July 2024 may instead use 20% with indexation. Confirm the final figure with a chartered accountant.