# Capital Gains (Simple) Calculator

> Capital gain is the sale price minus the cost of acquisition, improvement and transfer expenses. Since 23 July 2024, listed shares and equity mutual funds held over 12 months are taxed at 12.5% on gains above ₹1.25 lakh a year, and at 20% if held for 12 months or less. Most other assets become long-term after 24 months and are taxed at 12.5% without indexation.

Interactive calculator: https://www.industax.com/calculators/capital-gains

- **Listed equity STCG:** 20%
- **LTCG (most assets):** 12.5%
- **Equity LTCG exempt up to:** ₹1.25 lakh a year

## Holding periods and rates (transfers from 23 July 2024)

| Asset | Long-term after | STCG rate | LTCG rate |
| --- | --- | --- | --- |
| Listed shares, equity MFs, units of business trusts | 12 months | 20% | 12.5% above ₹1.25 lakh |
| Property (land, building) | 24 months | Slab rates | 12.5% (residents may choose 20% with indexation for pre-23-Jul-2024 purchases) |
| Unlisted shares | 24 months | Slab rates | 12.5% |
| Gold, jewellery, other assets | 24 months | Slab rates | 12.5% |
| Debt MFs bought from 1 April 2023 | Not applicable | Slab rates | Always taxed at slab rates |
| Unlisted bonds and debentures | Not applicable | Slab rates | Taxed at slab rates |

## What you can deduct

- Cost of acquisition (or fair market value on 1 April 2001 for older assets)
- Cost of improvement
- Brokerage, stamp duty and legal fees on transfer
- For listed equity bought before 1 February 2018: grandfathered cost (higher of actual cost and 31 January 2018 price, capped at sale price)

## Setting off capital losses

Short-term capital losses can be set off against both short- and long-term gains; long-term losses only against long-term gains. Unabsorbed losses can be carried forward for eight years — but only if you file your return by the due date.

## Worked example: selling equity mutual funds

1. Bought units for ₹6,00,000 in 2022, sold for ₹9,50,000 in 2026 — held over 12 months, so long-term.
2. Gain = ₹3,50,000. Exemption = ₹1,25,000. Taxable LTCG = ₹2,25,000.
3. Tax at 12.5% = ₹28,125, plus 4% cess = ₹1,125.

**Result:** Tax ≈ ₹29,250 on a ₹3.5 lakh gain.

## FAQs

### Is indexation still available?

Only for resident individuals and HUFs selling land or buildings acquired before 23 July 2024 — they can choose 20% with indexation instead of 12.5% without, whichever is lower. For all other assets indexation was removed from 23 July 2024.

### Does the ₹12 lakh rebate cover capital gains?

No. The Section 87A rebate in the new regime doesn't apply to tax on special-rate income such as equity STCG (20%) and LTCG (12.5%).

### How can I reduce capital gains tax on property?

Reinvest in a residential house under Section 54 (or 54F for other assets), or in specified bonds under Section 54EC within six months, up to ₹50 lakh.

## Official sources

- incometaxindia.gov.in: https://www.incometaxindia.gov.in/

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Canonical page: https://www.industax.com/calculators/capital-gains
Publisher: Indus Tax — CA-led tax and compliance firm (https://www.industax.com). Contact: info@industax.com, 9059139258.
This is general information, not advice for your specific facts.