Capital Gains Tax Calculator India FY 2025-26 - STCG, LTCG Rates & Exemptions
TL;DR
Capital gains tax in India for FY 2025-26 underwent significant changes after Budget 2024. Listed equity STCG is now taxed at 20% (up from 15%), LTCG at 12.5% (up from 10%) with the exemption threshold raised to Rs 1.25 lakh (from Rs 1 lakh). Indexation benefit has been removed for all asset classes except those acquired before July 23, 2024 (with a grandfathering provision). Property held over 24 months qualifies as long-term with LTCG at 12.5% flat rate. Debt mutual funds purchased after April 2023 are taxed at slab rates regardless of holding period. Key Facts:
- Equity STCG (under 12 months): 20% (Budget 2024 change)
- Equity LTCG (over 12 months): 12.5% above Rs 1.25 lakh annual exemption
- Property LTCG (over 24 months): 12.5% without indexation (post July 2024 acquisitions)
- Debt mutual funds: Taxed at slab rates for all holding periods (post April 2023)
- Gold/unlisted shares LTCG (over 24 months): 12.5%
- Exemptions available under Sections 54, 54EC, and 54F
Capital Gains Tax Rates FY 2025-26
Holding Period for Different Assets
| Asset Type | Short-Term (STCG) Period | Long-Term (LTCG) Period |
|---|---|---|
| Listed equity shares | Up to 12 months | Over 12 months |
| Equity mutual funds | Up to 12 months | Over 12 months |
| Listed bonds/debentures | Up to 12 months | Over 12 months |
| Unlisted shares | Up to 24 months | Over 24 months |
| Immovable property (land/house) | Up to 24 months | Over 24 months |
| Gold (physical/ETF/sovereign bonds) | Up to 24 months | Over 24 months |
| Debt mutual funds (post Apr 2023) | Any period | N/A (taxed at slab) |
Tax Rates Summary
| Asset Type | STCG Rate | LTCG Rate | Exemption |
|---|---|---|---|
| Listed equity/equity MF | 20% | 12.5% | Rs 1,25,000/year on LTCG |
| Property | Slab rate | 12.5% (no indexation) | Sec 54/54F exemption |
| Gold | Slab rate | 12.5% | Nil |
| Unlisted shares | Slab rate | 12.5% | Nil |
| Debt MF (post Apr 2023) | Slab rate | Slab rate | Nil |
| Listed bonds | Slab rate | 12.5% | Nil |
Budget 2024 Changes: What Changed
The Union Budget 2024 (effective July 23, 2024) made sweeping changes:
- Equity STCG increased: From 15% to 20%
- Equity LTCG increased: From 10% to 12.5%
- LTCG exemption raised: From Rs 1 lakh to Rs 1.25 lakh per year
- Indexation removed: No indexation benefit for any asset class (property, gold, debt)
- Flat LTCG rate: 12.5% for all long-term assets (simplified from multiple rates)
- Grandfathering for property: Assets acquired before July 23, 2024 can use either (a) 12.5% without indexation or (b) 20% with indexation, whichever results in lower tax
Impact on Property Sellers
| Scenario | Old Rules (20% with indexation) | New Rules (12.5% flat) | Better Option |
|---|---|---|---|
| Bought 2015 at Rs 50L, Sold 2026 at Rs 1.2Cr | Tax: Rs 5.2L (after indexation) | Tax: Rs 8.75L | Old rules |
| Bought 2022 at Rs 80L, Sold 2026 at Rs 1.2Cr | Tax: Rs 6.8L (limited indexation) | Tax: Rs 5.0L | New rules |
| Bought 2024 at Rs 1Cr, Sold 2026 at Rs 1.3Cr | Not applicable (post July 2024) | Tax: Rs 3.75L | Only new rules |
---
LTCG Calculation on Equity: Step by Step
Example: Selling Equity Shares
You bought 500 shares of Reliance at Rs 2,000 per share in January 2025. You sell them in April 2026 at Rs 2,800 per share.
Purchase Cost: 500 x Rs 2,000 = Rs 10,00,000
Sale Value: 500 x Rs 2,800 = Rs 14,00,000
Capital Gain: Rs 4,00,000 (held over 12 months = LTCG)LTCG Tax:
Taxable LTCG = Rs 4,00,000 - Rs 1,25,000 (exemption) = Rs 2,75,000
Tax = Rs 2,75,000 x 12.5% = Rs 34,375
Cess (4%) = Rs 1,375
Total Tax = Rs 35,750
Grandfathering for Pre-2018 Equity Holdings
For equity shares and equity mutual funds acquired before January 31, 2018, the cost of acquisition is the higher of:
- Actual purchase price, OR
- Fair Market Value (FMV) as on January 31, 2018 (highest traded price)
---
Capital Gains Exemptions
Section 54: Sale of Residential Property
- Applicable to: Individual/HUF selling a residential house
- Exemption on: LTCG reinvested in one or two residential properties
- Investment deadline: Purchase within 1 year before or 2 years after sale; construct within 3 years
- Lock-in: New property must be held for 3 years
- Limit: Rs 10 crore cap on exemption amount
Section 54EC: Investment in Specified Bonds
- Applicable to: Any long-term capital asset
- Exemption on: LTCG invested in NHAI/REC/PFC/IRFC bonds
- Maximum investment: Rs 50 lakh per financial year
- Lock-in period: 5 years (no premature redemption)
- Interest rate: 5% per annum (taxable)
Section 54F: Sale of Any Asset (Other Than House)
- Applicable to: Sale of any long-term capital asset except residential house
- Condition: You must not own more than one residential house (other than the new one)
- Exemption: Proportionate to investment in new residential house
| Exemption Section | Asset Sold | Invest In | Max Limit | Lock-in |
|---|---|---|---|---|
| 54 | Residential house | Residential house | Rs 10 crore | 3 years |
| 54EC | Any long-term asset | Specified bonds | Rs 50 lakh | 5 years |
| 54F | Non-house long-term asset | Residential house | No cap (proportionate) | 3 years |
Debt Mutual Fund Taxation (Post April 2023)
The Finance Act 2023 removed the long-term capital gains benefit for debt mutual funds. For units purchased on or after April 1, 2023:
- Gains are taxed at your income slab rate regardless of holding period
- No indexation benefit
- No distinction between short-term and long-term
- This applies to debt funds, liquid funds, money market funds, and funds with less than 65% equity allocation
---
Frequently Asked Questions
Q: How is STCG on equity shares taxed at 20% calculated?
STCG on listed equity (sold within 12 months of purchase through a recognized stock exchange with STT paid) is taxed at a flat 20% plus 4% cess. For example, if you earn Rs 50,000 in short-term gains from equity trading, the tax is Rs 50,000 x 20% = Rs 10,000 plus Rs 400 cess = Rs 10,400. This is added to your total income but taxed at the special rate, not your slab rate.
Q: Can I set off capital losses against capital gains?
Yes, with specific rules. Short-term capital losses can be set off against both STCG and LTCG. Long-term capital losses can only be set off against LTCG. Unabsorbed capital losses can be carried forward for 8 assessment years. You must file your ITR by the due date to carry forward capital losses (belated returns cannot carry forward losses).
Q: Is there any capital gains tax on selling inherited property?
Yes, inherited property is taxable when sold. The cost of acquisition is the cost to the previous owner (the person who originally bought it). The holding period includes the time the previous owner held the property. So if your parent bought a property in 2005 and you inherited it in 2020 and sell it in 2026, it qualifies as LTCG with cost from 2005.
Q: How are capital gains on gold ETFs and sovereign gold bonds taxed?
Gold ETFs follow the standard gold taxation: STCG at slab rate if sold within 24 months, LTCG at 12.5% if held over 24 months. However, Sovereign Gold Bonds (SGBs) held to maturity (8 years) are fully exempt from capital gains tax. If SGBs are sold before maturity on the secondary market, normal capital gains tax applies.
---
Calculate Your Capital Gains Tax
Enter your asset type, purchase price, sale price, and holding period to compute exact STCG or LTCG tax liability. Capital Gains Calculator → | Capital Gains Table →