Capital Gains Calculator

What is a Capital Gains Calculator?

A Capital Gains Calculator helps you estimate the tax liability on profits from selling assets such as stocks, mutual funds, real estate, debt instruments, and gold. It automatically determines whether your gain is short-term or long-term based on the holding period and asset type, then applies the relevant tax rate as per Indian income tax rules. For real estate investment analysis, our Capitalization Rate Calculator helps evaluate property returns separately.

How Does the Capital Gains Calculator Work?

The calculator first determines the holding period by calculating the difference between your purchase and sale dates. Based on the asset type and holding period, it classifies the gain as short-term (STCG) or long-term (LTCG). It then applies the appropriate tax rate: 20% for STCG on equity, 12.5% for LTCG on equity (above the exemption limit), slab rate for STCG on debt/others, and 20% with indexation for LTCG on debt/others.

How to Use This Capital Gains Calculator

Select Asset Type: Choose from equity, debt, real estate, or gold.
Enter Purchase Details: Input the purchase price and date of acquisition.
Enter Sale Details: Input the sale price and date of sale.
Set Your Tax Slab: For short-term debt/other gains, select your income tax slab rate.
View Results: See the gain type, tax rate, tax amount, and net gain after tax.

Capital Gains Tax Rates in India (2025-26)

For equity investments held over 12 months, LTCG above Rs 1.25 lakh is taxed at 12.5%. STCG on equity (held 12 months or less) is taxed at 20%. For debt investments and gold held over 36 months, LTCG is taxed at 20% with indexation benefit. STCG on debt and gold (held 36 months or less) is taxed at your applicable income tax slab rate. For real estate held over 24 months, LTCG is taxed at 20% with indexation.

Indexation Benefit Explained

Indexation adjusts the purchase price of an asset for inflation using the Cost Inflation Index (CII) published by the Income Tax Department. By increasing the cost basis, indexation reduces the taxable gain, often significantly lowering the tax liability for long-term assets held during periods of high inflation. This benefit is available for LTCG on debt mutual funds, real estate, and gold. For related calculations, try our Gain on Sale Calculator and Capital Recovery Calculator to understand investment returns and loan recovery schedules.

Frequently Asked Questions

What is the difference between STCG and LTCG?

Short-Term Capital Gains (STCG) arise when an asset is sold within a specified holding period (12 months for equity, 24 months for real estate, 36 months for debt and gold). Long-Term Capital Gains (LTCG) arise when the asset is held beyond these periods. LTCG generally enjoys lower tax rates and indexation benefits compared to STCG.

How is LTCG on equity taxed in India?

As of Budget 2025, LTCG on equity shares and equity-oriented mutual funds held for more than 12 months is taxed at 12.5% on gains exceeding Rs 1.25 lakh in a financial year. Gains up to Rs 1.25 lakh are tax-free. This exemption is available per individual per financial year.

Can I set off capital losses against capital gains?

Yes, short-term capital losses can be set off against both short-term and long-term capital gains. Long-term capital losses can only be set off against long-term capital gains. Unabsorbed losses can be carried forward for up to 8 assessment years. However, losses cannot be set off against salary, business, or other income.

What is the indexation benefit for debt funds?

Indexation adjusts the purchase price of an asset for inflation using the Cost Inflation Index (CII). For debt mutual funds held over 36 months, LTCG is calculated after indexing the cost, which often results in lower taxable gains. The formula is: Indexed Cost = Purchase Price × (CII of sale year / CII of purchase year).

Do I need to pay capital gains tax on inherited property?

Inheritance is not subject to capital gains tax in India. However, when you sell inherited property, capital gains tax applies. The holding period is calculated from the date the original owner acquired the property, not from the date of inheritance. The cost basis is also the original owner's acquisition cost, with indexation benefits available.

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