LTCG / STCG Calculator Capital Gains Tax
Calculate the tax on profit from selling equity shares or mutual fund units — enter your sale and purchase values, holding period, and applicable dates to get your exact tax liability.
Enter your sale and purchase values above to calculate your capital gain.
What Are Capital Assets and Capital Gains?
Capital assets are items of value held by an individual — shares, bonds, mutual fund units, jewellery, patents, trademarks, and real estate all qualify. Routine personal items like clothing and furniture, and rural agricultural land, are not capital assets under the Income Tax Act. A capital gain arises when you sell a capital asset for more than its acquisition cost; if the sale price is lower, it is a capital loss.
Short-Term vs Long-Term — How the Holding Period Works
| Capital Asset | Short Term | Long Term |
|---|---|---|
| Listed equity shares | Held ≤ 1 year | Held > 1 year |
| Equity-oriented mutual funds | Held ≤ 1 year | Held > 1 year |
| Property, gold, debt MF, other assets | Held ≤ 2 years | Held > 2 years |
Long-Term Capital Gain Tax Rates for FY 2025-26
| Asset | LTCG Rate | Notes |
|---|---|---|
| Listed equity shares (STT paid) / equity MF units (STT paid) | 12.5% | First ₹1.25 lakh of gains per year is exempt |
| Land or building — individuals and HUFs | 12.5% or 20% | 12.5% without indexation, or 20% with indexation (choose the lower outcome) |
| All other assets | 12.5% | No indexation benefit |
Short-Term Capital Gain Tax Rates
When equity shares or equity mutual fund units (with STT paid) are sold within 12 months, the STCG is taxed at 20% — flat, regardless of your income slab. For all other assets sold within the applicable short-term threshold, the gain is added to your total income and taxed at your normal slab rate.
The Grandfathering Rule for Purchases Before 31 Jan 2018
Equity LTCG tax was introduced in Budget 2018, effective from 1 April 2018. To protect investors who had already held shares or equity MF units, a grandfathering clause preserves all gains accrued up to 31 January 2018.
For assets purchased before that date, the effective cost of acquisition is the higher of: (a) the actual purchase price, or (b) the lower of the FMV on 31 Jan 2018 and the actual sale price. This ensures that only gains arising after 31 Jan 2018 are taxed.
Example: shares bought at ₹150, FMV on 31 Jan 2018 = ₹250, sold at ₹300. Since FMV (₹250) > actual cost (₹150), the cost is deemed ₹250. Taxable gain = ₹300 − ₹250 = ₹50.
How the Calculator Works — A Worked Example
You purchase 200 shares of a listed company at ₹1,000 per share in May 2018 and sell all 200 at ₹1,800 per share in January 2025. Holding period: over 6 years, so this is LTCG.
Total gain = (1,800 − 1,000) × 200 = ₹1,60,000. The first ₹1,25,000 is exempt. Taxable LTCG = ₹1,60,000 − ₹1,25,000 = ₹35,000. Tax = ₹35,000 × 12.5% = ₹4,375.
How to Use This Calculator
- Select the holding period — less than or equal to 1 year (STCG) or more than 1 year (LTCG).
- Enter the sale value of your investment.
- Select the purchase date — before or on/after 31 Jan 2018.
- Enter the purchase value and any transfer expenses (brokerage, STT, etc.).
- If you held the asset before 31 Jan 2018, enter the Fair Market Value as on that date to apply grandfathering.
- The calculator shows your short-term or long-term capital gain and the exact tax payable.
Benefits of Knowing Your Capital Gains in Advance
- See the real post-tax return on your equity or mutual fund investment.
- Plan the timing of your sale around the LTCG exemption threshold.
- Understand how the grandfathering rule affects your effective cost and taxable gain.
- Avoid surprises at ITR filing time by knowing your TDS and advance tax obligations.
- Compare the tax impact of selling now versus holding longer to cross the LTCG threshold.