LTCG / STCG Calculator Capital Gains Tax

Capital Gains Tax Calculator — LTCG & STCG for FY 2025-26

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.

STCG vs LTCG — How the Holding Period Works

STCG vs LTCG — What's the Difference?

The single factor that decides how your profit is taxed is how long you held the asset. Sell within the short-term window and you have a short-term capital gain (STCG); hold beyond it and you have a long-term capital gain (LTCG). The distinction matters because the two are taxed under entirely different rules — STCG on listed equity is a flat rate under Section 111A, while LTCG on listed equity is taxed under Section 112A with a yearly exemption. For most other assets, STCG is added to your income and taxed at your slab rate, whereas LTCG is taxed at a concessional 12.5%. Getting the holding period right is therefore the first and most important step in any capital gains tax calculation.

Short-Term Capital Gains Tax on Shares (Section 111A)

When listed equity shares or equity-oriented mutual fund units (on which STT has been paid) are sold within 12 months, the profit is a short-term capital gain taxed under Section 111A at a flat 20% — regardless of your income tax slab. This rate was raised from 15% to 20% in Budget 2024 and applies to all such transfers made on or after 23 July 2024.

For every other asset — unlisted shares, property, gold, debt mutual funds — sold within its short-term threshold, the short-term gain is added to your total income and taxed at your normal slab rate, with no special concessional rate.

Long-Term Capital Gains (LTCG) Tax Rates for FY 2025-26 (Section 112A)

Long-term capital gains on listed equity shares and equity mutual funds (STT paid) are taxed under Section 112A. The first ₹1.25 lakh of such gains in a financial year is exempt; anything above that is taxed at 12.5% without indexation. Budget 2024 raised this rate from 10% to 12.5% and lifted the exemption from ₹1 lakh to ₹1.25 lakh, effective for transfers on or after 23 July 2024. LTCG on all other assets is taxed under Section 112 at 12.5% without indexation.

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.