worldofcalcsCapital Gains Tax Calculator
For sales in FY 2026-27: equity gains are taxed at 20% short-term and 12.5% long-term above ₹1.25 lakh; most other long-term gains at 12.5%.
Estimate for resident individuals. Surcharge is not included (it is capped at 15% on equity gains). Not tax advice.
Capital gains tax in India for FY 2026-27
When you sell shares, mutual funds, property, gold or other assets for more than you paid, the profit is a capital gain. Whether it is short-term or long-term depends on how long you held the asset: more than 12 months for listed shares and equity funds, more than 24 months for most other assets. Long-term gains are taxed at 12.5%, with the first ₹1.25 lakh of equity gains each year tax-free. Short-term equity gains are taxed at 20%, and most other short-term gains at your slab rate. Budget 2026 kept these rates unchanged.
How the tax is calculated
Long-term equity gains are taxed at 12.5% on the amount above the ₹1.25 lakh yearly exemption. Short-term equity gains are taxed at 20%. Other long-term gains are taxed at 12.5%; for land and buildings bought before 23 July 2024 you can instead pay 20% after indexing the cost with the Cost Inflation Index (CII), whichever is lower. Debt funds bought from April 2023 and other short-term gains are added to your income and taxed at your slab rate. 4% cess is added to the tax.
Rules worth knowing
- The ₹1.25 lakh exemption is per financial year and covers all your long-term gains from listed shares and equity funds combined.
- The ₹12 lakh rebate in the new tax regime does not apply to capital gains taxed at special rates, so these gains can be taxed even when your other income is tax-free.
- For shares bought before 1 February 2018, the cost can be taken as the price on 31 January 2018, which protects gains made before then.
- Long-term gains on property can be exempted by buying another house, or by investing up to ₹50 lakh in specified bonds, within set time limits.
- Short-term losses can be set off against any capital gains; long-term losses only against long-term gains. Unused losses carry forward for 8 years if you file on time.
- The Cost Inflation Index for FY 2026-27 is 384 (376 for FY 2025-26). Indexation now applies only to land and buildings bought before 23 July 2024.
Worked example: shares and a flat
- Shares bought for ₹5,00,000 and sold 18 months later for ₹8,00,000: a long-term gain of ₹3,00,000
- The first ₹1,25,000 of equity long-term gains each year is tax-free, leaving ₹1,75,000 taxable
- Tax at 12.5% is ₹21,875, plus 4% cess of ₹875: ₹22,750 in total
- Sold within 12 months instead, the whole ₹3,00,000 is taxed at 20%: ₹62,400 with cess
- A flat bought for ₹40,00,000 in 2015 and sold for ₹90,00,000 in 2026: 20% with indexation (₹6,14,173 with cess) beats 12.5% without (₹6,50,000)
Capital gains tax rates at a glance (FY 2026-27)
For resident individuals selling on or after 23 July 2024.
| Asset | Long-term after | Short-term rate | Long-term rate |
|---|---|---|---|
| Listed shares and equity funds | 12 months | 20% | 12.5% above ₹1.25 lakh |
| Debt funds bought from April 2023 | Never | Slab rate | Slab rate |
| Land and buildings | 24 months | Slab rate | 12.5%, or 20% with indexation if bought before 23 July 2024 |
| Gold, jewellery, gold funds | 24 months | Slab rate | 12.5% |
| Unlisted shares and other assets | 24 months | Slab rate | 12.5% |
4% cess applies on top. Surcharge on equity gains is capped at 15%.