Capital Gains Tax Calculator
Capital gains tax is the tax on the profit you make when you sell an asset for more than it cost. The July 2024 Budget reshaped the rules: gains on listed equity and equity mutual funds now attract 12.5% for long-term holdings and 20% for short-term, while property is taxed at a flat 12.5% without indexation. This calculator asks for the asset type, holding period, and purchase and sale values, then returns the taxable gain and the tax due under the current regime.
Used when gains are taxed at your slab rate.
Tax Payable
₹21,875
Total Gain
₹3,00,000
Taxable Gain
₹1,75,000
Tax Rate
12.50%
Term
Long-term
LTCG on listed equity above ₹1.25 lakh is taxed at 12.5%.
About the Capital Gains Tax Calculator
Capital gains are the profits realised on selling a capital asset such as shares, mutual funds, property, gold or bonds. They are classified as short-term or long-term based on how long you held the asset, and each category is taxed at a different rate under the Income-Tax Act.
Why it is useful
The 2024 changes altered the rates and removed indexation on property, so old ready reckoners no longer give the right answer. This calculator applies the current rates to your figures, helping you estimate the tax, plan the timing of a sale, and set aside the right amount before advance-tax deadlines.
How the calculation works
The gain is computed as gain = sale price − cost of acquisition, and the tax is applicable rate × taxable gain. For listed equity and equity mutual funds, long-term gains (held over 12 months) above ₹1.25 lakh a year are taxed at 12.5%, and short-term gains at 20%. Property held over 24 months is long-term and taxed at a flat 12.5% without indexation, while short-term property gains are added to income and taxed at your slab rate.
Key inputs explained
- Asset type: Whether it is listed equity or equity fund, property, or debt, since the rate and holding rules differ.
- Cost of acquisition: What you originally paid for the asset, including allowable acquisition costs.
- Sale value: The consideration received on selling, net of transfer expenses such as brokerage.
- Holding period: The time between purchase and sale, which decides short- versus long-term treatment.
Example calculation
Inputs
- Asset type
- Listed equity
- Cost of acquisition
- ₹5,00,000
- Sale value
- ₹8,00,000
- Holding period
- 3 years (long-term)
Calculation breakdown
- Gain = sale − cost
- 8,00,000 − 5,00,000 = ₹3,00,000
- Less annual exemption
- 3,00,000 − 1,25,000 = ₹1,75,000
- Tax = 12.5% × taxable gain
- 12.5% × 1,75,000
Because the shares were held over 12 months, the ₹3,00,000 gain is long-term. The first ₹1.25 lakh is exempt, leaving ₹1,75,000 taxable at 12.5%, so the tax is about ₹21,875 plus applicable cess.
Benefits
- Applies the post-2024 Budget rates so your estimate reflects current law.
- Separates short- and long-term treatment automatically from the holding period.
- Helps you time a sale and provision for the tax before you commit.
Limitations
- Does not add surcharge or the 4% health and education cess, which apply on top.
- Ignores brought-forward capital losses that can be set off against gains.
- Property indexation, Sections 54/54F exemptions, and grandfathering of pre-2018 equity are not modelled.
Tips
- Use the ₹1.25 lakh annual equity LTCG exemption by booking some long-term gains each year.
- Hold listed equity beyond 12 months to move from 20% STCG to 12.5% LTCG.
- Reinvest property gains under Section 54 or 54F to defer or save tax where eligible.
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About this calculator
The Capital Gains Tax Calculator is built and maintained by the PaisaBot team. All calculations run instantly in your browser using established financial formulas, and we use high-precision arithmetic to keep the results reliable.
Data accuracy: Interest rates, tax slabs, and scheme rules are updated periodically, but figures can change with RBI, government, and lender revisions. Always confirm the latest rates with your bank or an official source before acting.
Educational purpose: This tool is provided for general information and financial education only. It does not constitute investment, tax, or legal advice. For decisions specific to your situation, please consult a qualified financial advisor.