Capital Gains Tax Calculator

Calculate capital gains tax in India on stocks, property, gold, and debt funds. Updated STCG 20%, LTCG 12.5% rates under Finance Act 2024 with slab-based non-equity taxation.

Calculate tax on your capital gains

About This Calculator

Capital gains tax is levied on the profit earned from the sale of capital assets like stocks, property, gold, and bonds. This calculator is designed for Indian investors, traders, and property owners who need to compute their exact tax liability on capital gains from various asset classes. Whether you are selling shares from your stock portfolio, transferring a residential property, or liquidating gold investments, understanding the tax implications helps you plan your finances better.

Our calculator automatically classifies your gain as Short-Term Capital Gain (STCG) or Long-Term Capital Gain (LTCG) based on the holding period. It applies the current tax rates under the Finance Act 2024 for each asset type. The breakdown shows your gross capital gain, taxable gain, tax payable, and net gain after tax, providing complete transparency in the calculation.

Current Tax Rates (Finance Act 2024, effective 23 July 2024):

Short-Term Capital Gains (STCG):

  • Equity/Stocks: Held for less than 1 year - flat 20% tax
  • Other Assets: Held for less than the LTCG holding period - taxed at your income tax slab rate (added to your other income)

Long-Term Capital Gains (LTCG):

  • Equity/Stocks: Held for 1 year or more - 12.5% tax (above ₹1.25 lakh)
  • Property: Held for more than 2 years - 12.5% tax without indexation
  • Gold/Debt/Bonds: Held for more than 3 years - 12.5% tax without indexation

Indexation Removed:

The Finance Act 2024 removed the indexation benefit on long-term capital gains for assets purchased on or after 23 July 2024. Non-equity LTCG is now taxed at a flat 12.5% without indexation. For assets purchased before 23 July 2024, you can choose the lower of: 12.5% without indexation, or the previous 20% with indexation.

Slab-Based Taxation for Non-Equity STCG:

Since the Finance Act 2024, short-term capital gains on non-equity assets like property, gold, and debt are no longer taxed at a flat rate. They are added to your other taxable income and taxed at your marginal income tax slab rate. Enter your other annual taxable income (excluding this gain) and select your tax regime (new or old) so the calculator can compute the correct slab rate and cess.

Tax-Saving Exemptions:

Under Section 54, you can save LTCG tax on property sale by reinvesting the gains in another residential property within two years (or constructing within three years). Section 54EC allows you to invest up to ₹50 lakh in Capital Gains Bonds issued by NHAI or REC within six months of the sale. Section 54F provides exemption on sale of any asset other than a residential house if the proceeds are used to purchase or construct a new residential house. These provisions can significantly reduce or eliminate your tax liability.

Features:

  • Support for multiple asset types including equity, debt, property, and gold
  • Automatic STCG/LTCG classification based on holding period
  • Slab-based STCG calculation for non-equity assets using your income and tax regime
  • Current flat LTCG rates (12.5%) and equity STCG rate (20%) without indexation
  • Visual breakdown of tax components with interactive charts
  • Shareable calculation links for easy reference

Frequently Asked Questions

What is capital gains tax?

Capital gains tax is a tax levied on the profit (gain) you make when you sell a capital asset like stocks, property, gold, or bonds at a higher price than you paid for it. The tax rate depends on the type of asset and how long you held it (holding period). Capital gains are classified as Short-Term (STCG) or Long-Term (LTCG) based on the holding period.

What is the difference between STCG and LTCG?

For equity shares and equity mutual funds: STCG applies if held for less than 1 year, LTCG if held for 1 year or more. For property: LTCG applies if held for more than 2 years. For other assets like gold, debt funds, and bonds: LTCG applies if held for more than 3 years. Tax rates differ between STCG and LTCG, and since the Finance Act 2024, non-equity STCG is taxed at income tax slab rates.

How much tax on stock market gains?

For stocks and equity mutual funds after the Finance Act 2024: STCG (held less than 1 year) is taxed at a flat 20%. LTCG (held 1 year or more) is tax-free up to ₹1.25 lakh per financial year, and gains above ₹1.25 lakh are taxed at 12.5% without indexation benefit. The first ₹1.25 lakh of long-term equity gains every year is completely tax-free.

How is indexation treated under the new rules?

Indexation benefit on long-term capital gains was removed for assets purchased on or after 23 July 2024 under the Finance Act 2024. Long-term capital gains on non-equity assets like property, gold, and debt funds are now taxed at a flat 12.5% without indexation. For assets purchased before 23 July 2024, a grandfathering option allows you to choose either the 12.5% rate without indexation or the earlier 20% rate with indexation, whichever is lower.

How are non-equity short-term capital gains taxed?

Under the Finance Act 2024, short-term capital gains on non-equity assets (property, gold, debt funds, bonds) are no longer taxed at a flat rate. They are added to your other taxable income and taxed at your applicable income tax slab rate. This means the marginal rate depends on your total income, so the calculator asks for your other annual taxable income to compute the correct slab rate.

How to save capital gains tax on property sale?

You can save LTCG tax on property sale by: 1) Investing the gains in another residential property under Section 54 (within 2 years or construct within 3 years), 2) Investing in Capital Gains Bonds under Section 54EC (NHAI, REC bonds) up to ₹50 lakh, 3) Depositing in Capital Gains Account Scheme if you need time to reinvest. These exemptions can reduce or eliminate your tax liability.

Is capital gains tax applicable on inherited property?

Inherited property is not subject to capital gains tax at the time of inheritance (no tax on receiving it). However, when you sell the inherited property, capital gains tax applies. For calculating gains, the cost of acquisition is considered as the cost to the previous owner, and the holding period includes the time the previous owner held the property.

What is the holding period for LTCG on property?

For immovable property (land, building, house), the holding period to qualify for LTCG is 24 months (2 years) if sold after April 1, 2017. Earlier it was 36 months. If you hold the property for more than 2 years before selling, you qualify for LTCG at 12.5% (previously 20% with indexation) without indexation.

How to calculate capital gains on gifted property?

For gifted property, the cost of acquisition is taken as the cost to the previous owner (donor). The holding period also includes the period the donor held the property. For example, if your father bought a house in 2000 and gifted it to you in 2020, when you sell it in 2024, the holding period is 24 years (from 2000) and cost is what your father paid.

Is agricultural land subject to capital gains tax?

Agricultural land in rural India (not located within 8 km of municipality limits) is not considered a capital asset and is exempt from capital gains tax. However, urban agricultural land is subject to capital gains tax. The classification depends on the location and population of the area where the land is situated.

What are capital gains bonds under Section 54EC?

Capital Gains Bonds under Section 54EC allow you to save LTCG tax by investing the gain amount in specified bonds within 6 months of sale. These bonds are issued by NHAI (National Highways Authority of India) and REC (Rural Electrification Corporation). The investment is locked for 5 years, and you can invest up to ₹50 lakh per financial year in these bonds.