Capital Gains Tax Calculator

Taxes

Estimate the tax on your listed equity gains under the latest rules — 20% short-term, 12.5% long-term above the ₹1.25 lakh exemption — and see your take-home profit.

In short: The Capital Gains Tax Calculator is a free online tool that lets you calculate tax on your equity share and mutual fund capital gains — instantly, with charts, a worked example and the exact formula.

Your inputs

Net gain

₹4,00,000

long-term

Tax payable

₹34,375

at 12.5%

Post-tax profit

₹3,65,625

Gain and tax breakdown

How your investment splits into gain, tax and post-tax profit.

Capital gains breakdown

Capital gains breakdown
Component	Amount
Amount invested	₹5,00,000
Sale proceeds	₹9,00,000
Net capital gain	₹4,00,000
Taxable gain	₹2,75,000
Tax (12.5%)	₹34,375
Post-tax profit	₹3,65,625

Long-term equity gains get a ₹1.25L annual exemption; short-term gains are taxed in full.

Formula

Gain = (Sell − Buy) × Qty • LTCG tax = 12.5% × max(0, Gain − ₹1.25L) • STCG tax = 20% × Gain

Buy / Sell: Purchase and sale price per unit
Qty: Number of shares or units
Exemption: ₹1.25 lakh annual LTCG exemption for equity

Step-by-step calculation

Worked with the default values.

1
Net gain
(₹180 − ₹100) × 5000
= ₹4,00,000
2
Taxable gain
₹4,00,000 − ₹1,25,000 exemption
= ₹2,75,000
3
Tax at 12.5%
₹2,75,000 × 12.5%
= ₹34,375

How it works

Short-term gains (holding ≤ 12 months) on listed equity are taxed at a flat 20%.
Long-term gains (holding > 12 months) are taxed at 12.5% on the amount above the ₹1.25 lakh yearly exemption.
Post-tax profit is your net gain minus the tax payable.

Examples

Buy ₹100, sell ₹180, 5,000 shares held long-term

₹4L gain → ₹2.75L taxable after exemption → about ₹34,375 tax at 12.5%.

Understanding the Capital Gains Tax Calculator

Understanding capital gains tax on equity

When you sell listed shares or equity mutual funds for more than you paid, the profit is a capital gain. India taxes that gain differently depending on how long you held the investment. The rules changed materially on 23 July 2024, raising rates but also increasing the exemption, so it pays to know exactly where your transaction falls.

The holding period is the single most important factor. Hold listed equity for more than 12 months and your gain is long-term (LTCG), taxed at just 12.5% after a generous ₹1.25 lakh annual exemption. Sell within 12 months and the gain is short-term (STCG), taxed at a flat 20% with no exemption. The gap between these two rates is a strong incentive to hold for the long run.

How the exemption works

The ₹1.25 lakh long-term exemption is an annual, portfolio-wide figure — not a per-scheme or per-trade allowance. In a financial year you can realise up to ₹1.25 lakh of LTCG completely tax-free. Only gains above that threshold attract the 12.5% rate.

A ₹1 lakh long-term gain: fully exempt, zero tax.
A ₹4 lakh long-term gain: ₹2.75 lakh is taxed at 12.5%, giving ₹34,375.
Any short-term gain: the full amount is taxed at 20% with no exemption.

Managing your tax bill

Smart investors use the annual exemption deliberately. Tax harvesting means selling enough long-term holdings each year to book up to ₹1.25 lakh of gains tax-free, then reinvesting — this resets your cost base and quietly shrinks future tax.

Losses are equally useful. Short-term losses offset both short- and long-term gains, while long-term losses offset only long-term gains. Unabsorbed losses carry forward for eight assessment years, provided you file your return by the due date.

Points to remember

Securities Transaction Tax and brokerage are not deductible from your gain, though paying STT is what qualifies you for the concessional rates. If your total tax liability crosses ₹10,000, capital gains feed into your advance-tax instalments, so plan for them near year-end to avoid interest. Finally, keep clean records of acquisition dates for every tranche — bonus shares, rights issues and each SIP instalment carry their own holding periods, and getting these right is what separates an accurate return from a costly notice.

Pros

Long-term equity gains enjoy a low 12.5% rate plus a ₹1.25 lakh annual exemption, far below slab rates.
Losses can be set off against gains and carried forward for 8 years, cushioning bad years.
No tax is due until you actually sell — gains can compound untaxed for years.
Equity held over 12 months is treated favourably, rewarding patient, long-term investing.
The flat rates keep the tax simple to estimate compared with slab-based income.

Cons

Short-term equity gains are taxed at a steep 20%, penalising frequent trading.
STT and brokerage costs are not deductible when computing your taxable gain.
The ₹1.25 lakh exemption is a single annual cap, easily exhausted by larger portfolios.
Advance-tax obligations on realised gains can create cash-flow surprises at year end.

Tips

1Harvest up to ₹1.25 lakh of long-term gains each year tax-free by selling and rebuying to reset your cost base.
2Book long-term losses before 31 March to offset gains and lower your tax bill.
3Hold equity for at least 12 months to move from the 20% short-term rate to the 12.5% long-term rate.
4Track acquisition dates carefully for bonus, rights and SIP units, as each tranche has its own holding period.
5Include realised gains in your advance-tax planning to avoid interest under Sections 234B and 234C.

Frequently asked questions

Everything you need to know about the Capital Gains Tax Calculator.

What counts as long-term for equity?

For listed equity shares and equity mutual funds, a holding period of more than 12 months is long-term; 12 months or less is short-term.

How much LTCG is exempt?

Long-term equity gains up to ₹1.25 lakh in a financial year are exempt. Only the excess is taxed at 12.5%.

Are these the new tax rates?

Yes. From 23 July 2024, listed-equity STCG is 20% and LTCG is 12.5% with a raised ₹1.25 lakh exemption. This calculator uses those rates.

How is the holding period counted?

The holding period runs from the date of purchase to the date of sale. For listed equity and equity mutual funds, more than 12 months qualifies as long-term. Shares acquired via bonus or rights issues have their own acquisition dates.

Can I set off capital losses against gains?

Yes. Short-term capital losses can be set off against both short-term and long-term gains, while long-term losses can only offset long-term gains. Unabsorbed losses can be carried forward for up to 8 assessment years if you file your return on time.

Is STT included in the gain calculation?

Securities Transaction Tax (STT) paid on buying and selling listed shares is not deductible when computing capital gains. However, paying STT is what makes the concessional 12.5% and 20% rates applicable to your equity transactions.

How are debt mutual funds taxed differently?

Debt funds bought on or after 1 April 2023 are taxed at your slab rate regardless of holding period, with no indexation or LTCG benefit. This calculator is built for listed equity and equity funds, not debt funds.

Do I pay advance tax on capital gains?

Yes. Capital gains are added to your total income and advance tax is payable in instalments if your total tax liability exceeds ₹10,000 in a year. Gains realised late in the year can be included in the remaining advance-tax instalments.

Does the ₹1.25 lakh exemption apply per transaction?

No. The ₹1.25 lakh long-term exemption is an annual limit that applies across all your equity LTCG in a financial year, not per transaction or per scheme. Once you cross it, every additional rupee of LTCG is taxed at 12.5%.

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