Estimate short-term and long-term capital gains tax for the post-23-July-2024 regime — equity, property, gold, unlisted shares or debt funds, with the ₹1.25 lakh equity exemption and 4% cess.
How capital gains are taxed in FY 2025-26
A capital gain is the profit when you sell an asset for more than you paid for it. India taxes that gain differently depending on what the asset is and how long you held it. The rules below reflect the Finance (No. 2) Act 2024 regime that applies to transfers made on or after 23 July 2024 (FY 2025-26 (transfers on/after 23 Jul 2024)).
Short-term vs long-term: the holding-period thresholds
The holding period decides whether your gain is short-term (STCG) or long-term (LTCG):
- Listed equity shares and equity mutual funds (with STT paid): 12 months or less is short-term; more than 12 months is long-term.
- Property, gold and unlisted shares: 24 months or less is short-term; more than 24 months is long-term.
- Debt mutual funds bought on or after 1 April 2023: there is no long-term category — every gain is treated as slab-taxed income.
The rates that apply
| Asset | Short-term (STCG) | Long-term (LTCG) |
|---|
| Listed equity / equity MF (STT paid) | 20% (§111A) | 12.5% on gains above ₹1,25,000/yr (§112A) |
| Property / gold / unlisted shares | At your income-tax slab rate | 12.5% without indexation |
| Debt mutual fund (bought on/after 1 Apr 2023) | Always at your income-tax slab rate (no long-term benefit) |
A 4% health & education cess is added to the tax in every case. Rates as of FY 2025-26 (transfers on/after 23 Jul 2024).
The ₹1.25 lakh equity LTCG exemption
Long-term capital gains on listed equity and equity mutual funds are exempt up to ₹1,25,000 in a financial year under Section 112A. Only the gain beyond that exemption is taxed at 12.5% plus cess. The exemption applies once per financial year across all your equity LTCG, not per transaction.
Worked example: equity sold after 24 months
You buy listed shares for ₹1,00,000 and sell them for ₹3,00,000 after 24 months. The gain is ₹2,00,000; because the holding is over 12 months it is long-term. The first ₹1,25,000 is exempt, leaving a taxable gain of ₹75,000. Tax at 12.5% is ₹9,375, plus 4% cess of ₹375, for a total of ₹9,750 — exactly what the live calculator above shows for these inputs.
No more indexation for property and gold
For transfers on or after 23 July 2024, the long-term rate for property, gold and unlisted shares is a flat 12.5% without indexation. Earlier rules allowed indexing the purchase cost to inflation before computing the gain. A separate transitional relief lets resident individuals and HUFs who bought land or buildings before 23 July 2024 choose the older 20%-with-indexation method if it produces a lower tax — that pre-2024 option, along with surcharge and the Section 54 / 54F / 54EC reinvestment exemptions, is not modelled here.
Frequently Asked Questions
What is the difference between short-term and long-term capital gains?
The classification depends only on how long you held the asset. For listed equity shares and equity mutual funds (with STT paid), a holding of 12 months or less is short-term (STCG) and more than 12 months is long-term (LTCG). For property, gold and unlisted shares the threshold is 24 months. Debt mutual funds bought on or after 1 April 2023 have no long-term category at all — they are always taxed at your slab rate.
What are the capital gains tax rates for FY 2025-26?
For transfers on or after 23 July 2024: listed equity / equity MF — STCG at 20% (Section 111A) and LTCG at 12.5% on gains above ₹1.25 lakh per year (Section 112A). Property, gold and unlisted shares — LTCG at 12.5% without indexation, and STCG at your normal income-tax slab rate. Debt mutual funds (bought on/after 1 April 2023) — always at your slab rate. A 4% health & education cess is added on top in every case.
How does the ₹1.25 lakh equity LTCG exemption work?
Long-term capital gains on listed equity shares and equity mutual funds are exempt up to ₹1,25,000 in a financial year (Section 112A). Only the gain above that exemption is taxed, at 12.5% plus cess. For example, a long-term equity gain of ₹2,00,000 has ₹1,25,000 exempted and ₹75,000 taxed at 12.5% = ₹9,375, plus 4% cess of ₹375, for ₹9,750 total. The exemption is per financial year, not per transaction.
Why are debt mutual funds taxed at my slab rate?
For debt mutual fund units bought on or after 1 April 2023, the law removed the long-term capital gains benefit entirely. Any gain — regardless of how long you held the units — is added to your income and taxed at your applicable income-tax slab rate (plus 4% cess). There is no 12.5% long-term rate and no indexation for these units. Units bought before 1 April 2023 follow older rules not modelled here.
What happened to indexation after 23 July 2024?
For transfers on or after 23 July 2024, the long-term rate for property, gold and unlisted shares became a flat 12.5% without indexation. Indexation previously let you inflate the purchase cost using the Cost Inflation Index before computing the gain. A separate relief lets resident individuals and HUFs who bought land or buildings before 23 July 2024 choose the older 20%-with-indexation method if it gives a lower tax — that pre-2024 option is not modelled by this calculator.
Does this calculator handle capital losses or exemptions like Section 54?
No. If your sale value is below your purchase value the result is a capital loss, which this tool flags but does not compute — capital losses can be set off against other capital gains or carried forward under specific rules best handled by a tax professional. The calculator also does not model surcharge, Section 54 / 54F / 54EC reinvestment exemptions, or the pre-2024 property indexation option. Treat the figure as a factual estimate of the base tax only.
This is a factual estimate for the FY 2025-26 regime (transfers on/after 23 Jul 2024). It does NOT model surcharge, Section 54/54F/54EC exemptions, the pre-2024 property indexation option, or the set-off / carry-forward of capital losses. It is not financial, tax or legal advice — consult a Chartered Accountant or SEBI-registered investment adviser and verify rules on incometax.gov.in.