Capital Gains Tax Calculator: STCG & LTCG on Shares, Property
Shares, Property, Gold — Each Taxed Differently
Capital gains tax in India isn’t one rule — it’s a matrix. What you sell (equity, debt, property, gold), how long you held it, and when you bought it all affect your tax rate. The 2024 Budget simplified some aspects but introduced new rates that every investor needs to understand.
Holding Periods & Tax Rates (Current Rules)
| Asset Type | Short-Term Period | STCG Rate | Long-Term Period | LTCG Rate |
|---|---|---|---|---|
| Listed equity shares | Up to 12 months | 20% | Above 12 months | 12.5% (above ₹1.25L) |
| Equity mutual funds | Up to 12 months | 20% | Above 12 months | 12.5% (above ₹1.25L) |
| Debt mutual funds | Up to 24 months | Slab rate | Above 24 months | 12.5% |
| Real estate / property | Up to 24 months | Slab rate | Above 24 months | 12.5% |
| Gold (physical/digital) | Up to 24 months | Slab rate | Above 24 months | 12.5% |
| Unlisted shares | Up to 24 months | Slab rate | Above 24 months | 12.5% |
Note: Tax rules change with budgets. Always verify current rates before filing. These rates are as per the 2024 Budget amendments.
Worked Example: Equity Shares
You bought Reliance shares worth ₹3,00,000 in January 2024 and sold them for ₹4,50,000 in March 2026 (held for 26 months).
- Capital Gain: ₹1,50,000
- Exemption: ₹1,25,000 (LTCG on equity is exempt up to ₹1.25 lakh per year)
- Taxable LTCG: ₹25,000
- Tax at 12.5%: ₹3,125 + 4% cess = ₹3,250
Worked Example: Property Sale
You bought a flat for ₹45 lakh in 2018 and sold it for ₹80 lakh in 2026 (held 8 years).
- Purchase price: ₹45,00,000
- Sale price: ₹80,00,000
- Capital gain: ₹35,00,000
- LTCG tax at 12.5%: ₹4,37,500 + cess
Note: For property purchased before July 2024, you may have the option to use indexation benefits at the old 20% rate or the new 12.5% flat rate — whichever is lower. Consult a tax professional for your specific case.
How to Save Capital Gains Tax
- Section 54 (Property): Reinvest property sale proceeds in another residential property within 2 years (purchase) or 3 years (construction) for full exemption
- Section 54EC (bonds): Invest up to ₹50 lakh in specified bonds (NHAI, REC) within 6 months of sale for exemption
- Tax-loss harvesting (equity): Book losses on underperforming stocks to offset gains within the same year
- Use the ₹1.25L LTCG exemption: Stagger your equity redemptions across financial years to stay within the exemption limit
Common Mistakes
- Confusing holding period thresholds: Equity is 12 months; debt/property/gold is 24 months
- Forgetting the STT condition: The lower LTCG rates on equity apply only if STT was paid at the time of purchase and sale
- Not reporting exempt LTCG: Even if your equity LTCG is below ₹1.25 lakh, you should report it in your ITR
- Mixing SIP redemption dates: Each SIP instalment has its own purchase date — some may be short-term while others are long-term
Use the capital gains calculator to compute your gain and tax liability accurately. For SIP investors, pair it with the SIP calculator to plan redemptions tax-efficiently.