Capital Gains Tax Calculator (Equity)
For listed equity shares and equity mutual funds (with STT paid), two rates apply: gains on holdings of 12 months or less are short-term, taxed at 20%; longer holdings are long-term, taxed at 12.5% — but only on the amount above ₹1.25 lakh of LTCG per financial year. These rates took effect on 23 July 2024 and remain unchanged for FY 2026-27.
Enter your buy and sell values and the calculator applies the right exemption, rate and 4% health & education cess. The rate fields stay editable, so the tool remains usable if a future Budget moves them.
How it works
- Capital gain = sale value − cost of acquisition (transfer expenses like brokerage are deductible from sale value).
- Long-term: taxable gain = max(0, gain − unused ₹1.25 lakh exemption); tax at 12.5% + 4% cess.
- Short-term: the full gain is taxed at 20% + 4% cess — no exemption threshold.
Frequently asked questions
What are the current LTCG and STCG rates on shares?
Since 23 July 2024 (unchanged through Budget 2026): STCG on listed equity/equity funds is 20%, LTCG is 12.5% on gains above ₹1.25 lakh per financial year. Health & education cess of 4% applies on the tax; surcharge on equity capital gains is capped at 15% for high incomes.
How exactly does the ₹1.25 lakh exemption work?
It is a single annual threshold across ALL your equity LTCG for the financial year — shares plus equity funds combined, not per stock or per sale. Gains up to ₹1.25 lakh are tax-free; only the excess is taxed at 12.5%. It does not apply to short-term gains, and unused exemption does not carry forward.
Can I reduce this tax with losses?
Yes — short-term capital losses set off against both STCG and LTCG; long-term capital losses set off only against LTCG. Unabsorbed losses carry forward eight years if you file your return on time. The tax-loss harvesting calculator runs this optimisation for you.
Do I pay capital gains tax if my total income is below the basic exemption limit?
Residents can adjust the unexhausted basic exemption limit against capital gains, which can wipe out small liabilities. But note: the Section 87A rebate is not available against these special-rate gains under the new regime — so slightly-above-limit incomes can still owe tax on equity gains.
Related tools
Stop calculating. Start getting alerted.
MarketPing watches every NSE & BSE filing in real time — results, dividends, buybacks, order wins — AI-summarised with likely price impact and delivered to your WhatsApp.
This tool is an educational estimate, not investment or tax advice. Rates and rules change — verify current figures and consult a professional before acting.