Capital Gains Tax Calculator — STCG & LTCG Post-July-2024 Rates for FY 2025-26
Compute Short-Term and Long-Term Capital Gains tax for FY 2025-26 (AY 2026-27) under the post-23-July-2024 framework. Equity STCG at 20% (Section 111A) and LTCG at 12.5% above ₹1.25 lakh (Section 112A). Property, gold, and other LTCG at 12.5% without indexation (Section 112). For property acquired before 23 July 2024 sold thereafter, the calculator computes both 12.5% no-indexation and 20% with-indexation methods and recommends whichever produces lower tax. Section 87A rebate does not apply to capital gains taxed at special rates.
Calculate Your Capital Gains Tax
Pick your asset type, enter purchase and sale details. The tool auto-classifies STCG/LTCG, applies the right section, and shows tax including 4% cess.
Calculation Breakdown
How Capital Gains Tax Works in India
Capital gains arise when you sell a capital asset for more than its cost. The tax depends on three things: the asset type, how long you held it (short-term vs long-term), and whether the transfer happened before or after 23 July 2024 — the date the Finance (No. 2) Act 2024 changes took effect. The framework is governed by the Income Tax Department and applied in line with the audit standards of the Institute of Chartered Accountants of India.
Tax = Capital Gain × Applicable Rate
Total Payable = Tax + 4% Health & Education Cess
Whether your gain is short-term (STCG) or long-term (LTCG) depends on the holding period for that asset class. The thresholds were simplified into two buckets by the Finance (No. 2) Act 2024: 12 months for listed securities and 24 months for everything else.
Section 87A Rebate Does Not Apply
A common misconception: capital gains taxed at special rates (Section 111A, Section 112, Section 112A) are excluded from the Section 87A rebate. Even if your total income is within the ₹12 lakh new regime threshold or ₹5 lakh old regime threshold, the tax on capital gains must be paid in full. Use our Section 87A Rebate Calculator to compute the rebate available on slab-rate income only.
What Changed on 23 July 2024 — The Pivot Date
The Finance (No. 2) Act 2024 introduced the most significant capital gains overhaul since 2018. Three structural changes apply to all transfers on or after 23 July 2024, as announced by the Ministry of Finance in Budget 2024:
1. Holding Periods Simplified
The earlier 12-month, 24-month, and 36-month thresholds were collapsed into two: 12 months for listed securities (equity, equity mutual funds, listed bonds, REITs, InvITs) and 24 months for all other assets (property, gold, unlisted shares, gold MFs, debt MFs). The 36-month bucket is removed entirely.
2. Equity Rates Raised
STCG on listed equity and equity-oriented mutual funds rose from 15% to 20% under Section 111A. LTCG rose from 10% to 12.5% under Section 112A, with the per-year exemption threshold raised from ₹1 lakh to ₹1.25 lakh.
3. Indexation Removed (Mostly)
Indexation benefit under Section 48(2) — which adjusted cost of acquisition for inflation using the Cost Inflation Index (CII) — was removed for transfers from 23 July 2024. The replacement is a flat 12.5% without indexation rate under Section 112 for all non-equity LTCG. The one exception: residential property and land acquired before 23 July 2024, where resident individuals and HUFs can choose between 12.5% no-indexation OR 20% with indexation, whichever produces lower tax. This grandfathering is the single most valuable optimisation for legacy property owners.
For FY 2024-25 returns: The split-year rule applies — gains realised before 23 July 2024 follow the old framework (15% STCG, 10% LTCG, indexation available); gains from 23 July 2024 onwards follow the new framework. For FY 2025-26 ITR (the return most users are filing in 2026), the new framework applies throughout — no split-year complexity. CBDT FAQs on the Budget 2024 changes confirm the effective date.
FY 2025-26 Capital Gains Rates by Asset Class
| Asset | Holding for LTCG | STCG Rate | LTCG Rate | Section |
|---|---|---|---|---|
| Listed Equity / Equity MF (STT paid) | > 12 months | 20% | 12.5% above ₹1.25L | 111A / 112A |
| Listed Bonds / REITs / InvITs | > 12 months | Slab rate | 12.5% | 112 |
| Residential Property / Land | > 24 months | Slab rate | 12.5% (no index) or 20% with index* | 112 |
| Gold (physical / digital / MF) | > 24 months | Slab rate | 12.5% (no indexation) | 112 |
| Gold ETF (listed) | > 12 months | Slab rate | 12.5% (no indexation) | 112 |
| Unlisted Shares | > 24 months | Slab rate | 12.5% (no indexation) | 112 |
| Debt MF (purchased ≥ 1 Apr 2023) | N/A — always slab | Slab rate | Slab rate | 50AA |
| Debt MF (purchased < 1 Apr 2023) | > 24 months | Slab rate | 12.5% (no indexation) | 112 |
*Property grandfathering: applies only to residential property and land acquired before 23 July 2024 and sold from 23 July 2024 onwards. Resident individuals and HUFs only — not companies, firms, or non-residents.
Sovereign Gold Bonds: If held until the 8-year maturity and redeemed via RBI, capital gains are fully exempt under Section 47(viic). If sold on the exchange before maturity, treated as gold ETF rules. Consider this before exiting prematurely.
Need Help with Capital Gains Tax?
Patron's CAs compute your STCG/LTCG, apply indexation correctly, claim Section 54/54F/54EC exemptions, and file ITR-2/ITR-3. We support Pune, Mumbai, Delhi, Gurugram and pan-India clients.
LTCG Exemptions — Section 54, 54F, 54EC
Three reinvestment-based exemptions can substantially reduce or eliminate LTCG tax. Each has tight eligibility conditions and time limits — getting these wrong loses the exemption.
Section 54 — Sale of Residential Property → New Residential Property
If you sell a long-term residential house and reinvest the LTCG amount in another residential house in India within 2 years (purchase) or 3 years (construction), the LTCG is exempt up to the amount reinvested. Cap of ₹10 crore on the exemption amount from FY 2023-24 onwards. You can hold a maximum of two residential houses at the time of sale to claim. From AY 2024-25, the option to reinvest in two new houses is restricted to gains up to ₹2 crore, used once in a lifetime.
Section 54F — Sale of Any LTCG Asset → Residential Property
For LTCG on assets other than residential property (e.g., gold, bonds, unlisted shares), reinvest the entire net consideration (not just the gain) in a residential house to claim full exemption. Same time limits as Section 54. Same ₹10 crore cap. You must not own more than one residential house at the time of sale.
Section 54EC — Sale of Land/Building → Specified Bonds
Invest LTCG from sale of land, building, or both in NHAI or REC bonds (or other specified bonds) within 6 months of sale. Maximum investment ₹50 lakh per financial year and ₹50 lakh per transferred asset across two FYs. 5-year lock-in, interest taxable. Useful for property sellers with LTCG up to ₹50 lakh who want a guaranteed return.
CA Tip: Section 54EC bonds are issued by limited issuers (NHAI, REC, PFC, IRFC). The 6-month window from sale date is strict — buying bonds in the 7th month disqualifies the exemption entirely. Plan ahead and pre-fund the Capital Gains Account Scheme (CGAS) in a public-sector bank if you can't deploy within 6 months.
Worked Examples — Common Scenarios
Example 1 — Equity LTCG (Most Common)
Purchased 100 shares of Reliance Industries on 5 April 2023 at ₹2,400/share = ₹2,40,000. Sold 100 shares on 10 May 2025 at ₹3,000/share = ₹3,00,000. Holding period: 25 months → LTCG.
Cost: ₹2,40,000
LTCG: ₹60,000 — below ₹1.25L exemption → Tax: ₹0
If LTCG had been ₹2,00,000, the taxable portion would be ₹2,00,000 − ₹1,25,000 = ₹75,000 × 12.5% = ₹9,375 tax + 4% cess = ₹9,750 total payable.
Example 2 — Property Sale with Grandfathering
Property bought on 15 March 2010 for ₹40 lakh. Sold on 20 June 2025 for ₹1.50 crore. Holding period: 15 years → LTCG. CII for FY 2009-10 = 148; CII for FY 2025-26 = 376.
| Method | Computation | Tax |
|---|---|---|
| 12.5% No Indexation | LTCG = ₹1,50,00,000 − ₹40,00,000 = ₹1,10,00,000 Tax = 12.5% × ₹1,10,00,000 | ₹13,75,000 |
| 20% With Indexation | Indexed Cost = ₹40,00,000 × 376/148 = ₹1,01,62,162 LTCG = ₹1,50,00,000 − ₹1,01,62,162 = ₹48,37,838 Tax = 20% × ₹48,37,838 | ₹9,67,568 |
The 20% with-indexation method saves ₹4,07,432 (before cess). Choose this method. The grandfathering option exists because the property was acquired before 23 July 2024.
Example 3 — Property Bought After 23 July 2024 (No Grandfathering)
Property bought on 15 August 2024 for ₹80 lakh. Sold on 20 December 2026 for ₹1.20 crore (after meeting 24-month holding). Holding period: 28 months → LTCG.
Cost: ₹80,00,000
LTCG: ₹40,00,000
Tax: 12.5% × ₹40,00,000 = ₹5,00,000
Cess (4%): ₹20,000
Total Payable: ₹5,20,000
Indexation is unavailable because the property was acquired on or after 23 July 2024.
Example 4 — Debt Mutual Fund (Post-1-April-2023)
Invested ₹5 lakh in a debt mutual fund on 10 May 2023. Sold on 15 June 2026 for ₹6 lakh. Holding: 37 months. Despite long holding, Section 50AA treats this as slab-rate income (Budget 2023 change).
Added to taxable income at slab rate (e.g., 30% slab) → Tax: ₹30,000
Cess (4%): ₹1,200
Total Payable: ₹31,200