Capital Gains Tax Calculator (FY 2025-26)

For listed shares and equity mutual funds sold on or after 23 July 2024, short-term capital gains (held 12 months or less) are taxed at 20% under section 111A, and long-term capital gains (held over 12 months) are taxed at 12.5% under section 112A on gains above a ₹1,25,000 annual exemption, with no indexation. Other long-term assets are taxed at 12.5% flat. Add 4% cess on the tax. Enter your buy and sell values below.

Updated July 2026. Figures for FY 2025-26 (AY 2026-27).

How it is calculated

Equity shares and equity mutual funds

• Short-term (held 12 months or less): taxed at 20% under section 111A
• Long-term (held over 12 months): taxed at 12.5% under section 112A, but only on gains above ₹1,25,000 per year
• No indexation benefit applies to these gains

Other assets

Long-term gains on other assets like property or unlisted shares (held over 24 months) are taxed at 12.5% flat without indexation for transfers on or after 23 July 2024. A 4% health and education cess is added to the tax in all cases.

The ₹1.25 lakh exemption

Under section 112A, the first ₹1,25,000 of long-term gains from listed equity and equity funds in a financial year is exempt. Only the amount above this is taxed at 12.5%.

Worked example. Buy ₹5,00,000, sell ₹8,00,000 of equity held over a year: gain ₹3,00,000, minus ₹1,25,000 exemption, tax is 12.5% of ₹1,75,000 = ₹21,875 plus cess.

Frequently asked questions

What is the LTCG tax rate for shares in FY 2025-26?

12.5% on long-term gains above ₹1,25,000 a year from listed shares and equity mutual funds held over 12 months, plus 4% cess. This rate applies to transfers on or after 23 July 2024.

What is the STCG tax rate on shares?

20% under section 111A on short-term gains from listed equity and equity mutual funds sold on or after 23 July 2024 (up from 15% earlier), plus 4% cess.

Is there still indexation on capital gains?

No. For transfers on or after 23 July 2024, the 12.5% long-term rate applies without indexation. Land or buildings bought before that date have a limited grandfathering option.

Does the ₹12 lakh rebate cover capital gains?

No. The section 87A rebate that makes normal income up to ₹12 lakh tax free does not apply to capital gains taxed at special rates. Capital gains tax is payable separately.

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