Long-term capital gains tax at 12.5%, with the first ₹1.25 lakh on shares left out
Estimates only, not financial advice. What you type stays on your device. Checked against sources on 25 Sept 2026.Long-term capital gains are taxed at 12.5% since July 2024, and on listed shares and equity funds the first ₹1,25,000 of gain in a year is left out altogether. Enter what you paid, what you sold for and the two dates, and the holding period decides whether the gain is long term at all before the rate is applied.
The rates are those in force for sales made on or after 23 July 2024, and a sale from 1 April 2026 is taxed under the Income-tax Act, 2025, which renumbered the sections without moving a rate. Surcharge is not included: it starts once total income passes ₹50 lakh, is capped at 15% for these gains, and depends on income this page never asks for. Exemptions for reinvestment under sections 54 and 54F are not included either.
Estimates only, not tax advice. Last checked 25 Sept 2026. The rates, the holding periods and the 23 July 2024 cut-off were read against the Finance (No. 2) Act, 2024 as published in the Gazette of India on 16 August 2024, with the CBDT FAQs in PIB release 2036604 alongside it; the 4% cess against the Finance Bill, 2026, which left every rate above exactly where the 2024 Act put it.
The Cost Inflation Index, which only the 20% route on older property uses, comes from the Income Tax Department's own chart and runs to 2026-27. Unlike everything else here it was read on 25 Sep 2026 through the Internet Archive's copy of 6 Aug 2026, because the department's site refuses automated requests (the chart has since moved to a new address on the same site, confirmed on 30 Oct 2026). If the indexed figure is the one you are relying on, check that chart yourself before you file. Check your own case with a tax adviser either way.
| What you sold it for | ₹9,00,000 |
| What you paid | − ₹5,00,000 |
| Costs of buying and selling | – |
| Gain | ₹4,00,000 |
| Exemption | − ₹1,25,000 |
| Taxed at 12.5% | ₹34,375 |
| Health and education cess, 4% | + ₹1,375 |
| Tax payable | ₹35,750 |
Rates and rules read from the sources listed on this page (the earliest on 25 Sept 2026); they may have changed since.
Choose the asset chip; listed shares and equity funds turn long term after 12 months, most others after 24.
Set Bought on and Sold on far enough apart that the badge under the result reads Long term.
Enter What you paid and What you sold it for, and for shares the Equity exemption already used this year.
Read the 12.5% tax after the ₹1.25 lakh exemption, and check The rates used tab against the Act listed under Sources.
The Capital Gains Tax Calculator works out what is owed when you sell shares, a mutual fund, property or gold, using the rules that came into force on 23 July 2024. It takes what you paid, what you sold for, the two dates and the costs in between, and gives the tax, the effective rate and what you keep.
Listed shares and equity funds have their own pair of rates. Short term is 20%, raised from 15%; long term is 12.5%, raised from 10%, and the first ₹1,25,000 of long-term gain in a year is exempt. Every other long-term gain is 12.5% with no indexation, while short-term gains are added to your income and taxed at your slab rate, which is why the calculator asks for it.
Health and education cess of 4% is added to the tax. Surcharge, which starts once total income passes ₹50 lakh and is capped at 15% for these gains, is left out because it depends on income this page never sees. So are the reinvestment exemptions under sections 54 and 54F.
The rest of the article, and all 7 questions about Capital Gains Tax Calculator, are on the Capital Gains Tax Calculator page.
Capital gains tax depends first on how long the asset was held. Listed shares held over twelve months, or other assets over twenty-four, are long term and taxed at 12.5%. Anything sold sooner is short term: 20% on listed equity, or your own slab rate on everything else. Cess of 4% is added at the end.
The first ₹1,25,000 of long-term gain from listed shares and equity mutual funds is exempt in each financial year, raised from ₹1,00,000 in July 2024. Only the gain above that figure is taxed, at 12.5%. The exemption covers all such gains in the year together, not each sale separately.
Capital gains tax kaise calculate karein: enter what you paid, what you sold it for, and both dates. The holding period decides whether the gain counts as long term or short term, and the rate follows from that. Brokerage, stamp duty and improvement costs come off the gain before the tax is worked out.
Sales made on or after 1 April 2026 fall under the Income-tax Act, 2025: section 196 for short-term listed equity, section 198 for long-term listed equity and section 197 for everything else long term. Earlier sales use sections 111A, 112A and 112 of the 1961 Act. The rates are identical.
Rates and rules change; check the source before you rely on a figure.
Still stuck? Ask about Capital Gains Tax Calculator and anybody who knows can answer. No account needed.
Same job, other tools: Income Tax Calculator FY 2025-26 – Tax for the year ended 31 March 2026, for a return you are still filing · Income Tax Calculator FY 2026-27 (AY 2027-28) – Tax on your salary for the year that started on 1 April 2026 · TDS on FD for Senior Citizens – Whether a bank deducts TDS on a senior citizen’s FD interest under the ₹1 lakh limit.
On the related tools: GST Inclusive Calculator – Split a price that already includes GST into value and tax.
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