Understanding Capital Gains Tax in FY 2025-26
Capital gains tax applies to profits from selling assets like stocks, mutual funds, or property. For FY 2025-26 understanding short-term and long-term gains, exemptions, and strategies is vital. Use our Capital Gains Calculator for instant estimates.
Types of Capital Gains
- STCG: Equities/equity MFs held under 12 months → 20% (post-Budget 2025). Other assets → slab rate if under 36 months.
- LTCG: Equities over 12 months → 12.5% above ₹1.25L exemption. Property/debt over 36 months → 20% with indexation.
Key Exemptions
- Section 54: Reinvest property gains in another residential property (2 yrs purchase / 3 yrs construction).
- Section 54EC: Invest in NHAI/REC bonds up to ₹50L within 6 months.
- Section 54F: Reinvest non-residential gains in residential property.
- Equity LTCG: First ₹1.25L tax-free annually.
Strategies
- Hold long-term: Get the lower 12.5% LTCG rate.
- Use indexation: Adjusts cost for inflation on property/debt.
- Loss harvesting: Offset gains; carry losses 8 years.
Risks: Tax laws can change; misreporting risks penalties. Calculate capital gains →