Capital Gains Tax Calculator

Calculate Your Capital Gains Tax

Capital Gains Tax Rates & Holding Periods (FY 2025-26)

The tax rate depends on the asset type and whether the gain is Short-Term (STCG) or Long-Term (LTCG). Here are the key distinctions for the Financial Year 2025-26 (AY 2026-27):

Understanding Indexation

Indexation adjusts the cost of acquisition for inflation using the Cost Inflation Index (CII), thereby reducing your taxable gain. For property sold after July 23, 2024, you can choose between 20% with indexation or 12.5% without — whichever gives a lower tax.

Indexed Cost = Purchase Cost × (CII of Sale Year / CII of Purchase Year)

Smart Tax Planning: Minimise Your Capital Gains Liability

Leveraging the specified sections under the Income Tax Act allows you to save significant tax by reinvesting your capital gains:

• Section 54 (Property → Property): Full/partial LTCG exemption on residential house sale if the gain is reinvested into another residential house (2 years before or 1 year after sale, or 3 years if constructed).
• Section 54EC (Capital Gains Bonds): Invest up to ₹50 lakh of LTCG (from land/building) into NHAI or REC bonds within 6 months of transfer for a corresponding exemption.
• Section 54F (Other Asset → House): Exemption on LTCG from selling non-residential assets (gold, MFs, commercial property) by reinvesting the entire net sale consideration into a new residential property.
• Section 10(38) — Grandfathered Equity: For listed equity bought before 31 Jan 2018, the cost is the higher of actual cost or fair market value on 31 Jan 2018.
• Set-off losses: LTCG losses can be set off against LTCG only; STCG losses can be set off against both STCG and LTCG. Carry forward for 8 assessment years.

Frequently Asked Questions