Capital Gains Tax Calculator

Calculate capital gains tax on the sale of equity/mutual funds or property/debt. Equity uses flat STCG/LTCG rates; property and debt can use indexation to reduce the taxable gain. Tax rates change with each Finance Act — the defaults here should be verified before publishing.

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Formula

Equity/Mutual Funds: gains held under 12 months are Short-Term Capital Gains (STCG), taxed at a flat rate. Gains held 12 months or more are Long-Term Capital Gains (LTCG), taxed at a flat rate only above an annual exemption threshold.

Property/Debt: gains held 24 months or more can use indexation — Indexed Cost = Purchase Price × (CII at sale year / CII at purchase year) — which increases your cost basis for inflation, reducing the taxable gain. CII (Cost Inflation Index) values are published annually by the Income Tax Department; enter them directly since they change every year.

Worked Example

Equity example: Bought at ₹1,00,000, sold at ₹3,00,000 after 24 months. Gain = ₹2,00,000; taxable gain after the ₹1,25,000 exemption = ₹75,000; tax at 12.5% = ₹9,375.

Property example: Bought for ₹10,00,000 (CII 200), sold for ₹25,00,000 after 36 months (CII 350). Indexed cost = 10,00,000 × (350/200) = ₹17,50,000. Taxable gain = ₹7,50,000; tax at 20% = ₹1,50,000.

How to Use

  1. Choose the asset type: Equity/Mutual Fund, or Property/Debt/Other.
  2. Enter the purchase price, sale price, and holding period in months.
  3. For property/debt held 24 months or more, enter the CII values for the purchase and sale years to apply indexation.
  4. Confirm the STCG/LTCG rates and exemption threshold are current.
  5. Read the capital gain, gain type, tax payable, and net proceeds.

Frequently Asked Questions

Where do I find the current CII values?
The Cost Inflation Index is notified annually by the Central Board of Direct Taxes (CBDT) u2014 search for the latest CII notification for the relevant financial years rather than relying on any embedded table, since this calculator intentionally takes CII as a direct input to avoid going stale.
Why is the holding period threshold different for equity (12 months) and property (24 months)?
Indian tax law defines short-term vs long-term differently by asset class u2014 equity and equity mutual funds use a 12-month threshold, while property, debt funds, and most other capital assets use 24 months (unlisted shares and some debt instruments have their own specific thresholds not covered here).
Are these tax rates current?
Capital gains rates and exemption thresholds were significantly revised in the July 2024 Union Budget and can change again in future budgets. Always verify the current rates before relying on this calculator for a real transaction.
Can I offset a capital loss?
Capital losses can typically be set off against gains of the same type (and carried forward for a limited number of years) under specific rules u2014 this calculator computes a single transaction's tax and does not model loss set-off.
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