Capital Gains Tax Calculator

Calculate capital gains tax on stocks, property, gold, and other investments. Includes STCG, LTCG calculations with indexation benefits.

Capital Gains Tax Calculator

About This Calculator

Capital gains tax is levied on the profit earned from the sale of capital assets like stocks, property, gold, and bonds. The tax rate depends on the type of asset and the holding period.

Our calculator helps you determine the exact tax liability on your capital gains, considering different asset types, holding periods, and indexation benefits where applicable.

Types of Capital Gains:

Short-Term Capital Gains (STCG):

  • Equity/Stocks: Held for less than 1 year - 15% tax
  • Other Assets: Held for less than 3 years - As per income tax slab

Long-Term Capital Gains (LTCG):

  • Equity/Stocks: Held for more than 1 year - 10% tax (above ₹1 lakh)
  • Property/Gold/Bonds: Held for more than 3 years - 20% with indexation

Indexation Benefit:

For long-term capital gains on assets other than equity, you can claim indexation benefit which adjusts the purchase price for inflation, thereby reducing the taxable gain.

Features:

  • Support for multiple asset types
  • Automatic STCG/LTCG classification
  • Indexation benefit calculation
  • Visual breakdown of tax components
  • Shareable calculation links

Frequently Asked Questions

What is capital gains tax?

Capital gains tax is a tax levied on the profit (gain) you make when you sell a capital asset like stocks, property, gold, or bonds at a higher price than you paid for it. The tax rate depends on the type of asset and how long you held it (holding period). Capital gains are classified as Short-Term (STCG) or Long-Term (LTCG) based on the holding period.

What is the difference between STCG and LTCG?

For equity shares and mutual funds: STCG applies if held for less than 1 year, LTCG if held for more than 1 year. For other assets like property, gold, and debt funds: STCG applies if held for less than 3 years, LTCG if held for more than 3 years. Tax rates differ significantly - STCG is usually taxed at higher rates than LTCG.

How much tax on stock market gains?

For stocks/equity mutual funds: STCG (held less than 1 year) is taxed at a flat 15%. LTCG (held more than 1 year) is tax-free up to ₹1 lakh per financial year, and gains above ₹1 lakh are taxed at 10% without indexation benefit. This means the first ₹1 lakh of long-term gains every year is completely tax-free.

What is indexation benefit?

Indexation is a benefit allowed on long-term capital gains for assets like property, gold, and debt funds (not for stocks). It adjusts the purchase price for inflation using the Cost Inflation Index (CII) published by the government. This reduces the taxable gain amount, thereby lowering your tax liability. LTCG with indexation is taxed at 20%.

How to save capital gains tax on property sale?

You can save LTCG tax on property sale by: 1) Investing the gains in another residential property under Section 54 (within 2 years or construct within 3 years), 2) Investing in Capital Gains Bonds under Section 54EC (NHAI, REC bonds) up to ₹50 lakh, 3) Depositing in Capital Gains Account Scheme if you need time to reinvest. These exemptions can reduce or eliminate your tax liability.

Is capital gains tax applicable on inherited property?

Inherited property is not subject to capital gains tax at the time of inheritance (no tax on receiving it). However, when you sell the inherited property, capital gains tax applies. For calculating gains, the cost of acquisition is considered as the cost to the previous owner, and the holding period includes the time the previous owner held the property.

What is the holding period for LTCG on property?

For immovable property (land, building, house), the holding period to qualify for LTCG is 24 months (2 years) if sold after April 1, 2017. Earlier it was 36 months. If you hold the property for more than 2 years before selling, you get the benefit of LTCG taxation at 20% with indexation, which is usually more tax-efficient than STCG.

How to calculate capital gains on gifted property?

For gifted property, the cost of acquisition is taken as the cost to the previous owner (donor). The holding period also includes the period the donor held the property. For example, if your father bought a house in 2000 and gifted it to you in 2020, when you sell it in 2024, the holding period is 24 years (from 2000) and cost is what your father paid.

Is agricultural land subject to capital gains tax?

Agricultural land in rural India (not located within 8 km of municipality limits) is not considered a capital asset and is exempt from capital gains tax. However, urban agricultural land is subject to capital gains tax. The classification depends on the location and population of the area where the land is situated.

What are capital gains bonds under Section 54EC?

Capital Gains Bonds under Section 54EC allow you to save LTCG tax by investing the gain amount in specified bonds within 6 months of sale. These bonds are issued by NHAI (National Highways Authority of India) and REC (Rural Electrification Corporation). The investment is locked for 5 years, and you can invest up to ₹50 lakh per financial year in these bonds.