What is Capital Gains Tax in India?
Capital Gains Tax is a tax levied on the profit you make when you sell a non-inventory asset, such as stocks, mutual funds, real estate, or gold. In India, the tax rate depends heavily on two factors: the Asset Class and the Holding Period.
Latest Budget 2025-26 Updates
The Union Budget FY 2025-26 introduced massive simplifications to the capital gains structure:
- Short Term Capital Gains (STCG) on Equity: Increased from 15% to 20%. This applies if you sell stocks or equity mutual funds before holding them for 1 year.
- Long Term Capital Gains (LTCG) on Equity: Taxed at 12.5% (previously 10%), but the tax-free exemption limit was generously raised from ₹1 Lakh to ₹1.25 Lakhs per financial year.
- Debt Mutual Funds: All debt mutual funds bought after April 1, 2023, are taxed purely at your income tax slab rate, regardless of the holding period (No indexation benefit).
- Real Estate & Gold: LTCG (held > 2 years) is now 12.5% without indexation.
How to use the Capital Gains Tax Calculator
Our Capital Gains Tax Calculator takes the confusion out of tax planning. Simply select your asset type (Equity, Debt, or Property), enter your buy/sell values, and choose your holding period. The calculator instantly determines if your profit is STCG or LTCG, applies the ₹1.25L exemption (if equity LTCG), and shows your exact net-tax payable.
Smart Tax Loss Harvesting
A smart strategy to minimize your Capital Gains Tax is Tax Loss Harvesting. Before the financial year ends, you can sell losing stocks to offset the profits made from winning stocks, effectively bringing down your net taxable capital gains.