Capital Gains Tax Calculator — Equity LTCG & STCG
Enter what you paid and what you sold for, and see your capital gains tax instantly under the post-July-2024 rules. 100% private — everything is computed in your browser.
Gain vs tax
How much of your gain you keep
Tax breakdown
- Total gain
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- LTCG exemption (₹1.25L/year)
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- Taxable gain
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- Tax @ 20%
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- Health & education cess (4%)
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What changed in July 2024 — explained simply
The Finance Act 2024 rewrote equity capital gains tax from 23 July 2024, and this calculator uses the new rules. Short-term capital gains (STCG) — listed shares and equity mutual funds held for 12 months or less — are now taxed at a flat 20%, up from 15%. Long-term capital gains (LTCG) — held for more than 12 months — are taxed at 12.5%, up from 10%, but the annual exemption rose from ₹1 lakh to ₹1.25 lakh: the first ₹1.25 lakh of your long-term gains each financial year is completely tax-free. A 4% health and education cess applies on top of the tax in both cases.
Why the holding period matters so much: the same ₹2 lakh profit costs you ₹41,600 in tax if you sell within a year, but only ₹9,750 if you hold past 12 months — a 4x difference driven by the rate gap and the ₹1.25 lakh exemption. Crossing the 12-month mark is often the single highest-return decision an equity investor makes.
Two things to know. First, equity never had indexation — the 2024 removal of indexation for other assets (like property) doesn't change equity math. Second, grandfathering protects old gains: if you bought before 31 January 2018, your cost of acquisition can be stepped up to the fair market value on that date (capped at your sale price), so only gains after that date are taxed. This calculator doesn't model grandfathering — see the FAQ for the one-line version.
This page covers listed equity shares and equity-oriented mutual funds only — debt funds, gold, property, and unlisted shares follow different rates and holding periods.
Worked examples
Example 1 — LTCG: bought ₹8,00,000, sold ₹10,00,000, held 2 years
| Step | Amount |
|---|
| Total gain | ₹2,00,000 |
| − LTCG exemption (annual) | − ₹1,25,000 |
| Taxable gain | ₹75,000 |
| Tax @ 12.5% | ₹9,375 |
| + 4% cess | ₹375 |
| Total tax | ₹9,750 |
Effective rate on the gain: 4.88%.
Example 2 — STCG: bought ₹8,00,000, sold ₹10,00,000, held 6 months
Total gain = ₹2,00,000. No exemption for short-term gains. Tax @ 20% = ₹40,000, plus 4% cess = ₹1,600 → total ₹41,600. Effective rate: 20.8% — over four times the long-term bill on the identical profit.
Example 3 — LTCG below the exemption: bought ₹5,00,000, sold ₹6,00,000, held 3 years
Total gain = ₹1,00,000, which is within the ₹1,25,000 annual exemption → tax ₹0. Small, infrequent redemptions can be entirely tax-free.
Frequently asked questions
How is the 12-month holding period counted?
From the day after purchase to the sale date. Hold for 12 months or less and the gain is short-term (20% tax); hold for more than 12 months and it's long-term (12.5% above ₹1.25 lakh/year). Exactly 12 months counts as short-term — you need to cross the 12-month mark.
Is the ₹1.25 lakh LTCG exemption per year?
Yes — it's an annual exemption per financial year, not per trade. Your total long-term gains across all equity sales in the year are added up, the first ₹1.25 lakh is exempt, and 12.5% applies only to the rest. Unused exemption doesn't carry forward.
Can I set off capital losses against gains?
Yes. Short-term losses can be set off against both short-term and long-term gains; long-term losses only against long-term gains. Unabsorbed losses can be carried forward for up to 8 years if you file your return on time. This calculator works on a single trade — net your losses off the gain first, then enter the net figure.
How are ELSS mutual funds taxed?
ELSS has a 3-year lock-in, so every redemption is automatically long-term. Gains above ₹1.25 lakh in the financial year are taxed at 12.5% plus 4% cess — exactly what this calculator computes. Note that each SIP instalment is a separate investment with its own 3-year clock.
Is indexation available on equity gains?
No — listed equity never had indexation benefit, so the 2024 removal of indexation (which affected property and other assets) changes nothing for stocks and equity mutual funds. Your taxable gain is simply sale price minus purchase price.
What is the grandfathering rule for gains up to 31 January 2018?
If you bought shares before 31 January 2018, your cost of acquisition can be stepped up to the highest traded price on that date (capped at your actual sale price) — so only gains accrued after 31 January 2018 are taxed. This calculator doesn't model grandfathering; for old holdings, compute the stepped-up cost first and enter it as the buy value.
Are F&O trades taxed as capital gains?
No. Futures & options are treated as business income (non-speculative), taxed at your income-tax slab rates — not at the 20%/12.5% capital gains rates. Intraday equity is speculative business income. This calculator is only for delivery-based equity and equity mutual funds.
Do I pay STCG if I sell at a loss within a year?
No — tax applies only to gains. If sell value is below buy value, the loss is a capital loss: no tax is due, and the loss can be set off against other gains or carried forward for 8 years (file on time to preserve it).
Does the 4% cess apply to capital gains tax too?
Yes. The 4% health and education cess is levied on your capital gains tax liability — both STCG and LTCG. It's included automatically in this calculator's total.
Is this calculator's result my final tax liability?
It's an estimate for listed equity and equity mutual funds under the post-23-July-2024 rules. Grandfathering, loss set-offs across trades, and surcharge on very large incomes aren't modelled. Verify against the Finance Act and consult a chartered accountant before filing.
Disclaimer: This is an estimate for illustration, computed in your browser — no data leaves your device. Covers listed equity shares and equity mutual funds only, under Finance Act 2024 rules (effective 23 July 2024). Verify against the Finance Act before reliance. Consult a chartered accountant for filing.