LTCG Tax Calculator 2026
Calculate Long-Term (12.5%), Short-Term (20%) Capital Gains Tax & Tax-Loss Harvesting strategies for Indian mutual funds & stocks.
Classification: Long-Term Capital Gain (LTCG)
Holding period is over 12 months. Taxed at 12.5% on profits exceeding ₹1.25 Lakh per financial year (Section 112A).
Total Tax Liability
₹29,250
Effective Tax Rate: 8.4% of gross profit
Profit vs Tax Breakdown
₹3.21 L
₹29,250
Net Return on Investment: 64.15%
Step-by-Step Tax Calculation
| Step / Particulars | Amount (₹) | Notes & Applicable Rules |
|---|---|---|
| 1. Purchase Value (Buy Price) | ₹5.00 L | Initial cost of acquisition |
| 2. Sale Value (Sell Price) | ₹8.50 L | Gross realization on sale |
| 3. Gross Capital Gain / Profit | ₹3.50 L | Sale Value − Buy Value |
| 4. Annual Tax-Free Exemption (Sec 112A) | − ₹1.25 L | Max ₹1,25,000 per financial year (Budget 2024 limit) |
| 5. Taxable Capital Gain | ₹2.25 L | Gross Profit − Exemption |
| 6. Base LTCG Tax (12.5%) | ₹28,125 | 12.5% of Taxable Gain |
| 7. Health & Education Cess (4%) | ₹1,125 | 4% on Base Tax |
| Total Tax Liability Payable | ₹29,250 | Base Tax + 4% Cess |
| Final Net In-Hand Profit | ₹3.21 L | Gross Profit − Total Tax |
Capital Gains Visual Breakdown
Comparison between total purchase value, gross capital profit, tax liability, and net retained profit.
The Indian Capital Gains Tax Matrix: Navigating Holding Periods and Slabs
Indian capital gains taxation distinguishes between asset classes based on statutory holding thresholds. Long-Term Capital Gains (LTCG) on listed equities and equity funds are taxed at 12.5% on aggregate profits exceeding ₹1.25 Lakhs per financial year, while Short-Term Capital Gains (STCG) are taxed at 20%.
12 Months Holding Period
Holdings exceeding 12 months qualify as LTCG (12.5% tax above ₹1.25L exemption). Holdings sold under 12 months incur 20% STCG under Section 111A.
24 Months Holding Period
Real estate held over 24 months is classified as LTCG and taxed at 12.5% without indexation (or 20% with indexation for pre-July 2024 properties).
Taxed at Slab Rates
Under Section 50AA, specified mutual funds with equity exposure under 35% are treated as short-term capital gains and taxed at your applicable slab rate, regardless of holding duration.
Capital Gains Tax FAQs
Essential answers for stock investors, mutual fund holders, and property sellers.
How does the ₹1.25 Lakh LTCG exemption on equity work?
Every financial year, the first ₹1,25,000 of combined long-term capital gains realized from listed equity shares and equity-oriented mutual funds is completely tax-free. Only net gains in excess of ₹1.25 Lakhs attract the 12.5% tax rate.
Can capital losses from stocks be offset against salary income?
No. Capital losses (both short-term and long-term) can never be offset against salary, business profits, or house property income. They can only be offset against capital gains and carried forward for up to 8 assessment years.
What is the tax rate on unlisted startup shares?
Unlisted shares qualify as long-term assets after 24 months and are taxed at 12.5% without indexation. Short-term gains on unlisted shares are taxed at your applicable income tax slab rate.
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