PocketCapital Gains Tax Calculator
Estimate Capital Gains taxes for assets sold in India under current Union Budget regulations. Compare LTCG and STCG tax liabilities.
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Estimated Capital Gains Tax
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Gross Capital Gains (Profit)
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Gain Classification
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Capital Gains Tax Rules (Post Budget 2024)
Under latest Indian Income Tax regulations:
- Equity (LTCG - held > 12 months): 12.5% tax on gains exceeding ₹1.25 Lakh.
- Equity (STCG - held < 12 months): 20% flat tax on gains.
- Real Estate (LTCG - held > 24 months): 12.5% tax on gains without indexation benefits.
- Real Estate (STCG - held < 24 months): Taxed at your individual slab rate.
- Debt Mutual Funds (LTCG & STCG): All gains are taxed at your income slab rate.
Worked Example
If you buy equity mutual funds for ₹10,00,000 and sell them after 2 years (LTCG) for ₹18,00,000:
- Gross Capital Gain: ₹8,00,000
- Exempt LTCG limit: ₹1,25,000
- Taxable LTCG: ₹8,00,000 - ₹1,25,000 = ₹6,75,000
- Tax at 12.5%: ₹84,375
Frequently Asked Questions
What is indexation in capital gains?
Indexation adjusted the purchase cost of an asset for inflation using the Cost Inflation Index (CII). However, the Union Budget 2024 removed indexation benefits for real estate, cutting the LTCG tax rate to a flat 12.5% instead.
How is short term vs long term holding period determined?
For listed equity shares and equity mutual funds, the long term threshold is 1 year (12 months). For real estate property, it is 2 years (24 months). For unlisted shares and physical gold, it is also 2 years.
Can I save LTCG tax on property sales?
Yes, you can claim exemption under Section 54 or 54EC by reinvesting the capital gains to buy another residential house property or purchase government-notified capital gains bonds.
What is capital gains tax tax harvesting?
Equity investors can sell stocks/mutual funds up to ₹1.25 Lakh gains annually to book tax-free profits and reinvest immediately, raising the base price and harvesting tax benefits.
Can I set off capital losses against gains?
Yes, short-term capital losses can be set off against both short-term and long-term capital gains. Long-term capital losses can only be set off against long-term capital gains.