Capital Gains Tax Calculator
Estimate tax liabilities u/s the latest FY 2026-27 (AY 2027-28) rules. Compares equity, debt funds, gold, and real estate grandfathering routes instantly.
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Holding Period: 36 Months
Long-Term Capital Gains taxed at 12.5% u/s section 112A with ₹1.25 Lakhs statutory annual exemption.
Gross Capital Gain
₹7,00,000
Tax Liabilities
₹71,875
Effective Tax Rate
10.3%
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Understanding Indian Capital Gains Framework
Capital gains taxes in India are levied on profits earned from selling capital assets like shares, properties, gold, and mutual funds. Assets are categorized into Short-Term (STCG) or Long-Term (LTCG) depending on their holding periods, which subjects them to distinct tax brackets under the Income Tax Act. The Union Budget introduced substantial revisions, eliminating indexation for future property transactions but permitting a unique grandfathering choice for assets acquired before July 2024.
Equity Shares vs Debt Funds
Tax rates and exemptions vary significantly depending on the nature of your investments:
- Equity Holding Limit: Shares held for over 12 months qualify as Long-Term, attracting a 12.5% tax with a cumulative exemption limit of ₹1.25 Lakhs.
- Debt Mutual Funds: Completely stripped of indexation and long-term status, debt fund profits are always taxed fully at your standard slab rate.
Real Estate Grandfathering Option
For residential or commercial properties acquired before July 23, 2024, taxpayers enjoy a dual evaluation choice:
- Scheme A: Pay 20% LTCG on gains computed after adjusting for official Cost Inflation Index (CII) multipliers.
- Scheme B: Pay flat 12.5% LTCG on standard gains without any indexation adjustment. You are permitted to select the one which calculates lower tax!
Capital Gains Tax FAQs
Frequently asked questions about STCG, LTCG rates, indexation, and exemptions.
Short-Term Capital Gains (STCG) arise from selling assets held for shorter durations (typically under 12 months for listed equity, or under 24 months for real estate). Long-Term Capital Gains (LTCG) apply to assets held past these threshold periods and benefit from lower or concessional tax rates.
Under current tax regulations, LTCG on listed equity and equity mutual funds exceeding ₹1.25 Lakh per financial year is taxed at 12.5% without indexation benefits.
Short-Term Capital Gains on equity shares and equity-oriented mutual funds subject to STT are taxed at 20% under Section 111A.
Capital gains are recorded via Journal Vouchers (F7) in Tally Prime, debiting the investment asset ledger, crediting capital gains under Direct or Indirect Incomes, and accounting for tax liabilities accordingly.
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