Listed equity shares / equity funds (STT paid) or property.
Including brokerage or registration costs.
Net of selling costs.
Shares: over 12 months is long term. Property: over 24 months.
Short-term gains on property are taxed at your slab.
Quick examples
Long-term gain of ₹3,00,000 after 18 months.
What each result means
Tax on the gain
What it is: Rate × taxable gain, plus 4% cess.
Your value: ₹22,750
Surcharge not included.
Capital gain
What it is: Sale value − purchase cost.
Your value: ₹3,00,000
Before exemptions.
Type of gain
What it is: Short or long term, from the holding period.
Your value: Long term
Decides the rate.
Rate applied
What it is: Rate under current law.
Your value: 12.5%
Before cess.
Year-by-year breakdown
| Sale value (₹) | Gain (₹) | Tax (₹) |
|---|---|---|
| ₹6,40,000 | ₹1,40,000 | ₹1,950 |
| ₹8,00,000 | ₹3,00,000 | ₹22,750 |
| ₹9,60,000 | ₹4,60,000 | ₹43,550 |
Same purchase and holding period, different sale prices.
Showing the first 3 of 5 years. Want charts, formulas and the full schedule? Get the detailed PDF.
What this calculator does
Estimates tax on selling shares, equity funds or property under rules effective from 23 July 2024: equity LTCG 12.5% above ₹1,25,000, equity STCG 20%, property LTCG 12.5% without indexation.
What your result means
Holding past the long-term mark usually lowers the rate a lot. The ₹1.25 lakh equity exemption is per year across all your equity gains.
Formula
1. Capital gains tax
Symbols
- Gain
- Sale − cost (₹)
- exemption
- ₹1,25,000 for equity LTCG
- rate
- 20% equity STCG; 12.5% LTCG; slab for property STCG
Why this formula works
Sections 111A, 112 and 112A of the Income-tax Act.
Unit check
₹. ✓
Common mistakes
Using indexation for property bought after 23 July 2024. Applying the ₹1.25 lakh exemption more than once a year.
Working for your numbers
- Gain = ₹8,00,000 − ₹5,00,000 = ₹3,00,000
- − exemption ₹1,25,000
- Tax = ₹1,75,000 × 12.5% × 1.04 = ₹22,750
Frequently asked questions
Can I still use indexation on property?
Resident individuals and HUFs who bought land or buildings before 23 July 2024 can choose the lower of 12.5% without indexation or 20% with indexation. This calculator shows the 12.5% option.
Is this the exact tax I will pay?
It is close for common cases, but it leaves out some special incomes, exemptions and set-offs. Confirm with Form 16, AIS and the Income Tax Department's own calculator before filing.
Does this calculator tell me what to do?
No. It is an educational estimate using published rules. It does not know your full situation. For a personal decision, speak to a qualified tax professional or a SEBI-registered investment adviser.
Symbols and assumptions
- Gain
- Capital gain (₹)
- Resident individual, no other equity gains this year.
- Surcharge and losses set-off not included.
- Figures are in Indian Rupees (₹).
Sources and review
Reviewed 2026-10-05 · Next review 2026-12-31
- Income Tax Department — tax calculators and rules
- Central Board of Direct Taxes — Acts, rules and notifications
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How it works
Deducts indexed cost from sale price and applies asset-specific tax rates.
The formula
Gain = Sale Price - Cost Basis- CII
- Cost Inflation Index
- LTCG
- Long Term Capital Gain
Worked example
Tax on property sold for ₹1 Cr purchased for ₹40L 10 years ago.
Pro tips
- Use Section 54/54F to save tax by reinvesting.
- Indexation helps reduce the tax impact on long-term assets.
Common mistakes
- Ignoring improvement costs incurred on the asset.
Go deeper
Concepts to explore
Related guides
Institutional grade calculations are illustrative and for educational wealth architecture. Results do not constitute investment advice.