Capital Gains Tax Calculator
The holding period, rate and exemption that apply to what you actually sold.
- Gain
- ₹3,00,000.00
- Less the annual exemption
- −₹1,25,000.00
- Taxed at 12.50%
- ₹1,75,000.00
- Tax
- ₹21,875.00
For transfers on or after 23 July 2024, under the Income-tax Act 2025 (sections 196, 197 and 198 — previously 111A, 112 and 112A). Long-term gains are 12.5% without indexation; the ₹1.25 lakh annual exemption applies only to listed equity, equity mutual funds and business-trust units on which STT was paid, and it is shared across all of them for the year rather than available per transaction. The 2024 Budget collapsed three holding periods into two: 12 months for listed securities, 24 months for everything else — which moved gold, jewellery and unlisted assets from 36 months to 24. Two consequences people miss: a gold ETF turns long-term at 12 months but a gold fund-of-funds takes 24, so identical exposure held for 20 months is taxed at 12.5% one way and at your slab the other; and foreign shares are unlisted securities in India, so they need 24 months, get no exemption, and are taxed at slab when short-term rather than at the 20% that requires STT on an Indian exchange. Debt funds bought on or after 1 April 2023 are deemed short-term however long you hold them, under what was section 50AA. Surcharge on capital gains is capped at 15%, and cess of 4% applies on top of the figures above.
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Independent · No commissions · No fund-house data — how the numbers are computed
How it works
Since 23 July 2024 there are two holding periods rather than three, and one long-term rate rather than several. Listed securities turn long-term after 12 months; everything else takes 24. Long-term gains are taxed at 12.5% without indexation, and short-term gains at 20% on listed equity with STT or at your slab rate on everything else.
The ₹1.25 lakh annual exemption is narrower than most people assume: it applies only to listed equity, equity mutual funds and business-trust units on which securities transaction tax was paid, and it is shared across all of them for the year rather than available per transaction. Property, gold, unlisted shares and foreign shares get none of it.
Two consequences catch people out. A gold ETF turns long-term at 12 months but a gold fund-of-funds takes 24, so identical exposure held for twenty months is taxed at 12.5% one way and at your slab the other. And foreign shares are unlisted securities for Indian tax, so they need 24 months, get no exemption, and are taxed at slab when short-term.
Long-term: 12.5% on (gain - exemption, where the asset qualifies for one), no indexation. Short-term: 20% on listed equity with STT, otherwise your slab rate.Debt funds bought on or after 1 April 2023 are deemed short-term however long they are held, so they never reach a long-term rate. Surcharge on capital gains is capped at 15%, and 4% cess applies on top.
Frequently asked questions
Does the Section 87A rebate cover my capital gains?
No, and this is the trap that matters most for investors. The rebate that takes tax to zero up to ₹12 lakh of income under the new regime applies only to tax at slab rates. Someone with ₹7 lakh of salary and ₹4 lakh of equity short-term gains has ₹11 lakh of total income, comfortably under the ceiling, and still pays 20% on the ₹4 lakh of gains.
Is the 1.25 lakh exemption available on every long-term gain?
No. It applies only to listed equity shares, equity-oriented mutual funds and business-trust units on which STT was paid. Long-term gains on property, physical gold, unlisted shares and foreign shares are taxed at 12.5% from the first rupee. It is also an annual figure shared across all qualifying gains, not a per-transaction allowance.
Why is my gold fund taxed differently from a gold ETF?
Because the ETF is listed and the fund-of-funds is not, and since the 2024 Budget the holding period follows listing rather than asset class. A listed gold or silver ETF turns long-term at 12 months; an unlisted gold fund takes 24. Held for twenty months, the ETF is taxed at 12.5% and the fund at your slab rate, on the same underlying exposure.
How are debt mutual funds taxed now?
Units bought on or after 1 April 2023 in a fund holding more than 65% in debt and money-market instruments are deemed short-term whatever the holding period, and taxed at your slab rate with no indexation. Units bought before that date follow the ordinary rules — long-term after 24 months at 12.5%, again without indexation since July 2024.