Capital Gains Tax Calculator- India

A Capital Gains Tax Calculator is an easy tool that helps you calculate taxes on profits from selling assets like property, stocks, or mutual funds. It works for both short-term and long-term capital gains under Income Tax Act 1961. It is a quick and simple way to plan your taxes and make better financial decisions. Let us learn about a Capital Gains Calculator in detail.

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  • Get Returns That Beat Inflation
  • Zero Capital Gains tax
  • Save upto Rs 46,800In Tax under section 80C^
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Disclaimer: ^Section 80C allows annual deductions of up to ₹1.5 lacs from the taxable income. Section 10(10D) provides tax-free maturity benefits for investments of up to ₹2.5 Lacs/ year, on policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws. All plans listed here are of insurance companies’ funds.
We are rated~
rating
7.7 Crore
Registered Consumer
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Insurance Partners
4.2 Crore
Policies Sold

What is a Capital Gains Tax Calculator?

A Capital Gains Tax Calculator is a useful online tool that simplifies the complex process of estimating the tax on profits made from selling assets like stocks, real estate, ULIP funds, or other capital investments.

The capital gains calculator simplifies tax calculations, saving time and reducing errors. It also includes provisions for indexation benefits and exemptions under Income Tax laws of India.

How to Use a Capital Gains Tax Calculator?

Follow the steps mentioned below to use a capital gains tax calculator:

Step 1: Select the Type of Asset: Choose the asset type, such as property, stocks, mutual funds, or other investments.

Step 2: Insert Purchase Details:  Enter the purchase price and purchase date of the asset.

Step 3: Provide Sale Details:  Fill in the sale price and sale date.

Step 4: Include Expenses and Exemptions: Add any associated costs like brokerage fees or improvement expenses. Include eligible exemptions like Section 80CCF, Section 54, or Section 80C, if any.

Step 5: Adjust for Indexation (if applicable): For long-term assets, insert the Cost Inflation Index (CII) to adjust the purchase price.

Step 7: Get Results: The calculator will display your capital gains amount and applicable tax liability.

How Does Capital Gains Tax Calculator Work?

A capital gains tax calculator uses the following formula to calculate Capital Gains Tax (CGT):
CGT = (Selling Price - Purchase Price) x Capital Gains Tax Rate
In this formula:
SP
The amount you received from selling the asset.
PP
The original cost of acquiring the asset.
CGTR
The applicable tax rate on the capital gain, which can vary based on factors like your income level and the type of asset.

Benefits of Capital Gains Tax Calculator in India

A capital gains tax calculator provides you with the following benefits:

  • Accurate Tax Calculation: Helps compute exact capital gains tax on profits from the sale of assets like property, stocks, or bonds.

  • Saves Time: Quickly calculates tax amounts, eliminating manual calculations and reducing errors.

  • Supports Both Short and Long-Term Gains: Differentiates between short-term and long-term capital gains based on the holding period.

  • Incorporates Latest Tax Laws: Updated to reflect 2024 tax rules, exemptions, and rates.

  • User-Friendly: Simple interface that even non-experts can use easily.

  • Optimizes Financial Decisions: Assists in deciding the best time to sell assets to minimize tax.

  • Free and Widely Accessible: The capital gains calculator is available online for free, ensuring easy access for all.

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What are Capital Gains in India?

Capital gains are the profits earned from selling a capital asset, such as property, stocks, bonds, or mutual funds. In India, capital gains are taxed under the Income Tax Act based on the type of gain:

  • Short-term Capital Gains (STCG): These are gains arising from the sale of assets within a short holding period. This period is usually less than 12 months.

  • Long-term Capital Gains (LTCG): These are gains arising from the sale of assets held for a longer period of time before sale. This long-term period is 12, 24, or 36 months, depending on the type of asset. 

List of Capital Gains Tax in India in 2025

Let us learn the capital gains tax rates for various investments from the table mentioned below:

Type of Income Nature of Income Rate of Tax Holding Period
Long-Term Capital Gain From equity shares listed on Indian stock exchanges, equity-oriented mutual funds, units of business trusts, zero-coupon bonds 12.5% (if the total gain exceeds â‚ą1.25 lakh annually) > 1 year
From unlisted shares and securities (other than bonds/debentures) and foreign exchange assets 12.5% > 2 years
From unlisted debentures and bonds (Taxed as Short-Term Capital Gains) 20% ≤ 2 years
From property 20% (with inflation indexation), OR 12.5% (without indexation) > 2 years
Any other capital gain 12.5%-20% (depends on asset type) Varies
Short-Term Capital Gain From equity shares listed on Indian stock exchanges, equity-oriented mutual funds, units of business trusts 20% ≤ 1 year
From other assets Taxed as per income tax slab ≤ 1 year
Normal Income Any income from investments like interest, dividends, etc. Taxed as per income tax slab N/A

Invest & Save upto â‚ą46,800 per annum in taxInvest & Save upto â‚ą46,800 per annum in tax

Wrapping It Up

A Capital Gains Tax Calculator is a useful tool to calculate taxes on profits from selling capital assets. It makes tax calculation easy and accurate by using the latest tax rules. You just need to enter details like the purchase price, sale price, and holding period to get the tax amount. It helps you save time, avoid mistakes, and plan your taxes better. Use it to stay prepared and file your taxes hassle-free.

FAQs

  • What is long-term capital gain and short-term capital gain?

    • Long-term capital gain (LTCG):

      • Arises from the sale of assets held for more than a specified period (e.g., more than 24 months for immovable property).

    • Short-term capital gain (STCG):

      • Arises from the sale of assets held for a period up to the specified threshold (e.g., 24 months or less for immovable property).

  • What is the formula for capital gains tax?

    The formula for capital gains tax is: 
    Capital gains tax = (capital gain) * (tax rate)]
    Where:
    • Capital gain = Difference between an asset's sale price and its purchase price.

    • Tax rate = Percentage of the capital gain that is subject to tax. The tax rate depends on the holding period of the asset and the taxpayer's income.

  • How much long-term capital gain is tax-free?

    Long-term capital gains up to ₹1.25 lakh from listed equity shares and equity-oriented mutual funds are exempt from tax in a financial year. 
  • What is the capital gain exemption?

    Capital gain exemptions allow taxpayers to reduce or eliminate tax liability by reinvesting gains into specified assets, such as residential property under Section 54 or certain bonds under Section 54EC and Section 80CCF, subject to specific conditions. 
  • What is the income tax slab for capital gains?

    The STCG and LTCG tax rates for different categories of assets are as follows:
    • Long-term capital gains (LTCG):

      • 12.5% on listed equity shares and equity-oriented mutual funds, exceeding the â‚ą1.25 lakh exemption.

      • 12.5% on other assets without indexation benefits.

      • 20% on real estate transactions with indexation benefits for properties purchased before July 23, 2024. 

    • Short-term capital gains (STCG):

      • 20% on listed equity shares and equity-oriented mutual funds.

      • Other short-term gains are taxed as per the individual's income tax slab.

  • How do you calculate capital gains tax?

    • Long-term capital gains:

      • For assets acquired before July 23, 2024: Subtract the indexed cost of acquisition from the sale price and apply a 20% tax rate.

      • For assets acquired on or after July 23, 2024: Subtract the purchase cost from the sale price and apply a 12.5% tax rate, as indexation benefits are no longer available.

    • Short-term capital gains:

      • Subtract the purchase cost from the sale price and apply the applicable tax rate based on the asset type.

  • How do I avoid capital gains tax on sale of property?

    To defer or avoid capital gains tax on the sale of property, you can:
    • Reinvest the capital gains in a new residential property under Section 54 within the specified time frame.

    • Invest in specified bonds under Section 54EC within six months from the date of transfer, subject to a maximum limit of â‚ą50 lakh.

  • Is the benefit of indexation available while computing capital gain arising on transfer of short-term capital assets?

    No, indexation benefits are only available for long-term capital assets.
  • Is cryptocurrency considered a capital asset?

    Yes, cryptocurrencies are considered capital assets in India. Gains from their transfer are taxed at a flat rate of 30% without the benefit of indexation or deductions.

Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. The sorting is based on past 10 years’ fund performance (Fund Data Source: Value Research). For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
*All savings are provided by the insurer as per the IRDAI approved insurance plan.
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs.
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