About Capital Gains Tax
Capital Gains Tax is levied on profits from selling capital assets like stocks, mutual funds, property, bonds, etc.
The tax rate depends on the asset type and holding period. Understanding these rates
helps you plan exits strategically and optimize tax liability through timing and indexation benefits.
How to Use This Calculator:
- Select the asset type (Equity, Debt MF, Real Estate, Gold, Bonds)
- Enter purchase price (cost of acquisition)
- Input sale price (selling value)
- Set purchase date and sale date
- Calculator automatically determines LTCG/STCG based on holding period
- View capital gains, applicable tax rate, and tax payable
- Check if indexation benefit applies (for debt and real estate LTCG)
Capital Gains Tax Rates (FY 2024-25)
| Asset Type |
LTCG |
STCG |
Holding Period |
| Equity/Eq MF |
10% (>₹1L) |
15% |
>12 months |
| Debt MF |
20% (indexed) |
As per slab |
>36 months |
| Real Estate |
20% (indexed) |
As per slab |
>24 months |
| Gold/Bonds |
20% (indexed) |
As per slab |
>36 months |
Understanding Key Concepts:
- LTCG (Long-Term Capital Gains): Gains on assets held beyond threshold period
- STCG (Short-Term Capital Gains): Gains on assets sold before threshold period
- Indexation: Adjusts purchase price for inflation (Cost Inflation Index) to reduce taxable gains
- Grandfathering (Equity): Gains up to Jan 31, 2018 are tax-free; only post-Feb 1, 2018 gains taxed
- ₹1 Lakh Exemption: Equity LTCG up to ₹1L per year is tax-free
- As Per Slab: Added to your income and taxed at your income tax slab rate
Tax Optimization Strategies:
- Hold 12+ Months (Equity): 15% STCG → 10% LTCG saves 5% tax
- Hold 36+ Months (Debt/Gold): Slab rate (30%) → 20% indexed saves ~10-15% after indexation
- Harvest ₹1L Annually: Book equity LTCG up to ₹1L each FY (tax-free), reinvest immediately
- Loss Harvesting: Sell loss-making stocks to offset capital gains (carry forward 8 years)
- Year-End Planning: Book gains/losses in March to optimize current FY tax liability
- Stagger Sales: Spread large sales across 2-3 financial years to stay under ₹1L LTCG exemption
- Indexation Benefit: For debt/real estate held 7+ years, indexed cost often reduces gains by 30-50%
- Avoid Frequent Trading: Multiple STCG transactions at 15-30% tax vs one LTCG at 10-20%
Asset-Specific Tax Planning:
- Equity Shares/MF: Hold 12+ months, use ₹1L exemption, harvest annually, avoid intraday (30% slab)
- Debt Mutual Funds: Hold 36+ months for indexation, or switch to equity/arbitrage for better tax
- Real Estate: Hold 24+ months, use indexation, reinvest in property/bonds for 54EC exemption
- Gold/Bonds: Hold 36+ months, use indexation, consider Sovereign Gold Bonds (no LTCG)
- ELSS Funds: 3-year lock-in, LTCG after 12 months of lock-in completion, tax-free up to ₹1L
- PPF/EPF/NPS: Completely tax-free maturity (EEE status)—no capital gains tax
Additional Tax-Saving Sections:
- Section 54/54F: Reinvest real estate LTCG in residential property—full/partial exemption
- Section 54EC: Invest LTCG in specified bonds (NHAI, REC) within 6 months—up to ₹50L exemption
- Section 112A: Equity LTCG above ₹1L taxed at 10% (no indexation available)
- Section 111A: Equity STCG taxed at flat 15% (STT paid transactions)
- Set-off Rules: LTCG can offset only LTCG losses; STCG can offset both STCG and LTCG losses