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A capital gain is the profit you make when you sell an investment — such as equity shares or mutual fund units — for more than you paid. In India, how much tax you pay depends on the type of asset and how long you held it before selling.
For listed shares and equity mutual funds, gains are short-term (STCG) if the units were held for 12 months or less, and long-term (LTCG) if held for more than 12 months. The holding period matters because long-term gains are taxed far more gently than short-term ones.
You redeem an equity fund after 2 years with a long-term gain of ₹2,50,000:
First ₹1,25,000 is exempt. Tax applies on the remaining ₹1,25,000 at 12.5% = ₹15,625 (plus 4% cess). Your effective rate on the total gain works out to just over 6% — the benefit of the long-term rate and the annual exemption.
Rates reflect rules effective 23 July 2024 and apply for FY 2026–27 (AY 2027–28). Verified against current Income Tax Department provisions; last reviewed August 2026. This is general information, not tax advice — consult a qualified professional for your situation.
Enter your purchase and sale values and the holding period. The calculator classifies the gain as short- or long-term, applies the ₹1.25 lakh exemption where relevant, and estimates your tax.
The first ₹1.25 lakh of long-term capital gains from listed equity shares and equity mutual funds in a financial year is exempt. LTCG above that is taxed at 12.5%.
For units bought on or after 1 April 2023, all gains from specified debt mutual funds (Section 50AA) are taxed at your slab rate irrespective of holding period — there is no special long-term rate or indexation for them. Select your slab in the calculator above to see the tax on your own numbers.
No — the "Debt Mutual Funds" option here covers Section 50AA specified mutual funds only. Plain bonds, debentures, government securities, sovereign gold bonds and market-linked debentures each have their own rules that depend on the specific instrument, whether it's listed, and when it was acquired. If you're holding one of these directly (not through a mutual fund), check the applicable rules for that instrument or consult a tax professional rather than relying on this calculator.
Yes. Short-term capital losses can be set off against both STCG and LTCG, while long-term losses can only offset LTCG. Unused losses can generally be carried forward for up to eight years if you file your return on time.
