Capital Gains Tax Calculator India (FY 2024-25)
Estimate the Capital Gains Tax you'll owe in India for the Financial Year 2024-25 (Assessment Year 2025-26). Our calculator handles gains from shares, mutual funds, property, and gold, including indexation benefits for long-term assets.
What is a Capital Gain?
A capital gain is the profit you make from selling a 'capital asset' for more than you paid for it. In India, capital assets include a wide range of investments like property, shares, mutual funds, gold, and bonds. The original purchase price, along with any costs incurred for acquiring or improving the asset, forms its "cost basis."
The gain is only considered "realised" and becomes a taxable event when you sell the asset. For instance, if you buy shares for ₹50,000 and their value rises to ₹80,000, you have an unrealised gain. It's only when you sell those shares that you realise the ₹30,000 profit, which then becomes subject to Capital Gains Tax.
What is Capital Gains Tax in India?
Capital Gains Tax is a tax levied on the profit from the sale of a capital asset. The tax is not on the total sale amount, but only on the gain. The tax treatment in India depends heavily on the asset's "holding period"—the length of time you owned it before selling.
Gains are classified as either Short-Term Capital Gains (STCG) or Long-Term Capital Gains (LTCG), each with different tax rules and rates. The holding period to qualify as 'long-term' varies by asset type (e.g., 12 months for listed shares, 24 months for property). Long-term gains on assets like property and gold also get the benefit of "indexation," which adjusts the purchase price for inflation, reducing your taxable profit.
How This Calculator Works
- This tool simplifies Indian Capital Gains Tax calculations for your investments.
- Enter your asset's purchase and sale price, and the transaction dates.
- Select the asset type to apply the correct holding period and tax rules.
- For long-term assets like property, enter the Cost Inflation Index (CII) values for indexation.
- The calculator automatically applies relevant exemptions and tax rates for the FY 2024-25 to provide a reliable estimate.
Enter Transaction Details
Estimated Tax Owed (incl. Surcharge & Cess)
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Calculation Summary
Capital Gain / Loss
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Taxable Gain
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Holding Period
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Applicable Tax Rate
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Surcharge
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Understanding Indian Capital Gains Tax Rates
The tax rate on your capital gain in India depends on the asset type and how long you held it. Unlike some countries, India has different holding period requirements for different assets to qualify for long-term status.
Capital Gains Tax Rates (FY 2024-25 / AY 2025-26)
The table below summarizes the main tax rates. Note that a Health & Education Cess of 4% is typically added to the final tax amount. Data is sourced from the Income Tax Department of India.
| Asset Type | Short-Term (STCG) | Long-Term (LTCG) |
|---|---|---|
| Listed Shares / Equity MFs | 15% (if STT paid) | 10% on gains over ₹1 lakh (no indexation) |
| Immovable Property | Taxed at your income slab rate | 20% (with indexation benefit) |
| Other Assets (Gold, Debt MFs) | Taxed at your income slab rate | 20% (with indexation benefit) |
Income Tax Slab Rates (New Regime) for FY 2024-25
Short-term gains on non-equity assets (like property or gold) are added to your total income and taxed according to your applicable slab rate. This calculator uses the default New Tax Regime slabs:
| Income Slab | Tax Rate |
|---|---|
| Up to ₹3,00,000 | Nil |
| ₹3,00,001 to ₹6,00,000 | 5% |
| ₹6,00,001 to ₹9,00,000 | 10% |
| ₹9,00,001 to ₹12,00,000 | 15% |
| ₹12,00,001 to ₹15,00,000 | 20% |
| Above ₹15,00,000 | 30% |
Real-World Examples & Calculations
Scenario 1: The Share Trader
Priya sells shares for ₹5,00,000 that she bought 10 months ago for ₹4,00,000.
- Gain: ₹1,00,000
- Holding Period: 10 months (Short-Term)
- Tax Rate: As it's an equity sale with STT paid, the rate is a flat 15%.
- Estimated Tax: ₹1,00,000 x 15% = ₹15,000 (+ cess)
Scenario 2: The Property Investor
Rohan sells a plot of land for ₹80 lakh that he bought 5 years ago for ₹40 lakh. The CII for the purchase year was 280 and for the sale year is 363.
- Indexed Cost of Acquisition: ₹40,00,000 x (363 / 280) = ₹51,85,714
- Long-Term Capital Gain: ₹80,00,000 - ₹51,85,714 = ₹28,14,286
- Tax Rate: 20% on long-term property gains.
- Estimated Tax: ₹28,14,286 x 20% = ₹5,62,857 (+ cess)
Scenario 3: The Long-Term Equity Investor
Sita sells shares for a total gain of ₹2,50,000. She held them for over a year.
- Total Gain: ₹2,50,000
- Exempt Amount: ₹1,00,000
- Taxable Gain: ₹2,50,000 - ₹1,00,000 = ₹1,50,000
- Tax Rate: 10% on the gain above ₹1 lakh.
- Estimated Tax: ₹1,50,000 x 10% = ₹15,000 (+ cess)
Scenario 4: High-Income Earner with Surcharge
Arjun has a salary income of ₹60 lakh. He sells a commercial property and makes a long-term capital gain of ₹50 lakh after indexation.
- Taxable Gain: ₹50,00,000
- Base Tax: ₹50,00,000 x 20% = ₹10,00,000
- Total Income: ₹60,00,000 (Salary) + ₹50,00,000 (Gain) = ₹1.1 crore
- Surcharge: Since total income is over ₹1 crore, a 15% surcharge applies to the tax. Surcharge = ₹10,00,000 x 15% = ₹1,50,000
- Cess: (₹10,00,000 + ₹1,50,000) x 4% = ₹46,000
- Total Estimated Tax: ₹10,00,000 + ₹1,50,000 + ₹46,000 = ₹11,96,000
Strategies to Minimize Capital Gains Tax in India
Use Section 54 for Property
If you sell a residential property, you can claim an exemption on the long-term capital gain by reinvesting the profit into another residential property within the specified time limits.
Invest in Capital Gains Bonds (Section 54EC)
You can claim an exemption on long-term gains from land or property by investing the gain (up to ₹50 lakh) in specified bonds from institutions like REC or NHAI within six months of the sale.
Set Off and Carry Forward Losses
You can offset your capital gains with capital losses. Short-term losses can be set off against both short-term and long-term gains. Long-term losses can only be set off against long-term gains. Unused losses can be carried forward for up to 8 assessment years.
Gift Assets to Relatives
Gifting an asset to a specified relative (like a spouse, child, or sibling) is not considered a transfer for tax purposes. This means no CGT is due at the time of the gift. The tax liability is deferred until the recipient eventually sells the asset, and they will use your original purchase price as their cost basis.
A Closer Look at Section 54 Exemptions
Section 54 of the Income Tax Act provides significant relief for property owners. The two most common exemptions are:
Section 54: Gain on Sale of a House
This applies when you sell a residential house and use the long-term capital gain to buy or construct another residential house. The full gain is exempt if the cost of the new house is more than the gain. If it's less, the exemption is proportional.
Example: You sell a house for a gain of ₹20 lakh and buy a new house for ₹25 lakh. The entire ₹20 lakh gain is exempt from tax.
Section 54F: Gain on Sale of Other Assets
This applies when you sell any long-term asset (like land, gold, or shares) and use the *entire sale proceeds* (not just the gain) to buy or construct a residential house. If the entire amount is reinvested, the entire gain is exempt.
Example: You sell shares for ₹50 lakh (with a gain of ₹10 lakh) and use the full ₹50 lakh to buy a new house. The entire ₹10 lakh gain is exempt.
Frequently Asked Questions
What is the Income Tax Surcharge?
A surcharge is an additional tax levied on the amount of income tax for high-income earners. It's calculated on the base tax amount. The rates are: 10% for income > ₹50 lakh, 15% for > ₹1 crore, 25% for > ₹2 crore, and 37% for > ₹5 crore.
What is Indexation?
Indexation is a process that adjusts the purchase price of an asset to account for inflation. It increases your cost basis, which in turn reduces your taxable gain. This benefit is only available for long-term capital assets like property, gold, and debt mutual funds, not for listed shares.
What is the Cost Inflation Index (CII)?
The CII is a value published by the Income Tax Department for each financial year. You use the CII of the year you purchased the asset and the year you sold it to calculate the indexed cost of acquisition.
How is tax on cryptocurrency gains calculated in India?
As of the latest regulations, gains from Virtual Digital Assets (VDAs), including cryptocurrencies, are taxed at a flat rate of 30% (plus cess and surcharge). No deductions or exemptions are allowed, and losses from crypto cannot be offset against any other income.
What about inherited assets?
For inherited assets, the "cost basis" is the price the *previous owner* originally paid for it. The holding period also includes the time the previous owner held the asset, which often means the gain will be long-term.
Do I need to pay advance tax on capital gains?
Yes, if your total tax liability for the year is expected to be more than ₹10,000, you are required to pay advance tax. Capital gains should be included in your income estimate, and the tax should be paid in the installment due immediately after the sale.
Further Reading & External Resources
- Income Tax Department - FAQs on Capital Gains - The official government overview of CGT rules.
- ClearTax - Capital Gains Income Guide - A detailed guide to understanding capital gains in India.
- The Economic Times - Capital Gains Tax Guide - News and analysis on capital gains taxation.