Capital Gains Tax in India, Explained
What capital gains tax is, short-term versus long-term gains, how shares, funds and property are taxed, indexation, set-off of losses, exemptions and advance tax — in plain English.
Capital Gains Tax Calculator
Verified formula Updated Jun 2026 Private — runs on your device
Verified formula
Private
Capital gains tax
₹21,875
- Capital gain
- ₹3,00,000
- Net gain after tax
- ₹2,78,125
For general information only — not financial, tax, legal or medical advice. Verify before you rely on it.
How to use the Capital Gains Tax Calculator
The Capital Gains Tax Calculator works out your capital gains tax, along with 2 related figures in an instant. Enter purchase price, sale price and holding period and the result updates as you type — it is free, needs no sign-up, and runs entirely in your browser so your figures stay private.
- Enter the purchase price.
- Enter the sale price.
- Enter the holding period.
- Read off your capital gains tax, together with capital gain and net gain after tax — the calculator updates automatically, with no button to press.
Worked example
For example, with purchase price of ₹200,000, sale price of ₹500,000 and holding period of 18 months, the capital gains tax is ₹21,875.
| Purchase price | ₹200,000 |
|---|---|
| Sale price | ₹500,000 |
| Holding period | 18 months |
| Capital gain | ₹3,00,000 |
|---|---|
| Capital gains tax | ₹21,875 |
| Net gain after tax | ₹2,78,125 |
Results are estimates for educational use, not professional advice.
Key terms explained
- Capital gains
- The profit from selling an asset for more than it cost, which may be taxable.
Frequently asked questions
For listed equity and equity mutual funds held 12 months or more, long-term gains above ₹1.25 lakh a year are taxed at 12.5%. Gains on holdings under 12 months are short-term and taxed at 20% (rates effective 23 July 2024).
Long-term capital gains on equity up to ₹1.25 lakh in a financial year are exempt. Only the gain above this limit is taxed at 12.5%, which this calculator applies automatically.
No. This tool uses the equity rules. Property, gold and debt funds follow different rates and holding periods, and some qualify for indexation, so use an asset-specific method for those.
For listed equity covered by STT, short-term gains are taxed at 20% from 23 July 2024 (15% before that). Other assets may instead be taxed at your normal income slab rate.
Enter the purchase price. Enter the sale price. Enter the holding period. Read off your capital gains tax, together with capital gain and net gain after tax — the calculator updates automatically, with no button to press.
Related guides
Capital Gains Tax Table: Capital gain by Purchase price
Reference table of capital gain for Capital Gains Tax across a range of purchase price values — exact, engine-computed figures you can read off at a glance.
How to Calculate Capital Gains Tax: Formula, Steps & Examples
Learn how to calculate Capital Gains Tax — the formula explained step by step, with worked examples and a free calculator to check your answer.