Capital Gains Tax Estimator
Estimate short-term (STCG) and long-term (LTCG) capital gains taxes on equity shares and mutual funds in India.
Transaction Details
Tax Liability Breakdown
2,50,000
LTCG (Long-Term)
Based on 18 months holdBudget 2024 Rule Updates
LTCG rate is 12.5% with a ₹1.25 Lakh annual tax exemption. STCG on equity is 20%. Ensure trades fit these time limits.
Frequently Asked Questions
What is the new LTCG tax rate and exemption limit in India?
Under the tax rules finalized in 2024, Long-Term Capital Gains (LTCG) on listed equity shares and equity-oriented mutual funds are taxed at a flat rate of 12.5%. Salied and retail investors can claim an exemption of up to ₹1.25 Lakhs per financial year on cumulative long-term returns.
What is the holding period classification for equity capital gains?
For listed stocks and equity mutual funds, if you hold your asset for 12 months or less, it falls under Short-Term Capital Gains (STCG) and is taxed at a flat rate of 20%. Holding the assets for more than 12 months classifies the returns under Long-Term Capital Gains (LTCG), which are taxed at 12.5% after deduction limits.
Related Articles
STCG and LTCG: The Tax Rules Every Indian Investor Must Know
Budget 2024 changed the capital gains landscape significantly. If you're still calculating taxes the old way, you might be in for a nasty surprise — or you might be overpaying.
For equity shares and equity mutual funds: Short-Term Capital Gains (STCG) — on assets held under 12 months — are now taxed at 20% (up from 15%). Long-Term Capital Gains (LTCG) — on assets held over 12 months — are taxed at 12.5% with no indexation benefit, but with a ₹1.25 lakh annual exemption per financial year.
For debt mutual funds purchased after April 1, 2023: gains are added to your income and taxed at slab rate, regardless of holding period. This was a major change that eliminated the indexation benefit that made debt funds more tax-efficient than FDs for investors in the 30% bracket.
Practical strategy: Harvest your LTCG annually by booking ₹1.25 lakh of gains and immediately reinvesting. This resets your cost basis and uses your annual exemption — a completely legal method to reduce future tax liability. Over 20 years, this one habit can save lakhs in taxes. Use this calculator to see exactly what your sell decision will cost you before you execute it.
Related Planners
Continue exploring tools in the Taxes category.
ELSS vs PPF vs NPS
Compare growth potential, lock-in rules, and tax treatments of 80C and 80CCD tax saving instruments.
HRA Exemption
Calculate tax-free HRA exemptions under Section 10(13A) using basic salary, HRA, rent paid, and city type.
FD vs. Debt Fund Tax
Compare post-tax returns between Bank Fixed Deposits and Debt Mutual Funds under the current tax rules.