Contents
- 1 Capital Gains Calculator — STCG & LTCG (Post Budget 2024)
- 1.1 Visual Breakdown
- 1.2 Capital Gains Tax in India — Post Budget 2024
- 1.3 Section 87A Rebate on Capital Gains
- 1.4 Pre-Budget 2024 Indexation Trap (Grandfathered Relief)
- 1.5 Capital Gains Exemptions (Sections 54, 54B, 54F, 54EC)
- 1.6 Worked Examples
- 1.7 Set-Off and Carry Forward Rules
- 1.8 STT, Securities Transaction Tax Impact
- 1.9 How to Report Capital Gains in ITR
- 1.10 Frequently Asked Questions
- 1.11 Explore More Tools
Capital Gains Calculator — STCG & LTCG (Post Budget 2024)
Calculate Short-Term and Long-Term Capital Gains tax across equity, debt, property, gold and unlisted shares. Includes Budget 2024 changes — 12.5% LTCG, 20% STCG equity, no indexation.
Visual Breakdown
Capital Gains Tax in India — Post Budget 2024
Budget 2024 (effective 23 July 2024) overhauled India’s capital gains tax structure. Key changes: LTCG on listed equity raised from 10% to 12.5% with ₹1.25 lakh exemption (was ₹1 lakh), STCG on equity raised from 15% to 20%, indexation benefit removed for property and gold, and most non-equity assets now taxed at uniform 12.5% LTCG after 24-month holding.
Current Tax Rates Summary (FY 2025-26)
| Asset | Short-Term (period) | STCG Rate | Long-Term (period) | LTCG Rate |
|---|---|---|---|---|
| Listed Equity Shares & Equity MF | ≤ 12 months | 20% | > 12 months | 12.5% on gains above ₹1.25L |
| Debt Mutual Funds (post 1-Apr-2023) | — | Slab rate | — | Slab rate (no LTCG) |
| Property / Real Estate | ≤ 24 months | Slab rate | > 24 months | 12.5% (no indexation) |
| Gold (Physical/Digital/SGB) | ≤ 24 months | Slab rate | > 24 months | 12.5% |
| Unlisted Shares | ≤ 24 months | Slab rate | > 24 months | 12.5% |
| Foreign Stocks / ETFs | ≤ 24 months | Slab rate | > 24 months | 12.5% |
| Bonds / Debentures | ≤ 12 months | Slab rate | > 12 months | 12.5% |
| SGB (Sovereign Gold Bond) — held till maturity | — | — | Always | FULLY EXEMPT |
Note: Add 4% Health & Education Cess + applicable surcharge (10-37% for high incomes) on top of base tax.
Section 87A Rebate on Capital Gains
Important Budget 2025 clarification: Section 87A rebate is NOT available against Special Rate Income (which includes LTCG @ 12.5%, STCG @ 20% on equity, etc). It is only available against normal-rate income. Earlier confusion led ITR Department to issue refunds; revised guidance has tightened this.
Pre-Budget 2024 Indexation Trap (Grandfathered Relief)
For property purchased BEFORE 23 July 2024 and sold AFTER 23 July 2024, taxpayers can choose between:
- Option A: 12.5% without indexation (new regime)
- Option B: 20% WITH indexation (old regime)
Choose whichever gives lower tax. For property held 10+ years with low rental yield, Option B (with indexation) often beats Option A. For new property < 5 years, Option A is usually better.
Capital Gains Exemptions (Sections 54, 54B, 54F, 54EC)
| Section | Applies To | Exemption Condition | Limit |
|---|---|---|---|
| Section 54 | Residential property sale | Buy another residential property (1 yr before or 2 yrs after; construct within 3 yrs) | Up to ₹10 cr (Budget 2023) |
| Section 54B | Agricultural land sale | Buy new agricultural land within 2 years | No upper cap |
| Section 54F | Other LTCG (gold, shares, etc.) | Invest entire sale proceeds in 1 residential property | Up to ₹10 cr |
| Section 54EC | Property LTCG | Invest in REC/NHAI/PFC bonds within 6 months (5-yr lock-in) | ₹50 lakh per FY |
| Section 54EE | LTCG on equity/mutual funds | Invest in notified start-up funds within 6 months | ₹50 lakh |
| CGAS (Capital Gains Account Scheme) | Pending reinvestment | Park gains in CGAS account till you find property | Same as above |
Worked Examples
Example 1: Equity Mutual Fund SIP — Long-Term
| Invested ₹5 lakh in 2020 | Cost: ₹5,00,000 |
| Sold in 2026 for ₹15 lakh | Sale: ₹15,00,000 |
| Brokerage + STT + GST | ₹5,000 |
| Net Gain | ₹9,95,000 |
| Holding (6 years >12 months) | LTCG applies |
| Exempt ₹1.25L per FY | Taxable: ₹8,70,000 |
| Tax @ 12.5% | ₹1,08,750 |
| + 4% Cess | ₹4,350 |
| Total Tax | ₹1,13,100 |
Example 2: Property Sale — Pre vs Post Budget Comparison
Property bought 2015 for ₹50L, sold 2026 for ₹2 Cr. Holding period > 24 months.
| Method | Indexed Cost | Gain | Tax |
|---|---|---|---|
| Option A: 12.5% (no indexation) | ₹50,00,000 | ₹1.5 Cr | ₹19,50,000 (incl cess) |
| Option B: 20% + indexation (CII 2015: 254 → 2026: ~365) | ₹71,85,000 | ₹1.28 Cr | ₹26,62,400 (incl cess) |
Option A wins by ₹7L for this case. Always run both calculations before filing.
Set-Off and Carry Forward Rules
| Loss Type | Can Be Set-Off Against | Carry Forward |
|---|---|---|
| Short-Term Capital Loss (STCL) | STCG and LTCG | 8 years |
| Long-Term Capital Loss (LTCL) | ONLY LTCG (not STCG) | 8 years |
| Speculative Loss (intraday) | Only speculative gains | 4 years |
| Loss from VDAs (crypto, NFT) | NOTHING (Section 115BBH) | Cannot carry forward |
To carry forward losses, you MUST file ITR before due date (31 July typically for individuals). Belated returns lose carry-forward right.
STT, Securities Transaction Tax Impact
STT (Securities Transaction Tax) is paid on every equity/derivative transaction on Indian exchanges. STT is NOT added to cost or deducted from sale value for capital gains — it’s a separate tax. For LTCG benefit eligibility, STT must have been paid at the time of acquisition AND sale.
| Transaction | STT Rate | Charged On |
|---|---|---|
| Equity Delivery | 0.1% | Both buyer and seller (each pays) |
| Equity Intraday | 0.025% | Seller only |
| Equity F&O Futures Sale | 0.02% | Seller |
| Equity Options Sale | 0.1% on premium | Seller |
| Options Exercise | 0.125% on intrinsic value | Buyer |
| Mutual Fund Redemption (equity) | 0.001% | Seller |
How to Report Capital Gains in ITR
- ITR-1 (Sahaj): Not for capital gains (use ITR-2 onwards)
- ITR-2: Salaried/pensioners with capital gains (no business income)
- ITR-3: If you have business/professional income alongside capital gains
- ITR-4 (Sugam): Not for capital gains
- Schedule CG: Detailed capital gains entries — STCG and LTCG separately
- Schedule 112A: Grandfathering details for equity acquired before 31-Jan-2018
- Schedule VDA: Crypto/NFT (separate from CG)
- Schedule FSI / FA: Foreign source income / foreign assets (mandatory disclosure for residents)
Frequently Asked Questions
What’s the difference between STCG and LTCG?
STCG (Short-Term Capital Gain) applies when an asset is sold within the short-term holding period (12 months for listed equity, 24 months for property/gold/unlisted). LTCG applies for longer holdings. STCG is generally taxed higher (slab rate or 20% for equity); LTCG enjoys concessional rates with exemptions.
How much LTCG on equity is tax-free per year?
Up to ₹1.25 lakh per financial year is exempt (raised from ₹1 lakh in Budget 2024). Gains above this threshold are taxed at 12.5%. So if your LTCG for the year is ₹2 lakh, only ₹75,000 is taxable — tax = ₹9,375 + 4% cess.
Does indexation still apply to property?
Generally NO after 23 July 2024. Old regime (20% with indexation) is available ONLY as a grandfathered choice for property purchased BEFORE 23 July 2024. New regime: 12.5% without indexation. Choose lower tax option for grandfathered properties.
Are debt mutual funds still tax-efficient?
Largely NO post-April 2023. Debt MFs purchased after 1-Apr-2023 are taxed at SLAB rate regardless of holding period — no LTCG benefit, no indexation. Effectively makes debt MFs less attractive than direct bonds or FDs for high-tax-bracket investors.
How is Sovereign Gold Bond (SGB) taxed?
If held till maturity (8 years): Capital gain is FULLY EXEMPT (best tax treatment of any gold investment). If sold on exchange before maturity: regular LTCG/STCG rules apply. Interest (2.5% p.a.) is always taxable at slab rate.
Can I claim Section 54 exemption on multiple properties?
Generally one residential property. Budget 2019 introduced a once-in-lifetime option to invest in 2 residential properties if total LTCG ≤ ₹2 crore. Budget 2023 capped Section 54/54F exemption at ₹10 crore — excess gains taxed at LTCG rate.
Is gift tax payable on inherited assets?
No tax on inheritance itself. But when you eventually sell the inherited asset, capital gain is calculated using ORIGINAL OWNER’s cost (cost basis carries forward). Holding period also includes original owner’s period.
Are NRIs taxed differently on capital gains?
Largely same rates. Key differences: (a) TDS @ 12.5% (LTCG) or 20% (STCG equity) deducted at source from NRI sale proceeds, (b) DTAA benefits may apply for foreign assets, (c) Section 195 TDS applies to property sale by NRI. NRIs cannot claim Section 87A rebate.
What records should I maintain for capital gains?
Contract notes, demat statements, mutual fund statements, sale deeds, purchase deeds, brokerage receipts, stamp duty receipts, valuation reports for inherited/gifted property. Retain for at least 7 years post-filing as IT Department can re-open assessments.
How is capital loss treated if I don’t have gains in same year?
Carry forward up to 8 assessment years (provided you file ITR before due date). STCL set-off against STCG or LTCG; LTCL ONLY against LTCG. Plan harvests strategically — book losses in years with gains to offset tax.
Does TDS apply on capital gains?
Yes for select cases: (a) Property sale > ₹50 lakh — buyer deducts 1% TDS (Sec 194-IA); (b) NRI sales — buyer deducts at applicable rate; (c) Mutual fund equity redemption by NRI — AMC deducts at LTCG/STCG rate. Resident investors usually pay tax via advance tax/self-assessment.
Can I claim cost of improvement on property?
Yes — cost of improvement (renovation, additions) is added to cost basis. Maintain receipts. For pre-2001 properties, fair market value as of 1-Apr-2001 can be used as cost basis (one-time benefit). Improvements between cost-base date and sale are also indexable in old regime.