Capital Gains Tax Calculator
LTCG & STCG tax on shares and mutual funds
Reviewed by the PaisaTools Editorial Team · Last reviewed September 2026 · Applicable to FY 2026-27 (AY 2027-28)
How to use: Pick long- or short-term, enter buy and sell value — we compute the LTCG/STCG tax and what you keep.
Example₹2L bought, ₹4L sold, long-term → ₹75,000 taxable after exemption, ₹9,750 tax
What you paid for the shares / mutual fund units
What you received (or would receive) on selling
For listed equity shares & equity mutual funds (FY 2026-27): long-term (held over 1 year) is 12.5% on gains above ₹1.25 lakh; short-term is 20%. Plus 4% cess.
Tax on your long-term gain (12.5%)
₹9,750
Taxable gain after exemption
₹75,000
You keep after tax
₹1,90,250
The breakdown
The ₹1.25 lakh LTCG exemption is per financial year, across all your equity. Booking gains up to it each year is fully tax-free.
This works out the capital gains tax on your listed equity shares and equity mutual funds for FY 2026-27, under the rates revised in Budget 2024. Pick whether the holding is long-term (held over a year) or short-term, enter your buy and sell value, and it shows the taxable gain, the tax, and what you keep.
Long-term (LTCG) on equity is 12.5%, but only on gains above the ₹1.25 lakh yearly exemption — so smaller gains are tax-free. Short-term (STCG) on equity is a flat 20% regardless of your slab. Both add 4% cess. The single most useful habit this reveals: holding past one year drops your rate from 20% to 12.5% and unlocks the ₹1.25 lakh exemption.
Working out your whole tax picture? Pair this with our income tax calculator for salary and the crypto tax calculator for VDA gains, which follow entirely different (harsher) rules.
Want it in a spreadsheet? Download the free capital gains calculator (Excel): list every sale; it sorts short from long term by date, sets off losses and works out the year's tax. Live formulas, no macros, free to share with credit (CC BY 4.0). How the sheet works.
Computed under Section 112A (section 198 of the new Income-tax Act, 2025) (12.5% LTCG on listed equity & equity funds above the ₹1,25,000 annual exemption) and Section 111A (20% STCG), as revised in the Finance (No. 2) Act 2024 effective 23 July 2024, plus 4% health & education cess — notified by the Income Tax Department, Government of India. Applies to STT-paid listed equity and equity-oriented funds only; debt funds, unlisted shares and property follow different rules. Not tax advice.
- Doesn't cover every asset class or the set-off/carry-forward of losses.
- Grandfathering and indexation depend on the dates you enter.
- Surcharge and cess nuances are simplified.
- How much is LTCG tax on shares in India?
- Long-term capital gains on listed equity shares and equity mutual funds (held over 1 year) are taxed at 12.5%, but only on the gains above a ₹1.25 lakh exemption each financial year. So a ₹2 lakh long-term gain is taxed on ₹75,000, giving ₹9,375 plus 4% cess. The exemption resets every year.
- What is the short-term capital gains (STCG) tax rate?
- Short-term capital gains on listed equity (held 1 year or less) are taxed at a flat 20% under Section 111A (section 196 of the new Income-tax Act, 2025), plus 4% cess — regardless of your income slab. This rate was raised from 15% in Budget 2024, effective 23 July 2024.
- What is the ₹1.25 lakh exemption?
- For long-term equity gains, the first ₹1,25,000 of gains in a financial year is completely tax-free. It's a per-year, per-person limit across all your equity holdings. Many investors deliberately book gains up to this limit each year ("tax harvesting") to use it before it resets.
- How much tax on ₹2 lakh long-term capital gain?
- On a ₹2,00,000 long-term equity gain, you subtract the ₹1.25 lakh exemption to get ₹75,000 taxable, then 12.5% = ₹9,375, plus 4% cess = ₹375, for ₹9,750 total. Enter your own figures above for the exact number.
- Can I set off capital losses?
- Yes — unlike crypto, equity capital losses can be set off against other capital gains, and carried forward for up to 8 years. A short-term loss can offset both short- and long-term gains; a long-term loss can offset only long-term gains. You must report the loss in your return to carry it forward.
- Does this cover debt funds or property?
- No — this calculator is for listed equity shares and equity-oriented mutual funds (STT paid). Debt mutual funds are now taxed at your slab rate with no LTCG benefit, and property and unlisted shares follow separate rules, so they aren't covered here.
Related guides
- Crypto tax in India: how the 30% tax and 1% TDS workA flat 30% on gains, a 1% TDS, and no setting off losses. How it actually works, with worked examples and the mistakes that cost money.
- Best tax-saving investments under Section 80C (FY 2026-27)The full ₹1.5 lakh 80C menu — ranked by returns, lock-in and safety — and how to fill it without wasting money.
Writing about this? Put the calculator in your article
Free for any site. One line of HTML, no signup, no ads, and we keep the rates and rules current so you never have to.
Related tools
All Tax & Salary tools →EPF Withdrawal Tax Calculator
What a PF withdrawal before five years actually costs — the three heads it splits across, and why TDS is not the tax
Salary Decoder
One CTC in — in-hand, tax regime, SIP, rent & loan headroom out
Which ITR Form?
Answer a few questions, get the right ITR form and the rule behind it