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, 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.

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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

Holding period

What did you buy it for?

₹

What you paid for the shares / mutual fund units

What did you sell it for?

₹

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

Sell value − buy value₹2,00,000

Less: ₹1.25 lakh LTCG exemption− ₹1,25,000

Taxable gain₹75,000

Tax @ 12.5%₹9,375

Health & education cess @ 4%₹375

Total tax₹9,750

Net gain you keep₹1,90,250

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.

How it works

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.

Method & sources

Computed under Section 112A(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.

What this doesn't cover

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.

Frequently asked

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, 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.

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