Home/Calculators/Capital Gains Calculator•Last updated: June 13, 2026

Capital Gains Calculator with Indexation

Budget 2024 Rates

Income tax calculator for capital gains with indexation benefit. Calculate LTCG/STCG on stocks, mutual funds, property, gold. Uses Cost Inflation Index (CII) for indexed cost calculation. LTCG 12.5%, STCG 20%.

₹49.5K
Capital Gain
₹0
Total Tax
₹49.5K
Net Profit
LTCG
12.5% Tax Rate

Select Asset Type

Transaction Details

₹

1 Lakh

Original cost of acquisition

₹

1.50 Lakh

Price at which you sold/will sell

₹

500

Transaction costs deductible from gains

Holding Period

1 month10 years
Long-Term Capital Gain

Listed Stocks requires 12months holding for LTCG. You've held for 18 months.

Purchase Price

₹1.00L

Sale Price

₹1.50L

Capital Gain

₹49.5K

Exemption Used

₹1.25L

₹1.25L LTCG exemption

Tax Calculation Breakdown

Sale Price₹1.50L
Less: Purchase Price- ₹1.00L
Less: Expenses- ₹500
Capital Gain₹49.5K
Less: LTCG Exemption (Sec 112A)- ₹1.25L
Taxable Gain₹0
Tax @ 12.5%₹0
Health & Education Cess (4%)₹0
Total Tax Payable₹0

Capital Gains Tax Rates (FY 2026-27)

Asset TypeHolding PeriodSTCG RateLTCG RateExemption
Listed Equity Shares12 months20%12.5%₹1.25L/year
Equity Mutual Funds12 months20%12.5%₹1.25L/year
Property/Real Estate24 monthsSlab Rate12.5%*Sec 54/54F
Gold/Jewelry36 monthsSlab Rate12.5%None
Debt Mutual Funds**N/ASlab RateSlab RateNone

* For property acquired before July 23, 2024, you can choose between 12.5% without indexation OR 20% with indexation.
** Debt MFs purchased after April 1, 2023 are always taxed at slab rate.

Frequently Asked Questions

What is the difference between LTCG and STCG?

LTCG (Long-Term Capital Gains) applies when you hold an asset beyond the specified period (12 months for equity, 24 months for property, 36 months for gold). STCG (Short-Term Capital Gains) applies for shorter holding periods. LTCG is taxed at lower rates (12.5% for equity) while STCG is taxed higher (20% for equity or slab rate for others).

What is the ₹1.25 lakh LTCG exemption?

Long-term capital gains up to ₹1.25 lakh per financial year on listed equity shares and equity-oriented mutual funds are completely exempt from tax. Only gains exceeding this limit are taxed at 12.5%. This exemption was increased from ₹1 lakh in Budget 2024.

How to save capital gains tax on property?

You can claim exemptions under: (1) Section 54 - Invest gains in another residential property within 2 years, (2) Section 54EC - Invest up to ₹50 lakh in 54EC bonds (NHAI, REC) within 6 months, (3) Section 54F - If you don't own more than one residential property, invest entire sale proceeds in a new house.

Is indexation benefit still available?

For property acquired BEFORE July 23, 2024, you can choose between 12.5% tax without indexation OR 20% tax with indexation benefit. For property acquired AFTER July 23, 2024, only 12.5% without indexation applies. Indexation has been removed for equity and debt mutual funds.

What is STT and how does it affect capital gains?

Securities Transaction Tax (STT) is levied on equity transactions. If STT is paid at the time of purchase/sale, LTCG on equity is taxed at 12.5% (Section 112A). Without STT, gains are taxed at 12.5% under Section 112.

Can I set off capital losses against gains?

Yes, short-term capital loss can be set off against both STCG and LTCG. Long-term capital loss can only be set off against LTCG. Unabsorbed losses can be carried forward for 8 years. Note: From FY 2025-26, LTCG loss can only be adjusted once.

Cost Inflation Index (CII) Table - FY 2001-02 to 2026-27

Use this CII table to calculate indexed cost of acquisition for property and gold purchased before July 2024. Formula: Indexed Cost = Purchase Price × (CII of Sale Year ÷ CII of Purchase Year)

Financial YearCII Value
2026-27363
2025-26356
2024-25348
2023-24348
2022-23331
2021-22317
2020-21301
2019-20289
2018-19280
2017-18272
2016-17264
2015-16254
Financial YearCII Value
2014-15240
2013-14220
2012-13200
2011-12184
2010-11167
2009-10148
2008-09137
2007-08129
2006-07122
2005-06117
2004-05113
2001-02 (Base)100

Indexation Calculation - Worked Example

Let's calculate capital gains with indexation for a property sale and compare both methods.

1Transaction Details

Property PurchasedApril 2015
Purchase Price₹50,00,000
Property SoldJune 2026
Sale Price₹1,20,00,000
Holding Period11 years (LTCG)

2CII Values for Indexation

CII of Purchase Year (2015-16)254
CII of Sale Year (2026-27)363

Indexed Cost Formula:

= ₹50L × (363 ÷ 254)

= ₹50L × 1.429

= ₹71,45,669

AWithout Indexation @ 12.5%

Sale Price₹1,20,00,000
Less: Purchase Price₹50,00,000
Capital Gain₹70,00,000
Tax @ 12.5%₹8,75,000
Cess @ 4%₹35,000
Total Tax₹9,10,000

BWith Indexation @ 20%Better Choice

Sale Price₹1,20,00,000
Less: Indexed Cost₹71,45,669
Indexed Capital Gain₹48,54,331
Tax @ 20%₹9,70,866
Cess @ 4%₹38,835
Total Tax₹10,09,701

Verdict: Without Indexation is Better!

In this example, 12.5% without indexation saves ₹99,701 compared to 20% with indexation.

Tax Savings

₹99,701

💡 Key Insight: The 12.5% rate is usually better when property appreciation is high (more than 2x in this case). Indexation benefits properties with lower appreciation or longer holding periods where inflation adjustment makes a bigger difference.

When is Indexation Better? Decision Guide

✓

Choose Indexation (20%) When:

  • • Property appreciation < 1.6x (60%)
  • • Holding period > 15 years
  • • High inflation years in between
  • • Inherited property (low base cost)
✗

Skip Indexation (12.5%) When:

  • • Property appreciation > 2x (100%+)
  • • Shorter holding (3-7 years)
  • • Prime metro locations
  • • Recent high-growth areas
🧮

Always Calculate Both!

  • • Use our calculator above
  • • Compare tax under both methods
  • • Choose lower tax option
  • • Only for pre-July 2024 property

Related Calculators

🧮Income Tax Calculator📈SIP Calculator💰Lumpsum Calculator⚖️Tax Regime Comparison🧬Mutual Fund Returns🏦FD Calculator

More Calculators:

Salary CalculatorTDS CalculatorPPF CalculatorNPS CalculatorCAGR CalculatorSWP CalculatorFIRE Calculator