What are the capital gains tax rates in India now?

For anything sold on or after 23 July 2024: listed equity and equity mutual funds where STT is paid attract 20% short-term under Section 111A and 12.5% long-term under Section 112A, the latter on gains above ₹1,25,000 a year. Everything else attracts slab rates short-term and a flat 12.5% long-term. Crypto sits outside the system entirely at a flat 30%. All of these carry 4% cess on top, and neither Budget 2025 nor Budget 2026 changed any of them.

What is the holding period for long-term capital gains?

Two periods now, down from three. Listed securities — shares, equity mutual funds, units of a business trust — become long-term after twelve months. Everything else, including property, unlisted shares and gold, takes twenty-four months. The old thirty-six month rule for property and unlisted shares went on 23 July 2024. The test is "more than" the period, so exactly twelve or twenty-four months is still short-term and one more day tips it over.

Is indexation still available?

In one place only. Land or a building acquired before 23 July 2024 and sold by a resident individual or HUF may be taxed at the lower of 12.5% without indexation or 20% with it. Every other asset lost indexation permanently on that date — gold, unlisted shares, debt funds and everything else. Note the conditions are cumulative: the asset must be immovable property, acquired before the pivot, and sold by a resident individual or HUF. A company selling the same building has no choice.

Which is better, 12.5% without indexation or 20% with?

It depends entirely on how fast the asset appreciated relative to inflation, and it genuinely goes both ways. A long holding where the property roughly tracked inflation favours indexation, because the indexed cost eats most of the nominal gain and the higher rate applies to very little. A shorter holding where the property doubled favours the flat rate, because indexation adds only a few percent to the cost while the rate difference is substantial. The crossover sits around a doubling over ten years, but the only reliable method is to compute both.

How much long-term capital gain on shares is tax free?

₹1,25,000 per taxpayer per financial year, under Section 112A, raised from ₹1,00,000 by the Finance (No. 2) Act, 2024. It applies only to listed equity shares, equity-oriented mutual funds and units of a business trust where STT has been paid. Gains above it are taxed at 12.5% with no indexation. The exemption is per person and per year, so it does not carry forward — an unused allowance is simply lost when the year ends.

Can I use the Section 87A rebate against capital gains?

Not against gains under Sections 111A or 112A. This was argued about for a while and the Finance Act, 2025 settled it: the rebate cannot be set against equity short-term or long-term gains taxed at those special rates. So a taxpayer whose total income is within the rebate threshold can still owe tax purely on equity gains. The rebate does still work against gains taxed at slab rates, such as short-term gains on property or gold, because those form part of ordinary total income.

What is grandfathering for shares bought before 2018?

A protection for gains that accrued before long-term equity became taxable on 1 February 2018. For listed shares and equity funds acquired before that date, the cost is taken as the higher of what you actually paid and the lower of the fair market value on 31 January 2018 and the sale consideration. In effect, appreciation up to 31 January 2018 is not taxed. It matters most for holdings bought cheaply well before 2018, where it can remove the majority of the apparent gain.

How are debt mutual funds taxed?

It depends on when you bought them, which is unusual. Units bought on or after 1 April 2023 are deemed short-term however long you hold them, so the gain is always added to your income and taxed at your slab rate, with no long-term treatment available at all. Units bought before that date kept long-term treatment above twenty-four months, taxed at 12.5% — though they lost indexation along with everything else on 23 July 2024. Two identical funds can therefore be taxed quite differently.

How is crypto taxed in India?

Unlike anything else. A flat 30% under Section 115BBH regardless of how long you held it, with no deduction permitted except the cost of acquisition — not exchange fees, not infrastructure, not interest. Losses cannot be set off against anything at all, including against other crypto gains, and cannot be carried forward. A 1% TDS also applies on the transfer under Section 194S. There is no exemption threshold and no long-term treatment.

How can I reduce capital gains tax legally?

Mainly through reinvestment. Section 54 exempts gains on a residential house reinvested in another residential house; Section 54F does the same for gains on any other long-term asset, provided the whole net consideration is reinvested; and Section 54EC allows up to ₹50,00,000 into specified bonds within six months. Beyond that, timing matters: crossing the holding threshold changes the rate substantially, and realising gains across two financial years uses the ₹1,25,000 equity exemption twice rather than once.

India Capital Gains Tax Calculator

Capital gains is the part of Indian tax that changed most in the last two years, and the single most important thing to understand is that the rate follows the date you sold, not the date you bought. The Finance (No. 2) Act, 2024 rewrote the regime with effect from 23 July 2024. A share bought in 20...

THE SALE

WHAT DID YOU SELL

DATE OF PURCHASE

DATE OF SALE

PURCHASE PRICE (₹)

SALE PRICE (₹)

COST OF IMPROVEMENT (₹)

TRANSFER EXPENSES (₹)

The one asset that kept a choice. Acquired before 23 July 2024 by a resident individual or HUF, you may pay the LOWER of 12.5% without indexation or 20% with it. Acquired after that date, only the 12.5% route exists.

TAX ON THIS GAIN

₹7,68,300

12.5% on the unindexed gain. The other route would cost ₹9,09,910, so this one saves ₹1,41,610.

HELD

132 mo

GAIN

₹59,10,000

LONG-TERM

S.112

You have a choice here, and only on this asset. Land or building acquired before 23 July 2024 by a resident individual or HUF may be taxed at the lower of 12.5% without indexation or 20% with it. Everything else lost indexation permanently on that date. On these figures the 12.5% without indexation route is cheaper by ₹1,41,610.

Sale proceeds

₹90,00,000

Less transfer expenses

₹90,000

Cost of acquisition

₹30,00,000

Cost of improvement

₹0

Holding period

132 months

Classification

Long-term

Gain

₹59,10,000

Taxable after exemption

₹59,10,000

Tax

₹7,38,750

Surcharge

₹0

Cess at 4%

₹29,550

Total

₹7,68,300

This is an estimate, not tax advice. It does not model the conditions attaching to Sections 54, 54F and 54EC, loss set-off and carry forward, the stamp duty value rule under Section 50C, non-resident treatment or treaty relief. The Section 87A rebate cannot be set against gains under Sections 111A or 112A. Where the amounts matter, take the computation to a chartered accountant before you file.

THE HOLDING

The rate follows the date of sale, not of purchase. A holding of 132 months against a 24-month threshold makes this long-term. Anything sold on or after 23 July 2024 carries the current rates even if it was bought when the old ones applied — so an asset bought in 2019 and sold now is taxed at today's rates, not 2019's.

Live calculation · updates as you type

Created with❤️byeaglecalculator.com

HOW TO USE

1
Pick the asset you sold. The category decides the holding period, the rate and whether any indexation choice exists, and those differ more between assets than most people expect.
2
Enter the actual dates of purchase and sale rather than approximate months. The long-term test is a date comparison, so twelve months and one day qualifies while exactly twelve months does not.
3
Add transfer expenses — brokerage, stamp duty, legal fees — which come off the proceeds before the gain is computed, and any cost of improvement for property.
4
Open other income and reliefs if the gain is taxed at slab rates, if your total income exceeds ₹50 lakh, or if you are claiming a reinvestment exemption under Sections 54, 54F or 54EC.

RATES BY ASSET

Asset	Long-term above	Short-term	Long-term	Indexation
Listed shares or equity mutual fund, STT paid	12 months	20%	12.5% above ₹1,25,000	none
Land or building	24 months	slab	12.5%	choice, if pre-pivot
Unlisted or private company shares	24 months	slab	12.5%	none
Gold, jewellery, art or collectibles	24 months	slab	12.5%	none
Debt fund or market-linked debenture bought on or after 1 April 2023	n/a	slab	—	none
Debt fund bought before 1 April 2023	24 months	slab	12.5%	none
Crypto or other virtual digital asset	n/a	30%	—	none

All figures carry 4% cess. Surcharge applies above ₹50 lakh of total income but is capped at 15% on Sections 111A and 112A. The cost inflation index for the year of sale is 384 — 376 for FY 2025-26 and 384 for FY 2026-27, notified on 15 July 2026 — against a base year of FY 2001-02 at 100.

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Last updated: 30 July 2026 · Rates per the Finance (No. 2) Act, 2024 · CII per CBDT Notification 85/2026 · Estimate only, not tax advice.