Compute Indian capital gains under post-July-2024 regime.
Capital gains tax
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Net after tax
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Your breakdown
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Item
Amount
Worked example
Imagine you sell listed equity shares or equity mutual funds held for more than 12 months and book a long-term capital gain of Rs 5,00,000 in FY 2026-27. Under the post-23-July-2024 rules, the first Rs 1,25,000 of equity LTCG in the year is exempt, so only Rs 3,75,000 is taxable. The long-term rate on equity is 12.5 percent, giving a base tax of Rs 46,875. A 4 percent Health and Education Cess is then added, which is Rs 1,875, taking the total capital gains tax to Rs 48,750. After paying that tax, you keep Rs 4,51,250 of the gain. If the same Rs 5,00,000 had been a short-term equity gain (held for 12 months or less) it would be taxed at the flat 20 percent rate instead, with no exemption.
Step
Amount (Rs)
Equity LTCG booked
5,00,000
Less annual exemption
1,25,000
Taxable gain
3,75,000
Tax at 12.5 percent
46,875
Health and Education Cess at 4 percent
1,875
Total capital gains tax
48,750
Net gain kept
4,51,250
How it is calculated
Budget 2024, effective 23 July 2024, reset the capital gains regime. For listed equity and equity mutual funds, long-term gains (holding above 12 months) are taxed at 12.5 percent after a Rs 1,25,000 annual exemption, while short-term gains are taxed at a flat 20 percent. For property held above 24 months, the long-term rate is 12.5 percent without indexation, though assets acquired before 23 July 2024 may instead opt for 20 percent with indexation if that produces a lower bill. The calculator applies the chosen rate to the gain, subtracts the exemption only for equity LTCG, and adds the 4 percent Health and Education Cess on the resulting tax. The net figure is simply the gain minus the total tax. These rates sit outside the income tax slabs and apply regardless of which regime you choose for salary.
Frequently asked questions
Post-2024 changes?
Budget 2024 (effective 23 July 2024): equity STCG raised to 20% (from 15%), equity LTCG to 12.5% (from 10%), LTCG exemption raised to Rs 1.25L (from Rs 1L). Property LTCG changed to 12.5% without indexation; pre-23-July-2024 acquisitions can opt for 20% with indexation.
What is the Rs 1.25 lakh LTCG exemption?
For listed equity shares and equity-oriented mutual funds, the Income Tax Act grants a yearly exemption of Rs 1,25,000 on long-term capital gains. Only the amount above this threshold is taxable at 12.5 percent. The exemption resets each financial year and cannot be carried forward to the next year.
Is the 4 percent cess included in this calculator?
Yes. Every result already includes the Health and Education Cess at 4 percent applied on top of the base capital gains tax. This cess is mandatory for all taxpayers and cannot be deducted against any other income or tax liability.
Do capital gains fall inside the regular income tax slabs?
No. Capital gains on listed equity and property are taxed at flat special rates that sit outside the regular slab structure. Salary, business income, and other ordinary income follow the slab rates. The choice between the new tax regime and the old tax regime does not change these flat capital gains rates.