Calculate LTCG or STCG tax on your equity shares or equity mutual fund sale, using the current Section 111A/112A rates.
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Equity capital gains tax looks simple until you actually have to compute it — the rate depends on how long you held the investment, whether you have already used up your annual exemption elsewhere, and whether the sale even qualifies for the exemption at all. This capital gains tax calculator handles the full computation for listed equity shares and equity mutual funds, using the current Section 111A (STCG) and Section 112A (LTCG) rates.
| Holding Period | Classification | Tax Rate | Exemption |
|---|---|---|---|
| 12 months or less | Short-Term (STCG) | 20% (Section 111A) | None |
| More than 12 months | Long-Term (LTCG) | 12.5% (Section 112A) | ₹1,25,000 per year |
Both rates apply to transfers on or after 23 July 2024, per the Finance (No. 2) Act 2024. A 4% health and education cess applies on top of both rates, making the effective rates 20.8% for STCG and 13% for LTCG above the exemption.
Long-term capital gains on listed equity shares and equity-oriented mutual funds are taxed at 12.5% under Section 112A, on gains exceeding ₹1.25 lakh in a financial year. This rate and exemption apply to any holding sold after more than 12 months, and there is no indexation benefit available on this category. A 4% health and education cess applies on top of the 12.5%, making the effective rate 13% on the taxable portion.
Short-term capital gains on listed equity shares and equity-oriented mutual funds held for 12 months or less are taxed at a flat 20% under Section 111A, provided Securities Transaction Tax was paid on the sale. Unlike LTCG, there is no exemption threshold for STCG — the entire gain is taxable at 20%, plus 4% cess, making the effective rate 20.8%.
The ₹1.25 lakh exemption is an aggregate annual limit across all your equity long-term capital gains combined, not a separate exemption per stock or per mutual fund scheme. If you have LTCG of ₹80,000 from one fund and ₹90,000 from another in the same financial year, your total LTCG is ₹1,70,000, and only ₹45,000 of that is taxable after applying the single ₹1.25 lakh exemption once across both.
The holding period runs from the date of purchase to the date of sale, and for listed equity shares and equity mutual funds, exceeding 12 months qualifies the gain as long-term. For SIP investments, each monthly instalment is treated as a separate purchase with its own holding period, so a single redemption can produce a mix of both short-term and long-term gains depending on which instalments are being sold, typically on a first-in-first-out basis.
Short-term capital losses can be set off against both short-term and long-term capital gains in the same year. Long-term capital losses can only be set off against long-term capital gains, not against short-term gains. Any unused capital losses can be carried forward for up to 8 assessment years, but only if you file your income tax return before the due date — missing the deadline forfeits this carry-forward benefit entirely.
Equity shares and equity mutual funds never had indexation benefit even before the July 2024 changes, since Section 112A always taxed them on the raw gain without adjusting for inflation. Indexation was previously available on other long-term assets like debt funds, gold, and property, but Budget 2024 removed it broadly across most asset classes, replacing it with a flat 12.5% rate without indexation, except for a specific option retained for land and building sold by resident individuals.
For equity shares and equity mutual fund units acquired on or before 31 January 2018, the cost of acquisition for LTCG purposes is the higher of the actual purchase cost or the fair market value on 31 January 2018 (capped at the actual sale price). This grandfathering rule effectively means gains that had already accrued before that date are not taxed, only the gain from 31 January 2018 onward is considered for LTCG calculation.
No, this calculator is scoped specifically to listed equity shares and equity-oriented mutual funds (funds with more than 65% domestic equity allocation), which follow Section 111A and 112A. Debt mutual funds purchased on or after 1 April 2023 are taxed entirely at your income tax slab rate regardless of holding period under Section 50AA, with no LTCG benefit at all — a fundamentally different calculation this tool does not cover.
Yes, if your total capital gains tax liability for the year exceeds ₹10,000, advance tax applies, and it must be paid in the quarter in which the gain actually arises rather than estimated in advance for gains you have not yet realised. Since capital gains are often unpredictable, the advance tax rules allow you to pay the relevant instalment in the quarter of the actual transaction without attracting interest for earlier quarters, as long as you pay promptly once the gain occurs.
Each SIP instalment is treated as an entirely separate purchase with its own date and its own 12-month holding period clock. When you redeem SIP units, the redemption typically follows a first-in-first-out basis, meaning your oldest units are considered sold first. A single redemption request can therefore produce a mix of both long-term gains from older instalments and short-term gains from more recent ones, each taxed under its own respective rate.
This is a common strategy: since the ₹1.25 lakh LTCG exemption does not carry forward to future years if unused, some investors sell equity holdings with long-term gains up to that limit each year and immediately reinvest, effectively resetting their cost basis higher and permanently reducing future taxable gains. This should be done as part of a broader financial plan rather than purely for tax reasons, since it does involve transaction costs and a brief period out of the market during reinvestment.
