India Capital Gains TaxIndia capital gains tax calculator
Work out the tax on a sale of shares, mutual funds, property or other assets under sections 2, 196, 197 and 198 of the Income-tax Act, 2025, read on 13 November 2026. Nothing you type leaves your device.
Worked example
Listed shares held for 18 months with a gain of ₹5,00,000 and other income of ₹10,00,000: the gain is long-term, ₹3,75,000 of it (above ₹1,25,000) is taxed at 12.5% and with the 4% cess the tax on the gain is ₹48,750.
Common questions
What is the tax on long-term gains on shares?
Under section 198 of the Income-tax Act, 2025, long-term gains on listed equity shares and equity-oriented fund units (with securities transaction tax paid) are taxed at 12.5% on the part above ₹1,25,000 in the year. Shares are long-term if held for more than 12 months.
What is the tax on short-term gains on shares?
Section 196: 20% on short-term gains on listed equity shares and equity-oriented fund units where securities transaction tax is chargeable on the sale, that is, shares held for 12 months or less.
When is property gain long-term?
Property is long-term if held for more than 24 months (section 2), taxed at 12.5% under section 197, with a special rule for land or building bought before 23 July 2024.
Sources
- The Income-tax Act, 2025, as published in the Gazette of India Extraordinary: section 2 (short-term and long-term capital asset), sections 196, 197 and 198 (tax on capital gains). The enacted text was read on 13 November 2026.
- Slab tax on other income, the ₹4,00,000 first slab and the 4% cess for 2026-27: the Tax Slabs section of this family (its own sources apply).
Rules read on 13 November 2026 from the Income-tax Act, 2025. Surcharge, losses, reinvestment exemptions and indexation are not worked. This site is independent, not connected with the Income Tax Department, and gives arithmetic, not tax advice. Ask a chartered accountant about your own sale.