Enter Investment Details

Asset Type Equity Shares
Select the type of asset for capital gains calculation

Purchase Details

Purchase Price Cost at which asset was bought
Purchase Date Date of acquisition
Improvement Cost Any capital improvements made

Sale Details

Sale Price Selling price of the asset
Sale Date Date of sale/transfer
Brokerage/Expenses Brokerage, stamp duty, etc.

Tax Saving Options

Indexation adjusts purchase price for inflation using Cost Inflation Index (CII)
Reinvest capital gains in new residential property within specified time
Invest capital gains in specified bonds (REC, NHAI) within 6 months
Capital Gains
₹1,00,000
Long-Term Capital Gains
Tax Payable
₹10,000
10%

Calculation Breakdown

Sale Consideration
₹2,00,000
Less: Expenses
₹1,000
Net Sale Consideration
₹1,99,000
Indexed Cost of Acquisition
₹1,21,000
Capital Gains
₹78,000

Tax Calculation

Taxable Capital Gains ₹78,000
Applicable Tax Rate 10%
Tax Before Surcharge ₹7,800
Health & Education Cess (4%) ₹312
Total Tax Payable ₹8,112

Holding Period Analysis

Holding Period
4 years
Asset Classification
Long-Term
Indexation Benefit
₹21,000

Tax Saving Recommendations

About Capital Gains Tax

Capital Gains Tax is levied on profits from the sale of capital assets like stocks, mutual funds, real estate, gold, and other investments. The tax treatment differs based on the holding period and type of asset.

Types of Capital Gains

Short-Term Capital Gains (STCG)

  • Equity: Holding period less than 12 months
  • Debt Funds: Holding period less than 36 months
  • Real Estate: Holding period less than 24 months
  • Tax Rate: 15% for equity, as per income slab for others
  • Indexation: Not allowed for STCG

Long-Term Capital Gains (LTCG)

  • Equity: Holding period 12+ months
  • Debt Funds: Holding period 36+ months
  • Real Estate: Holding period 24+ months
  • Tax Rate: 10% over ₹1 lakh for equity, 20% with indexation for others
  • Indexation: Allowed for non-equity LTCG

Exemptions from Capital Gains Tax

Section 54

Exemption on capital gains from sale of residential property if reinvested in another residential property.

Conditions: Reinvest within 1 year before or 2 years after sale

Section 54F

Exemption on capital gains from sale of any asset (other than residential house) if invested in residential property.

Conditions: Must not own more than one residential house

Section 54EC

Exemption by investing capital gains in specified bonds (REC, NHAI, etc.).

Conditions: Invest within 6 months, lock-in of 5 years

Section 54D

Exemption on compulsory acquisition of industrial undertaking reinvested in new industrial asset.

Conditions: Reinvest within 3 years

Indexation Benefits

Indexation allows adjustment of purchase price for inflation using Cost Inflation Index (CII) published by Income Tax Department. This reduces taxable capital gains for long-term assets.

Indexed Cost = Purchase Price × (CII of Sale Year ÷ CII of Purchase Year)

Cost Inflation Index (CII) for Recent Years

Financial Year CII Financial Year CII
2025-26 348 2018-19 280
2023-24 348 2017-18 272
2022-23 331 2016-17 264
2021-22 317 2015-16 254
2020-21 301 2014-15 240
2019-20 289 2013-14 220

Tax Planning Strategies

Hold for Long Term

  • Hold equity investments for 12+ months for lower 10% tax
  • Hold debt funds for 36+ months for indexation benefit
  • Hold real estate for 24+ months for better tax treatment

Harvest Losses

  • Offset capital gains with capital losses
  • Carry forward losses for 8 assessment years
  • Plan sales to optimize tax liability

Reinvest Strategically

  • Use Section 54/54F for property gains
  • Consider 54EC bonds for tax deferral
  • Reinvest within specified time limits

Asset Location

  • Hold equity in taxable accounts for LTCG benefits
  • Consider debt funds for indexation benefits
  • Use tax-advantaged accounts where available
Important: This calculator provides estimates based on current tax laws (FY 2025-26). Tax laws may change and vary based on individual circumstances. Consider consulting a tax advisor for personalized advice. The CII values used are as per latest available data.