Capital Gains Tax Calculator India (Equity)

Equity capital gains rules at a glance

For listed equity shares and equity mutual funds where STT is paid, gains on holdings of 12 months or less are short-term and taxed at 20% (Section 111A). Gains on longer holdings are long-term and taxed at 12.5% (Section 112A) on the amount above the Rs 1.25 lakh annual exemption. A 4% health and education cess applies on the computed tax.

• STCG (12 months or less): 20% flat.
• LTCG (over 12 months): 12.5% above Rs 1.25 lakh per year.
• 4% cess on the tax; surcharge may apply at high incomes.

Worked example

Suppose you booked Rs 1,00,000 of short-term gains and Rs 3,00,000 of long-term gains in a year. Taxable LTCG is Rs 3,00,000 - Rs 1,25,000 = Rs 1,75,000, giving LTCG tax of Rs 21,875. STCG tax is 20% of Rs 1,00,000 = Rs 20,000. Total tax is Rs 41,875, and with 4% cess the payable amount is about Rs 43,550.

Capital gains and your ITR form

Capital gains generally push salaried taxpayers from ITR-1 to ITR-2, because ITR-1 does not accommodate capital gains schedules. Keep broker capital-gains statements, and reconcile with AIS and Form 26AS before filing. RupeeKit's ITR-2 guide covers who must file, deadlines and a document checklist.

Harvesting the Rs 1.25 lakh exemption

Because the LTCG exemption resets every financial year, some investors realise long-term gains up to Rs 1.25 lakh annually and reinvest, stepping up their cost base without tax. Weigh transaction costs, exit loads and market risk before using this approach, and keep records for reporting.

Why your final filing liability may differ

This calculator estimates tax on the equity gains you enter, in isolation. Your actual filing liability can differ because capital gains are special-rate income: the Section 87A rebate generally does not reduce tax on equity LTCG, brought-forward or current-year capital losses can be set off against gains, surcharge can apply at higher total incomes, and gains before and after rate-change dates within a year may follow different rates. Grandfathering rules for equity bought before 31 January 2018 can also change the taxable gain. Always reconcile broker capital-gains statements with AIS/TIS and the official filing utility before submitting your return.

• Section 87A rebate treatment differs for special-rate income such as equity LTCG
• Capital-loss set-off and carry-forward can reduce taxable gains
• Surcharge may apply at higher total-income levels
• Grandfathering for pre-31 January 2018 equity purchases can adjust the gain
• Final numbers must come from the official Income Tax e-filing utility

Source and Methodology

Last reviewed: August 2026

This calculator applies Section 111A (20% STCG) and Section 112A (12.5% LTCG above Rs 1.25 lakh) rates for STT-paid listed equity, plus 4% health and education cess, to the gain amounts you enter. Surcharge, set-offs and non-equity assets are out of scope. Educational estimate only, not tax advice.