Capital Gains Tax Calculator

For listed equity shares and equity-oriented mutual funds, the holding period is 12 months. For debt mutual funds, real estate, gold, and unlisted shares, it is 36 months. For immovable property (land and building), it is 24 months from FY 2024-25. Assets held beyond these periods qualify as long-term and attract lower tax rates with indexation benefits where applicable.

Indexation adjusts the purchase price of an asset for inflation using the Cost Inflation Index (CII) published annually by the CBDT. By inflating the acquisition cost, indexation reduces the taxable gain, so you pay tax only on the real (inflation-adjusted) gain rather than the nominal gain. This is particularly beneficial for assets held over many years, such as real estate and debt funds.

Yes, under several sections of the Income Tax Act. Section 54 exempts tax on gains from selling residential property if you reinvest in a new residential property. Section 54EC allows exemption up to ₹50 lakh by investing in specified bonds (REC/NHAI) within 6 months. Section 54F exempts gains from selling any long-term asset (other than residential property) if you purchase a residential house. Each section has specific conditions and timelines that must be strictly followed.

Tax-loss harvesting involves selling an underperforming investment to realise a capital loss, which is then used to offset capital gains from other investments. Short-term capital losses can offset both short-term and long-term gains, while long-term losses can offset only long-term gains. Any unabsorbed loss can be carried forward for up to 8 assessment years. This strategy helps reduce your overall tax liability while rebalancing your portfolio.

Capital gains on foreign assets such as US stocks or international mutual funds are taxed similarly to domestic assets based on holding period. Cryptocurrencies and virtual digital assets are taxed at a flat 30% under Section 115BBH regardless of holding period, with no deduction allowed except the cost of acquisition. Losses from crypto transactions cannot be set off against any other income.

NRIs selling property in India are subject to capital gains tax at the same rates as residents: 20% with indexation for long-term gains or slab rates for short-term gains. However, TDS is deducted by the buyer at a higher rate — 20% for long-term gains (Section 195) and 30% for short-term gains if the sale consideration exceeds ₹50 lakh. NRIs can claim the lower rate by obtaining a certificate under Section 197 from their Assessing Officer.

Agricultural land in rural areas is not considered a capital asset under Section 2(14) of the Income Tax Act, so its sale is exempt from capital gains tax. However, agricultural land in urban or peri-urban areas (within notified distance from municipal limits) is treated as a capital asset. Gains from selling urban agricultural land held for more than 24 months are long-term and taxed at 20% with indexation, while short-term gains are added to income and taxed as per slab rates.

From April 1, 2023, debt mutual funds held for more than 36 months are no longer eligible for indexation benefits. Instead, long-term capital gains on debt funds are taxed at 20% without indexation, and the holding period for long-term classification remains 36 months. Short-term gains on debt funds (held for 36 months or less) are added to the taxpayer's income and taxed as per their applicable slab rate, which can be as high as 39% including cess.

Section 54F allows exemption on capital gains from the sale of any long-term asset (other than a residential house) if the net consideration is invested in purchasing or constructing one residential house in India. The exemption is available for only one residential house. If you purchase multiple houses, the exemption applies only to the amount invested in one house, and the remaining gain is taxable. The house must be purchased within 1 year before or 2 years after the sale, or constructed within 3 years.

If you fail to reinvest the capital gains in a new residential property within the specified timeline (2 years for purchase or 3 years for construction), the unutilized amount must be deposited in a Capital Gains Account Scheme (CGAS) with a scheduled bank before the ITR due date. If not deposited, the tax exemption is revoked and the capital gain becomes taxable in the year of sale. Amounts deposited in CGAS must be utilized within the prescribed period, and any unutilized amount after the deadline becomes taxable.