Equity Capital Gains
Calculator India 2026

From 23 July 2024, listed equity shares, equity mutual funds, and listed business trusts: LTCG (held >12 months) = 12.5% on gains exceeding ₹1.25 lakh per FY (up from 10% on gains above ₹1 lakh). STCG (held <12 months) = 20% (up from 15%). Disposals before 23 July 2024 use the old 10%/15% rates with the ₹1 lakh LTCG threshold. Surcharge on equity LTCG/STCG capped at 15% (per sections 111A/112A); 4% Health & Education Cess applies on tax + surcharge.

Listed equity shares, units of equity-oriented mutual funds, and listed business trusts → 12 months threshold. Held more than 12 months at disposal = LTCG; 12 months or less = STCG. Unlisted shares, immovable property, gold, debt mutual funds (purchased pre-1-April-2023) → 24 months threshold. Note: this 12 vs 24 month split was unified under the Finance Act 2024 — earlier rules had 36 months for some asset classes. The classification is determined by the disposal date, not the financial year of allotment.

Debt MFs purchased on or after 1 April 2023 (post-Finance Act 2023): all gains — regardless of holding period — are taxed at the slab rate as STCG-equivalent. No LTCG benefit and no indexation. This effectively eliminated the long-term tax advantage of debt funds. Debt MFs purchased before 1 April 2023 with holding >24 months: 12.5% flat (post-23-Jul-2024) without indexation, or 20% with indexation if held the asset before that date (transitional). Below 24 months: STCG at slab rate.

Short-term capital losses can be set off against both STCG and LTCG of the same FY. Long-term capital losses can only be set off against LTCG (not STCG). Unused losses can be carried forward for 8 assessment years against future capital gains of the same type. Returns must be filed by the original due date (typically 31 July) to claim carry-forward — late filing forfeits this right. Speculative business losses, salary income, and most other heads cannot offset capital gains.

Securities Transaction Tax (STT) is paid on every equity buy/sell transaction on Indian stock exchanges. STT is automatically deducted by the broker. The lower 12.5% LTCG rate (and 20% STCG rate) on equity is conditional on STT having been paid on the disposal — equity transactions off-exchange (private deals, gifts, OTC) attract LTCG at slab rate. STT rates 2025-26 indicative: equity delivery 0.1% buy + 0.1% sell; equity intraday 0.025% sell; F&O futures 0.02% sell; F&O options 0.1% sell of premium.

Listed foreign shares and unlisted shares are 'long-term' if held >24 months. LTCG is taxed at 12.5% flat without indexation under Finance Act 2024. STCG (held <24 months) is added to slab income. No ₹1.25 lakh exemption applies to foreign equity (the exemption is only for listed Indian equity under section 112A). Tax treaties with the US, UK, Singapore etc. provide credit for tax paid abroad. Form 67 must be filed to claim foreign tax credit. Liberalised Remittance Scheme (LRS) tracks outflows up to USD 250,000 per FY.

Retain for at least 6 years from end of relevant assessment year: (1) broker contract notes / electronic statements showing buy and sell dates and amounts, (2) demat statements, (3) bank records for inflows from sales, (4) Form 26AS / AIS / TIS reconciliation, (5) for inherited or gifted shares, evidence of original cost or fair market value at acquisition, (6) for SIP investments, full transaction history (each instalment has its own holding period). Most major brokers (Zerodha Coin, Groww, ETMoney, Kuvera) provide annual capital gains statements compatible with ITR-2/ITR-3 schedules.

For listed equity / equity MFs acquired before 1 February 2018, the cost base is taken as the higher of: (a) actual purchase price, OR (b) fair market value (FMV) on 31 January 2018 (subject to a maximum of the actual sale price). This effectively grandfathered pre-2018 unrealised gains from CGT — only post-2018 appreciation is taxed. The FMV on 31-Jan-2018 must be the highest traded price for listed shares, or NAV for mutual funds. This grandfathering still applies under the new 12.5% rate.

Capital gains are reported in the 'Schedule CG' of ITR-2 or ITR-3 (ITR-1 cannot be used if you have capital gains). For each disposal, separately disclose: type of asset, date of acquisition, cost of acquisition (with indexation if applicable), date of transfer, full value of consideration, expenses on transfer, and gain/loss. Mutual fund schemes' ISIN-level data must match Form 26AS / AIS. STCG and LTCG schedules are separate. Filing deadline: typically 31 July for non-audit individuals; 31 October for those requiring tax audit. Late filing carries ₹1,000-₹10,000 penalty under section 234F.

Surcharge applies on income tax above certain thresholds. For equity LTCG/STCG (under sections 111A and 112A), the maximum surcharge is capped at 15% even if total income exceeds ₹2 crore (in contrast to 25%/37% on regular income). Surcharge slabs: 10% above ₹50 lakh income; 15% above ₹1 crore; 25% above ₹2 crore (capped at 15% for equity gains); 37% above ₹5 crore (capped at 15% for equity gains). 4% Health & Education Cess applies on top of base tax + surcharge. New regime FY 2025-26 caps highest surcharge at 25%.