LTCG vs STCG Calculator

LTCG (long-term capital gains) applies when an asset is held beyond the LTCG threshold — more than 12 months for listed shares/equity funds, or more than 24 months for other assets like property or gold. STCG (short-term capital gains) applies at or below that threshold. LTCG generally gets preferential tax rates and, for listed equity, an annual exemption; STCG does not.

For transfers on or after 23 July 2024: STCG on STT-paid listed equity/equity funds (s.111A) is taxed at 20%; LTCG on the same (s.112A) is taxed at 12.5% above an annual exemption of INR 1,25,000. LTCG on other assets like property, gold or debt funds (s.112) is taxed at 12.5% without indexation. STCG on other (non-equity) assets is added to your income and taxed at your slab rate. A 4% Health & Education Cess applies on top of all of these.

Under section 112A, the first INR 1,25,000 of long-term capital gains on STT-paid listed equity and equity-oriented mutual funds in a financial year is tax-free; only the amount above that is taxed at 12.5%. This exemption is an annual, aggregate limit across all your eligible listed-equity LTCG for the year, not per transaction.

Listed shares, equity mutual funds, units of a business trust and zero-coupon bonds need to be held for more than 12 months to qualify as long-term. All other capital assets — real estate, gold, debt mutual funds, unlisted shares — need to be held for more than 24 months. Holding for exactly 12 or 24 months still counts as short-term.

Yes. The Finance (No.2) Act 2024 overhauled capital gains tax effective for any transfer on or after 23 July 2024: STCG on listed equity rose from 15% to 20%, LTCG on listed equity rose from 10% to 12.5% (with the exemption raised from INR 1 lakh to 1.25 lakh), and LTCG on other assets was rationalised to a flat 12.5% without indexation (previously 20% with indexation).

Indexation was removed for most assets under section 112 for transfers on or after 23 July 2024 — gains are now taxed at 12.5% on the unindexed amount. The one carve-out is a grandfathering rule for land or building acquired before 23 July 2024 by a resident individual or HUF, which this calculator does not model; consult a tax professional if that applies to you.

Short-term capital gains on non-equity assets like real estate, gold or debt mutual funds are not taxed at a special flat rate — they are added to your total income for the year and taxed at your normal income-tax slab rate, which is why this calculator asks for your slab rate for that case.

No. Surcharge depends on your total taxable income and residency status — it's capped at 15% on s.111A/s.112A gains but can be higher on other long-term gains at high income levels. This calculator computes tax plus the 4% cess only; your actual liability may be higher once surcharge is added.

If your sale price minus transfer expenses is less than your purchase price, you have a capital loss and this calculator shows zero tax. In practice, capital losses can be set off against other capital gains and carried forward for future years under Income Tax Act rules — that set-off and carry-forward mechanism is outside the scope of this calculator.

The lower s.111A/s.112A rates apply only to securities on which Securities Transaction Tax (STT) has been paid — typically shares listed on a recognised stock exchange, units of equity-oriented mutual funds, and units of a business trust bought/sold through a broker. Unlisted shares, debt funds and most other assets fall under the general s.112 rules instead.

Yes. The taxable capital gain is the sale price (full value of consideration) minus transfer expenses (brokerage, stamp duty, legal costs wholly for the transfer) minus the purchase price (cost of acquisition). Only this net gain is subject to LTCG or STCG tax.

The core LTCG/STCG rates and holding-period rules shown here apply to residents and non-residents alike, but NRIs face additional considerations — TDS deduction at source, DTAA benefits, and exclusion from the real-estate grandfathering relief this calculator doesn't model. NRIs should verify their specific tax treatment with a qualified advisor.

For listed shares and equity-oriented mutual funds acquired before 1 February 2018, section 112A lets you treat the cost of acquisition as the higher of the actual purchase price and the fair market value (FMV) on 31 January 2018 (capped at the sale price). This protects gains that had already built up before LTCG on listed equity was reintroduced in 2018. This calculator does not apply that rule — it always uses the purchase price you enter.

Yes. Realising long-term listed-equity gains gradually so each financial year's gain stays near the ₹1,25,000 s.112A exemption (rather than letting a large unrealised gain build up and crystallise in one year) can reduce tax paid over time. Waiting to cross the 12- or 24-month LTCG threshold before selling swaps a higher STCG rate for the lower LTCG rate. Sections 54, 54F and 54EC also let you defer or reduce tax on property gains by reinvesting in another residential property or specified bonds, subject to conditions this calculator does not model. Capital losses can also be set off against other gains. Always confirm eligibility with a tax professional.