Capital Gains Tax Calculator: Shares and Mutual Funds, 2026-27
Tax on selling shares or equity funds: 20% short-term, 12.5% long-term.
Inputs
This calculator assumes India's new tax regime. Old-regime-only deductions and exemptions — 80C, 80D, HRA exemption, home loan interest, and similar — don't apply here and won't reduce the number shown.
- Cost and selling costs₹5,00,000 (63%)
- Gain you keep₹2,77,250 (35%)
- Tax₹22,750 (3%)
- Long-term capital gain
- ₹3,00,000
- Covered by the ₹1.25 lakh yearly exemption
- ₹1,25,000
- Taxed at 12.5%
- ₹1,75,000
- Tax on the gain
- ₹21,875
- Health and education cess (4%)
- ₹875
- You keep from the sale
- ₹7,77,250
- Tax as a share of the gain
- 7.58%
- Tax Year 2026-27, new regime, resident individual. Listed shares, equity-fund units and business-trust units sold with securities transaction tax: 20% if held 12 months or less (section 196); 12.5% on the year's long-term gains above ₹1.25 lakh if held longer (section 198); surcharge above ₹50 lakh of total income, at most 15% on these gains; then 4% cess.
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What each Capital Gains Tax input means
- Sale value
- What the shares or units sold for: quantity times the sale price, before brokerage. The contract note from your broker, or your fund's capital gains statement, shows it.
- Purchase value
- What you paid for exactly the units you sold, with the brokerage you paid to buy them. For a SIP, add up the instalments whose units went out in this sale; units are matched oldest first.
- How long you held it
- More than 12 months between buying and selling makes the gain long-term: shares bought on 10 June 2025 are long-term if sold on or after 11 June 2026. Choose the 2018 option for anything bought on or before 31 January 2018; that is long-term too.
- Value on 31 January 2018
- Only for holdings from before 1 February 2018: the highest price quoted on 31 January 2018, or on the last earlier day the share traded, times the number of shares sold. For fund units it is that day's NAV. Most brokers and fund registrars print it on the capital gains statement.
- Selling costs
- Brokerage, exchange charges and the GST on them for this sale. Securities transaction tax can't be deducted (section 72(3)), and the costs of buying belong in the purchase value instead.
- Your other taxable income this year
- Your taxable income from everything else this tax year: salary after the ₹75,000 standard deduction, interest, and rent after its deductions. It decides whether part of the ₹4 lakh basic exemption is still free, whether the rebate survives the sale, and whether surcharge applies.
- Long-term equity gains already made this year
- Long-term gains on listed shares and equity funds from other sales since 1 April 2026. The ₹1.25 lakh is one allowance for the whole year, so earlier gains use it first, and a loss on this sale is set against them.
Capital Gains Tax formula
Gain = sale value − cost − selling costs; short-term tax = 20% × gain; long-term tax = 12.5% × (the year's long-term gains − ₹1,25,000); then surcharge above ₹50 lakh of income (at most 15%) and 4% cess
The gain is what the shares or units sold for, less what they cost and the brokerage paid to sell them; securities transaction tax can't be deducted. How it is taxed depends on how long you held them. Listed shares, equity mutual fund units and REIT or InvIT units become long-term once held for more than 12 months. A short-term gain on them is taxed at a flat 20% under section 196 of the Income-tax Act, 2025, whatever your slab. A long-term gain is taxed at 12.5% under section 198, but only on the part of the year's long-term gains above ₹1,25,000, so the first ₹1.25 lakh each tax year is free. Shares bought on or before 31 January 2018 use a higher cost, their value on that date, unless they sold for less (section 90(7)). If your other income is below ₹4 lakh, the unused part of that ₹4 lakh comes off the gain as well. The rebate that clears tax on income up to ₹12 lakh never touches these gains. Above ₹50 lakh of total income a surcharge is added, capped at 15% on the gains, and 4% cess goes on top. The calculator works out your year with the sale and without it, and shows the difference, so anything the sale changes elsewhere is counted.
Capital Gains Tax worked example
Shares bought for ₹5,00,000 and sold for ₹8,00,000 more than a year later make a ₹3,00,000 long-term gain. The first ₹1,25,000 is exempt, so ₹1,75,000 is taxed at 12.5%: ₹21,875, plus ₹875 cess, ₹22,750 in all. With ₹15 lakh of other income nothing else moves, and ₹7,77,250 of the sale is left after tax.
More Capital Gains Tax examples
Sell the same shares within 12 months and the whole ₹3,00,000 is a short-term gain at 20%: ₹60,000 of tax and ₹2,400 of cess, ₹62,400. Holding past the one-year mark would have saved ₹39,650.
1,000 shares bought in January 2017 for ₹1,00,000, quoted at a high of ₹2,00,000 on 31 January 2018 and sold for ₹2,50,000: the cost becomes ₹2,00,000, so the gain is ₹50,000, not ₹1,50,000. With this year's ₹1.25 lakh already used by earlier sales, it is taxed at 12.5%, ₹6,500 with cess. The figures are the CBDT's own first example from 2018, scaled up.
A retiree with ₹2,50,000 of pension and interest has ₹1,50,000 of the ₹4 lakh basic exemption unused. On a ₹3,00,000 short-term gain that slice comes off first, leaving ₹1,50,000 taxed at 20%: ₹30,000, or ₹31,200 with cess. The rebate is no help here, because it only ever cancels tax on slab-rate income.
With ₹10 lakh of other income, the rebate cancels the ₹40,000 of slab tax. A ₹3,00,000 long-term gain lifts total income to ₹13 lakh, and on the Act's wording the rebate then goes: ₹21,875 on the gain plus the ₹40,000 it had been covering, ₹64,350 with cess. Read the CBDT's way, with the gain left out of the ₹12 lakh test, the sale would cost ₹22,750. Spreading the sale over two tax years can keep each year under ₹12 lakh.
Shares sold at a ₹1,00,000 loss in a year that already has ₹2,00,000 of long-term gains: the loss is set against those gains, leaving ₹1,00,000, inside the exemption, so the ₹9,750 they would have cost is saved. A capital loss can be used against capital gains only, never against salary.
Where the Capital Gains Tax calculator can give the wrong answer
- Listed equity sold with securities transaction tax only: shares on an Indian exchange, equity mutual funds with at least 65% in Indian listed shares, and REIT or InvIT units. Debt funds, gold, foreign shares, international funds, unlisted shares and property follow other rules, and intraday or F&O trading is business income at slab rates.
- Whether these gains count toward the ₹12 lakh rebate limit is unsettled. The Act tests total income, which includes them; the CBDT's note on the Finance Act, 2025 says special-rate gains are excluded from the rebate calculation, which some read as leaving them out of the test. When the two readings differ, the result shows both.
- A resident individual under the new regime is assumed. A non-resident can't set the unused basic exemption against the gains, and has tax deducted when selling; under the old regime the basic exemption is lower, so less of the gain is absorbed.
- Short-term gains from other sales this year aren't asked for. They don't change the rate on this sale, but they count toward total income for the rebate and surcharge tests.
- From Tax Year 2026-27 a buyback is taxed as a capital gain again rather than as a dividend, and promoters pay extra tax on it, an effective 30% (22% for a promoter company) under the Finance Act, 2026. That extra tax isn't added here.
- Just above ₹50 lakh, ₹1 crore or ₹2 crore of total income, marginal relief caps the surcharge. The calculator takes the income above the line off your other income first; a different order can give a different figure close to the line.
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Capital Gains Tax reference table
| Gain | Held 12 months or less | Held more than 12 months |
|---|---|---|
| ₹50,000 | ₹10,400 | ₹0 |
| ₹1,25,000 | ₹26,000 | ₹0 |
| ₹2,00,000 | ₹41,600 | ₹9,750 |
| ₹3,00,000 | ₹62,400 | ₹22,750 |
| ₹5,00,000 | ₹1,04,000 | ₹48,750 |
| ₹10,00,000 | ₹2,08,000 | ₹1,13,750 |
| ₹25,00,000 | ₹5,20,000 | ₹3,08,750 |
Capital Gains Tax FAQ
- 12.5% on the part of the year's long-term gains from listed shares and equity funds above ₹1,25,000, plus 4% cess and any surcharge, with no indexation. A ₹2 lakh long-term gain is taxed on ₹75,000, which comes to ₹9,750 with cess.
- A flat 20% on the whole gain when shares or equity fund units are sold within 12 months, under section 196, plus cess. It doesn't depend on your slab, and the ₹1.25 lakh allowance doesn't apply to it. Before 23 July 2024 the rate was 15%.
- No. The rebate only cancels tax on slab-rate income such as salary; sections 156(3) and 198(7) keep it away from tax on these gains. Someone with ₹8 lakh of salary and a ₹2 lakh short-term gain still pays 20% on the gain. A large gain can also push total income past ₹12 lakh and, on the Act's wording, take the rebate away from the salary as well.
- It is one allowance per tax year for all your long-term equity gains together, not per sale or per fund. Gains from sales earlier in the year use it first, which is why the calculator asks for them, and losses are set off against gains before the allowance is applied.
- Tax on long-term equity gains came back in 2018, and gains made up to 31 January 2018 were left out. For shares and units bought before 1 February 2018, the cost is the higher of what you paid and their value on that date, or the sale price if they sold for less than that value. It can shrink a gain but never turns one into a loss.
- Yes. Each instalment buys units with their own purchase date, and units are matched oldest first, which the Act spells out for demat holdings (section 67(7)). A redemption can be partly long-term and partly short-term; work out each part separately, or use the split on your fund's capital gains statement.
- Selling enough to book up to ₹1.25 lakh of long-term gains each year and buying back raises your cost without any tax, which is often called tax harvesting. Selling at a loss to set against gains works too. Either way the 12-month clock restarts for the units bought back, and brokerage and transaction tax are paid twice.