Capital Gains Tax Calculator for Equity
Calculate your capital gains tax liability on stocks and equity mutual funds in India
Tax Calculator
Understanding Capital Gains Tax on Equity
Capital Gains Tax (CGT) is a tax levied on profits arising from the sale of capital assets such as stocks, mutual funds, and real estate. In India, equity investments are subject to specific tax rules depending on the holding period.
Types of Capital Gains
Short-Term Capital Gains (STCG)
Applies when equity shares or equity-oriented mutual funds are held for less than 12 months.
Tax Rate: 15% on entire gain + 4% cess
Long-Term Capital Gains (LTCG)
Applies when equity investments are held for more than 12 months.
Tax Rate: 10% on gains exceeding ₹1 lakh + 4% cess
First ₹1 lakh of gains in a financial year are tax-exempt.
How to Calculate Capital Gains Tax
To calculate your capital gains tax liability:
- Determine your holding period (sale date minus purchase date)
- Calculate total capital gain: (Sale Price – Purchase Price) × Quantity
- Identify whether gains are short-term or long-term
- Apply the appropriate tax rate
- Remember the ₹1 lakh exemption for LTCG
Tax-Saving Tips
- Hold investments for over 12 months to qualify for LTCG tax benefits
- Use the ₹1 lakh annual LTCG exemption strategically
- Offset capital gains with capital losses (loss harvesting)
- Consider tax-efficient investment vehicles like ELSS funds
- Time your sales to spread gains across financial years
Frequently Asked Questions
What is the difference between STT and capital gains tax?
Securities Transaction Tax (STT) is levied on the transaction value when you buy or sell equity shares. Capital gains tax is calculated on your profits from the investment.
Are there any exemptions for capital gains tax?
For LTCG on equity, the first ₹1 lakh of gains in a financial year is exempt from tax. Additionally, you can offset capital gains with capital losses carried forward from previous years.
Disclaimer: This calculator provides estimates only. Tax laws are subject to change. Consult a tax professional for personalized advice. Calculations do not include brokerage or other transaction costs.
Capital Gains Tax Strategies
Tax-Loss Harvesting
This strategy involves selling investments that are at a loss to offset capital gains from other investments. You can carry forward capital losses for up to 8 assessment years to offset future capital gains.
Holding Period Management
By holding equity investments for more than 12 months, you can convert short-term gains (taxed at 15%) into long-term gains (taxed at 10% with ₹1 lakh exemption). This can significantly reduce your tax liability.
Systematic Transfer Plan (STP)
For mutual fund investors, an STP allows you to systematically transfer money from an equity fund to a debt fund. This can help manage tax liability by controlling the timing and amount of capital gains realized.
- What is a Capital Gains Tax Calculator?
A tool to compute tax owed on profits from selling capital assets like shares. - Is this calculator valid for equity shares in India?
Yes, it specifically works for listed Indian equity shares. - Does it include both STCG and LTCG?
Yes, it calculates both Short-Term (STCG) and Long-Term (LTCG) capital gains. - What is the STCG tax rate in India?
STCG is taxed at 15% for equity shares. - What is the LTCG tax rate in India?
LTCG above ₹1 lakh is taxed at 10% without indexation. - Can I use this for mutual funds?
Yes, for equity-oriented mutual funds only. - Does it include surcharge and cess?
Yes, the calculator includes cess and applicable surcharge. - Is this calculator free to use?
Yes, it’s completely free and online. - Do I need to register to use it?
No registration is required. - Can NRIs use this calculator?
Yes, NRIs can calculate gains on Indian equity. - What is considered long-term capital gain?
Equity held for more than 12 months. - How is capital gain calculated?
It’s the sale price minus purchase price minus brokerage charges. - Can I include STT (Securities Transaction Tax)?
STT is not deductible when calculating capital gains. - Is indexation allowed for equity gains?
No, indexation is not applicable to equity LTCG. - Can I offset capital gains with losses?
Yes, STCG can offset STCL; LTCG can offset LTCL. - Is tax deducted at source (TDS) on equity gains?
No TDS for resident Indians on equity capital gains. - What if I sell shares in loss?
You can carry forward the loss for up to 8 assessment years. - Is this calculator updated for FY 2025-26?
Yes, it uses the latest tax slabs and provisions. - Can I use it for intraday trading gains?
No, intraday trading is considered business income. - Where can I find my purchase and sale prices?
Check your trading account or broker’s contract notes.
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