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Capital gains tax calculator
Selling shares or equity funds at a profit? See the tax before you sell, and whether waiting a few months would cut it.
Current rates for listed equity
- Short-term, held 12 months or less: 20%.
- Long-term, held more than 12 months: 12.5% on gains above ₹1.25 lakh in a financial year.
- A 4% cess is added, and surcharge applies at high incomes.
Buy at ₹5 lakh, sell at ₹8 lakh after 18 months: the ₹3 lakh gain is long-term, ₹1.25 lakh is exempt and tax on the remaining ₹1.75 lakh comes to about ₹22,750 with cess. Sold within a year, the same gain would cost about ₹62,400.
Ways to reduce it legally
- Hold past 12 months where it makes sense.
- Use the ₹1.25 lakh exemption every year by booking gains and reinvesting.
- Offset gains with losses booked in the same year; unused losses carry forward eight years if you file on time.
Does this apply to debt funds and property?
No. Debt funds bought after April 2023 are taxed at your slab rate. Property, gold and unlisted shares follow different holding periods and rules.