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Compute exact tax liabilities on Equities, Mutual Funds, Gold, and Real Estate. Fully updated with the brutal new 20% STCG / 12.5% LTCG mechanics and the removal of Property Indexation.
More than 1 Year (Likely LTCG depending on asset).
Taxed definitively at a strict 12.5% rate.
Total Gross Profit
+₹15,00,000
Absolute difference
Taxes Payable To Govt
₹1,71,875
Calculated liability
Budget 2024 increased the tax-free LTCG limit on Equities from ₹1L to strictly ₹1.25L. Your first ₹1,25,000 of profit has been shielded from taxation entirely.
Capital Gains is mechanically separated into Short-Term (STCG) vs Long-Term (LTCG) strictly based on the holding period of the asset. Different assets have different holding period triggers.
1. Profit = Sale Price - Purchase Price
2. If (Equity & Days > 365) ➔ LTCG (12.5% Tax & ₹1.25L Exemption)
3. If (Equity & Days <= 365) ➔ STCG (20% Tax)
4. If (Property/Gold & Days > 730) ➔ LTCG (12.5% Flat)
5. Debt Funds (After Apr 2023) ➔ Tagged purely to your Income Tax Slab.
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Book Free ConsultationCapital Gains Tax is triggered when you sell a capital asset (stocks, mutual funds, real estate, gold) at a profit. The tax rate depends on the asset class and how long you held it. Budget 2024 fundamentally restructured the entire framework — hiking equity STCG to 20%, increasing LTCG to 12.5%, and eliminating property indexation.
* Post July 23, 2024. Properties bought before July 23, 2024 may opt for 20% with indexation or 12.5% without — whichever is lower (transitional provision).
Every short-term trade on stocks, ETFs, and equity mutual funds now loses 5% more to the government. Intraday traders and F&O participants are hit hardest.
Long-term equity investors face a 25% increase in LTCG tax rate. However, the exemption limit was bumped from ₹1L to ₹1.25L, partially offsetting the impact for small investors.
The most controversial change. Properties held for decades now pay 12.5% flat on nominal gains — no adjustment for inflation. Properties bought before Jul 23, 2024 get transitional relief (choose the lower of old or new method).
The annual LTCG tax-free threshold for equity was increased by ₹25,000. This benefits small retail investors but barely offsets the rate increase for larger portfolios.
Vikram, 28, bought 500 Zomato shares at ₹120 and sold at ₹260 after 8 months
💡 If Vikram had held for just 4 more months (crossing 12 months), it would've been LTCG — first ₹1.25L exempt, rest at 12.5%. He'd have paid ₹0 tax instead of ₹14,000.
Mr. Joshi, 55, bought a flat in Pune for ₹35L in 2015, selling now for ₹85L
💡 Mr. Joshi can save tax by investing in a new house under Section 54 (buy within 2 years) or parking in Capital Gains Account Scheme (CGAS) if the new house isn't ready yet.
Sneha, 32, has ₹3L LTCG from Infosys but ₹1.5L unrealized loss in Paytm
💡 By harvesting the Paytm loss, Sneha saved ₹18,750 in taxes! She can immediately buy Paytm back (no wash sale rule in India for stocks listed on exchanges).
If you sell a residential house and buy/construct another residential property, LTCG is exempt (up to ₹10 Cr). Buy within 2 years or construct within 3 years of sale.
Available only to Individuals and HUFs
If you sell any other capital asset (shares, gold, etc.) and invest the NET SALE PROCEEDS in a residential house, LTCG is proportionally exempt. Must not own more than 1 house on the date of transfer.
Available only to Individuals and HUFs
Invest LTCG (up to ₹50 Lakhs) in specified bonds (NHAI, RECL, IRFC) within 6 months. Lock-in: 5 years. Interest: ~5-5.5% (taxable).
Available to all assessees
Tax Loss Harvesting is the most powerful legal technique to reduce your capital gains tax bill to zero. Unlike the US, India has no wash sale rule for listed securities — meaning you can sell a stock to book a loss and immediately buy it back.
Step 1
Before March 31st, review your portfolio for unrealized losses
Step 2
Sell losing positions to book capital losses
Step 3
Set off losses against gains (STCL → STCG/LTCG, LTCL → LTCG only)
Step 4
Buy back the same stocks immediately if you still believe in them
Important: Carry forward is allowed for 8 years, but ONLY if you file your ITR before the July 31st deadline. Filing a belated return forfeits carry-forward rights.
Governing Sections: Sections 45-55 of the Income Tax Act govern Capital Gains. Section 111A covers equity STCG, Section 112A covers equity LTCG, and Section 112 covers non-equity LTCG. Budget 2024 amendments apply from July 23, 2024.
Advance Tax on Capital Gains: If you book significant capital gains during the year, you must pay Advance Tax within the same quarter. Failure attracts interest under Section 234C. Many salaried investors forget this for non-salary income.
ITR Form: Capital gains MUST be reported in ITR-2 (for salaried + capital gains) or ITR-3 (for business + capital gains). You cannot report capital gains in ITR-1. Using the wrong form can trigger a defective return notice.
Disclaimer: Tax rates and exemptions are based on the Finance Act 2024 and applicable CBDT circulars. For complex scenarios involving NRI capital gains, DTAA applicability, or unlisted securities, consult a qualified Chartered Accountant.
Capital gains is just one component of your investment tax picture: