Capital Gains Tax Calculator (FY 2026-27)
Institutional tax compliance model updated for statutory rates: 12.5% LTCG, 20% STCG, Section 50AA debt slab taxation, and 4% Health & Education Cess.
Transaction Details & Asset Class
Total Tax Liability (Incl. 4% Cess)
₹₹29,250.00
Net Profit After Tax: ₹₹3,20,750.00
Union Budget FY 2026-27 Rule:
Long-Term Capital Gains on listed equities exceeding ₹1,25,000 per financial year are taxed at 12.5%.
Capital Gains Tax Determination
All calculations on InvestResearch India execute with 28-digit precision arithmetic via decimal.js, eliminating floating-point drift and adhering to statutory regulatory conventions.
Example: Sale of Equity Shares with ₹3,00,000 Gain held for 2.5 Years
Sale Value: ₹8,00,000 | Purchase Cost: ₹5,00,000 | Holding: 30 Months (> 12 Months) | Asset: Listed Equity
1. Gross LTCG = ₹8,00,000 - ₹5,00,000 = ₹3,00,000 2. Section 112A Exemption = ₹1,25,000 3. Taxable Capital Gain = ₹3,00,000 - ₹1,25,000 = ₹1,75,000 4. Base LTCG Tax @ 12.5% = 12.5% × ₹1,75,000 = ₹21,875 5. Health & Education Cess (4%) = ₹875 6. Total Tax Payable = ₹21,875 + ₹875 = ₹22,750 (Effective tax rate: 7.58% on total profit)
Statutory Tax Framework (Union Budget FY 2026–27)
Under Finance Act updates, debt mutual funds (with < 35% equity exposure) acquired on or after April 1, 2023 are classified under Section 50AA as deemed short-term capital gains and taxed at your applicable personal income slab rate, regardless of holding duration.
Frequently Asked Questions
What is the new LTCG tax rate for equities and equity mutual funds?
The Long-Term Capital Gains (LTCG) tax rate on listed equity shares and equity-oriented mutual funds held for more than 12 months is 12.5% for gains exceeding the annual exemption limit of ₹1.25 Lakh per taxpayer per financial year.
What is the STCG tax rate for equities sold within 12 months?
Short-Term Capital Gains (STCG) under Section 111A are taxed at a flat rate of 20% plus 4% cess (effective 20.8%).
Can I set off capital losses against capital gains?
Yes. Short-term capital losses can be set off against both STCG and LTCG. However, long-term capital losses can only be set off against long-term capital gains. Unadjusted capital losses can be carried forward for up to 8 assessment years provided your ITR is filed before the due date.