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Rajkumar Anguluri·Software Engineer · Founder, Artha Engine·Last reviewed 7 May 2026·Methodology

Independent decision-support tool. Artha Engine is not a financial services provider, does not sell loans or insurance, and has no commission relationships with banks or insurers.

Calculator

Capital Gains Tax Calculator (AY 2026-27)

Compute capital gains tax under post-Budget-2024 rules for AY 2026-27. Listed equity (12.5% LTCG above ₹1.25L), real estate with the grandfathering choice (12.5% no-index vs 20% with-index) and Section 54 / 54EC reinvestment exemptions, debt MF April 2023 cliff, and other 24-month assets with Section 54F pro-rata.

Your transaction

Enter the asset class, dates, and amounts. The engine applies the right post-Budget-2024 rate and — for grandfathered real estate — returns the cheaper of the two options.

₹5L
₹8L
₹0

Reinvestment exemptions (long-term gains only)

Optional — applies only if your transaction is long-term. Engine ignores these for STCG and post-April-2023 debt-MF cases.

₹0
₹0

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Verdicthigh confidence

Total tax on this transaction

₹22.8K

LTCG 12.5% above ₹1.25L (listed equity)

₹1.25 lakh annual LTCG threshold applied (per individual per FY, across all listed-equity LTCG).

Reconcile the transaction against your AIS / TIS before filing the return.

Nominal gain

₹3L

Taxable gain

₹1.8L

Applied rate

LTCG 12.5% above ₹1.25L (listed equity)

Tax (before cess)

₹21.9K

Cess (4%)

₹875

Total tax (no surcharge)

₹22.8K

Holding period

27 months

Classification

Long-term gain

₹1.25L equity LTCG threshold applied

The ₹1.25 lakh annual exemption is per individual per FY across ALL listed-equity LTCG combined — not per scrip or per fund. Plan multiple sales to use the threshold deliberately.

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At a glance

What it does
Classifies your transaction as long-term or short-term, applies the right post-Budget-2024 rate (12.5% LTCG, 20% STCG on listed equity, slab on most STCG and post-Apr-2023 debt MF), and returns the cheaper option for grandfathered real estate sales.
Asset classes covered
Listed Indian equity & equity MF (12-month long-term, ₹1.25L threshold), real estate (24-month long-term, indexation grandfathering for pre-23-Jul-2024 acquisitions), debt MF with the April 2023 cliff, and the 24-month bucket for foreign equity / unlisted / gold.
Cost Inflation Index baked in
Notified CII values FY 2001-02 through FY 2025-26 are baked into the engine, so the indexation calculation needs only purchase and sale dates plus prices.
Reinvestment exemptions baked in
Section 54 (residential property reinvestment, ₹10cr cap), Section 54EC (NHAI / REC / IRFC bonds, ₹50L per-FY cap), and Section 54F (pro-rata when net consideration isn't fully reinvested, ₹10cr cap) compute automatically based on asset class. Engine applies exemptions before downstream rate logic — equity ₹1.25L threshold applies on the post-exemption gain.
Out of scope
Surcharge above ₹50L total income (use the salary tax tool for that), 87A rebate (does not apply to capital gains), and the 3-year / 5-year clawback rules on the new property / bonds (assumes you'll hold long enough).

How It Works

This is the drill-down layer. The flagship flow leads with a recommendation, and this page lets you inspect the underlying model.

  • Holding period = months between purchase and sale (calendar-month-aligned, day-of-month rounded down).
  • Long-term threshold: 12 months for listed Indian equity / equity MF; 24 months for everything else.
  • Listed equity LTCG: max(0, gain − exemptions − ₹1,25,000) × 12.5% + 4% cess.
  • Real estate, pre-23-Jul-2024 acquisition: cheaper of ((gain − exemptions) × 12.5%) or ((sale − exemptions − cost × CII_sale / CII_purchase) × 20%), each + 4% cess.
  • Real estate, post-23-Jul-2024 acquisition: (gain − exemptions) × 12.5% + 4% cess.
  • Debt MF acquired on/after 1 April 2023: gain × marginal slab rate + 4% cess (no LTCG, no exemptions).
  • Debt MF acquired before 1 April 2023, held > 24 months: (gain − Section 54F exemption) × 12.5% + 4% cess.
  • Other 24-month assets (foreign equity, unlisted Indian equity, gold ETF / SGB pre-maturity): (gain − Section 54F exemption) × 12.5% + 4% cess (LTCG); slab rate (STCG).
  • Section 54 (real estate, residential reinvestment): exemption = min(LTCG, reinvested amount, ₹10 crore).
  • Section 54EC (real estate, capital-gains bonds): exemption = min(LTCG, bond amount, ₹50 lakh per FY).
  • Section 54F (non-real-estate, residential reinvestment): exemption = min(LTCG × (reinvested ÷ net consideration), ₹10 crore).

Assumptions

The recommendation stays blunt, but the assumptions remain visible.

  • AY 2026-27 (FY 2025-26) capital-gains rates per Budget 2024 amendments effective 23 July 2024.
  • Cost Inflation Index values are notified by CBDT; FY 2025-26 uses the latest available figure.
  • Indexation choice on grandfathered real estate is a one-time decision per property at filing.
  • ₹1.25 lakh LTCG threshold on listed equity is per individual per FY across all qualifying transactions.
  • Surcharge on capital gains is capped at 15% in both regimes — separate from slab-rate income surcharge ladder.
  • Section 87A rebate does NOT apply to capital gains.

FAQ

The follow-up questions people usually ask after the main recommendation is already clear.

Does this calculator handle Section 54, 54F, and 54EC exemptions?

Yes. For real estate sales, the calculator applies Section 54 (residential property reinvestment, ₹10 crore cap) and Section 54EC (NHAI / REC / IRFC capital-gains bonds, ₹50 lakh per FY cap) — they can be combined. For non-real-estate long-term assets, it applies Section 54F (pro-rata exemption when the net sale consideration is not fully reinvested in a residential property, ₹10 crore cap). Exemptions reduce the long-term capital gain before the equity ₹1.25L threshold or the real-estate grandfathering choice is applied.

What rate applies on equity LTCG in 2026?

12.5% on gains above ₹1.25 lakh per FY for listed Indian equity and equity-oriented mutual funds held over 12 months. STT must have been paid on both purchase and sale legs.

Can I still claim indexation on real estate?

Only for properties acquired before 23 July 2024 — for those, you can choose the cheaper of 12.5% no-indexation or 20% with-indexation at filing. Properties acquired on or after 23 July 2024 are mandatorily 12.5% no-indexation.

Why is debt MF treated differently?

Units acquired on or after 1 April 2023 are taxed at slab rate regardless of holding period — no LTCG concession exists. Older units retain the LTCG framework with the new 12.5% rate.

Does the calculator handle short-term gains?

Yes. Short-term gains on listed Indian equity are taxed at 20% (Section 111A). On all other asset classes, short-term gains fall to your marginal slab rate plus 4% cess.

Is the 87A rebate applied here?

No. The Section 87A rebate applies only to slab-rate tax on regular income. Capital gains taxed at special rates (12.5%, 20%) are excluded from the rebate computation.

Calculations and decision frameworks, not personalised financial advice. The numbers on this page are based on the inputs you supplied and the regulatory rules in effect when this page was last reviewed. They are not a recommendation to buy, sell, hold, port, or surrender any specific financial product. Consult a SEBI-registered investment advisor, a qualified tax professional, or a licensed insurance broker before acting on a financial decision involving your money.

Artha Engine is an educational decision-support website. We do not offer loans, sell insurance, distribute mutual funds, provide regulated investment advice, collect loan applications, or receive commissions from banks, insurers, AMCs, brokers, or other financial providers. References to RBI, SEBI, IRDAI, Income Tax Department, or other authorities are source citations only. Artha Engine is not affiliated with, endorsed by, or sponsored by any government authority, regulator, bank, insurer, AMC, or broker. Artha Engine does not charge users fees for using calculators, comparison tools, articles, or financial health scoring. Mailing address: India.

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