Data last verified: June 2026
Capital Gains Tax in India: STCG, LTCG, Rates & Examples
Understand capital gains tax in India for stocks, mutual funds, property and other assets with STCG/LTCG rules and examples.
Jashmin is a finance professional and founder of AbacusHand. She specialises in EMI & loan planning, income tax under old and new regimes, and SIP investment analysis for Indian households. Every calculator and article on AbacusHand is personally reviewed by her for accuracy.
Capital gains tax applies when you sell an asset for more than its purchase cost. The tax treatment depends on asset type, holding period and whether the gain is short-term or long-term.
Estimate tax before selling stocks, mutual funds or property.
Use Capital Gains Tax CalculatorCapital Gains Formula
Capital Gain = Sale Value - Purchase Value - Transfer ExpensesSTCG vs LTCG
STCG means short-term capital gain and LTCG means long-term capital gain. Listed equity and equity mutual funds usually become long-term after 12 months. Other assets may need a longer holding period.
Example: Equity Mutual Fund Redemption
Suppose you invested Rs 5 lakh and sold after 18 months for Rs 8 lakh:
- Capital gain before expenses = Rs 3 lakh
- If expenses are Rs 10,000, gain becomes Rs 2.9 lakh
- For long-term listed equity, exemption may apply up to the allowed annual limit
- Tax applies on the remaining taxable gain
What Affects Your Final Tax
Capital gains tax can change based on:
- Asset type
- Holding period
- Grandfathering or exemption rules
- Set-off of capital losses
- Surcharge and cess
- Residential status
Important Disclaimer
- This article is educational and not tax advice.
- Capital gains rules can change by asset type and financial year.
- Consult a qualified CA before filing ITR or selling high-value assets.
Frequently Asked Questions
First calculate capital gain as sale value minus purchase value and expenses. Then apply the relevant STCG or LTCG tax rate based on asset type and holding period.
Yes, gains from mutual fund redemption can be taxable. Tax depends on fund type, holding period and applicable STCG or LTCG rules.
Capital losses may be set off against eligible capital gains subject to Income Tax rules. Check with a CA for exact treatment.