How to use the capital gains calculator
- Choose what you sold: shares, a debt fund, property, gold or another asset.
- Enter the dates you bought and sold it.
- Enter the purchase price, sale price and any transfer expenses.
- Add your other taxable income for the year, which matters for slab-rate gains and the rebate.
- Read whether the gain is short or long term, the tax with cess, and the tips to reduce it.
Capital gains formula
Gain = sale price − purchase price − transfer expenses
With indexation, the purchase price is first raised to cost × CII of the sale year ÷ CII of the purchase year. Short-term gains on most assets are added to your income; equity gains and all long-term gains are taxed at flat rates, plus 4% cess.
Example: shares sold in 2026
A ₹5 lakh investment in an equity fund sold for ₹8 lakh, with ₹15 lakh of other income:
| Held | Gain | Rate | Tax with cess |
|---|---|---|---|
| Under 12 months | ₹3,00,000 | 20% | ₹62,400 |
| Over 12 months | ₹3,00,000 | 12.5% above ₹1.25 L | ₹22,750 |
Example: property with and without indexation
A flat bought in June 2015 for ₹50,00,000 and sold in October 2026 for ₹1,20,00,000. Its indexed cost is ₹75,59,055 (CII 384 ÷ 254).
| Method | Taxable gain | Tax with cess |
|---|---|---|
| 12.5% without indexation | ₹70,00,000 | ₹9,10,000 |
| 20% with indexation | ₹44,40,945 | ₹9,23,717 |
Here 12.5% without indexation is cheaper by ₹13,717. Indexation tends to win only for property that has grown slowly. A flat bought in August 2021 for ₹90 lakh and sold for ₹1.2 crore pays ₹3,90,000 at 12.5% and ₹2,28,341 with indexation.
Cost inflation index (CII) table
| Financial year | CII | Financial year | CII |
|---|---|---|---|
| 2001-02 | 100 | 2002-03 | 105 |
| 2003-04 | 109 | 2004-05 | 113 |
| 2005-06 | 117 | 2006-07 | 122 |
| 2007-08 | 129 | 2008-09 | 137 |
| 2009-10 | 148 | 2010-11 | 167 |
| 2011-12 | 184 | 2012-13 | 200 |
| 2013-14 | 220 | 2014-15 | 240 |
| 2015-16 | 254 | 2016-17 | 264 |
| 2017-18 | 272 | 2018-19 | 280 |
| 2019-20 | 289 | 2020-21 | 301 |
| 2021-22 | 317 | 2022-23 | 331 |
| 2023-24 | 348 | 2024-25 | 363 |
| 2025-26 | 376 | 2026-27 | 384 |
Notified by CBDT under the Income-tax Act; 2026-27 = 384. To see the tax on income at slab rates, use the income tax calculator.
Frequently asked questions
How is tax on shares and equity mutual funds calculated?
Held for more than 12 months, gains are long-term and taxed at 12.5% on the part above ₹1.25 L a year under Section 198 of the Income-tax Act, 2025 (earlier 112A). Held for 12 months or less, they are short-term and taxed at 20% under Section 196 (earlier 111A). Add 4% cess to both.
Is indexation still available on property?
Only for land or buildings bought before 23 July 2024, and only for resident individuals and HUFs. They pay the lower of 12.5% on the gain without indexation and 20% on the gain with indexation, under Section 197 (earlier 112). Property bought on or after 23 July 2024, and all other assets, get 12.5% without indexation.
What is the cost inflation index for 2026-27?
384, notified by CBDT in July 2026 (Notification No. 85/2026). It was 376 for 2025-26 and 363 for 2024-25. The base year is 2001-02 = 100; for assets bought earlier, you can use the fair market value on 1 April 2001 as the cost.
How are debt mutual funds taxed?
Debt funds bought on or after 1 April 2023 are taxed at your slab rate however long you hold them; there is no long-term rate. Units bought before that date are long-term after 24 months and taxed at 12.5% without indexation.
How long must I hold gold to get long-term gains?
More than 24 months for physical gold, jewellery and gold funds of funds, and more than 12 months for gold ETFs, which are listed. Long-term gains are taxed at 12.5% without indexation; short-term gains are added to your income at slab rates.
How can I save capital gains tax on property?
Reinvest the long-term gain in another house in India (Section 82, earlier 54), or up to ₹50 lakh in specified bonds within six months (Section 85, earlier 54EC). For other long-term assets, investing the sale price in a house can exempt the gain (Section 86, earlier 54F). Each has conditions and a ₹10 crore cap for houses.
Does the ₹12 lakh rebate cover capital gains?
No. The Section 156 (earlier 87A) rebate does not apply to tax on special-rate gains such as equity STCG and LTCG. If the gain takes your total income above ₹12 lakh, you also lose the rebate on your other income. Residents with low other income can set the unused basic exemption against these gains.