Capital gains tax calculator for shares and mutual funds
Enter what you paid and what you sold for to see the tax on listed shares or equity mutual fund units. Gains on holdings kept more than 12 months are taxed at 12.5% beyond ₹1.25 lakh a year; shorter holdings at 20%.
Rules for FY 2026-27 · Checked 24 October 2026
Long-term gain of ₹2,00,000, taxed at 12.5% plus 4% cess.
- Held more than 12 months, so this is a long-term gain: the first ₹1.25L of such gains in a year is tax-free and the rest is taxed at 12.5%.
- This year's ₹1.25L exemption is now used up.
- You keep ₹6.9L. The tax takes 4.9% of your gain.
- What you paid₹5,00,000
- Gain after tax₹1,90,250
- Tax₹9,750
- Sale value
- ₹7,00,000
- What you paid
- − ₹5,00,000
- Gain
- ₹2,00,000
- Exemption used
- − ₹1,25,000
- Taxable gain
- ₹75,000
- Tax at 12.5%
- ₹9,375
- Health and education cess (4%)
- ₹375
- Total tax
- ₹9,750
- You keep
- ₹6,90,250
For listed shares and equity mutual funds sold with STT paid. Not included: surcharge (up to 15% on these gains, for incomes above ₹50 lakh), the higher 31 January 2018 price for shares bought before 1 February 2018, and the relief if your other income is below the basic exemption limit. The FY 2026-27 rebate does not cover this tax.
Capital gains tax rates for FY 2026-27
How long you held the shares or units decides the rate. For listed shares and equity mutual funds, more than 12 months makes the gain long-term. Budget 2026 left these rates unchanged.
| What you sold | Held | Tax on the gain |
|---|---|---|
| Listed shares, equity mutual funds | More than 12 months | 12.5% on gains above ₹1.25 lakh a year |
| Listed shares, equity mutual funds | 12 months or less | 20% on the whole gain |
| Debt mutual funds bought from 1 April 2023 | Any period | Your slab rate |
4% health and education cess is added to the tax. These rules apply to shares sold on a stock exchange and equity fund units, where securities transaction tax (STT) is paid. In the Income-tax Act, 2025 they are sections 196 and 198, which replaced sections 111A and 112A.
A worked example
You bought shares for ₹5 lakh and sell them for ₹7 lakh, a gain of ₹2 lakh.
- Held more than 12 months: the first ₹1.25 lakh is exempt, so ₹75,000 is taxed at 12.5%. Tax ₹9,375 plus cess ₹375 is ₹9,750.
- Held 12 months or less: the whole ₹2 lakh is taxed at 20%. Tax ₹40,000 plus cess ₹1,600 is ₹41,600.
Waiting past the 12-month mark would save ₹31,850 on this sale.
Use the ₹1.25 lakh exemption every year
The ₹1.25 lakh exemption covers all your long-term gains on shares and equity funds in a financial year, added together. It does not carry forward, so a year in which you book no gains wastes it.
Some investors sell enough units each year to book about ₹1.25 lakh of long-term gains, then buy back. The gain is tax-free and the higher purchase price lowers the gain taxed later. Booked in a year when the exemption is already used, the same ₹1.25 lakh of gains would cost ₹16,250 in tax.
What this calculator leaves out
The ₹12 lakh rebate in the new regime does not cover tax on these gains. Someone with a ₹10 lakh salary and a short-term gain still pays 20% on that gain.
- Surcharge. If your income is above ₹50 lakh, surcharge is added, but on these gains it never goes above 15%.
- Shares bought before 1 February 2018. Your cost can be raised to the highest price on 31 January 2018, though not above what you sold for. Enter that higher figure as what you paid.
- Low income. Residents whose other income is below the basic exemption limit can use the unused part of that limit against these gains.
Frequently asked questions
Is ₹1.25 lakh of long-term gain tax-free every year?
Yes. The first ₹1.25 lakh of long-term gains on listed shares and equity mutual funds in each financial year is exempt. It is one limit for all such gains together, not per share or per fund.
How is tax worked out on SIP redemptions?
Each SIP instalment buys units on its own date, so each lot has its own 12-month clock. When you redeem, units held more than 12 months give long-term gains and newer ones give short-term gains.
Does the ₹12 lakh tax-free limit cover capital gains?
No. The rebate that makes income up to ₹12 lakh tax-free in the new regime cannot be used against tax on equity capital gains, so 20% short-term and 12.5% long-term tax are still due.
How are debt mutual funds taxed?
Units of 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 or exemption for them.
Do I pay tax if I reinvest the money?
Yes. Selling is what creates the gain, so tax is due even if you put the money straight into another fund or share.
Sources: Income Tax Department, CBDT FAQs on the capital gains changes (PIB, 24 July 2024), Income-tax Act, 2025 as amended by the Finance Act, 2026