Capital Gains Tax Calculator for Shares & Mutual Funds FY 2026-27
Work out STCG and LTCG tax on listed shares and equity mutual funds, including the ₹1.25 lakh exemption, loss set-off and 2018 grandfathering.
Rules applicable for FY 2026-27, last updated 28 Oct 2026
Salary etc. after deductions
Your capital gains tax
See the full calculation
| Tax on slab-rate income | ₹1,05,000 |
|---|---|
| Tax on LTCG at 12.5% | ₹9,375 |
| + Health & education cess (4%) | ₹4,575 |
| Total with capital gains | ₹1,18,950 |
| Total without capital gains | ₹1,09,200 |
Your result explained
"Tax due to capital gains" is how much your total tax goes up because of these sales: the tax on your income with the gains, minus the tax without them. It already includes the effect of the ₹1.25 lakh LTCG exemption, any unused basic exemption, surcharge and cess.
Worked example
Suppose your other taxable income is ₹15,00,000 in FY 2026-27 under the new regime, and you sold:
- shares bought in April 2024 for ₹1,00,000, sold in June 2026 for ₹3,00,000: held over 12 months, so a long-term gain of ₹2,00,000;
- equity fund units bought in January 2026 for ₹1,00,000, sold in June 2026 for ₹1,50,000: a short-term gain of ₹50,000.
Of the long-term gain, ₹1,25,000 is exempt and ₹75,000 is taxed at 12.5% (₹9,375). The short-term gain is taxed at 20% (₹10,000). With 4% cess, these sales add ₹20,150 to your tax.
How it is calculated
- Holding period: long-term if held for more than 12 months (section 2(101)).
- Gain = sale value − cost − brokerage and charges. For purchases before 1 February 2018, cost is the higher of actual cost and the lower of the 31 January 2018 value and the sale value (section 90(7)).
- Set-off: short-term losses reduce short-term gains first, then long-term gains; long-term losses reduce only long-term gains (section 108(2)).
- STCG is taxed at 20% (section 196). LTCG above ₹1,25,000 is taxed at 12.5% (section 198). If your other income is below the basic exemption limit, the unused part reduces STCG first, then LTCG.
- Rebate (section 156): the new-regime rebate applies only to slab-rate tax; the old-regime rebate can cover STCG tax but not LTCG tax. Where income is just above ₹12 lakh, we apply marginal relief to the slab-rate tax only (a conservative reading).
- Surcharge follows your total income but is capped at 15% on capital gains tax, with marginal relief; then 4% cess.
Assumes STT was paid and you are a resident individual. Not covered: debt funds, F&O and intraday trading, buybacks, ESOPs, foreign shares, losses brought forward from earlier years and non-residents. See also our income tax calculator for your slab-rate income.
Frequently asked questions
What is the tax rate on short-term capital gains on shares?
Short-term capital gains on listed equity shares and equity mutual funds, where securities transaction tax (STT) is paid, are taxed at 20% plus 4% cess (section 196 of the Income-tax Act, 2025; section 111A of the 1961 Act). A holding is short-term if you sell within 12 months of buying.
What is the LTCG tax rate and the ₹1.25 lakh exemption?
Long-term capital gains on listed equity shares and equity mutual funds are taxed at 12.5% plus cess, but only on the part above ₹1,25,000 in the financial year (section 198 of the 2025 Act; section 112A of the 1961 Act). The ₹1.25 lakh is a yearly limit for all your equity LTCG combined, not per sale.
When do shares or mutual fund units become long-term?
Listed shares and equity mutual fund units become long-term when you have held them for more than 12 months. Selling on the same date one year later is still short-term; one day more makes it long-term. For SIPs, each instalment has its own purchase date.
Can I set off capital losses against gains?
Yes. A short-term capital loss can be set off against both short-term and long-term gains in the same year. A long-term capital loss can be set off only against long-term gains. Any loss left over can be carried forward for up to 8 years and used against future capital gains in the same way.
Is the ₹12 lakh tax-free limit available on capital gains?
Not on the capital gains tax. The new-regime rebate of up to ₹60,000 applies only to tax on income at normal slab rates, so tax on equity STCG and LTCG is payable even if your total income is under ₹12 lakh. However, if your other income is below the basic exemption limit, the unused part reduces your taxable gains.
What is grandfathering for shares bought before 2018?
For listed shares and equity fund units bought before 1 February 2018, the cost used for long-term gains is the higher of your actual cost and the lower of the highest price on 31 January 2018 and your sale value. This protects gains made before LTCG tax was introduced, but it cannot create a loss.
Does this calculator work for debt mutual funds, F&O or intraday trading?
No. Debt and other non-equity mutual funds are taxed differently, and futures and options or intraday trading are usually treated as business income taxed at slab rates. This calculator covers only listed equity shares and equity-oriented mutual funds where STT is paid.
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Disclaimer: This calculator gives an estimate for general information only. It is not professional tax, legal or financial advice, and your actual liability may differ. Please consult a qualified professional before acting on these figures.