Capital Gains Tax Calculator

Home›💰 Financial Calculators›Capital Gains Tax Calculator
YTB-0053 · Financial › Tax Calculators

Capital Gains Tax Calculator

Calculate CGT on stocks, property, mutual funds & crypto — India, UK, US & Australia

Capital Gain₹4,00,000
Gain TypeLTCG
Applicable Tax Rate12.5%
Exemption / Annual Allowance₹1,25,000
Taxable Gain₹2,75,000
Tax Payable₹34,375
Net Profit After Tax₹3,65,625
Effective Return After Tax73.1%
Net Profit After Tax
CGT Payable

Capital Gains Tax — Why Holding Period Is Worth More Than You Think

Selling shares one day before completing 12 months of holding can cost you significantly more in tax than waiting just 24 hours. In India, equity sold before 12 months is taxed at 20% (STCG). After 12 months, it's 12.5% on gains above ₹1.25 lakh (LTCG). On a ₹5 lakh gain, the difference is ₹1 lakh vs ₹46,875 — waiting one more day saves you over ₹53,000 in tax. This is why understanding the STCG vs LTCG threshold for each asset class is one of the most practical tax-saving strategies available to investors.

Capital Gains Tax Rates — India (FY 2026-27)

AssetSTCG (Short-Term)Holding for LTCGLTCG RateExemption
Listed Equity / Equity MF20% (<12 months)12+ months12.5%₹1.25 lakh/year
Debt Mutual FundsAs per income slabN/AAs per slabNil
Property / Real EstateSlab rate (<24 months)24+ months12.5% (no indexation)Nil
Unlisted SharesSlab rate (<24 months)24+ months12.5%Nil
Cryptocurrency / VDA30% flat (any period)N/A30% flatNil (no offset)
Gold ETF / BondsSlab rate (<12 months)12+ months12.5%₹1.25 lakh

Capital Gains Tax Rates — Other Countries

CountryShort-Term CGTLong-Term CGTAnnual Allowance
USAOrdinary income rates (10–37%)0%, 15%, or 20% (based on income)None for federal
UKOrdinary income rates18% (basic), 24% (higher/additional) — property: +4%£3,000/year (2025/26)
AustraliaMarginal rate (0–45%)50% discount on gain then marginal rate (held 12+ months)Tax-free threshold applies

India's Crypto Tax — The Harshest in the World

India taxes all Virtual Digital Assets (VDA) — Bitcoin, Ether, NFTs, crypto tokens — at a flat 30% regardless of holding period. There is no LTCG benefit. There is no offset of losses from one VDA against another. TDS at 1% under Section 194S applies on every transaction above ₹50,000 (₹10,000 for specified persons). If you made a loss on Bitcoin and a profit on Ethereum in the same year, you still pay 30% on the Ethereum profit — you cannot net the losses. This makes India's VDA tax regime among the strictest globally and is why many crypto investors moved to other jurisdictions or shifted to crypto mutual funds.

UK CGT — The Hidden Change Since 2024

The UK government changed CGT rates on residential property from April 2024. The rates now are 18% (basic rate taxpayers) and 24% (higher/additional rate taxpayers) for property — plus the standard 18%/24% for other assets. The annual CGT allowance was slashed from £12,300 to just £3,000 in 2024/25 and remains at £3,000 for 2025/26. Anyone who has built up an ISA now holds assets in a genuinely tax-free wrapper — making ISA investments far more valuable than taxable investment accounts for UK residents.

💡 Tax-Loss Harvesting: In India, short-term capital losses can be set off against both STCG and LTCG. Long-term capital losses can only be set off against LTCG. Unused losses can be carried forward for up to 8 years. Before financial year-end (March 31), review your portfolio — deliberately booking losses on underperforming investments to offset your taxable gains is a legitimate and legal tax strategy.

FAQ

Was property indexation benefit removed in India? +
Yes. Budget 2024 removed the indexation benefit for property sold after July 23, 2024. Previously, you could adjust the purchase price for inflation (using the Cost Inflation Index), reducing the taxable gain significantly. Now, LTCG on property is taxed at 12.5% without indexation. For properties held for very long periods with large inflation adjustments, this change increased tax liability substantially. For recently purchased properties or those in high-appreciation markets, the impact varies.
What is the ₹1.25 lakh LTCG exemption in India? +
Under Section 112A, the first ₹1.25 lakh of long-term capital gains from listed equity shares and equity mutual funds in a financial year is completely tax-free. Gains above ₹1.25 lakh are taxed at 12.5%. This exemption resets every April 1. Strategic investors "harvest" gains near year-end — booking up to ₹1.25 lakh in LTCG, reinvesting immediately at a higher cost basis, and resetting the clock for future tax savings.
Do I pay CGT on ELSS funds after the 3-year lock-in? +
Yes. ELSS redemption after 3 years qualifies as LTCG on equity — taxed at 12.5% on gains above ₹1.25 lakh. The 3-year lock-in satisfies the 12-month LTCG holding requirement (with room to spare). You get both the Section 80C deduction on investment and LTCG treatment on redemption — making ELSS one of the most tax-efficient 80C instruments overall.
Scroll to Top