| Component | Value |
|---|
A Capital Gain Tax Calculator simplifies this process by instantly estimating your tax liability based on your investment details.
By entering basic inputs such as purchase price, selling price, holding period, and applicable exemptions, the calculator provides an accurate breakup of taxable capital gains and the tax payable.
It helps investors plan exits better, compare tax impact across different assets, and make informed financial decisions.
Table of Contents
What Is Capital Gain / Capital Loss?
When you sell an asset at a price higher than the buying price, the difference between the buying price and the selling price is called capital gain. If the buying price is higher than the selling price, then it is called a capital loss.
- Purchase price (also called cost of acquisition): What you originally paid for the asset.
- Selling price: What you receive when you sell the asset.
Capital Gain / Capital Loss Instruments
| Category | Instruments |
|---|---|
| Equity | Shares, Equity Mutual Funds, ETFs |
| Debt | Debt Mutual Funds, Bonds, Debentures |
| Property | Land, Residential & Commercial Property |
| Precious Metals | Gold, Silver, Jewellery |
| Alternatives | AIFs, REITs, InvITs |
| Digital Assets | Cryptocurrencies, NFTs |
| Intangibles | Patents, Trademarks, Goodwill |
| Collectibles | Art, Antiques |
What Is Capital Gain Tax?
Whenever you earn a profit by selling a capital asset, you need to pay a certain percentage of tax on that profit. That is called capital gain tax. The tax rate depends on the type of asset you sold and how long you held the asset.
Depending on how long you hold the assets, capital gain taxes are categorized into the following types.
- Short Term Capital Gain tax (STCG)
- Long Term Capital Gain Tax (LTCG)
Short Term Capital Gain Tax
Short-Term Capital Gains Tax is the tax levied on profit earned from the sale of a capital asset held for a short period, and it is usually taxed at 20% for equity assets or as per income tax slab rates for other assets.
| Asset | Short-Term Holding Period | STCG Tax Rate | Applicable Section |
|---|---|---|---|
| Listed Equity Shares | Up to 12 months | 20% (if STT paid) | Section 111A |
| Equity Mutual Funds | Up to 12 months | 20% (if STT paid) | Section 111A |
| Debt Mutual Funds | Up to 36 months | As per the income tax slab | Section 48 |
| Property (Land / Building) | Up to 24 months | As per the income tax slab | Section 48 |
| Gold & Jewellery | Up to 36 months | As per income tax slab | Section 48 |
Long Term Capital Gain Tax
Long Term Capital Gain Tax (LTCG Tax) is the tax levied on profits earned from selling a capital asset after holding it for more than the prescribed long-term holding period.
In India, LTCG usually attracts lower tax rates and additional benefits such as indexation or exemptions, encouraging long-term investment.
| Asset | Long-Term Holding Period | LTCG Tax Rate | Applicable Section |
|---|---|---|---|
| Listed Equity Shares | More than 12 months | 12.5% on gains above ₹1.25 lakh | Section 112A |
| Equity Mutual Funds | More than 12 months | 12.5% on gains above ₹1.25 lakh | Section 112A |
| Debt Mutual Funds | More than 36 months | 12.5% | Section 112 |
| Property (Land / Building) | More than 24 months | 12.5% | Section 112 |
| Gold & Jewellery | More than 36 months | 12.5% | Section 112 |
What Is a Capital Gain Tax Calculator?
A Capital Gain Tax Calculator is a tool that helps you calculate the tax you owe on profits (gains) from selling assets like stocks, mutual funds, property, or gold. It makes figuring out taxes much easier instead of doing it manually.
How To Use the Capital Gain Tax Calculator?
When you sell an asset, the profit you earn is called a capital gain
Capital Gain=Selling Price−Purchase Price
The calculator takes this gain and applies the correct tax rules based on:
- Type of asset (equity, debt, property, gold, etc.)
- How long you held it (short-term or long-term)
- Your income tax slab (for non-equity assets)
- Exemptions, like ₹1.25 lakh for long-term equity gains
Then it shows you:
- Type of Capital Gain: STCG or LTCG
- Tax rate applicable
- Tax amount payable
- Net profit after tax
Benefits Of the Capital Gain Tax Calculator
- Saves time from doing manual calculations
- Prevents errors in tax computation
- Helps you plan investments and tax liabilities
- Shows the impact of short-term vs long-term holding
Conclusion: Capital Gain Tax Calculator
A Capital Gain Tax Calculator is an essential tool for every investor or asset owner in today’s financial landscape. It simplifies the often complex process of calculating taxes on profits earned from the sale of assets like stocks, mutual funds, real estate, or precious metals.
By automatically considering the type of asset, holding period, applicable tax rates, and exemptions, the calculator provides accurate insights into short-term and long-term capital gains taxes.
