Capital Gains Calculator — India, FY 2026-27

How the capital gains calculator works

Budget 2024 rewrote Indian capital gains tax. The rates and the holding-period cutoffs changed for almost every asset class on 23-July-2024. The 20%-with-indexation default for property and gold was dropped in favour of 12.5% without indexation, but for transactions on pre-existing holdings the taxpayer gets to choose whichever of the two produces a lower tax. Equity-MF LTCG got a new ₹1.25 lakh annual exemption (up from ₹1 lakh) but the rate moved from 10% to 12.5%. STCG on equity jumped from 15% to 20%. This calculator picks up all of those changes and applies them by asset class, acquisition date and holding period.

Holding periods — what counts as long-term now

• Listed shares & equity MF (STT paid) — 12+ months = LTCG.
• Unlisted shares — 24+ months = LTCG.
• Property / land / building — 24+ months = LTCG.
• Gold & silver (post 23-Jul-2024) — 24+ months = LTCG (was 36 months).
• Debt MF post 1-Apr-2023 — no LTCG regardless of holding; always slab rate.
• Other (collectibles, crypto-out-of-scope-here) — 36+ months = LTCG.

Rate matrix — current FY 2026-27 (set by Budget 2024)

Cost Inflation Index (CII) — when indexation still matters

CII is a CBDT-notified yearly multiplier that grosses up your acquisition cost for tax purposes, so you’re taxed on the inflation-adjusted gain rather than the nominal one. FY 2001-02 is the base year (CII = 100); FY 2024-25 is 363, FY 2025-26 projected at 376, FY 2026-27 at 391. Indexed cost = original cost × (CII of sale year / CII of acquisition year).

Post Budget 2024, indexation is only relevant for:

• Property acquired before 23-Jul-2024 — if the 20%-with-indexation method produces a lower tax than 12.5%-no-indexation. Our calculator computes both and flags the winner.
• Debt MF bought before 1-Apr-2023 and held more than 24 months.

For everything else, the new regime applies a flat rate to the raw gain and ignores CII entirely.

Grandfathering — shares acquired before 31-Jan-2018

For listed equity shares acquired before 31-January-2018, the acquisition cost for LTCG purposes is deemed to be the higher of (actual cost) and (FMV on 31-Jan-2018). The ₹1 lakh LTCG exemption that existed pre-Budget-2024 has now become ₹1.25 lakh. Our calculator does not yet model the grandfathering step explicitly; for shares acquired before 31-Jan-2018, enter the FMV on that date as the acquisition cost.

Section 54EC — bond exemption

LTCG from sale of property or other capital assets can be fully exempted by investing the gain in NHAI (National Highways Authority of India) or REC (Rural Electrification Corporation) capital gain bonds within 6 months of the sale:

• Cap: ₹50 lakh per financial year.
• Lock-in: 5 years.
• Interest: ~5-5.75% fully taxable at slab rate (so the effective yield after tax is modest; the real value is the capital gains exemption itself).

The calculator lets you toggle a 54EC investment amount (capped at ₹50L) and computes the net taxable gain after the exemption.

Section 54 and 54F — residential-property re-investment

Not yet modelled explicitly in this calculator. Quick summary:

• Section 54 — sell one residential property, re-invest the LTCG in another residential property within 2 years (or construct within 3) to fully exempt the gain.
• Section 54F — sell any other long-term asset (shares, gold, property other than residential), re-invest the entire sale consideration (not just the gain) in a residential property to fully exempt.

Both require the new property to not be sold for 3 years and that you own no more than one other residential property at the time of sale.

Worked example — property bought in 2018, sold in 2026

You bought an apartment for ₹50 lakh on 1-Apr-2018 and sell it for ₹1 crore on 1-Apr-2026. Both dates have CBDT CII values: FY 2018 = 280, FY 2026 = 391.

• Raw gain = ₹100L − ₹50L = ₹50 lakh.
• Indexed cost = ₹50L × (391/280) = ₹69.82 lakh.
• Indexed gain = ₹100L − ₹69.82L = ₹30.18 lakh.
• 12.5% no-indexation tax = ₹6.25 lakh.
• 20% with-indexation tax = ₹6.04 lakh.
• Calculator flags the 20%-with-indexation method (₹21K cheaper).
• Cess 4% = ₹24K → Total tax ≈ ₹6.28 lakh.

Frequently asked questions

Can I offset capital losses?

Yes. Short-term capital loss can be set off against both STCG and LTCG in the same year. Long-term loss can only be set off against LTCG. Unabsorbed loss can be carried forward 8 years, provided you file your ITR by the due date. Our calculator does not yet model loss-set-off explicitly; subtract offsets from your gain before entering it.

What if the 12.5%/20% choice on property flips before filing?

It won’t — both methods use fixed CII values and fixed rates, so the comparison is deterministic at the time of sale. Our recommendation never changes for the same inputs.

Do I pay tax on the sale year or at filing?

Capital gains tax is part of your income tax liability for the year of sale, paid via advance tax (if your total advance tax exceeds ₹10K) and reconciled at filing. Delay in paying advance tax attracts interest under Sections 234B/234C.

How accurate is this calculator?

All results use high-precision decimal arithmetic. Ten real-world FY 2026-27 scenario fixtures plus 1,000+ property-based assertions run on every commit. CII values match CBDT notifications through FY 2024-25; FY 2025-26 and 2026-27 are projected pending notification.

Sources

• Income Tax Act 1961, Sections 45–55 (capital gains provisions)
• Finance Act 2024 — Budget 2024 capital gains rationalisation
• CBDT Cost Inflation Index notifications (yearly, Apr–May)
• Section 54EC notified bonds (NHAI, REC)

Disclaimer. Capital gains tax treatment is sensitive to the exact date of acquisition and sale, the asset type, and your residency. This calculator is informational only. Always consult a Chartered Accountant for binding advice on actual transactions.