LTCG Calculator India 2026

LTCG in India 2026 — The Complete Post-Budget-2024 Guide

The Union Budget 2024 rewrote India's capital-gains rulebook overnight. For every asset sold on or after 23 July 2024, the rates, holding periods, and the once-sacred indexation benefit all changed. The headline: equity LTCG jumped from 10% to 12.5% (with the exemption raised from ₹1 lakh to ₹1.25 lakh), indexation was abolished for almost everything, and holding periods were collapsed into just two buckets. This page computes your exact liability under the new regime and walks through every rule that moves the number.

The Two Holding Periods That Now Decide Everything

*The 20%-with-indexation option survives only for land and buildings acquired before 23 July 2024, and only for resident individuals/HUFs. The calculator above shows both methods and picks the lower tax for you.

Equity: The 12.5% Rate and the ₹1.25 Lakh Exemption

For listed shares and equity mutual funds where securities transaction tax (STT) was paid, gains on holdings of more than 12 months are long-term and taxed under Section 112A:

• First ₹1,25,000 of total equity LTCG in a financial year is tax-free.
• The excess is taxed at a flat 12.5% (plus 4% cess, plus surcharge for high earners).
• The exemption is per person per year, across all equity sales combined — not per transaction or per fund.

Tax-harvesting tip: because the ₹1.25 lakh exemption resets each financial year, you can sell enough each year to realise up to ₹1.25 lakh of long-term gains tax-free, then immediately rebuy. Over a decade this resets your cost base and can save lakhs in eventual tax — entirely legally.

Grandfathering: Why Pre-2018 Shares Are Protected

LTCG on equity was tax-free until 31 January 2018. To avoid taxing gains that accrued before that, Section 112A grandfathers them. For shares bought before 1 February 2018, your cost of acquisition is taken as:

Cost = higher of (actual cost) and lower of (FMV on 31 Jan 2018, actual sale price)

So only the appreciation after 31 January 2018 is taxed. The calculator applies this automatically when you enter the 31 Jan 2018 fair market value for a pre-2018 purchase.

Property: The 20%-Indexation vs 12.5%-Flat Choice

This is the most valuable — and most misunderstood — relief in Budget 2024. The original Budget proposal scrapped indexation on property entirely. After backlash, a transitional choice was added: for land or buildings acquired before 23 July 2024, a resident individual or HUF pays the lower of:

1. 12.5% without indexation on (sale price − actual cost), or
2. 20% with indexation, where indexed cost = cost × (CII of sale year ÷ CII of purchase year).

Rule of thumb: high-appreciation, long-held property usually wins under 12.5%-flat; modest-appreciation or recently-bought property (where inflation indexing is large relative to the gain) usually wins under 20%-with-indexation. Property bought on or after 23 July 2024 gets the flat 12.5% only — no choice. The calculator computes both and highlights the cheaper one.

The Cost Inflation Index (CII) Table

Indexation uses the CBDT's Cost Inflation Index (base FY 2001-02 = 100). Indexed cost = original cost × (CII of year of sale ÷ CII of year of purchase).

Debt Funds: The End of the LTCG Loophole

Debt mutual funds purchased on or after 1 April 2023 lost all long-term benefit — every rupee of gain is added to income and taxed at your slab rate, no matter how long you hold. There is no indexation and no 12.5% rate. Only debt funds bought before 1 April 2023 and held over 24 months still get the 12.5%-without-indexation long-term treatment. This calculator treats the debt option as slab-taxed; switch to "other assets" for pre-April-2023 debt holdings that qualify for long-term.

Worked Examples

Example 1: Equity LTCG

• Bought equity MF for ₹5,00,000 in June 2019, sold for ₹9,00,000 in June 2026.
• Holding > 12 months → long-term. Gain = ₹4,00,000.
• Taxable after ₹1.25 L exemption = ₹2,75,000. Tax @ 12.5% = ₹34,375 + 4% cess = ₹35,750.

Example 2: Property — the choice in action

• Bought a flat for ₹40,00,000 in FY 2012-13 (CII 200), sold for ₹1,00,00,000 in FY 2025-26 (CII 376).
• 12.5% flat: gain ₹60,00,000 → tax ₹7,50,000 + cess = ₹7,80,000.
• 20% + indexation: indexed cost = 40,00,000 × 376/200 = ₹75,20,000 → gain ₹24,80,000 → tax ₹4,96,000 + cess = ₹5,15,840.
• Indexation wins by ₹2,64,160. The calculator picks it automatically.

Common Mistakes That Cost Real Money

• Using the old 10% equity rate. For any sale on/after 23 July 2024 it's 12.5% over ₹1.25 lakh — not 10% over ₹1 lakh.
• Forgetting grandfathering on pre-2018 shares. Without the 31 Jan 2018 FMV step you overstate the taxable gain, often by lakhs.
• Assuming indexation is gone for all property. Pre-23-July-2024 property still gets the 20%+indexation choice — skipping the comparison can cost you the cheaper option.
• Treating debt funds like equity. Post-April-2023 debt funds are pure slab-rate income; there is no ₹1.25 lakh exemption.
• Ignoring the ₹1.25 lakh annual harvest. Not realising tax-free equity gains each year leaves free exemption on the table.
• Forgetting surcharge. Above ₹50 lakh income, a surcharge (capped at 15% for 111A/112A gains) applies on top of the figures here.

Frequently Asked Questions

What is the LTCG rate on equity in 2026?

12.5% on long-term gains exceeding ₹1.25 lakh per year for listed equity and equity mutual funds, for sales on or after 23 July 2024.

Does indexation still exist?

Only for land and buildings acquired before 23 July 2024, where you can choose 20% with indexation versus 12.5% flat. Equity, debt funds, and gold get no indexation.

What is the STCG rate on equity?

20% for listed equity / equity mutual funds (STT paid) held 12 months or less, on sales from 23 July 2024. Other short-term gains are taxed at your slab rate.

Is LTCG calculated before or after cess?

The 12.5%/20% are base rates. A 4% Health & Education Cess applies on top (shown by this calculator), and a surcharge may apply at higher incomes.

Can NRIs use the ₹1.25 lakh exemption and the indexation choice?

NRIs get the ₹1.25 lakh equity LTCG exemption, but the 20%-with-indexation property option is restricted to resident individuals and HUFs.