Calculate short-term (STCG) and long-term (LTCG) capital gains tax for India.
This tool estimates the tax owed on profit from selling an asset (like stocks, property, or mutual funds), based on the purchase price, sale price, holding period, and applicable tax rate. It distinguishes between short-term and long-term gains, which are often taxed differently.
Capital Gain = Sale Price − Purchase Price (adjusted for costs like improvements or transaction fees, and for inflation indexation where applicable to certain long-term assets). Tax Owed = Capital Gain × Applicable Tax Rate, which differs based on whether the gain is classified as short-term or long-term.
Enter the purchase price, sale price, purchase and sale dates (to determine holding period), and asset type, and the calculator returns your estimated capital gain and applicable tax.
Example: Selling an asset purchased for $10,000 for $15,000 results in a capital gain of $5,000, with the applicable tax rate depending on whether the asset was held short-term or long-term before sale.
What's the difference between short-term and long-term capital gains? Short-term gains apply to assets held for a shorter period (often under 1 year, though the exact threshold varies by asset type and jurisdiction), while long-term gains apply to assets held longer — long-term gains often receive more favorable tax treatment than short-term gains.
Why do long-term gains often get preferential tax rates? Tax policy often favors long-term investment holding over short-term speculation, incentivizing patient investing through lower tax rates on gains from assets held for longer periods.
What is cost indexation, and when does it apply? Indexation adjusts the purchase price for inflation over the holding period, reducing the taxable gain to reflect real (inflation-adjusted) appreciation rather than purely nominal price increase — this typically applies to certain long-term asset categories under specific tax rules.
Can capital losses offset capital gains? Yes, in many tax systems, capital losses from selling other assets at a loss can offset capital gains, potentially reducing overall tax liability — specific rules on this vary by jurisdiction and asset type.
Does capital gains tax apply to all types of assets the same way? No, different asset categories (stocks, real estate, mutual funds, etc.) often have distinct capital gains rules, exemption thresholds, and rates, so it's important to apply the specific rules relevant to your particular asset type.