LTCG Calculator
Long term capital gains tax
Capital Gains Details
Calculate tax on your long-term investments
LTCG Tax Calculation
About LTCG Calculator
The Long Term Capital Gains (LTCG) Tax Calculator helps you estimate the tax you need to pay when selling assets held for the long term. Whether you're selling shares, property, gold, or mutual funds, this calculator gives you accurate tax liability.
For shares and equity funds, gains up to ₹1 lakh per year are tax-free. For property, debt funds, and gold, you get indexation benefits that reduce your taxable gains by accounting for inflation.
How to Use This LTCG Calculator
Step 1: Select the asset type (Shares, Real Estate, Debt Funds, or Gold).
Step 2: Enter purchase price and sale price of the asset.
Step 3: For non-equity assets, select purchase year and sale year (for indexation).
Step 4: Click "Calculate LTCG Tax" to see your tax liability.
Step 5: Use the Reset button to clear all inputs and calculate a different asset.
Why Use an LTCG Calculator?
✓ Tax Planning
Plan your asset sales to minimize taxes. Use the ₹1 lakh exemption for shares. Time your property sales with indexation benefits.
✓ Estimate Tax Liability
Know exactly how much tax you'll pay before selling. Set aside money for tax payment. Avoid surprises at filing time.
✓ Compare Asset Types
Calculate tax for different asset types. Decide which investment is more tax-efficient. Plan your portfolio accordingly.
✓ ITR Filing Preparation
Accurate LTCG calculation helps in ITR filing. Use results for Schedule CG. Avoid tax notice for incorrect reporting.
LTCG Tax Rates by Asset Type
| Asset Type | Holding Period | Tax Rate | Indexation |
|---|---|---|---|
| Shares / Equity Mutual Funds | > 1 year | 10% | No |
| Real Estate (Property) | > 3 years | 20% | Yes |
| Debt Mutual Funds / Bonds | > 3 years | 20% | Yes |
| Gold / Jewellery | > 3 years | 20% | Yes |
Indexation Benefit Explained
What is Indexation? Indexation allows you to adjust the purchase price of an asset for inflation using the Cost Inflation Index (CII). This reduces your taxable capital gains.
Formula: Indexed Cost = Purchase Price × (CII of Sale Year ÷ CII of Purchase Year)
Example: Property bought in 2010-11 for ₹50 lakhs, sold in 2024-25 for ₹1.5 crore. CII 2010-11=167, CII 2024-25=363. Indexed Cost = ₹50L × (363÷167) = ₹1,08,68,263. Taxable Gain = ₹1.5Cr - ₹1.08Cr = ₹41.32L. Tax @20% = ₹8.26L (vs ₹20L without indexation!)
Grandfathering Rule for Shares (Pre-Feb 1, 2018)
For shares acquired before February 1, 2018, the cost of acquisition is the higher of:
- Actual purchase price, or
- Fair Market Value (FMV) as of January 31, 2018 (highest price on that date)
Gains up to January 31, 2018 are grandfathered (tax-free). Only gains after that date are taxable. Example: Bought shares at ₹100 in 2015, FMV on 31/1/18 = ₹300, sold at ₹500 in 2025. Cost taken as ₹300, gain = ₹200. Taxable gain after ₹1L exemption.
LTCG Calculation Formula
For Shares / Equity Funds
Tax = (Gain - ₹1,00,000) × 10%
Example: ₹1,50,000 gain → Tax = ₹50,000 × 10% = ₹5,000
For Property / Debt / Gold
Indexed Cost = Purchase × (CII Sale ÷ CII Purchase)
Tax = (Sale - Indexed Cost) × 20%
Important Things to Know
- •LTCG applies only if held for more than 1 year — For shares, holding period is 1 year. For property, debt funds, gold, it's 3 years.
- •₹1 lakh exemption is per financial year — You can have multiple transactions, but total exempt gain is ₹1 lakh.
- •Indexation benefit reduces tax significantly — For long-held assets, indexation can reduce or eliminate tax liability.
- •Consult a tax advisor — This calculator provides estimates. For exact tax calculation, consult a qualified professional.
Frequently Asked Questions
Long Term Capital Gains (LTCG) tax on shares is 10% on gains exceeding ₹1 lakh in a financial year. If you hold shares for more than 1 year, it's considered long-term. For example, if your total LTCG is ₹1.5 lakh, you pay 10% only on ₹50,000 (₹5,000 tax).
For shares and equity mutual funds: 1 year or more. For real estate: 3 years or more. For debt mutual funds: 3 years or more. For gold: 3 years or more. Make sure you hold the asset for the minimum period to qualify for LTCG benefits.
Indexation allows you to adjust the purchase price for inflation using CII (Cost Inflation Index). This reduces your taxable gains. Available for real estate, debt funds, gold, and bonds held for more than 3 years. Not available for shares and equity funds.
No. LTCG up to ₹1 lakh per financial year is tax-free. Any gain above ₹1 lakh is taxed at 10% without indexation benefit. This rule applies to both shares and equity mutual funds.
For property, you can use indexation benefit. Formula: Indexed Cost = Purchase Price × (CII of sale year ÷ CII of purchase year). Then Capital Gain = Sale Price - Indexed Cost. Tax is 20% on the gain.
For shares acquired before February 1, 2018, the cost is taken as the higher of actual purchase price or Fair Market Value (FMV) as of January 31, 2018. This protects gains made before the tax was introduced.
For inherited property, the cost is the previous owner's purchase price. Indexation benefit available from the original purchase year. Holding period includes both owners' holding periods. Calculate indexed cost using original purchase year and sale year.
TDS on LTCG: Shares/Equity funds: No TDS (buyer doesn't deduct). Real estate: 1% TDS on sale value (if sale value > ₹50 lakh). Debt funds: No TDS. Buyer must deduct TDS on property sales. File ITR to claim TDS credit.
Yes! Short-term capital loss (STCL) can be set off against both STCG and LTCG. Long-term capital loss (LTCL) can be set off only against LTCG. Losses can be carried forward for 8 years if filed ITR on time. Example: ₹1.5L LTCG - ₹50k LTCL = ₹1L taxable LTCG (₹0 tax after exemption).
From April 1, 2023, debt mutual funds are taxed at slab rate (no LTCG benefit). Indexation removed for debt funds bought after March 31, 2023. Gains added to income, taxed at 5-30%. Existing debt funds (bought before April 1, 2023) still get indexation if held >3 years.