Capital gains rates for FY 2026-27
Budget 2026 left the rates set in 2024 unchanged:
| Asset | Long-term if held more than | Long-term rate | Short-term rate |
|---|---|---|---|
| Listed shares, equity mutual funds (STT paid) | 12 months | 12.5% above ₹1.25 lakh a year | 20% |
| Gold ETFs, listed bonds, REIT/InvIT units | 12 months | 12.5% | Slab rate |
| Property, physical gold, gold FoF, unlisted shares | 24 months | 12.5% (no indexation) | Slab rate |
| Debt funds bought on or after 1 April 2023 | — | Always slab rate | Slab rate |
Under the Income-tax Act, 2025 (in force from 1 April 2026), the section numbers changed but these rates did not.
The ₹1.25 lakh equity exemption
Long-term gains on listed equity and equity funds are tax-free up to ₹1.25 lakh in total per financial year — across all your sales, not per sale. In the worked example, a ₹3 lakh gain uses the full exemption, leaving ₹1.75 lakh taxed at 12.5%: ₹22,750 including cess. Enter gains you have already realised this year to see how much exemption is left.
Tip: if you hold equity funds with unrealised gains, selling enough each year to book about ₹1.25 lakh of gains (and reinvesting) uses the exemption every year — known as tax-gain harvesting.
Property: the indexation question
From 23 July 2024, long-term gains on property are taxed at 12.5% without indexation. For land or buildings bought before that date, resident individuals and HUFs were given the option of the older 20%-with-indexation method, whichever gives less tax. This calculator shows the 12.5% figure; if you sold old property, compare both methods with a tax adviser. Reinvesting property gains in another house or specified bonds can also exempt them.
Losses
Capital losses can be set off against capital gains (short-term losses against both kinds; long-term losses only against long-term gains) and carried forward for 8 years — but only if you file your return on time.
Related
For shares bought in several lots, the stock average calculator helps track cost, though tax follows first-in, first-out. For withdrawals from mutual funds over time, see the SWP calculator; large gains may require advance tax.