Calculate Short-Term Capital Gains (STCG at 20%) and Long-Term Capital Gains (LTCG at 12.5%) with ₹1.25 Lakh exemption under revised Finance Act 2024 rules.
Capital Gains Tax Calculator (Finance Act 2024)
LTCG on listed shares & equity funds is taxed at 12.5% on gains exceeding ₹1.25 Lakh. STCG is taxed at flat 20% without any basic exemption limit.
Grandfathering & Tax Loss Harvesting Scanner
Calculate Jan 31 2018 Fair Market Value grandfathered acquisition cost, offset STCG against business losses, and run multi-year carry-forward audits.
🚀 UNLOCK PRO SUITE — INSTANT ACCESS⚡ How Capital Gains Tax Works in 4 Steps
Choose Asset Category
Select holding duration: Short-Term (≤12 months) or Long-Term (>12 months) using the regime toggle.
Enter Buy & Sale Value
Input total purchase consideration and gross realized sale proceeds in Indian Rupees.
Apply ₹1.25L Exemption
Deduct available Section 112A tax-free threshold from your gross LTCG across equity transactions.
View Net Tax & Cess
Review statutory tax at 12.5% or 20% plus 4% Health & Education Cess, and your net realized take-home profit.
Understanding the Finance Act 2024 Capital Gains Overhaul
The Union Budget 2024 fundamentally restructured the Indian capital gains tax regime. For listed equity shares and equity-oriented mutual funds, the Short-Term Capital Gains (STCG) tax rate under Section 111A increased from 15% to 20%.
Simultaneously, Long-Term Capital Gains (LTCG) tax under Section 112A increased from 10% to 12.5%, accompanied by a welcome increase in the annual basic exemption threshold from ₹1.00 Lakh to ₹1.25 Lakh per financial year.
Key Highlights of Section 111A & Section 112A
1. Holding Period Threshold: Listed equity shares and equity mutual funds held for more than 12 months qualify as Long-Term Capital Assets. Assets held for 12 months or less are classified as Short-Term Capital Assets.
2. Grandfathering Mechanism: For equities acquired prior to January 31, 2018, investors can still use the Fair Market Value (FMV) grandfathering shield to safeguard pre-2018 capital appreciation from LTCG taxation.
3. Tax Loss Harvesting: STCG can be offset against both short-term and long-term capital losses. However, LTCG can only be offset against long-term capital losses. Unabsorbed losses can be carried forward for up to 8 assessment years.
📋 Regulatory References & Data Sources
- Income Tax Act 1961, Section 112A (LTCG on equity) — Finance Act 2024
- Income Tax Act 1961, Section 111A (STCG on equity) — Finance Act 2024
- Finance (No. 2) Act 2024 — revised LTCG rate to 12.5% and STCG to 20%
- Cost Inflation Index notified by Central Board of Direct Taxes (CBDT) under Notification No. 44/2024, CII for FY 2024-25: 363
- Income Tax Act Section 54EC — capital gains exemption on bond reinvestment
- Source: Ministry of Finance, Government of India; CBDT circulars
Disclaimer: This calculator is for educational and planning purposes only. It does not constitute financial advice. Consult a SEBI-registered investment advisor for personalised guidance. Tax rules are updated as per the latest Finance Act — verify with a qualified CA before filing.