Capital gains tax, and what you can book tax-free
For listed shares and equity mutual funds. Enter what you have sold this year and what you still hold.
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How the tax is worked out
For listed shares and equity mutual funds, gains on units held 12 months or less are short-term and taxed at 20% under section 196. Gains on units held longer are long-term and taxed at 12.5% under section 198, after an exemption of ₹1.25 lakh a year. A 4% cess applies.
Worked example
You have booked ₹50,000 of short-term and ₹40,000 of long-term gains this year, and hold ₹3 lakh of unbooked long-term gains. Tax so far is ₹10,400 (20% plus cess on the short-term gain). You can still book ₹85,000 of long-term gains tax-free before 31 March, which could avoid about ₹11,050 of tax later.
Common questions
How are listed shares and equity mutual funds taxed?
Units held 12 months or less: short-term, 20% under section 196 (old 111A). Held longer: long-term, 12.5% on gains above ₹1.25 lakh a year under section 198 (old 112A). Cess of 4% applies on top; surcharge may apply on high incomes.
What is tax-gain harvesting?
Selling long-term holdings to book gains within the ₹1.25 lakh yearly exemption, then buying back. Your cost resets higher, so less gain is taxed later. Check exit loads, brokerage and the time you are out of the market.
What does this calculator leave out?
Debt funds, property, gold, unlisted shares, losses carried forward from earlier years, and the basic-exemption adjustment for low incomes. A BI CFO capital gains plan covers these.
For education and comparison only, based on your inputs and tax year 2026-27 rates. Not tax or investment advice. Surcharge is not included.