How is debt mutual fund LTCG taxed now?

Debt mutual funds acquired on or after 1 April 2023 never qualify for LTCG treatment at all — the entire gain is added to your income and taxed at your slab rate, regardless of how long you hold. This was originally introduced by the Finance Act 2023 and was not reversed in Budget 2024. Debt funds acquired before 1 April 2023 are still eligible for LTCG when held for 24 months or more, but the post-Budget-2024 LTCG rate on these is a flat 12.5% with no indexation. Short-term gains (under 24 months) on legacy debt funds remain at slab.

Can I still use indexation for real estate?

Only for properties acquired before 23 July 2024, and only as an optional alternative. The default post-Budget-2024 rule is 12.5% on the nominal gain (sale price minus purchase price) with no indexation. For pre-23-July-2024 properties, the taxpayer may instead elect the older 20% on the indexation-adjusted gain — and pay whichever amount is lower. Properties acquired on or after 23 July 2024 get no indexation option; the 12.5% flat rate is the only path. The calculator above accepts an optional indexed cost so you can see both numbers side by side.

What is the LTCG exemption for equity?

Section 112A exempts the first ₹1,25,000 of long-term capital gains on listed equity (and equity mutual funds with STT paid) per financial year — this was raised from ₹1,00,000 in Budget 2024. Only gains above this exemption are taxed at the 12.5% LTCG rate. The exemption applies once per year across all eligible equity holdings combined, not per stock or per fund. It is NOT available for STCG on equity, and it is NOT available for any other asset class — unlisted equity, gold, real estate, debt funds, and bonds get no exemption at all, so the very first rupee of long-term gain is taxable on those.

How is STT relevant to capital gains tax?

STT (Securities Transaction Tax) is a small statutory levy charged on the buy/sell value of listed securities on recognised stock exchanges. The concessional capital gains rates under Sections 111A (20% STCG) and 112A (12.5% LTCG above ₹1.25 lakh) apply only when STT was paid on the transaction. Equity sales executed off-exchange or in private deals where STT was not paid fall back to the higher unlisted-equity tax regime — slab for STCG and 12.5% for LTCG (with the 24-month holding threshold instead of 12 months). For typical retail investors buying through a stockbroker or any SEBI-registered platform, STT is collected automatically, so the concessional rates apply by default.

Capital Gains Tax Calculator — STCG & LTCG (India, FY 2026-27)

Capital Gains Tax

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Capital Gains Tax Calculator

Calculate Long-Term and Short-Term Capital Gains tax (LTCG / STCG) on equity, debt mutual funds, gold, and real estate. Applies the post-Budget-2024 rules — 12.5% LTCG on equity above ₹1.25L, 20% STCG on equity, slab rate on debt MF.

Reviewed by the CalculatorKosh Editorial TeamUpdated June 2026Free · No sign-up

Sale Details

CGT Asset Type

Purchase Price

₹

₹0₹10 Cr

Original cost of acquisition

Sale Price

₹

₹0₹100 Cr

Amount received on sale (net of brokerage / STT if you wish to factor it in)

Purchase Date

Sale Date

CGT Tax Slab

Used only when the asset is taxed at slab — STCG on non-equity, or any debt MF acquired after 1 Apr 2023.

LTCG Tax Owed

on ₹1,50,000 gain — 12.5% effective rate

LTCG

Long-Term Capital Gain — favourable treatment

Listed equity held for 2.2 years → LTCG taxed at 12.5% on the gain above the ₹1.25 lakh annual exemption (Section 112A, post-Budget 2024).

Capital Gain

₹1.5 L

Exemption Applied

₹1.3 L

Taxable Gain

₹25,000

Post-Tax Gain

₹1.5 L

Gain Composition

How It Works

This calculator applies the post-Budget-2024 capital gains tax rules (effective for transfers on or after 23 July 2024) under Sections 111A, 112, and 112A of the Income Tax Act. It works out whether your sale qualifies as Long-Term (LTCG) or Short-Term (STCG) based on the asset class and holding period, applies the right rate, subtracts the ₹1.25 lakh exemption where it applies, and shows your tax owed plus post-tax gain.

How LTCG vs STCG is decided

The holding-period threshold depends on the asset class. Listed equity, equity mutual funds (with STT), and listed bonds need to be held for at least 12 months to qualify as long-term. Unlisted equity, gold, real estate, and debt mutual funds (legacy, pre-Apr-2023) need 24 months. Debt mutual funds acquired on or after 1 April 2023 never qualify as long-term — the entire gain is taxed at the investor's slab rate regardless of how long it is held.

The rates after Budget 2024

Listed equity STCG is taxed at 20% (raised from 15%) and LTCG above the ₹1.25 lakh exemption is taxed at 12.5% (raised from 10%). Long-term capital gains on every other asset class — unlisted equity, gold, bonds, real estate, legacy debt funds — are now taxed at a flat 12.5% with no indexation. Short-term gains on these other categories are added to your income and taxed at your slab rate.

The real-estate transitional benefit

For real estate acquired before 23 July 2024, the taxpayer may choose between (a) 12.5% on the nominal gain with no indexation, or (b) 20% on the indexation-adjusted gain — whichever yields a lower tax. The calculator computes both numbers when you supply the indexed cost. Properties acquired on or after 23 July 2024 get the 12.5% flat rate only.

Frequently Asked Questions

The Finance (No. 2) Act 2024 (effective for transfers on or after 23 July 2024) restructured the entire capital gains regime. Listed equity LTCG was raised from 10% to 12.5% with the annual exemption increased from ₹1 lakh to ₹1.25 lakh; listed equity STCG jumped from 15% to 20% under Section 111A. The flat 12.5% LTCG rate was extended to most other long-term assets (unlisted equity, gold, bonds, real estate). Indexation under Section 48 was withdrawn for all assets — only legacy real estate acquired before 23 July 2024 retains a transitional choice between 12.5% without indexation and 20% with indexation. Holding-period thresholds were simplified to two buckets — 12 months for listed securities and 24 months for everything else.