Instantly calculate LTCG & STCG tax on equity, mutual funds, property, and gold. Updated for Finance Act 2024 — LTCG on equity at 12.5%, STCG at 20%, ₹1.25L exemption.
LTCG threshold for Equity Shares: 12 months
STT (Securities Transaction Tax) Paid?
Required for LTCG 12.5% benefit on equity
| Asset Type | STCG Rate | LTCG Rate | LTCG Period | Exemption | Note |
|---|---|---|---|---|---|
| Equity Shares | 20% | 12.5% | 12 months | ₹1.25L/yr | STT must be paid |
| Equity Mutual Fund | 20% | 12.5% | 12 months | ₹1.25L/yr | ELSS: same treatment |
| Debt Mutual Fund | Slab rate | Slab rate | Always STCG | None | Post Apr 2023 rule |
| Property | Slab rate | 20% (no indexation) | 24 months | 54/54F applicable | Budget 2024 change |
| Gold (Physical) | Slab rate | 20% | 24 months | None | Sovereign Gold Bonds exempt |
| * All rates exclude 4% Health & Education Cess. Rates effective post 23 July 2024 (Finance Act 2024). Consult a CA for complex situations including indexation and 54/54F exemptions. | |||||
Capital Gains Tax is levied on the profit earned from the sale of a capital asset — such as stocks, mutual funds, real estate, or gold. The tax is categorized into Short-Term Capital Gains (STCG) and Long-Term Capital Gains (LTCG) based on how long you held the asset before selling. The longer you hold, the more favorable the tax treatment — especially for equity.
| Parameter | LTCG | STCG |
|---|---|---|
| Holding Period (Equity) | More than 12 months | Less than 12 months |
| Tax Rate (Equity) | 12.5% (post Budget 2024) | 20% (post Budget 2024) |
| Exemption | ₹1.25L/yr for equity | None |
| Indexation Benefit | Property (pre-Jul 2024 only) | Not applicable |
The Finance Act 2024 (Union Budget, July 2024) made significant changes to capital gains tax structure:
For listed equity shares and equity mutual funds: Capital Gain = Sell Price − Buy Price. If the holding period is more than 12 months and STT was paid, the gain is LTCG. Apply the ₹1.25L exemption, then calculate 12.5% on the remaining. Add 4% cess on the tax amount.
Property held for more than 24 months qualifies for LTCG. After Budget 2024, the tax is 20% without indexation (or 12.5% — choose the more beneficial option for pre-July 2024 purchases). You can also claim exemption under Section 54 (by buying another residential property) or Section 54EC (by investing in specified bonds). Short-term property gains are added to your income and taxed at your slab rate.
Physical gold and Gold ETFs held for more than 24 months are treated as LTCG at 20% (plus 4% cess). Gold held under 24 months is STCG, taxed at your income slab. Notably, Sovereign Gold Bonds (SGBs) redeemed at maturity are completely exempt from capital gains tax — making them the most tax-efficient way to invest in gold in India.