Quick answer
For FY 2026-27: equity shares and equity mutual funds held over 12 months are taxed at 12.5% on gains above ₹1.25 lakh. Held for 12 months or less, the rate is 20%. Property, gold and unlisted shares held over 24 months are taxed at 12.5% without indexation. Debt fund gains (units bought after 1 April 2023) are always taxed at your slab rate. Add 4% cess.
Key takeaways
- The ₹1.25 lakh LTCG exemption is per financial year, across all your equity sales.
- Tax harvesting: book up to ₹1.25 lakh of equity gains each year and reinvest to reset your cost.
- Budget 2026 left capital gains rates unchanged. Only STT on futures and options went up.
Capital gains tax rates (FY 2026-27)
| Asset | Long-term if held | LTCG rate | STCG rate |
|---|---|---|---|
| Listed shares, equity MFs | > 12 months | 12.5% above ₹1.25 lakh | 20% |
| Debt MFs (bought after 1 Apr 2023) | — | Slab rate | Slab rate |
| Real estate | > 24 months | 12.5% (no indexation)* | Slab rate |
| Physical gold, unlisted shares | > 24 months | 12.5% | Slab rate |
| Gold ETFs, listed bonds | > 12 months | 12.5% | Slab rate |
*Resident individuals/HUFs who bought land or a building before 23 July 2024 can choose 20% with indexation if that is lower. Add 4% cess and any surcharge.
Frequently asked questions
Is LTCG up to ₹1.25 lakh tax-free?
Yes. Long-term gains on listed equity shares and equity mutual funds up to ₹1.25 lakh in a financial year are exempt. Only the amount above that is taxed at 12.5%.
Does the ₹12 lakh rebate apply to capital gains?
No. The Section 87A rebate does not apply to tax on special-rate income such as STCG on shares (20%) or LTCG (12.5%).
How is holding period counted for SIPs?
Each SIP instalment is a separate purchase. When you redeem, units are sold first-in-first-out, and each unit’s holding period is counted from its own purchase date.
How can I save tax on property capital gains?
Reinvest in another residential house (Section 54/54F), or invest up to ₹50 lakh in specified bonds within 6 months (Section 54EC). Conditions apply.
Sources & methodology
Formulas follow the standard methods used by Indian banks, fund houses and government schemes. Rates and tax rules were checked against official sources on 1 October 2026. Read our methodology.
This calculator gives an estimate for planning purposes. Actual returns, tax and eligibility depend on your situation and on product terms. It is not financial advice.