India Capital Gains Tax Calculator 2022
Calculate Short-Term & Long-Term Capital Gains (FY 2021-22 | AY 2022-23)
Introduction
🎯 What
India Capital Gains Calculator 2022 calculates tax on profits earned from sale of capital assets such as property, shares, mutual funds, gold, bonds, and other investments.
👥 Who
Salaried individuals, business owners, investors (equity, mutual funds, property), and tax planners.
💡 Why
To determine Short-Term and Long-Term Capital Gains tax accurately as per Indian Income Tax laws.
📊 Asset Details
💵 Tax Summary
Enter details and calculate
Detailed Breakdown
Capital Gains Tax Rules (FY 2021-22)
Short-Term Capital Gains (STCG)
Holding Period:
- Equity/Listed: ≤12 months
- Property: ≤24 months
- Other Assets: ≤36 months
Tax Rates:
- Equity: 15% flat
- Other assets: As per income tax slab
Long-Term Capital Gains (LTCG)
Holding Period:
- Equity/Listed: >12 months
- Property: >24 months
- Other Assets: >36 months
Tax Rates:
- Equity: 10% on gains above ₹1,00,000
- Property/Other: 20% with indexation
Allowances & Deductions
- Cost of Acquisition: Purchase price paid for the asset
- Cost of Improvement: Capital expenses incurred on improving the asset
- Selling Expenses: Brokerage, legal fees, transfer charges deducted from gains
- Indexation Benefit: Available for LTCG on property using Cost Inflation Index (CII)
- Section 54: Exemption on LTCG from property if reinvested in residential property
- Section 54EC: Exemption if invested in specified bonds (₹50L limit)
- Section 54F: Exemption on LTCG from any asset if invested in residential property
- Health & Education Cess: 4% on tax amount
Calculation Examples
Example 1: Equity LTCG
Asset: Listed Equity Shares
Purchase Price: ₹2,00,000
Sale Price: ₹3,50,000
Holding Period: 18 months
Calculation:
• Capital Gain = ₹3,50,000 - ₹2,00,000 = ₹1,50,000
• Type: LTCG (held >12 months)
• Exemption: ₹1,00,000
• Taxable Gain: ₹1,50,000 - ₹1,00,000 = ₹50,000
• Tax @10%: ₹5,000
• Cess @4%: ₹200
Total Tax: ₹5,200
Example 2: Property LTCG with Indexation
Asset: Residential Property
Purchase Price: ₹20,00,000
Sale Price: ₹35,00,000
Holding Period: 36 months
Indexed Cost: ₹28,00,000 (with CII indexation)
Calculation:
• LTCG = ₹35,00,000 - ₹28,00,000 = ₹7,00,000
• Type: LTCG (held >24 months)
• Tax Rate: 20%
• Tax: ₹7,00,000 × 20% = ₹1,40,000
• Cess @4%: ₹5,600
Total Tax: ₹1,45,600
Frequently Asked Questions
Q: Is capital loss adjustable against other income?
A: Yes, capital losses can be set off against capital gains. Long-term capital losses can only be set off against long-term capital gains, but short-term capital losses can be set off against both.
Q: Is indexation mandatory for LTCG on property?
A: Indexation is optional but beneficial as it reduces taxable gains by adjusting the purchase price for inflation. Most taxpayers opt for indexation to minimize tax liability.
Q: Is equity LTCG taxable below ₹1 lakh?
A: No, LTCG on equity up to ₹1,00,000 per financial year is completely exempt from tax. Tax is only levied at 10% on gains exceeding this threshold.
Q: Can exemptions under Section 54, 54F, 54EC reduce tax?
A: Yes, if you meet the conditions (like reinvesting in residential property or specified bonds), you can claim exemptions that reduce or eliminate capital gains tax liability.
Q: Do I need to pay tax immediately on capital gains?
A: No immediate payment is required. However, you should pay advance tax if applicable and report capital gains in your annual income tax return.
Disclaimer: This India Capital Gains Tax Calculator 2022 is for informational and educational purposes only. Actual taxable capital gains and tax liability may vary depending on asset type, holding period, exemptions claimed, indexation benefits, and specific provisions of the Income Tax Act. Tax laws, rates, Cost Inflation Index values, and exemption limits are subject to change and amendment. Different asset classes have different holding period thresholds and tax treatments. This calculator provides estimates only and should not be used as a substitute for professional tax advice. Always verify calculations with the official Income Tax Department notifications, consult a qualified Chartered Accountant (CA), or seek guidance from a tax professional before making investment decisions or filing returns. Etaxing does not provide legal, tax filing, or financial advisory services and is not responsible for any tax-related decisions, claims, or legal consequences arising from the use of this calculator.