India Capital Gains Tax Calculator 2023
Calculate Short-Term & Long-Term Capital Gains (FY 2022-23)
Introduction
🎯 What
India Capital Gains Calculator 2023 computes tax liability on profits from sale of assets including stocks, property, mutual funds, and gold.
👥 Who
Investors in stocks, property, or mutual funds, individuals seeking to calculate taxable capital gains.
💡 Why
To determine tax payable under STCG and LTCG rules and assist in filing accurate Income Tax returns.
📊 Asset Details
💵 Tax Summary
Enter details and calculate
Detailed Breakdown
Capital Gains Tax Rules (FY 2022-23)
Short-Term Capital Gains (STCG)
Holding Period:
- Equity/Listed: ≤12 months
- Property: ≤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: >36 months
Tax Rates:
- Equity: 10% on gains above ₹1,00,000
- Property: 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
Calculation Examples
Example 1: Equity (STCG)
Asset: Listed Equity Shares
Purchase Price: ₹2,00,000
Sale Price: ₹2,50,000
Holding Period: 6 months
Calculation:
• Capital Gain = ₹2,50,000 - ₹2,00,000 = ₹50,000
• Type: STCG (held ≤12 months)
• Tax Rate: 15%
Tax Payable: 15% × ₹50,000 = ₹7,500
Example 2: Property (LTCG with Indexation)
Asset: Residential Property
Purchase Price: ₹50,00,000
Sale Price: ₹80,00,000
Cost of Improvement: ₹5,00,000
Holding Period: 48 months (4 years)
CII Indexation: 1.5 (example)
Calculation:
• Indexed Purchase Price = ₹50,00,000 × 1.5 = ₹75,00,000
• LTCG = ₹80,00,000 - ₹75,00,000 - ₹5,00,000 = ₹0
• Type: LTCG (held >36 months)
• Tax Rate: 20%
Tax Payable: ₹0 (no gain after indexation)
Frequently Asked Questions
Q: What is the difference between STCG and LTCG?
A: STCG applies to assets held for a short term (≤1 year for equity, ≤3 years for property). LTCG applies to assets held longer, with different tax rates and benefits like indexation.
Q: Are exemptions automatic?
A: No, exemptions under sections 54, 54F, or 54EC must be actively claimed and conditions must be met (e.g., reinvestment in residential property).
Q: How is indexation applied?
A: For LTCG on property, the Cost Inflation Index (CII) is applied to adjust purchase price for inflation, reducing taxable gains. Formula: Indexed Cost = Purchase Price × (CII Sale Year / CII Purchase Year)
Q: Is tax deducted at source applicable?
A: Yes, TDS may apply. For property sales above ₹50 lakhs, 1% TDS is deducted. For equity STCG, Securities Transaction Tax (STT) applies.
Q: What about the ₹1 lakh exemption for equity LTCG?
A: LTCG on equity above ₹1,00,000 per financial year is taxed at 10% without indexation. The first ₹1 lakh is exempt.
Disclaimer: This India Capital Gains Tax Calculator 2023 is for informational and educational purposes only. Actual taxable capital gains and tax liability may vary depending on asset type, exemptions claimed, indexation, and specific provisions of the Income Tax Act. Tax laws are subject to change. Always verify calculations with the official Income Tax Department or consult a qualified tax professional before making investment decisions or filing returns. This calculator does not constitute financial or legal advice.