How to use the Capital Gains Tax Calculator
- 1. Pick the assetChoose shares, property or other assets. Typical rates load for you.
- 2. Enter the saleType buying cost, sale value, expenses and months held.
- 3. See the taxGet the gain, exemption, tax and what you keep.
How capital gains tax is calculated
First find the gain: capital gain = sale value − buying cost − selling expenses. Next, the holding period decides whether it is long-term or short-term. Then tax = (gain − exemption) × rate, plus 4% cess.
Example: listed shares bought for ₹5,00,000 and sold for ₹8,00,000 after 24 months. The gain is ₹3,00,000, and it is long-term. After the ₹1,25,000 exemption, ₹1,75,000 is taxable. At 12.5% the tax is ₹21,875, and 4% cess adds ₹875. Total: ₹22,750. You keep ₹2,77,250 of the gain.
Sell the same shares after 12 months and it becomes short-term. There is no exemption, so 20% of ₹3,00,000 is ₹60,000. With cess, that is ₹62,400.
The default values are 12.5% long-term and 20% short-term for listed equity, with a ₹1,25,000 exemption, a 12-month line and a 24-month line for others. These are editable because they must be verified for your year and asset.
What this calculator leaves out
- Surcharge. Not included, so high earners may owe more.
- Reinvestment reliefs. Relief for buying another house or specified bonds is not applied.
- Indexation. Older options for property bought earlier are not shown. If one applies, ask a professional.
- Grandfathering. Shares held from before 2018 may use a higher cost. Enter that cost yourself.
- Debt funds. These are usually taxed at slab rate. Enter your slab rate in the rate box.
Losses. If you sold at a loss, the tool shows no tax and how the loss can be used. A short-term loss can be set off against short-term or long-term gains. A long-term loss works against long-term gains only. A balance can usually be carried forward for 8 years if you file on time.
Working out your trade first? Use the stock average calculator and brokerage calculator. For other income, see the old vs new tax regime calculator. This is an estimate, not tax advice.
Frequently asked questions
What if I sold at a loss?
There is no tax on that sale. The tool shows the loss, and it can usually be set off against eligible gains or carried forward if you file your return on time.
When is a gain long-term?
It depends on the asset. In the tool, the default is more than 12 months for listed equity and more than 24 months for others. Verify this and edit the box.
Can I use the ₹1,25,000 exemption twice?
No. It is a yearly total across eligible gains. If you have already used part of it, enter that in the exemption already used box.
Is this tax advice?
No. This is an estimate, not tax advice. Verify the current rules or ask a tax professional before you file.
Is this tool free?
Yes. It is free, and we ask for your name and WhatsApp number once when you view your result. All other Uncodemy tools then open without the form.