Capital gains tax calculator
What a redemption costs in tax — and why the answer has a different shape for equity and for debt.
The maths
How this is calculated.
The gain is simply the redemption value less what was invested. What happens to it depends on the asset and, for equity, on how long it was held.
Equity funds. Held twelve months or more, the gain is long term: taxed at 12.5 % above a ₹ 1,25,000 annual exemption. Held less, it is short term and taxed at 20 % with no exemption.
Debt funds. Units acquired on or after 1 April 2023 are taxed at your income tax slab rate whatever the holding period. There is no long-term rate and no indexation to apply — which is why the asset type changes the shape of the answer and not merely the percentage.
What it assumes. Rates in force from 23 July 2024. That none of your ₹ 1,25,000 exemption is already used by other long-term equity gains this year. That there is no loss to set off. It does not compute surcharge or cess. This is arithmetic, not tax advice.
Worked example
₹ 5,00,000 into ₹ 8,00,000 over two years.
An equity fund held two years, gain ₹ 3,00,000. The first ₹ 1,25,000 is exempt, leaving ₹ 1,75,000 taxable at 12.5 % — ₹ 21,875.
The same gain realised eleven months in is short term instead: the whole ₹ 3,00,000 at 20 %, or ₹ 60,000. One month of patience is worth ₹ 38,125 here, which is the single most useful thing this calculator tells anyone.
The same figures in a debt fund at a 30 % slab: ₹ 3,00,000 taxed in full at 30 %, ₹ 90,000, whether it was held two years or ten.
Questions about this calculator.
Are these rates current?
They are the rates in force from 23 July 2024 — equity short term at 20 %, equity long term at 12.5 % above a ₹ 1,25,000 annual exemption, and debt units acquired on or after 1 April 2023 at slab. Rates move with each Finance Act, so check against the current one before you act on a number from any calculator.
Why is there no indexation?
Indexation on debt mutual funds was removed for units acquired on or after 1 April 2023. Units bought before that date follow the older treatment, which this calculator does not cover.
Is the ₹ 1,25,000 exemption per fund?
No — it is a single annual exemption across all your long-term equity gains, including listed shares. This page assumes none of it has been used, so if you have realised other equity gains this year your actual tax is higher.
What about surcharge and cess?
Not included. Health and education cess applies on top, and surcharge applies at higher incomes. Both depend on your total income rather than on this transaction.
Is this tax advice?
No. It is the published rates applied to two numbers you typed. Your own position may involve set-offs, carried-forward losses, residency or exemptions this page knows nothing about.
Is my input sent anywhere?
No. The calculation runs in your browser. Nothing is submitted, stored or logged.
From the team behind Finvica — the operating platform for multi-product wealth practices. See the platform