Capital Gains Tax Calculator — STCG & LTCG
Calculate your tax on investment gains from stocks, mutual funds, or property. Updated with Budget 2024 rates: STCG 20%, LTCG 12.5% with ₹1L exemption.
STCG vs LTCG: What Changed in Budget 2024?
The Union Budget 2024 significantly revised capital gains tax rates for equity investments. Short Term Capital Gains (STCG) on equity — for assets held less than 1 year — were increased from 15% to 20%. Long Term Capital Gains (LTCG) on equity — for assets held over 1 year — were increased from 10% to 12.5%, but the annual exemption of ₹1 lakh was retained.
For debt mutual funds and property, indexation benefits were removed from Budget 2024. Both STCG and LTCG on non-equity assets are now taxed at 12.5% flat (without indexation), or at income slab rates for assets held less than the qualifying period.
How to Calculate Capital Gains on Mutual Funds
For equity mutual funds: Capital Gain = Sale Price − Purchase Price. If held for more than 1 year, it qualifies as LTCG. LTCG up to ₹1,00,000 per year is tax-free. Gains above ₹1L are taxed at 12.5%.
Example: You bought equity MF units worth ₹2 lakhs and sold for ₹3.5 lakhs after 2 years. Gain = ₹1.5L. Taxable gain = ₹1.5L − ₹1L exemption = ₹50,000. LTCG tax = ₹50,000 × 12.5% = ₹6,250.
Tax Harvesting: A Strategy to Reduce LTCG
Tax harvesting involves selling equity investments every year to book up to ₹1 lakh of LTCG (tax-free), and immediately reinvesting. This resets your cost basis to the higher value, reducing future taxable gains. For example, if your equity portfolio has unrealised gains of ₹80,000 in March, selling and reinvesting means you pay zero LTCG tax and your new purchase price is higher.
This strategy is particularly effective for long-term investors in Odisha who systematically invest via SIP and let their portfolio grow without selling. Consult a CA or SEBI-registered advisor before implementing this strategy.