What is LTCG tax rate on stocks in 2026?

LTCG (Long Term Capital Gains) tax on listed equity shares and equity mutual funds held for more than 12 months: 12.5% on gains above ₹1.25 lakh per year (changed from 10% in Budget 2024). No indexation benefit for equity. Gains up to ₹1.25L per year are tax-free. This applies to stocks, equity mutual funds, and equity ETFs.

What is STCG tax rate on stocks?

STCG (Short Term Capital Gains) on equity shares and equity mutual funds held for less than 12 months: 20% flat (changed from 15% in Budget 2024). No exemption limit. Every rupee of short-term equity gain is taxed at 20% plus cess. This applies when you sell stocks or equity MFs within 12 months of purchase.

Capital gains tax on mutual funds 2026?

Equity mutual funds (65%+ equity): LTCG (held 12+ months) = 12.5% above ₹1.25L. STCG (held less than 12 months) = 20%. Debt mutual funds (held from April 2023 onwards): Taxed as per income slab regardless of holding period — no LTCG/STCG distinction. Hybrid funds: depends on equity allocation — check fund classification.

📈 FY 2025-26 · Stocks · MF · Property · Budget 2024 Rates

Capital Gains Tax Calculator 2026

Calculate exact LTCG and STCG tax on stocks, mutual funds, and property. Updated for Budget 2024 rates — LTCG 12.5%, STCG 20%.

✅ LTCG — Long Term Capital Gains (held 12+ months)

Equity / Equity MF

12.5%

above ₹1.25L exempt

Property / Gold / Others

20%

with indexation

⚡ STCG — Short Term Capital Gains (held less than 12 months)

Equity / Equity MF

20%

no exemption

Property / Debt MF

Slab rate

added to income

🧮 Capital Gains Tax Calculator

Sale Value (₹)

Purchase Value / Cost (₹)

Holding Period

Other LTCG in FY 2025-26 (from other sales) (₹)

₹1.25L total LTCG is exempt — reduce by gains already counted

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Capital Gains Tax Rates FY 2025-26 — Complete Table

Equity shares & equity mutual funds: LTCG (12+ months) = 12.5% on gains above ₹1.25 lakh per year. STCG (under 12 months) = 20%. Both changed in Budget 2024 from 10%/15% to 12.5%/20%. Debt mutual funds (bought after April 1, 2023): No LTCG/STCG — all gains added to income and taxed at your slab rate, regardless of holding period. Property: LTCG (24+ months) = 20% without indexation or 12.5% without indexation (Budget 2024 removed indexation for property sold after July 23, 2024). STCG (under 24 months) = slab rate. Gold: LTCG (24+ months) = 12.5% without indexation. STCG = slab rate.

₹1.25 Lakh LTCG Exemption — How It Works

Every Indian investor gets ₹1.25 lakh of LTCG on equity tax-free each year. Example: You made ₹2 lakh LTCG from stocks. Tax = 12.5% on (₹2L - ₹1.25L) = 12.5% on ₹75,000 = ₹9,375 + cess. Strategy: "Grandfathering" — book profits below ₹1.25L every year, then reinvest. This resets your cost basis and avoids LTCG tax accumulation. This strategy works particularly well for long-term equity investors.

Capital Gains Harvesting — Legal Tax Saving Strategy

Book ₹1.25 lakh of long-term gains every March before year end, even if you plan to keep the investment. Sell → immediately rebuy at the same price. Your cost basis resets to the higher price. Next year's LTCG calculation starts from the new (higher) price. Over 10 years, this can save ₹15,000-50,000 in taxes. Works legally since there is no wash-sale rule in India (unlike USA).

Which ITR Form for Capital Gains?

If you have any capital gains (even ₹1) from selling stocks, mutual funds, or property — you must file ITR-2, not ITR-1. Capital gains are reported in Schedule CG of ITR-2. Get your capital gains statement from: Zerodha Console, Upstox, Groww (for stocks) or CAMS/KFintech (for mutual funds). These platforms provide ready-to-use capital gains reports formatted for ITR filing.

Frequently Asked Questions

Did LTCG tax rate change in Budget 2024?▼

Yes. Budget 2024 (effective July 23, 2024) changed: LTCG on equity from 10% to 12.5%, STCG on equity from 15% to 20%, and increased LTCG exemption limit from ₹1 lakh to ₹1.25 lakh. Gains on equity assets sold before July 23, 2024 were taxed at old rates (10% LTCG, 15% STCG). For FY 2025-26, all equity gains are at new rates.

Is SIP redemption taxed as capital gains?▼

Yes. Each SIP installment is a separate purchase with its own date. When you redeem, gains are calculated individually per installment (FIFO — first in, first out). Installments held 12+ months = LTCG at 12.5% above ₹1.25L. Installments held less than 12 months = STCG at 20%. Your fund house or CAMS/KFintech statement shows the calculation.

Can I set off capital losses?▼

Yes. Short-term capital loss can be set off against any capital gain (short or long term). Long-term capital loss can only be set off against long-term capital gains. Losses not fully absorbed can be carried forward for 8 years — but only if you file ITR on time. This is a key reason to file ITR even if you have no tax payable.