How long you held it
Twelve months
s.2(42A) (1961 Act), now s.2(101) (2025 Act) calls a listed share short-term when it is held for not more than twelve months. The anniversary itself is therefore still short-term, and long-term starts the next day.
Capital gains tax calculator for Indian shares
The tax on shares you sold, and what is left after it.
Tax on these sales
Estimate for the supported listed-equity case only.
Shown on the assumption that all four points above are true. Answer them to confirm the case — or to have the figure withheld.
The gain before tax on these sales is ₹2,50,000.00. After set-off and the annual allowance for 2026-27, the tax on them is ₹20,150.00.
Estimated tax₹20,150.00Income-tax, surcharge and cess on sales in FY 2026-27.
What is left after tax₹2,29,850.00₹2,50,000.00 of gains, less the tax above.
Tax as a share of the gain8.06%The rate that actually bit, after the annual allowance and any losses.
Lot by lot
| Lot | Held | Class | Cost used | Sale value | Gain / loss |
|---|---|---|---|---|---|
| Sold within a year1000 × ₹100.00 → ₹150.00 | 151 days5 January 2026 → 5 June 2026 | Short-term | ₹1,00,000.00Actual purchase price. | ₹1,50,000.00 | ₹50,000.00 |
| Held over two years1000 × ₹200.00 → ₹400.00 | 882 days10 January 2024 → 10 June 2026 | Long-term | ₹2,00,000.00Actual purchase price. | ₹4,00,000.00 | ₹2,00,000.00 |
The working
How the tax figure is arrived at
- Short-term gains, netted within the short-term class · A short-term loss is used against short-term gains first — they are taxed at the higher rate, so nothing is wasted.₹50,000.00
- Long-term gains, netted within the long-term class · s.108(2)(b) (2025 Act): a long-term loss can only be used against long-term gains.₹2,00,000.00
- Annual long-term exemption applied before the rate · s.198 (2025 Act) taxes long-term gains above one annual limit across both rate periods. The allowance reduces the higher-rate gains first.-₹1,25,000.00
- Tax on short-term, sold on or after 23 Jul 2024 at 20% · 50000 taxed at 20%.₹10,000.00
- Tax on long-term, sold on or after 23 Jul 2024 at 12.5% · 75000 taxed at 12.5%.₹9,375.00
- Health and Education Cess at 4% · Charged on income-tax plus surcharge.₹775.00
- Total tax₹20,150.00
An estimate on the sales entered, at the rates fixed by each sale date. It is not a return, it does not know the rest of your income, and surcharge is whatever you typed above.
Law as at 5 October 2026
Which rate applied
| Bucket | Gains in it | Left after set-off & allowance | Rate | Tax |
|---|---|---|---|---|
| Short-term, sold on or after 23 Jul 2024 | ₹50,000.00 | ₹50,000.00 | 20% | ₹10,000.00 |
| Long-term, sold on or after 23 Jul 2024 | ₹2,00,000.00 | ₹75,000.00 | 12.5% | ₹9,375.00 |
- One annual long-term allowance covers both rate periods. The Act does not set an allocation order. Applying it to higher-rate gains first gives the lower tax. Loss set-off starts with the older rate period.
- Reliefs that depend on the rest of a person's income are not included: the ss.196/198 (2025 Act) provisos that reduce these gains when other income falls below the basic exemption limit, and any marginal relief on surcharge.
Each file lists the source and the check date for every rate. The CSV comes as two files, the figures and their sources.
Try one change
Each button changes exactly one input and says what that did to the headline figure. Reset undoes it.
How long you held the shares decides which rate applies. The annual long-term allowance is applied before the rate rather than after it. Enter each lot you sold. This classifies it, and sets any losses you carry against the gains they are allowed to absorb. It then applies the allowance, and shows what is left once the tax is paid.
The rates and rules below come from the Income-tax Act. They cover the holding period, annual limit, grandfathering and loss set-off. We read them on the Income Tax Department's site on 4 September 2026. The source table below quotes the exact words. Surcharge has no single rate. Enter your rate. It stays at 0% until you change it.
What this calculator does and does not do
What this calculator does
- Classifies each lot you sold as short or long term and applies the rate that goes with its sale date.
- Sets off losses in the order the law allows, applies the annual long-term exemption before any rate, and carries forward what is left.
- Applies the grandfathering rule to older holdings, from the figures you supply for them.
What it does not do
- Know your other income, so it cannot place you in a slab or produce your total liability for the year.
- Cover debt funds, unlisted shares, property, or foreign assets.
- File a return, or stand in for advice from someone qualified to give it on your own affairs.
Show the method and assumptions
The method
- Gain on each lot = (sell price − buy price) × quantity.
- A lot held for more than 12 months is long-term. Any other lot is short-term.
- Each gain follows ss.111A/112A (1961 Act), now ss.196/198 (2025 Act) on its sale date.
- Losses are set off and the yearly long-term exemption is used before the rate.
What it assumes
- A resident individual selling listed shares or equity funds, with STT paid.
- All sales fall in one financial year.
- Shares bought before 1 February 2018 use the grandfathered cost.
Sources, effective dates and exclusions
- Calculated on
- today
Each sale uses the tax rules in force on its own sale date.
Capital-gains tax rates on listed shares
- Rules in force from
- 23 Jul 2024
- Source published
- not listed
- Last reviewed
- 5 Oct 2026
Not included
- Your full income-tax bill.
What could change this?
- The holding period of each lot. More than twelve months is long-term. The anniversary day itself is still short-term.
- The sale date. It decides the financial year, the rate regime that applies, and whether the pre-23 July 2024 rates are used.
- Losses, in the order the Act allows. Short-term losses can absorb any gain. Long-term losses can absorb only long-term gains. Brought-forward losses go in before the annual allowance.
- Your total income. It sets the surcharge and whether the basic exemption provisos apply — neither is known here, so the figure is an estimate on these sales alone.
Short-term rate20%s.111A (1961 Act), now s.196 (2025 Act), for a sale on or after 23 Jul 2024 (was 15%)
Long-term rate12.5%s.112A (1961 Act), now s.198 (2025 Act), same date (was 10%)
Annual long-term allowance₹1,25,000Taken off before the rate, once across both rate periods
Rates read on5 October 2026Every figure carries its own source
A worked example you can check
Two sales in the same financial year. They are the two lots already loaded into the calculator above, so you can change a figure and watch every line move.
- Sold within a year. 1,000 shares bought on 5 January 2026 at ₹100.00 and sold on 5 June 2026 at ₹150.00. Held about five months, so it is short-term: ₹50,000.00 of gain.
- Held over two years. 1,000 shares bought on 10 January 2024 at ₹200.00 and sold on 10 June 2026 at ₹400.00. Held more than twelve months, so it is long-term: ₹2,00,000.00 of gain.
The annual allowance is a long-term relief only, so it does nothing for the short-term . It takes ₹1,25,000.00 off the long-term gain, leaving ₹75,000.00 to be taxed at 12.5% — ₹9,375.00. The short-term gain of ₹50,000.00 is taxed at 20% — ₹10,000.00. That is ₹19,375.00 of income-tax, plus ₹775.00 of cess at 4%, giving ₹20,150.00.
So on ₹2,50,000.00 of gains, ₹2,29,850.00 is left after tax. That works out at 8.06% of the gain — well under the 20% headline, because the allowance shelters a large slice of the long-term side and nothing is taxed twice. This is arithmetic on the figures above. Your own return depends on the rest of your income.
And the case that surprises people: a single long-term sale with a gain of ₹1,00,000.00 — under the ₹1,25,000 allowance — comes to ₹0.00 of tax, with ₹25,000.00 of the allowance still unused. It does not carry into next year.
The four things that decide the number
What the cost is
s.55(2)(ac) (1961 Act), now s.90(7) (2025 Act)
Usually the price paid. It is different for a long-term share bought before 1 February 2018. There it is the higher of the actual cost and the lower of the 31 January 2018 value and the sale price.
Which losses can absorb it
One way only
A short-term loss can go against any . A long-term loss can only go against a long-term gain. Anything left over is carried forward, not lost.
The allowance, then the rate
Order matters
The annual long-term allowance comes off the gain first, and the rate applies to what remains. Doing it the other way round overstates the tax for every small investor.
Why the order of the allowance matters
FY 2023-24 uses a ₹1,00,000 annual allowance. FY 2024-25 uses one ₹1,25,000 allowance across both rate periods. FY 2025-26 also uses ₹1,25,000.
s.112A (1961 Act), now s.198 (2025 Act) taxes long-term gains "exceeding" the annual limit. That single word puts the allowance before the rate: the limit comes off the gain, and the rate applies to what is left. Take the rate first and subtract the allowance afterwards and the tax comes out far too high on a small gain — on a gain of ₹1,75,000 the difference is the whole of the sheltered slice.
A proviso adds a second trap. Where a financial year contains sales on both sides of 23 July 2024, the one limit applies to the two rate periods together — not once for each. The calculator applies it to the aggregate and shows which bucket absorbed it.
Losses only travel one way
s.70(2) (1961 Act), now s.108(2)(a) (2025 Act) lets a short-term loss go against gains on any other capital asset, long-term included.s.70(3) (1961 Act), now s.108(2)(b) (2025 Act) is narrower: a long-term loss can only meet a long-term gain. So a year that nets to zero in cash can still carry a tax bill. A long-term loss cannot be used to cancel a short-term gain. The short-term gain is taxed in full, while the loss waits to be carried forward.
The Act gives one annual allowance without saying which rate period should use it first. The calculator reduces higher-rate gains first, giving the lower tax. Loss set-off uses the older rate period first.
What this page does not know
It knows the lots you type and nothing else. It does not know your tax regime, your slab, your age, your residency, or your other income. The reliefs that depend on them are left out. That includes the provisos in ss.111A/112A (1961 Act), now ss.196/198 (2025 Act) that reduce these gains for a resident whose remaining income falls below the basic exemption limit. It also leaves out any marginal relief on surcharge. It assumes was paid. That is what brings a listed equity sale inside ss.111A/112A (1961 Act), now ss.196/198 (2025 Act)in the first place. It covers listed equity shares. Other assets have different holding periods and different rates. It does not file anything, and it is not a substitute for a chartered accountant.
Where each figure came from
| Figure | Provision | The words it was read from | Checked |
|---|---|---|---|
| 2024-07-23verified | ss.111A/112A (1961 Act) | “for any transfer which takes place on or after the 23rd day of July, 2024” | 4 September 2026Income Tax Department (CBDT), historical text — ss.111A/112A (1961 Act) |
| 12verified | s.2(42A) (1961 Act), now s.2(101) (2025 Act) | “"short-term capital asset" means a capital asset held by an assessee for not more than thirty-six months immediately preceding the date of its transfer: Provided that in the case of a security (other than a unit) listed in a recognized stock exchange in India ... the provisions of this clause shall have effect as if for the words "thirty-six months", the words "twelve months" had been substituted” | 4 September 2026Income Tax Department (CBDT), historical text — s.2(42A) (1961 Act) |
| 15verified | s.111A (1961 Act) | “at the rate of fifteen per cent for any transfer which takes place before the 23rd day of July, 2024” | 4 September 2026Income Tax Department (CBDT), historical text — s.111A (1961 Act) |
| 20verified | s.111A (1961 Act), now s.196 (2025 Act) | “at the rate of twenty per cent for any transfer which takes place on or after the 23rd day of July, 2024” | 4 September 2026Income Tax Department (CBDT), historical text — s.111A (1961 Act) |
| 10verified | s.112A (1961 Act) | “on long-term capital gains at the rate of ten per cent for any transfer which takes place before the 23rd day of July, 2024” | 4 September 2026Income Tax Department (CBDT), historical text — s.112A (1961 Act) |
| 12.5verified | s.112A (1961 Act), now s.198 (2025 Act) | “on long-term capital gains, at the rate of twelve and one-half per cent for any transfer which takes place on or after the 23rd day of July, 2024” | 4 September 2026Income Tax Department (CBDT), historical text — s.112A (1961 Act) |
| 125000verified | s.112A (1961 Act), now s.198 (2025 Act) | “the amount of income-tax calculated on such long-term capital gains exceeding one lakh twenty-five thousand rupees ... Provided that the limit of one lakh twenty-five thousand rupees shall apply on aggregate of the long-term capital gains under sub-clauses (a) and (b)” | 5 October 2026Income Tax Department (CBDT), historical text — s.112A (1961 Act) |
| 2018-02-01verified | s.55(2)(ac) (1961 Act), now s.90(7) (2025 Act) | “in relation to a long-term capital asset, being an equity share in a company or a unit of an equity oriented fund or a unit of a business trust referred to in section 112A, acquired before the 1st day of February, 2018, shall be higher of— (i) the cost of acquisition of such asset; and (ii) lower of— (A) the fair market value of such asset; and (B) the full value of consideration received or accruing as a result of the transfer of the capital asset” | 4 September 2026Income Tax Department (CBDT), historical text — s.55(2)(ac) (1961 Act) |
| 2018-01-31verified | s.55(2)(ac), Explanation (a)(i) (1961 Act), now s.90(8)(b)(i) (2025 Act) | “in a case where the capital asset is listed on any recognised stock exchange as on the 31st day of January, 2018, the highest price of the capital asset quoted on such exchange on the said date: Provided that where there is no trading in such asset on such exchange on the 31st day of January, 2018, the highest price of such asset on such exchange on a date immediately preceding the 31st day of January, 2018 when such asset was traded on such exchange shall be the fair market value” | 4 September 2026Income Tax Department (CBDT), historical text — s.55(2)(ac), Explanation (a)(i) (1961 Act) |
| s.70 (1961 Act), now s.108 (2025 Act)verified | s.70 (1961 Act), now s.108 (2025 Act) | “(2) Where the result of the computation ... in respect of any short-term capital asset is a loss, the assessee shall be entitled to have the amount of such loss set off against the income, if any, as arrived at under a similar computation made for the assessment year in respect of any other capital asset. (3) Where the result of the computation ... in respect of any capital asset (other than a short-term capital asset) is a loss, the assessee shall be entitled to have the amount of such loss set off against the income, if any, ... in respect of any other capital asset not being a short-term capital asset.” | 4 September 2026Income Tax Department (CBDT), historical text — s.70 (1961 Act) |
| 8verified | s.74 (1961 Act), now s.111 (2025 Act) | “No loss shall be carried forward under this section for more than eight assessment years immediately succeeding the assessment year for which the loss was first computed.” | 4 September 2026Income Tax Department (CBDT), historical text — s.74 (1961 Act) |
| s.48(i) (1961 Act), now s.72(1)(a) (2025 Act)verified | s.48(i) (1961 Act), now s.72(1)(a) (2025 Act) | “The income chargeable under the head "Capital gains" shall be computed, by deducting from the full value of the consideration received or accruing as a result of the transfer of the capital asset the following amounts, namely:— (i) expenditure incurred wholly and exclusively in connection with such transfer” | 4 September 2026Income Tax Department (CBDT), historical text — s.48(i) (1961 Act) |
| 4verified | Finance Act rate schedule (as published by CBDT) | “Health and Education Cess is levied at the rate of 4% on the amount of income-tax plus surcharge.” | 4 September 2026Income Tax Department (CBDT), Tax Rates |
| 0not confirmed | Finance Act rate schedule — varies with total income | “Not verified as a single figure: surcharge on capital gains depends on the taxpayer's total income and on reliefs and caps that vary by taxpayer, so no one rate can be stated here.” | 4 September 2026Not confirmed — supplied by the reader |
Related reading
The tax here sits on top of the charges already taken out of a trade — brokerage, securities transaction tax, the exchange transaction charge, the SEBI fee, stamp duty and GST. The trade cost calculator itemises those, and the selling costs it lists are the kind of expenditure s.48(i) (1961 Act), now s.72(1)(a) (2025 Act) allows against a capital gain.
Where the rates and rules come from. The calculator's rate table lists each rate, period, limit and rule (law as at 5 October 2026), and each carries the section it comes from, the exact words it was read from, the page it was read on, and the date it was checked — see the table above. The short-term rates come from s.111A (1961 Act), now s.196 (2025 Act), the long-term rates and the ₹1,25,000 annual limit from s.112A (1961 Act), now s.198 (2025 Act), the twelve-month period from s.2(42A) (1961 Act), now s.2(101) (2025 Act), grandfathering from s.55(2)(ac) (1961 Act), now s.90(7) (2025 Act), the set-off rules fromss.70/74 (1961 Act), now ss.108/111 (2025 Act), and deductible selling expenditure from s.48(i) (1961 Act), now s.72(1)(a) (2025 Act), all as published by the Income Tax Department (Central Board of Direct Taxes) and read on 5 October 2026. The 4% Health and Education Cess is taken from the Department's published rate page and is an editable input. Surcharge could NOT be verified as a single figure — it depends on total income and on reliefs that vary by taxpayer — so it defaults to 0% and is presented as an input, never as a fact.
Common mistakes
- Reading the figure as your total tax liability. It is the tax on the sales you entered, under the supported case. Your other income, surcharge and the basic exemption are not known here.
- Applying the long-term rate before the allowance. The annual allowance comes off the aggregate long-term gain first and the rate applies to what exceeds it. The other order overstates the tax for every small investor.
- Treating the allowance as one per calculator run. It is one per person per financial year. Gains already set against it elsewhere reduce what is left for these sales, which is what the already-used input is for.
Capital gains tax FAQ
What is the capital gains tax rate on shares in India now?
These rates cover listed equity shares on which securities transaction tax is paid. For sales on or after 23 July 2024, s.111A (1961 Act), now s.196 (2025 Act) taxes short-term gains at 20%. s.112A (1961 Act), now s.198 (2025 Act) taxes long-term gains at 12.5%. Sales before that date use the older 15% and 10% rates. Long-term gains are charged only on the amount above an annual limit of ₹1,25,000. Surcharge and cess apply on top. These are the rates as read from the Income-tax Act on 4 September 2026.
How long do I have to hold a share for it to count as long-term?
More than twelve months. s.2(42A) (1961 Act), now s.2(101) (2025 Act) defines a short-term asset as one held for "not more than" the period, and for a listed security that period is twelve months, so a sale on the twelve-month anniversary itself is still short-term and the long-term side begins the day after. That single day can change the rate from 20% to 12.5% and bring the annual long-term allowance into play.
Is the Rs 1.25 lakh exemption taken off before or after the tax rate?
Before. s.112A (1961 Act), now s.198 (2025 Act) charges tax on long-term gains "exceeding one lakh twenty-five thousand rupees", so the allowance comes off the gain and the rate applies to what is left. Applying the rate to the whole gain and then subtracting the allowance overstates the tax. That is why this calculator prints the order as a separate line in the working. A proviso also says the single limit applies to the aggregate of the pre- and post-23-July gains, not once for each.
What is grandfathering for shares bought before 2018?
s.55(2)(ac) (1961 Act), now s.90(7) (2025 Act) covers a long-term listed equity share acquired before 1 February 2018. For those, the cost is the higher of the actual cost and the lower of the 31 January 2018 fair market value and the sale price. In effect the gain that had already built up by 31 January 2018 is left out. The fair market value is the highest price quoted for the share on 31 January 2018. If it did not trade that day, it is the price on the last day it traded before that. This calculator asks for that figure whenever a buy date falls before 1 February 2018. It declines to estimate rather than guess it.
Can I set a loss on one share against a gain on another?
Within capital gains, yes, but only in one direction. s.70(2) (1961 Act), now s.108(2)(a) (2025 Act) lets a short-term loss go against gains on any other capital asset, short-term or long-term. s.70(3) (1961 Act), now s.108(2)(b) (2025 Act) only lets a long-term loss go against long-term gains, so it cannot touch a short-term gain. Anything unabsorbed can be carried forward for up to eight years under s.74 (1961 Act), now s.111 (2025 Act). That works only if the return is filed by the due date.
Does this calculator include surcharge?
Only if you enter a rate. Surcharge has no single published figure — it varies with total income and with reliefs that differ by taxpayer — so it could not be verified as one number and is left at 0% by default rather than presented as a fact. Cess starts at the published 4% of income-tax plus surcharge and can be changed if you are working out an earlier year.
Can I use this instead of asking a chartered accountant?
No. This page does arithmetic on the figures you type, using rates read from the Income-tax Act on the dates shown. It knows nothing about your slab, your regime, your residency or your other income. The reliefs that depend on them are therefore left out. It does not file anything. Treat the result as an educational estimate and have a chartered accountant confirm anything that matters.
Understand the idea
Read the short lesson behind this tool.
Where to go from here
Learn the ideaHow do capital gains on shares work?
How sale and purchase values form a gain, why holding dates matter, and which current rates apply to qualifying listed shares.
Read the lesson Then thisF&O turnover & tax audit calculatorThe other half of the same return: how derivatives turnover is arrived at, which audit limit applies, and whether the presumptive scheme is open.
OpenLast checked on 5 October 2026.
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