Individuals using a capital gains tax calculator india will find that a long-term share gain of Rs 3,50,000 on a cost of Rs 2,00,000 leaves a profit of Rs 1,50,000. After the exemption of Rs 1,25,000, only Rs 25,000 is taxed at 12.5%, as per a TaxGuru worked example for the tax period 2026-27.
This sum now sits under the Income-tax Act, 2025 which has replaced the 1961 Act from 1 April 2026. The charging section for capital gains has moved from section 45 to section 67, and iAccounting reports that the policy is largely unchanged, with only the numbering reorganised.
For listed shares, short-term gains are taxed at 20%, while long-term gains are taxed at 12.5% only above the exemption limit. Both rates have applied since 23 July 2024, and they continue under the Income-tax Act, 2025 from 1 April 2026. Shares become long-term after more than 12 months of holding, and Vivekam states that the exemption is a total for the year across all such gains, not a separate amount for each stock.
How property and gold differ from shares
Most other long-term assets, including property and gold, are taxed at 12.5% without indexation. The CBDT FAQs on Budget 2024-25 show that this replaced the earlier rate of 20% with indexation, so the benefit of adjusting the purchase cost for inflation is no longer available in the general case.
The holding period is different for each asset. A property sale is treated as long-term after 24 months, which is double the period for listed shares.
For gold, a Finnovate guide says long-term gains fall under same general rate, while short-term gains are added to the seller's income and taxed at the slab rate. Individuals in the higher slabs will therefore see a different rate on a short-term gold sale than on a short-term share sale.
Audcrix reports that gains from a residential house can be exempt under section 82, earlier section 54, if the amount is reinvested in another house. The purchase can be made one year before to two years after the sale, or construction can be completed within three years.
Loss set-off rules
Losses are treated differently for each type of gain. TaxGuru states that a long-term capital loss can be set off only against long-term gains, while a short-term loss can be set off against both short-term and long-term gains.
If a loss is not fully absorbed in the year, it can be carried forward for eight tax periods, provided the return has been filed on time. Individuals who file late will therefore lose this benefit on their earlier losses.
For land or buildings bought before 23 July 2024, resident individuals and HUFs can choose 20% with indexation or 12.5% without it.
