Capital gains and investment income tax calculator

Gains on listed shares and equity mutual funds held for 12 months or less are short term and taxed at 20 %. Held longer, they are long term: the first ₹1.25 lakh a year is tax free and the rest is taxed at 12.5 %.

Long-term gains on property, gold and unlisted shares, held over 24 months, are taxed at 12.5 % without indexation. Interest, dividends and gains on debt funds bought after 1 April 2023 are added to your income and taxed at your slab rate.

If your other income is below the basic exemption limit, the unused part is set against your capital gains first. Under the new regime the ₹12 lakh rebate covers only slab income, not gains taxed at special rates.

The calculator shows the extra tax your investments add on top of your other income, including surcharge where it applies and 4 % cess.

• You are a resident individual. Other income is your taxable income after its own deductions, for example salary minus the standard deduction.
• Equity gains are on listed shares and equity mutual funds where securities transaction tax was paid. Short term means held 12 months or less.
• Other long-term gains (property, gold, unlisted shares, held over 24 months) are taxed at 12.5 % without indexation. The 20 % with indexation option for land or buildings bought before 23 July 2024 is not computed.
• Gains on debt funds bought on or after 1 April 2023 and short-term gains on assets other than listed equity are taxed at slab rates, so enter them as slab income.
• Under the new regime the rebate does not reduce tax on capital gains taxed at special rates.
• Losses, set-off and TDS already deducted are not modelled. Surcharge on dividends and capital gains is capped at 15 %.
• Under the new regime the ₹12 lakh rebate limit and its marginal relief look only at income taxed at slab rates, as the Income Tax Department's own calculator applies them. Capital gains do not use up the limit, but the rebate never covers their tax.
• The tax-free ₹1.25 lakh of equity LTCG still counts as income for the old regime's ₹5 lakh rebate limit and for the surcharge thresholds.
• Tax year 2026-27 uses the same rates as 2025-26. From 1 April 2026 share buybacks are taxed as capital gains, not dividends.

Is LTCG up to ₹1.25 lakh tax free?

Yes, for listed shares and equity mutual funds. Only gains above ₹1.25 lakh in a year are taxed at 12.5 %. The exemption does not apply to property, gold or debt funds.

Is my income under ₹12 lakh tax free if it includes capital gains?

Not fully. In the new regime the rebate covers tax on slab income up to ₹12 lakh, whatever your gains. Short-term equity gains are still taxed at 20 % and long-term gains above ₹1.25 lakh at 12.5 %.

How are fixed deposit interest and dividends taxed?

They are added to your income and taxed at your slab rate. Banks and companies deduct TDS, which you claim back against your final tax.

What changed for share buybacks?

From 1 April 2026 the money you get in a buyback is taxed as a capital gain instead of a dividend. Before that date it was taxed as dividend income at your slab rate.

• www.incometax.gov.in/iec/foportal/help/individual/return-applicable-1
• www.incometax.gov.in/iec/foportal/help/individual/return-applicable-2
• www.incometaxindia.gov.in/w/tax-on-short-term-capital-gains%E2%80%8B
• www.incometaxindia.gov.in/w/tax-on-long-term-capital-gains%E2%80%8B
• www.pib.gov.in/PressReleasePage.aspx
• www.incometaxindia.gov.in/w/section-156-88
• eportal.incometax.gov.in/iec/foservices
• www.indiabudget.gov.in/doc/memo.pdf