Capital Gains Tax in India — Complete FY 2026-27 Guide

Capital gains tax in India is levied on profits earned from the sale of capital assets such as shares, mutual funds, property, gold, and bonds. The tax rate depends on the type of asset and the holding period.

Budget 2024 Changes — What Changed?

The Union Budget 2024 significantly revised capital gains tax rates effective from July 23, 2024:

LTCG on listed equity/equity MF: Increased from 10% to 12.5% (after ₹1.25L exemption, up from ₹1L)
STCG on listed equity/equity MF: Increased from 15% to 20%
LTCG on debt MF: Taxed at slab rates (no indexation benefit) — unchanged
LTCG on property: Reduced from 20% with indexation to 12.5% without indexation (taxpayers can choose old regime for property bought before July 23, 2024)

Capital Gains Tax Rates — FY 2026-27

Listed equity, equity MF (LTCG, >12 months): 12.5% on gains above ₹1.25L + 4% cess
Listed equity, equity MF (STCG, ≤12 months): 20% + 4% cess
Debt MF (any holding period): Taxed at slab rate + cess
US Stocks / Foreign Equity (LTCG, >24 months): 12.5% + cess (no indexation)
US Stocks / Foreign Equity (STCG, ≤24 months): Slab rate + cess
Property (LTCG, >24 months): 12.5% without indexation or 20% with indexation (for pre-July 2024 purchases)

Frequently Asked Questions

What is the ₹1.25 lakh LTCG exemption on equity?

Under Section 112A, the first ₹1.25 lakh of long-term capital gains from listed equity shares or equity-oriented mutual funds in a financial year is fully exempt from tax. Gains above ₹1.25L are taxed at 12.5%. This exemption applies per person per year and cannot be carried forward.

Do I need to pay advance tax on capital gains?

Yes. If your total tax liability (including capital gains tax) exceeds ₹10,000 in a year, you must pay advance tax. For capital gains arising after March 15, the entire tax can be paid in the fourth installment (by March 15). If the gain arises in the last quarter, pay in full by March 15 to avoid interest under Section 234B and 234C.

How are US RSU gains taxed in India?

US RSU taxation for Indian residents has two stages: (1) At vesting — the fair market value of shares at vesting is taxed as salary income (perquisite under Section 17(2)) by your employer via TDS. (2) At sale — any gain from vesting price to sale price is taxed as capital gains. STCG if sold within 24 months, LTCG if held beyond 24 months. Foreign tax credit (Form 67) can be claimed for US taxes withheld.

Can I set off capital losses against capital gains?

Yes. Short-term capital losses can be set off against both STCG and LTCG. Long-term capital losses can only be set off against LTCG. Unadjusted losses can be carried forward for 8 assessment years, provided you file ITR before the due date.

Capital Gains Tax Calculator India

Capital Gains Tax in India — Complete FY 2026-27 Guide

Budget 2024 Changes — What Changed?

Capital Gains Tax Rates — FY 2026-27

Frequently Asked Questions

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