Capital Gains Tax in India: Equity (12.5% LTCG, 20% STCG), Real Estate & Gold

पूंजीगत लाभ कर (शेयर, म्यूचुअल फंड एवं प्रॉपर्टी) नियम

Comprehensive guide to Capital Gains Tax in India under the Income Tax Act: holding periods for short-term (STCG) vs long-term (LTCG), 12.5% LTCG rate on equity shares and mutual funds exceeding ₹1,25,000 exemption, real estate capital gains, and tax exemption rollover provisions under Section 54, 54EC, and 54F.

Written by: Author Profile

Direct Tax & CA Review Panel

Chartered Accountancy Review Panel • Senior Direct Tax Review Desk

Reviewed & Fact-Checked by: Technical Review Panel

Tax Law & Dispute Review Desk

Tax Litigation & Legal Review Panel • Tax Appeal & Procedure Review Desk

Published: 1st April 2026•Last Updated: 15th August 2026•Last Reviewed: 15th August 2026

Key Statutory Highlights (FY 2026-27 (AY 2027-28))

Listed Equity & Mutual Funds LTCG (Section 112A): Taxed at 12.5% without indexation on gains exceeding the statutory exemption threshold of ₹1,25,000 per financial year (holding period > 12 months).

Listed Equity STCG (Section 111A): Taxed at flat 20% plus 4% cess for holding periods up to 12 months.

Real Estate Property LTCG: Taxed at 12.5% without indexation for holding periods exceeding 24 months (resident individuals holding property acquired before 23 July 2024 have the option to compute tax at 20% with indexation if beneficial).

Gold & Unlisted Shares: Holding period 24 months; LTCG taxed at 12.5% without indexation.

Specified Debt Mutual Funds (Section 50AA): Treated as deemed short-term capital gains and taxed at individual applicable slab rates.

Who is Eligible & When Does it Apply?

Applicability #1

All individuals, HUFs, NRIs, and firms selling shares, mutual fund units, land, residential house property, or gold.

Step-by-Step Procedure & Compliance Roadmap

Determine Asset Holding Period

12 months for listed equity; 24 months for real estate, gold, and unlisted shares; 36 months for other assets.

Compute Net Sale Consideration

Gross sale price minus transfer expenses, brokerage, and legal charges.

Subtract Cost of Acquisition

Deduct original purchase cost (and cost of improvement).

Apply Section 112A Exemption or Sec 54/54EC Rollover

Subtract ₹1.25 Lakh equity exemption, or reinvest in residential house (Sec 54) or 54EC capital gains bonds (REC/PFC/NHAI up to ₹50L).

Report in Form ITR-2 or ITR-3

Capital gains must be reported in Schedule CG of ITR-2 or ITR-3.

Mandatory Documents Checklist

Broker Capital Gains statement, Sale Deed, Purchase Deed, Stamp Duty Valuation Certificate, 54EC Bond receipts

Common Mistakes & Compliance Risks to Avoid

•Filing simple ITR-1 when stock or mutual fund sales occurred during the FY (must file ITR-2).

•Forgetting the grandfathering FMV date of 31-Jan-2018 for equity shares bought before 2018.

Frequently Asked Questions

How can I save tax on long-term property capital gains?

You can claim exemption under Section 54 by purchasing another residential house within 1 year before or 2 years after the sale date (or construct within 3 years), or invest capital gains up to ₹50 Lakh in 54EC capital gain bonds within 6 months.

Interactive Tax Calculators

Capital Gains Tax Calculator Income Tax Calculator

Related Tax Knowledge

ITR-2 Filing Guide

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🛡️ Educational Disclaimer: FinSetu India is an independent educational guidance and calculation platform. Content is published for general citizen awareness based on applicable laws as of FY 2026-27 (AY 2027-28). We do not provide personalized legal/tax advice or file returns directly. Verify current applicable rules on official portals or consult a qualified Chartered Accountant / Tax Lawyer.