Tax · STCG + LTCG
Capital Gains Tax
Capital gains tax depends on asset class + holding period. Equity / equity MF: STCG 20% (held < 12 months), LTCG 12.5% above ₹1.25L (held ≥ 12 months) — rules changed in Budget 2024. Debt MF: taxable as per slab regardless of holding period (post-2023 indexation removed). Real estate: STCG slab rate (< 24 months), LTCG 12.5% (no indexation post-Jul 2024).
Who needs this
Anyone selling stocks, mutual funds, ETFs, real estate, gold, or crypto with profit. Even one transaction triggers reporting in ITR-2 or ITR-3.
Key dates
- FY ends — book gains/lossesMar 31, 2026
- Section 54 reinvestment window2 years (purchase) / 3 years (construction)
- ITR filing — report capital gainsJul 31, 2026
Key decisions
- Q1
Hold or sell — tax impact?
For equity: hold past 12 months to qualify for 12.5% LTCG (vs 20% STCG). For real estate: hold past 24 months (vs slab-rate STCG that can be 30%).
- Q2
Tax-loss harvesting — how?
Book ₹1.25L LTCG each year tax-free. Book equity losses to offset gains (carry-forward up to 8 years). Sell + immediately rebuy to reset cost basis.
- Q3
Should I claim 54 / 54F exemption?
Yes — Section 54 (residential property → reinvest in residential, full exemption). Section 54F (any LTCG → invest in residential, partial exemption). 54EC (LTCG → REC/NHAI bonds, ₹50L cap).
- Q4
Crypto / VDA tax?
Flat 30% on profit + 1% TDS on every transaction > ₹50K. No loss offset across assets (unlike equity). Must report Schedule VDA in ITR.
CBDT rules + tax-act references
- STCG (equity): 20% — applicable to gains on equity / equity MF held < 12 months.
- LTCG (equity): 12.5% — on gains > ₹1.25L for holding ≥ 12 months.
- Debt MF: indexation REMOVED post-Apr 2023; gains taxed at slab rate.
- Real estate: indexation REMOVED post-Jul 2024 (some grandfathering for pre-2024 properties).
- Crypto: flat 30% + 1% TDS, no loss offset, no holding-period benefit.
Calculators
All tax topics
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