About capital gains tax calculator
Selling shares or equity mutual funds at a profit creates a capital gain. How it is taxed depends on how long you held the asset.
Short and long term
- For listed equity, selling within 12 months gives a short-term gain.
- Selling after 12 months gives a long-term gain, which has its own rate and an exemption limit.
- The rates are changed by Budgets, so use the current ones.
Tracking your cost
Gain = sale value − purchase cost − brokerage and transfer charges. Keep contract notes and statements for your cost records.
A worked example
You buy 100 shares at ₹500 and sell them at ₹650 eight months later. The gain is 100 × (650 − 500) = ₹15,000 and, being held under 12 months, it is a short-term gain taxed at the short-term rate in force. Brokerage and other charges reduce the gain.
Keep your records
Contract notes and the broker's capital gains statement make it simple to fill the return. For mutual funds, the fund house provides a similar statement.
