Capital Gains Tax India 2026 — Complete Guide with Examples for Stocks, Mutual Funds, Property & Gold
Capital gains tax is the tax you pay on the profit from selling an asset. The rate depends on what you sold and how long you held it.
India has three different capital gains tax regimes depending on the asset class — and getting it wrong can cost you thousands.
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The First Principle: Short-term vs Long-term
First Principle: The holding period determines whether a gain is short-term (STCG) or long-term (LTCG). Listed securities (stocks, equity MFs) need 12+ months for LTCG. Everything else (property, gold, debt MFs) needs 36+ months (24+ months for some assets in Budget 2024).
| Asset | Short-term holding | STCG Rate | LTCG Rate |
|---|---|---|---|
| Listed stocks & equity MFs | < 12 months | 15% | 10% (above ₹1L) |
| Debt MFs & bonds | < 24 months | Slab rate | 20% with indexation |
| Real estate | < 24 months | Slab rate | 20% with indexation |
| Gold (physical, ETF, SGB secondary) | < 24 months | Slab rate | 20% with indexation |
Real Examples
Example 1: Stocks
You bought ₹1,00,000 of TCS in January 2025 and sold for ₹1,80,000 in March 2026 (14 months). Gain = ₹80,000. Since held > 12 months, it is LTCG. First ₹1,00,000 of LTCG is exempt. Your full gain (₹80,000) is below the threshold — zero tax.
Example 2: Real Estate
You bought a flat for ₹30,00,000 in 2018 and sold for ₹50,00,000 in 2026 (8 years). Gain = ₹20,00,000. Using CII indexation (cost inflation index), your indexed cost = ₹30,00,000 * 363/280 = ₹38,89,285. LTCG = ₹50,00,000 – ₹38,89,285 = ₹11,10,715. Tax at 20% = ₹2,22,143 + cess.
Example 3: Gold SGB (sold before maturity)
You bought SGB in 2021 for ₹50,000 and sold on the exchange in 2026 for ₹85,000 (5 years). Since > 24 months, LTCG applies. Indexed cost = ₹50,000 * 363/301 = ₹60,299. LTCG = ₹85,000 – ₹60,299 = ₹24,701. Tax = 20% of ₹24,701 = ₹4,940. But if held to maturity, SGB LTCG is tax-free.
The Smart Friend’s Verdict
Tax-loss harvesting: If you have stocks with unrealized losses, sell them before 12 months to offset STCG. For LTCG, the ₹1L exemption means you can realize up to ₹1,00,000 in gains every year tax-free by rebalancing your portfolio. This is the single most important capital gains strategy most Indians miss.
Next: New vs Old Tax Regime — choose the right regime for your salary.