The capital gains indexation calculator helps investors with long-term gains save on taxes, allows the taxpayer to inflate the purchase price of the asset by considering the impact of inflation and also calculate the taxable gain by considering the sale price.
Updated per latest Union Budget 2024 LATEST Also updated with new CII for AY 2025-26 Calculate Indexation BenefitSale of Virtual Digital Asset (VDA including Cryptocurrency) should not be considered as a capital gain starting from FY 2022-23 (AY 2023-24) but should be treated as income. Tax on such could be arrived from Crypto Tax Calculator
A comprehensive list of income tax saving investment options in India that every taxpayer should follow, and our detailed analysis including rate of return, risks, rewards @ Income Tax Saving Options
Union Budget 2024 simplified the tax the law by changing the holding period and rate of long-term (LTCG) and short-term (STCG) capital gains.
Indexation benefit has been removed on all classes of assets with certain exceptions towards the sales of property (land or building).
A. Gold / RSU / ESOP / ESPP / Unlisted shares / any other assets / Debt Mutual Funds / Immovable Property: Indexation benefit is not available on sale of these assets w.e.f 23rd July 2024. The taxpayers cannot opt for Indexation benefit and they are required to pay 12.5% tax on sale of these assets w.e.f 23rd July 2024
* Above was updated after the Gazette enacted on 16th Aug 2024 , the Finance Bill tabled in Parliament.
Latest Capital Gains Rate and Period of Holding for a capital asset can be found using Capital Gains Rate & Period of Holding Calculator
2. What is the meaning of the term short-term capital asset ?Any capital asset held by a person for a period of more than 36 months immediately preceding the date of its transfer will be treated as long-term capital asset.
However, in respect of certain assets like shares (equity or preference) which are listed in a recognised stock exchange in India, units of equity oriented mutual funds, listed securities like debentures and Government securities, Units of UTI and Zero Coupon Bonds, the period of holding to be considered is 12 months instead of 36 months.
In case of unlisted shares in a company, the period of holding to be considered is 24 months instead of 36 months.
In case of unlisted shares of a company or an immovable property being land or building or both. The period of holding to be considered is 24 months instead of 36 months.
3. How is capital gain calculated ?Capital gain broadly calculated as Capital gain = ( full value of consideration received on transfer) - ( cost of acquisition of capital asset + cost of improvement of capital asset + expenditure incurred in connection with transfer of capital asset).
4. What is long-term capital gain and short-term capital gain ?Gain arising on transfer of long-term capital asset is termed as long-term capital gain and gain arising on transfer of short-term capital asset is termed as short-term capital gain. However, there are a few exceptions to this rule, like gain on depreciable asset is always taxed as short-term capital gain.
5. Is the benefit of indexation available while computing capital gain arising on transfer of short-term capital asset ?
The benefit of indexation is available only in case of long-term capital assets and is not available in case of short-term capital assets.
6. Does cryptocurrency considered as a capital asset ?Any Virtual Digital Asset (including Cryptocurrency) is generally considered as a capital asset until 2022 in India. During Budget 2022, it was announced that the cryptocurrency is considered as a 'special asset' where the tax rate applicable would be 30% without indexation , without expenses, without set-off against any income within the year, and without carryforward losses to future years .
Disclaimer: This article provides an overview and general guidance, not exhaustive for brevity. Please refer Income Tax Act, GST Act, Companies Act and other tax compliance acts, Rules, and Notifications for details.
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