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Capital Gains Tax

Capital gains tax on shares, mutual funds, property, gold and crypto in India: holding periods, rates, exemptions and loss set-off.

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Listed sharesLong-term after 12 months
Property, goldLong-term after 24 months
Long-term rate12.5% on most assets
Listed equity₹1.25 lakh gain exempt a year

When you sell shares, property, gold or other assets at a profit, the profit is taxed as capital gains. A little planning before the sale can lower the tax a lot.

Who it suits

Anyone selling a house, plot, shares, mutual funds, gold, unlisted shares or crypto. Also people who inherited property, or who want to reinvest sale money to save tax.

Short-term or long-term?

The holding period decides it.

  • Listed shares and equity mutual funds: long-term after 12 months
  • Property, gold and unlisted shares: long-term after 24 months
  • Crypto and other digital assets: taxed at a flat rate whatever the holding period

Rates in brief

Current rates are below. These are changed by the Union Budget, so we confirm them for the year of your sale.

  • Listed equity: short-term 20%, long-term 12.5% (the first ₹1.25 lakh of long-term gain in a year is exempt)
  • Property, gold and unlisted shares: long-term 12.5% without indexation. Short-term gains are taxed at your slab rate
  • Property bought on or before 22 July 2024: individuals and HUFs may be able to choose the lower of two methods
  • Crypto: 30%

Ways to save tax

The law lets you save tax if you reinvest in the right way and in time. We check which fits your sale.

  • Reinvest the gain from a house in another residential property (Section 54)
  • Invest gains from land or buildings in specified bonds within 6 months (Section 54EC, lock-in applies)
  • Use the sale money of other assets to buy a house (Section 54F)
  • If you cannot reinvest before the return due date, deposit the money in the Capital Gains Account Scheme

Using losses

Short-term losses can be set off against both short-term and long-term gains. Long-term losses can be set off only against long-term gains. Unused losses can be carried forward for 8 years, but only if you file your return on time.

Our process

  1. 1Tell us what you are selling, the purchase price, dates and who the buyer is.
  2. 2We calculate the gain, check which exemptions apply and show the tax before you sign.
  3. 3We review the sale deed draft so the figures and dates are right.
  4. 4After the sale we report the gain correctly in your return and handle any TDS.

Common questions

Is the ₹1.25 lakh exemption available on property?

No. It applies only to long-term gains on listed shares and equity mutual funds.

What if I sell the new house within 3 years?

The earlier exemption can be taken back. We help you plan the timing so this does not catch you out.

Is agricultural land taxed?

Rural agricultural land is generally not a capital asset, so no capital gains tax. Land in urban areas can be taxed. It depends on where the land is, so ask us before selling.

I inherited the property. What is my cost?

The cost is what the earlier owner paid, and the holding period includes theirs. We help collect the papers you need to prove it.

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General information, not professional advice. Tax rates, limits and due dates change, so we confirm the current position for your case before we file. Government fees are separate from our service charge and are quoted before work begins.