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Capital Gains Tax in India (FY 2025-26): STCG & LTCG Explained
Capital gains are taxed differently from salary and interest. For transactions on or after 23 July 2024, use the updated STCG and LTCG rates below while preparing AY 2026-27 returns.
STCG vs LTCG
Short-term capital gains arise when an asset is sold before its relevant long-term holding period. Long-term capital gains arise after that period. Holding periods depend on the asset category, so verify the asset classification before filing.
Capital gains tax rates table
| Gain type | Asset or section | Rate for FY 2025-26 |
|---|---|---|
| STCG | Section 111A: listed equity/equity MF with STT | 20% |
| LTCG | Section 112A: listed equity/equity MF | 12.5% after ₹1,25,000 annual exemption |
| LTCG | Other LTCG such as unlisted shares and property | 12.5% without indexation |
| STCG | Assets not under 111A, such as foreign shares or short-held debt MF | Taxed at slab rates |
| Debt mutual funds | Bought after 1 Apr 2023 | Always taxed at slab rates |
Section 111A and Section 112A
Section 111A covers STCG on listed equity and equity mutual funds with STT, taxed at 20%. Section 112A covers LTCG on listed equity and equity mutual funds, taxed at 12.5% after the ₹1,25,000 annual exemption.
Other LTCG and no indexation
Other long-term gains, including property and unlisted shares, are taxed at 12.5% without indexation. Do not mix these rates with normal slab rates or old indexation assumptions.
Foreign shares, debt funds and surcharge cap
STCG on assets not covered by Section 111A, including foreign shares and debt mutual funds held short term, is taxed at slab rates. Debt mutual funds bought after 1 Apr 2023 are always taxed at slab rates. Surcharge on income under Sections 111A, 112A and dividends is capped at 15%.
Capital gains can also influence which return form you need. Check which ITR form to file and the new tax regime slab guide before submission.
Estimate tax including capital gains
Use the calculator to combine salary, deductions and special-rate gains.
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What is the STCG rate under Section 111A for FY 2025-26?
For listed equity and equity mutual funds where STT applies, short-term capital gains under Section 111A are taxed at 20% on or after 23 July 2024.
What is the LTCG rate under Section 112A?
Long-term capital gains under Section 112A on listed equity and equity mutual funds are taxed at 12.5% after the ₹1,25,000 annual exemption.
Is indexation available for other LTCG?
Other LTCG, such as unlisted shares and property, is taxed at 12.5% without indexation on or after 23 July 2024.
How are debt mutual funds bought after 1 Apr 2023 taxed?
Debt mutual funds bought after 1 Apr 2023 are always taxed at slab rates.