S SHEKHAR & Co.

🧾 How to Use the Capital Gains Tax Calculator

This tool helps you calculate your capital gains or losses and the estimated tax you owe based on your country’s rules.

  1. Enter the Asset Purchase Price:
    Type the amount you originally paid.
  2. Enter the Asset Selling Price:
    Enter the amount you sold (or will sell) it for.
  3. Select the Date of Purchase:
    Choose when the asset was bought.
  4. Select the Date of Sale:
    Choose when it was sold or will be sold.
  5. Enter Additional Costs (optional):
    Add fees like legal, renovation, or brokerage.
  6. Choose Your Tax Jurisdiction:
    Pick your country from the dropdown list.
  7. Click the “Calculate” Button:
    View gain/loss and estimated tax owed.

đź“Š Understanding the Results:

  • Capital Gain/Loss: Selling price - purchase price - additional costs.
  • Applicable Tax Rate: Estimated based on your country and asset duration.
  • Total Tax Owed: Calculated tax based on your gain and jurisdiction.
Tips:
đź’ˇ Use accurate data for best results.
đź”’ Your data is not stored.
🧮 For tax filing, consult a licensed advisor.

Frequently Asked Questions about Capital Gains Tax

Capital Gains Tax is the tax you pay on the profit made from selling a capital asset. A capital asset can be anything of value such as real estate, shares, mutual funds, gold, or even inherited property. The tax is levied only on the gain (or profit) — that is, the difference between the purchase price and the sale price of the asset, after adjusting for certain allowable expenses like brokerage, legal fees, and improvement costs.

This tax applies when you “realize” a gain, meaning when the asset is actually sold. The rate of tax and how it is calculated depends on several factors such as the type of asset, how long you held it, and your country’s tax laws. Understanding this tax is crucial if you're planning to sell property or investments, especially when filing your Income Tax Return (ITR).

The duration for which you hold an asset determines whether the gain is categorized as short-term or long-term, and the tax treatment for both is different.

1. Short-Term Capital Gains (STCG):
For most stocks and equity mutual funds, if held for less than 12 months, any gains are short-term.
For real estate, gold, and other assets, if held for less than 24 or 36 months (depending on the jurisdiction), it’s considered short-term.
STCG is usually taxed at your applicable income tax slab rate or at a flat rate (e.g., 15% in India for listed shares), depending on local laws.

2. Long-Term Capital Gains (LTCG):
For equity and mutual funds: held more than 12 months.
For real estate or other properties: held for more than 24/36 months.
LTCG is taxed at a preferential rate, typically lower than short-term gains. In India, for example, LTCG above â‚ą1 lakh on shares is taxed at 10%, and real estate LTCG is taxed at 20% after indexation.

Indexation benefit is a key tax-saving feature allowed on long-term assets like property, helping adjust the purchase price to account for inflation. Understanding these timelines is crucial as it can significantly impact the amount of tax you owe.

In most cases, inheriting property does not trigger Capital Gains Tax immediately, because there is no "sale" involved. However, if you later sell the inherited property, then capital gains tax will apply.

The key detail here is that for calculating capital gains, the purchase price is considered as the price paid by the original owner (your parent or grandparent, for example), not zero.

Let’s say your father bought a house in 1990 for ₹5 lakhs and you inherited it in 2020. If you sell it in 2025 for ₹1 crore, your gain is calculated as the difference between ₹1 crore and the indexed purchase price of ₹5 lakhs (adjusted for inflation), not the inheritance value.

So, even though inheritance itself is tax-free, selling an inherited asset may result in a taxable capital gain, and proper documentation of the original purchase price and date is crucial for accurate tax filing.

Just as profits are taxable, capital losses can be used to reduce your tax liability — but there are rules.

Set-Off: Capital losses can be set off against capital gains of the same type. For example:
- Short-term capital losses can be set off against both short-term and long-term capital gains.
- Long-term capital losses can only be set off against long-term capital gains.

Carry Forward: If your capital loss is greater than your gain in a financial year, you can carry the remaining loss forward to up to 8 future years, provided you file your return on time.

No Set-Off Against Other Income: Capital losses cannot be adjusted against salary, business income, or other income heads. They are strictly applicable to capital gains.

Capital Gains Tax Calculator

Results:

Capital Gain/Loss: $0

Applicable Tax Rate: 0%

Total Tax Owed: $0