Sell or Rent Property

Capital Gains Tax

What is Capital Gains Tax Calculator?

Capital gains refer to the profits or gains made on the sale of a capital asset as the proceeds received from such sales are categorized under income. So, the taxes imposed on such incomes is called Capital Gains Tax. Capital gains tax calculator is a self-help tool which helps you to decipher the amount you would owe to the government if you were to sell and make profit on a capital asset you own

How Does Capital Gains Calculators Work?

To can calculate the amount of capital gain tax you would owe on the sale of an capital asset, you can use the Capital Gains Tax Calculator available online. To find out the the amount of tax payable from the Capital gains tax calculator, fill in the necessary details such as:

  • Type of Asset
  • Buying price of the asset
  • Purchase date of the asset
  • Net price at which the asset was sold
  • Date of the Sale

After entering the above mentioned details the capital gains tax calculator would give you an estimation of:

  • Kind of Investment
  • Kind of Capital Gains
  • Inflation index on the year of Purchase
  • Inflation index on the year of Sale
  • Purchase and sale price difference
  • Time period between purchase and sale

Formula of calculating Capital Gains

The capital gains are categorized under Long-term and Short-term gains. The are derived by using to the following computations:

To calculate Short-term Gains

Short-term Capital Gains = Sale Price- (cost of acquistion + Home improvement cost + Transfer Cost)

To calculate long-term Gains

Long-term Capital Gains = Sale Price - (acquisition indexed cost + indexed cost of improvement + transfer cost)
Acquistion Indexed Cost = Acquisition Cost * Inflation cost index on the year of transfer/ Inflation cost index acquisition

Comparision between Long-Term Capital Gain and Short-term Capital Gain

Type of Capital Gains Short Term Capital Gains Long Term Capital Gains
Duration Assets held for less than 36 months Assets held for 36 months or more
Tax Rate Tax rate is determined at 15% (securities) Gains are required to be mentioned in the Income Tax Returns (non-securities) Tax rate is determined at 10% of the amount (More than 1 Lakhs) 20% (Equity Shares)
Computation = Sale price of the asset -(expenditure incurred -acquisition cost) = sale price of the assetIndexed Cost of Acquisition


How do I calculate my capital gains?

The capital gains are calculated with regards to long-term or short-term capital gain
Short Term Capital Gain = Sale price of the asset -(expenditure incurred -acquisition cost)
Long-term capital gain = Sale price of the property- Indexed Cost of Acquisiton

How can I save capital gains on my property?
  • You can minimize the capital gains by investing in CGAS (Capital Gain account scheme)
  • Set of all the gains against your capital losses
  • Invest in Bonds
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