◆ WORKBOOK
Capital Gains
Computation Guide
Step-by-step capital gains computation for FY 2026-27 under ITA 2025 — immovable property, listed equity, unlisted shares, and debt mutual funds. CII table and all rates included.
📌 ITA 2025 changes: LTCG on property — indexation available only under Old Regime; without indexation 12.5%. STCG on listed equity now 20% (from 15%). LTCG on equity ₹1.25 lakh annual exemption maintained.
Rate Summary: Capital Gains FY 2026-27
| Asset Type | Holding Period | Type | Tax Rate | Indexation |
|---|---|---|---|---|
| Listed Equity / Equity MF | > 12 months | LTCG | 12.5% (above ₹1.25L) | No |
| Listed Equity / Equity MF | ≤ 12 months | STCG | 20% | No |
| Immovable Property | > 24 months | LTCG | 12.5% (no indexation) OR 20% (with indexation) — lower | Optional (Old Regime) |
| Immovable Property | ≤ 24 months | STCG | Slab rate | No |
| Unlisted Shares | > 24 months | LTCG | 12.5% | No |
| Unlisted Shares | ≤ 24 months | STCG | Slab rate | No |
| Debt Mutual Funds (post Apr-2023) | Any | STCG | Slab rate | No |
| Gold / Sovereign Gold Bond | > 36 months | LTCG | 12.5% | No |
Computation: Immovable Property LTCG
| Step | Description |
|---|---|
| 1 | Sale Consideration — Actual sale price or Stamp Duty Value (higher) |
| 2 | Less: Cost of Acquisition (Indexed) — Purchase price × (CII of year of sale ÷ CII of year of purchase) |
| 3 | Less: Cost of Improvement (Indexed) — Cost of improvements × (CII of sale year ÷ CII of improvement year) |
| 4 | Less: Transfer expenses — Brokerage, stamp duty on sale, legal fees |
| 5 | = Long Term Capital Gain |
| 6 | Less: Section 54 exemption — If reinvested in new residential property within 2 years (purchase) / 3 years (construction) |
| 7 | Less: Section 54EC exemption — Investment in NHAI/REC bonds (max ₹50 lakh, within 6 months) |
| 8 | = Taxable LTCG → Tax @12.5% (without indexation) or @20% (with indexation) — compare and choose lower |
CII (Cost Inflation Index) Table
| Financial Year | CII | Financial Year | CII |
|---|---|---|---|
| 2001-02 | 100 | 2021-22 | 317 |
| 2002-03 | 105 | 2022-23 | 331 |
| 2005-06 | 117 | 2023-24 | 348 |
| 2010-11 | 167 | 2024-25 | 363 |
| 2015-16 | 254 | 2025-26 | 380 |
| 2019-20 | 289 | 2026-27 | 398 (provisional) |
| 2020-21 | 301 |
Computation: Listed Equity LTCG
- ☐Identify eligible shares/units — STT paid at purchase & sale; held >12 months
- ☐Calculate gains — Sale price minus purchase price (no indexation)
- ☐Grandfathering (pre-Jan 31, 2018) — Cost = higher of actual cost or FMV as on 31 Jan 2018
- ☐Apply ₹1.25 lakh annual exemption — Net LTCG across all equity transactions exempt up to ₹1.25L per Tax Year
- ☐Tax on balance @12.5% — No deductions u/s 80C etc. against LTCG
- ☐LTCL set-off — LTCL from equity can only be set off against LTCG; carry forward 8 years
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