Capital Gains Tax Rates: Asset-Class Ready Reckoner
Which rate applies to your gain depends on two things: the asset class you sold and how long you held it. For AY 2026-27 (FY 2025-26), listed equity is taxed at 20% short-term and 12.5% long-term above Rs 1.25 lakh, most other assets carry a 24-month long-term threshold at 12.5% without indexation, debt mutual funds bought on or after 1 April 2023 are always taxed at slab rate, and crypto sits outside the entire framework at a flat 30%. This page is the lookup matrix, one row per asset class, so you can find your rate in seconds.
The rules below took effect on 23 July 2024 under the Finance (No. 2) Act 2024 and continue unchanged for FY 2025-26. Neither Budget 2025 nor Budget 2026 altered these rates or holding periods.
Master Ready Reckoner
| Asset class | Long-term threshold | STCG rate | LTCG rate | Indexation? | Section |
|---|---|---|---|---|---|
| Listed equity shares / equity mutual funds (STT paid) | Held > 12 months | 20% | 12.5% on gains above Rs 1.25 lakh/year | No | 111A (ST) / 112A (LT) |
| Immovable property (land / building) | Held > 24 months | Slab rate | 12.5% (see indexation note below) | No, by default | 112 |
| Unlisted shares | Held > 24 months | Slab rate | 12.5% | No | 112 |
| Gold, jewellery, physical gold | Held > 24 months | Slab rate | 12.5% | No | 112 |
| Debt mutual funds bought on/after 1 Apr 2023 | Not applicable, always short-term | Slab rate | Slab rate (no LT benefit) | No | 50AA |
| Sovereign Gold Bonds (redemption at maturity) | Exempt on maturity | See note | Exempt at maturity | Not applicable | Exempt |
| Sovereign Gold Bonds (secondary-market sale) | Held > 12 months | Slab rate | 12.5% | No | Capital gains rules apply |
| Crypto / Virtual Digital Assets (VDA) | No LT/ST concept | 30% flat | 30% flat | No | 115BBH |
Read the matrix with three qualifiers that apply on top of the headline rate:
- Health and Education Cess of 4% applies on the tax computed for every asset class.
- Surcharge applies as per your income slab, but surcharge on Section 111A and 112A gains is capped at 15%.
- The Section 87A rebate is not available against special-rate gains under Sections 111A and 112A. You cannot use the rebate to wipe out tax on equity short-term or long-term gains.
Equity: Section 111A and 112A
Listed equity shares and equity-oriented mutual funds, where Securities Transaction Tax (STT) has been paid, follow their own two-rate structure.
Tax Rate Chart
Listed Equity Capital Gains : AY 2026-27 (FY 2025-26)
Applies to listed shares and equity mutual funds where STT is paid
Equity STCG : held 12 months or less (Section 111A)
Short-term gains on STT-paid equity. Up from 15% before 23 July 2024.
Equity LTCG : held over 12 months (Section 112A)
On gains above Rs 1.25 lakh per year. Exemption raised from Rs 1 lakh. No indexation.
Source: Finance (No. 2) Act 2024; Sections 111A and 112A, Income Tax Act 1961
The Rs 1,25,000 annual exemption under Section 112A is a per-taxpayer, per-year figure, raised from Rs 1,00,000 by the Finance (No. 2) Act 2024. Only the gain above Rs 1.25 lakh is taxed at 12.5%. There is no indexation on equity, so you compare actual cost against sale value. The rate applicable depends on the date of transfer, not the date of purchase, so a share sold on or after 23 July 2024 carries the 20% / 12.5% rates even if bought years earlier.
Worked mini-example, equity LTCG: You sell listed shares held for three years for a gain of Rs 3,00,000 in FY 2025-26. The first Rs 1,25,000 is exempt. Tax at 12.5% on the remaining Rs 1,75,000 is Rs 21,875, plus 4% cess of Rs 875, for a total of Rs 22,750. No 87A rebate reduces this.
Property, Gold, and Unlisted Shares: Section 112
For immovable property, unlisted shares, gold, and other physical assets, the long-term holding period is more than 24 months. Long-term gains are taxed at 12.5% without indexation. Short-term gains, where the asset is held for 24 months or less, are added to total income and taxed at your slab rate, there is no special short-term rate for these assets.
Land and building bought before 23 July 2024, a valuable choice. For immovable property acquired on or before 22 July 2024, an individual or HUF may pay the lower of 12.5% without indexation or 20% with indexation. Compute both and pick the cheaper. Property bought on or after 23 July 2024 gets only the 12.5% flat rate, no indexation option. See our Cost Inflation Index table and indexation guide to run the 20%-with-indexation number.
This indexation choice is available only for land and building held by individuals and HUFs. It does not extend to gold, unlisted shares, or any non-individual taxpayer such as a company, LLP, or firm.
Gold and Jewellery
Physical gold and jewellery are Section 112 assets. Held for more than 24 months, long-term gains are taxed at 12.5% with no indexation. Held for 24 months or less, gains are short-term and taxed at your slab rate.
Sovereign Gold Bonds
Sovereign Gold Bonds have a special exemption: if you hold to maturity and redeem, the capital gain on redemption is fully exempt. If instead you sell on the secondary market before maturity, normal capital-gains rules apply, long-term treatment above 12 months at 12.5%, short-term at slab rate.
The Two Traps: Debt Mutual Funds and Crypto
Debt mutual fund trap. Debt mutual funds purchased on or after 1 April 2023 get no long-term benefit at all. Every gain is treated as short-term and taxed at your slab rate, regardless of how long you held the units, with no indexation. A debt fund held for five years is taxed exactly like one held for five months. See our mutual fund taxation guide for the pre-April-2023 grandfathering position.
Crypto is flat 30%, no holding-period benefit. Virtual Digital Assets are taxed under Section 115BBH at a flat 30% whatever the holding period. There is no long-term or short-term concept. Only the cost of acquisition is deductible, no other expenses, and losses cannot be set off against any other income or carried forward. A 1% TDS under Section 194S applies on transfers. Full detail in our crypto and VDA tax guide.
Worked mini-example, debt fund vs equity fund. You redeem two funds after four years, each with a Rs 2,00,000 gain, and your income falls in the 30% slab. The equity fund LTCG is 12.5% on Rs 75,000 (after the Rs 1.25 lakh exemption), or Rs 9,375. The debt fund gain of Rs 2,00,000 is taxed fully at slab, 30% of Rs 2,00,000, or Rs 60,000. Same headline gain, very different tax, because the debt fund has no long-term status.
How This Sits With the Rest of Your Return
Special-rate capital gains do not get the benefit of basic-exemption stacking in the way ordinary income does when your other income already exceeds the basic exemption, and the Section 87A rebate does not touch them. For a fuller walk-through of computation, Schedule CG, and the Section 54 / 54F / 54EC exemptions, see our companion LTCG and STCG explainer for AY 2026-27.
A quick decision path when you sit down to compute:
- Identify the asset class, that fixes the section and the long-term threshold.
- Check the holding period against that threshold to decide short-term or long-term.
- Apply the rate from the reckoner above.
- For pre-23-July-2024 land or building, compute both 12.5% flat and 20% with indexation, and take the lower.
- Add 4% cess, and surcharge if applicable (capped at 15% on 111A / 112A gains).
Frequently Asked Questions
What is the LTCG rate on listed shares for AY 2026-27?
12.5% under Section 112A, charged only on gains above Rs 1,25,000 per financial year, for shares held more than 12 months where STT is paid. There is no indexation, and the Section 87A rebate does not apply to these gains.
What is the holding period for long-term capital gains on property and gold?
More than 24 months. Immovable property, unlisted shares, and gold held beyond 24 months qualify as long-term and are taxed at 12.5% without indexation under Section 112. Held for 24 months or less, gains are short-term and taxed at your slab rate.
Why are my debt mutual fund gains taxed so high?
Debt mutual funds bought on or after 1 April 2023 have no long-term benefit under Section 50AA. All gains are treated as short-term and taxed at your slab rate regardless of holding period, with no indexation. A long holding period does not reduce the rate.
How is crypto taxed and does the holding period matter?
Virtual Digital Assets are taxed at a flat 30% under Section 115BBH, with no long-term or short-term distinction. Only the cost of acquisition is deductible, losses cannot be set off against other income, and a 1% TDS applies under Section 194S.
Can I still use indexation on property?
Only for land or building acquired on or before 22 July 2024, and only if you are an individual or HUF. For such property you may pay the lower of 12.5% without indexation or 20% with indexation. Property bought on or after 23 July 2024 gets only the 12.5% flat rate.
Does the Section 87A rebate apply to capital gains?
No. The Section 87A rebate is not available against special-rate gains taxed under Sections 111A (equity STCG) and 112A (equity LTCG). It cannot be used to reduce tax on these gains.
Are Sovereign Gold Bonds taxed on redemption?
If held to maturity, the capital gain on redemption of a Sovereign Gold Bond is fully exempt. If you instead sell on the secondary market before maturity, normal capital-gains rules apply: long-term above 12 months at 12.5%, short-term at slab rate.
Let Tax Garden Apply the Right Rate
A single ITR can span equity, mutual funds, a property sale, some gold, and a crypto trade, each with its own section, threshold, and rate. Tax Garden classifies every asset, applies the correct holding period and rate, runs the lower-of comparison on qualifying property, and files Schedule CG and Schedule VDA correctly. See our ITR plans or talk to our team.
This article relies on the Income Tax Act 1961 as amended by the Finance (No. 2) Act 2024, specifically Sections 111A, 112, 112A, 50AA, 115BBH, and 194S, and confirms that the rates and holding periods effective from 23 July 2024 continue unchanged for FY 2025-26 (AY 2026-27) under the Finance Acts 2025 and 2026, as published by the Central Board of Direct Taxes.
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