Capital Gains Tax Rates by Asset Class for AY 2026-27

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

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 gains and on all long-term gains (Sections 112 and 112A) is capped at 15%.
• The Section 87A rebate is not available against special-rate gains under Sections 111A, 112 and 112A. You cannot use the rebate to wipe out tax on these 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.

20%

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.

12.5%

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.

For land or building acquired before 23 July 2024, a resident individual or HUF can compute LTCG at 20% with indexation instead of 12.5% without indexation, and pay whichever is lower (proviso to Section 112(1)).

This indexation choice is available only for land and building held by resident individuals and HUFs. It does not extend to gold, unlisted shares, non-residents, 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 funds. Under Section 50AA, gains on specified mutual funds (from FY 2025-26, funds investing more than 65% in debt and money market instruments) and market-linked debentures acquired on or after 1 April 2023 are always short-term, whatever the holding period, and taxed at slab rate. Debt fund units bought before 1 April 2023 still follow the normal rules: long-term after 24 months (12 months if listed) at 12.5%.

Crypto and VDAs. Section 115BBH taxes gains on virtual digital assets at a flat 30% plus cess, allows no deduction other than cost of acquisition, and bars set-off of VDA losses against any income or carry forward. The buyer or exchange also deducts 1% TDS under Section 194S.

Worked mini-example, debt fund vs equity fund. You redeem two funds, both bought after 1 April 2023 and held for 30 months, 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

Resident individuals can use any unused basic exemption limit against special-rate gains under Sections 111A, 112 and 112A, but 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:

1. Identify the asset class, that fixes the section and the long-term threshold.
2. Check the holding period against that threshold to decide short-term or long-term.
3. Apply the rate from the reckoner above.
4. For pre-23-July-2024 land or building, compute both 12.5% flat and 20% with indexation, and take the lower.
5. Add 4% cess, and surcharge if applicable (capped at 15% on 111A, 112 and 112A gains).

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 handles 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.

Frequently Asked Questions

What is the holding period for listed shares versus unlisted shares?

Listed shares, equity mutual funds and other listed securities become long-term after being held for more than 12 months. Unlisted shares, including shares of private companies and foreign shares not listed in India, need more than 24 months. Long-term gains on unlisted shares are taxed at 12.5% without indexation, while short-term gains are added to income and taxed at your slab rate.

How are gains on gold ETFs and gold mutual funds taxed for AY 2026-27?

Units of gold ETFs and gold mutual funds sold on or after 1 April 2025 are no longer treated like debt funds. Gold ETFs, being listed, are long-term after 12 months and gold mutual funds after 24 months, with long-term gains taxed at 12.5% without indexation. Short-term gains are taxed at your slab rate. Check the scheme type on your statement before applying the rate.

Is the Rs 1.25 lakh exemption on equity LTCG available separately for each family member?

Yes. The Rs 1.25 lakh exemption under Section 112A applies per taxpayer per financial year. Each family member who holds shares or equity funds in their own name gets their own limit. Holding investments in a spouse's name using funds you gave them, however, can attract clubbing of income, so the gain may be taxed in your hands instead.

Can a short-term loss on shares be set off against long-term gains on property?

Yes. A short-term capital loss can be set off against any capital gain, short-term or long-term, from any asset in the same year. A long-term capital loss can be set off only against long-term gains. Losses on crypto and other virtual digital assets are the exception: they cannot be set off against any other income or carried forward.

Do I have to pay advance tax on capital gains?

Yes, if your total tax liability for the year after TDS is Rs 10,000 or more. Since capital gains cannot be predicted, no interest for short payment of earlier instalments is charged if the tax on the gain is paid in the remaining instalments after the sale, or by 31 March if the gain arises after 15 March.