# LTCG Tax Calculator FY 2026-27: 12.5% Above INR 1.25 Lakh > LTCG tax calculator for FY 2026-27. Work out long-term capital gains tax on shares and equity funds at 12.5% above INR 1.25 lakh, with 2018 grandfathering. Source: https://trykosh.com/tools/ltcg-tax-calculator Free tool - Capital gains # LTCG tax calculator: long-term capital gains on shares and funds Find the tax on long-term gains from shares and equity mutual funds, with the INR 1.25 lakh yearly allowance, the 31 January 2018 grandfathering rule, and how much tax-free room you have left this year. Rules checked 25 October 2026Free - no sign-upRuns in your browser LTCG tax INR 35,750 Effective 8.9% of the gain Long-term gain**INR 4,00,000** Tax-free allowance used**INR 1,25,000** Allowance left this year**INR 0** Sale value INR 9,00,000 − Purchase cost INR 5,00,000 Long-term capital gain INR 4,00,000 − Tax-free equity LTCG (INR 1.25 lakh a year) INR 1,25,000 LTCG tax at 12.5% (112A) INR 34,375 \+ Health and education cess (4%) INR 1,375 Tax because of this gain INR 35,750 Gains above INR 1.25 lakh a year on listed equity and equity funds are taxed at 12.5%, with no indexation. ## Upload your statement and Kosh does this for you. Upload your statements and Kosh keeps a running estimate of the tax on your gains, so March holds no surprises. [Start free](/signup?via=tool-ltcg-tax-calculator) ## How the LTCG tax calculator works Long-term capital gains on listed shares and equity-oriented mutual funds (on which STT was paid) are taxed under section 112A. Each year the first INR 1.25 lakh of such gains, across all your sales together, is tax-free. Gains above that are taxed at 12.5% with no indexation, plus 4% cess. If you bought before 1 February 2018, your cost is stepped up. The law treats your cost as the higher of what you actually paid and the lower of the highest price on 31 January 2018 and your sale price. This protects gains made before LTCG on equity was reintroduced. Tick the box and enter the total value of your holding on that date. Enter any equity LTCG you've already booked earlier in the year. The INR 1.25 lakh allowance is shared, so the calculator only gives this sale what is left, and tells you how much room remains. Many investors use that room to book gains each year and buy back, which raises their cost for later (often called tax-gain harvesting). Choosing 'Gold, unlisted shares, other assets' switches to section 112: there is no INR 1.25 lakh allowance and the whole long-term gain is taxed at 12.5%. Your other income matters in both cases, because a resident's unused basic exemption reduces the taxable gain. LTCG tax = (gain − INR 1,25,000 left this year) x 12.5% x 1.04 Gain sale value − cost (or grandfathered cost) Grandfathered cost max(actual cost, min(31 Jan 2018 price, sale value)) ## Worked example: Meera sells shares bought in 2016 Meera, a doctor in Lucknow, bought shares for INR 2 lakh in 2016. On 31 January 2018 they were worth INR 3.5 lakh, and she sells them now for INR 7 lakh. Grandfathering lifts her cost to INR 3.5 lakh, so her taxable gain is INR 3.5 lakh, not INR 5 lakh. She already booked INR 50,000 of equity LTCG in May, leaving INR 75,000 of her allowance. Tax is 12.5% on INR 2.75 lakh: INR 34,375 plus cess, or INR 35,750. LTCG tax INR 35,750 Effective 10.2% of the gain Long-term gain**INR 3,50,000** Tax-free allowance used**INR 75,000** Allowance left this year**INR 0** Sale value INR 7,00,000 − Cost (stepped up to 31 Jan 2018 price) INR 3,50,000 Long-term capital gain INR 3,50,000 − Tax-free equity LTCG (INR 1.25 lakh a year) INR 75,000 LTCG tax at 12.5% (112A) INR 34,375 \+ Health and education cess (4%) INR 1,375 Tax because of this gain INR 35,750 Gains above INR 1.25 lakh a year on listed equity and equity funds are taxed at 12.5%, with no indexation. [Load this example into the calculator ->](?sale=700000&cost=200000&pre2018=1&fmv2018=350000&booked=50000#calculator) ## Good to know - The INR 1.25 lakh allowance is per person per year, not per sale or per fund. It doesn't carry forward if unused. - Grandfathering uses the highest traded price on 31 January 2018 for listed shares, and the NAV on that date for mutual fund units. - Long-term capital losses can be set off only against long-term gains, but they can be carried forward for 8 years if you file your return by the due date. - LTCG under 112A doesn't get the 87A rebate in the new regime, even if your total income is under INR 12 lakh. ## Frequently asked questions What is the LTCG tax rate on shares in FY 2026-27? 12.5% on long-term gains above INR 1.25 lakh in the year, plus 4% cess. Shares must be listed, held for more than 12 months, and STT must have been paid. These rates have applied since 23 July 2024 and Budget 2026 left them unchanged. Is LTCG up to INR 1.25 lakh tax-free? Yes, for listed shares and equity mutual funds. The first INR 1.25 lakh of such gains in a financial year is exempt, across all your sales combined. Gains on property, gold or debt funds don't get this allowance. How does tax-gain harvesting work? You sell equity holdings with unrealised long-term gains up to the INR 1.25 lakh limit and buy them back, usually the next day. The gain is tax-free and your purchase cost resets higher, so future taxable gains shrink. Watch exit loads, brokerage and the fact that the bought-back units start a fresh 12-month clock. Is indexation available on LTCG from shares? No. Listed equity LTCG has never had indexation under 112A. Since 23 July 2024 indexation is also gone for gold, debt funds and unlisted shares; only land and buildings bought before that date keep a 20%-with-indexation option. Do NRIs get the INR 1.25 lakh LTCG exemption? Yes, the 112A allowance is available to non-residents too, but they can't use the unused basic exemption against the gain the way residents can. TDS is deducted on an NRI's capital gains when units or shares are sold. ## Sources and assumptions - [Income Tax Department](https://www.incometax.gov.in/) - [SEBI investor education](https://investor.sebi.gov.in/) Rules and rates last checked on 25 October 2026. Results are estimates for planning and education, not tax, legal or investment advice. Kosh is an educational financial planning tool by Primedepth Labs. It is not a SEBI-registered investment adviser and does not offer personalised investment advice, hold your money or execute trades. Markets carry risk; read scheme documents carefully and consult a registered adviser before acting.