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Capital gains & tax harvesting calculator

Tax on listed shares and equity mutual funds for FY 2026-27 — with loss set-off, the ₹1.25 lakh exemption, and how much more you can book tax-free this year.

Gains booked this financial year

Losses booked this year or brought forward

Tax-gain harvesting

Gains on holdings older than 12 months that you have not sold yet.
Tax on these gains (incl. 4% cess)—
Net short-term gain (after set-off)—
Tax at 20%—
Net long-term gain (after set-off)—
Exemption used (max ₹1,25,000)—
Taxable long-term gain—
Tax at 12.5%—
Cess at 4%—

Exemption still unused this year—
Long-term gains you could book tax-free—
Future tax this could save—
Your tax after harvesting—

Educational tool with simplified assumptions. Returns are not guaranteed; actual results will differ. This is not investment, tax or legal advice.

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How it works

The maths, in plain English.

Rates, FY 2026-27. For listed shares and equity-oriented mutual funds (where securities transaction tax is paid): gains on holdings of 12 months or less are taxed at 20%; gains on longer holdings at 12.5%, after an exemption of ₹1.25 lakh a year across all such gains. Budget 2026 left these unchanged. A 4% cess applies.

Set-off. Short-term losses reduce short-term gains first, then long-term gains. Long-term losses reduce only long-term gains. Unused losses carry forward for eight years if the return is filed on time.

Tax-gain harvesting. The ₹1.25 lakh exemption cannot be saved for later. Selling long-held units to realise gains within the unused exemption, and buying back, resets your purchase price higher at no tax cost — reducing tax on a future sale. Mind exit loads, transaction costs and the day or two out of the market.

Not covered: debt funds (taxed at slab rates if bought on or after 1 April 2023), unlisted or foreign shares, property, gold, surcharge for high incomes, the basic-exemption adjustment for residents with low income, and the fact that the Section 87A rebate does not apply to these gains. We compute these as part of our tax filing service.

Questions

FAQ

What is the capital gains tax on shares and equity mutual funds in FY 2026-27?
Short-term gains (holding of 12 months or less) are taxed at 20%. Long-term gains are taxed at 12.5% on the amount above ₹1.25 lakh a year. A 4% cess applies to the tax. Budget 2026 did not change these rates.
What is tax-gain harvesting?
Booking long-term gains up to the ₹1.25 lakh yearly exemption and reinvesting, so your purchase cost resets higher and less gain is taxed later. The exemption lapses each 31 March if unused.
Can I set off short-term losses against long-term gains?
Yes. Short-term capital losses can be set off against both short-term and long-term gains. Long-term losses can be set off only against long-term gains.
How long can capital losses be carried forward?
Eight assessment years, provided you file the return for the loss year by the due date.
Does the ₹12 lakh tax-free limit cover capital gains?
No. The Section 87A rebate in the new regime does not apply to income taxed at special rates, including these capital gains.

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