Last updated: 2026-10-21
Capital gains tax rates (sales from 23 July 2024)
| What you sell | Long term if held | Short-term tax | Long-term tax |
|---|---|---|---|
| Listed shares, equity funds | Over 12 months | 20% | 12.5% above ₹1.25 lakh a year |
| Debt funds bought from April 2023 | Never | Slab rate, however long you hold | |
| Gold / silver ETFs, other listed units | Over 12 months | Slab rate | 12.5% |
| Other funds (gold or international FoFs) | Over 24 months | Slab rate | 12.5% |
Add 4% cess, and surcharge for very high incomes. The section 87A rebate doesn't cover these special rates.
Grandfathering for shares bought before February 2018
Gains made up to 31 January 2018 are protected. Your cost is the higher of what you paid and the 31 January 2018 value (but not more than the sale price).
Frequently asked questions
How can I save tax on long-term gains?
Use the ₹1.25 lakh yearly exemption fully: sell some equity units with gains each year and buy them back ("tax harvesting"). Losses can also offset gains.
Are SIP units taxed together?
No. Each SIP instalment is a separate purchase with its own 12-month clock. Units bought first are sold first.
Do I pay this tax while selling?
No TDS for residents. You pay it as advance tax during the year, or with your return. Report it in schedule CG of ITR-2 or ITR-3.