Capital Gains Tax on Shares, Property & Gold (2026-27)
Profit from selling an asset is a capital gain. The charging section moved from Sec 45 → Sec 67. Since Budget 2024 there are only two holding periods to remember.
Long-Term vs Short-Term — Just 2 Rules
| Asset | Short-term if sold | Long-term from | STCG rate | LTCG rate |
|---|---|---|---|---|
| Listed shares / equity MF | < 12 months | ≥ 12 months | 20% | 12.5% (above ₹1.25L/year exemption) |
| Property (land/building) | < 24 months | ≥ 24 months | Slab rate | 12.5% (no indexation)* |
| Gold, unlisted shares, debt MF | < 24 months | ≥ 24 months | Slab rate | 12.5% (no indexation) |
| Crypto / VDA | — (holding irrelevant) | — | — | Flat 30% always |
*For property bought before 23 July 2024, resident individuals/HUFs may choose the lower of 12.5% without indexation or 20% with indexation.
• Holding ≥ 12 months → LTCG of ₹80,000
• The first ₹1,25,000 of equity LTCG in a year is exempt → tax = ₹0
Next year (TY 2027-28) his equity LTCG is ₹3,00,000 → tax on (3,00,000 − 1,25,000) × 12.5% = ₹21,875 + cess.
Had he sold within 8 months → STCG ₹80,000 @ 20% = ₹16,000 + cess. Holding period = money saved.
• Gain = ₹40,00,000
• Current rule: 12.5% without indexation = ₹5,00,000 + cess
• Because it was a pre-23-7-24 purchase, the option exists: 20% with indexation — indexed cost ≈ ₹50L × (CII factor ~1.4) ≈ ₹70L → gain ₹20L × 20% = ₹4,00,000 ✔lower!
Resident individuals may compute both and pick the lower number (have your CA verify indexation — the CII table updates every year).
Set-off Rules (Adjusting Losses)
- Short-term loss → offsets both STCG and LTCG
- Long-term loss → offsets only LTCG
- Capital losses can never offset salary or business income
- Unabsorbed losses carry forward 8 years (only if the ITR was filed on time)
- Crypto (VDA) loss → offsets against nothing, and doesn't carry forward either
Sec 54-type Exemptions (Save by Reinvesting)
LTCG from selling a residential property can be exempt if it's reinvested in another residential property within the timelines (purchase within 2 years / construct within 3, ₹10 crore cap). These provisions carry over into the new Act unchanged in substance.
By TaxSetu Editorial Team · Last reviewed: 7 October 2026
Based on the Income-tax Act 2025, Income Tax Rules 2026 and CBDT notifications; sections per the Income-tax Act 1961 (as amended) with 2025-Act mappings where notified · Verify on the official portal: incometax.gov.in