Capital gains tax rates FY 2026-27: LTCG 12.5%, STCG 20% and the Rs 1.25 lakh exemption

For listed shares and equity mutual funds held over 12 months, long-term capital gains are taxed at 12.5%, with the first Rs 1.25 lakh of LTCG exempt each year; short-term gains (held 12 months or less) are taxed at 20% under Section 111A. These rates, effective for sales on or after 23 July 2024, continue in FY 2026-27. The 12.5% LTCG rate now applies broadly across asset classes, without indexation for most assets. The Section 87A rebate does not cover these special-rate gains. Compute your liability with our capital gains tax calculator.