How are gains on listed shares taxed in FY 2026-27?

Held for 12 months or less: short-term, taxed at 20%. Held longer: long-term, taxed at 12.5% on gains above ₹1,25,000 in the year. Cess of 4% is added to the tax.

What about shares bought before 1 February 2018?

For a long-term sale, the cost is taken as the higher of the actual cost and the lower of the 31 January 2018 value and the sale value.

Calculator

Capital Gains Tax Calculator

Tax on selling listed equity shares or equity mutual fund units (STT paid) in FY 2026-27 (AY 2027-28), at the rates in the Income-tax Act, 2025.

Bought on

Sold on

Purchase cost (₹)

Sale value (₹)

Other long-term equity gains this year (₹)

These use up the ₹1,25,000 exemption first.

Estimated tax on this sale

₹7,150

Holding: Long-term, 853 days
Capital gain: ₹1,80,000
Exemption used: ₹1,25,000
Taxable gain: ₹55,000
Tax at 12.5%: ₹6,875
Cess at 4%: ₹275
Total: ₹7,150

Rates used, FY 2026-27 (AY 2027-28)

Short-term (held 12 months or less): 20%Income-tax Act, 2025, section 196(1)
Long-term: 12.5% above ₹1,25,000 a yearIncome-tax Act, 2025, section 198(2)
Holding period for long-term: More than 12 monthsIncome-tax Act, 2025, section 2(101)(b)
Bought before 1 Feb 2018: Cost stepped up to the 31 Jan 2018 valueIncome-tax Act, 2025, section 90(7)
Health and Education Cess: 4% of the taxFinance Act, 2026, section 3(15)

Checked against the gazetted Acts on 29 Sept 2026. Income-tax Act, 2025 on incometax.gov.in

Two worked illustrations

Numbers only, at the FY 2026-27 (AY 2027-28) rates above, for someone with no other long-term equity gains that year. Brokerage, STT and other costs of selling and buying back are left out; they reduce both results.

Tax-loss harvesting

₹2,00,000 of long-term gains already booked this year, and another holding showing a ₹60,000 long-term loss. A long-term loss can be set off only against long-term gains; if unused, it can be carried forward for 8 tax years.

Long-term gains for the year
Figure	Loss not booked	Loss booked
Net long-term gain	₹2,00,000	₹1,40,000
Taxable above ₹1,25,000	₹75,000	₹15,000
Tax with cess	₹9,750	₹1,950

Using the yearly ₹1,25,000 exemption

Shares bought for ₹4,00,000, worth ₹5,20,000 after a year and ₹6,40,000 in a later year. Either sold once at the end, or sold and bought back at ₹5,20,000 in year one, which resets the cost and restarts the 12-month holding period.

Tax on the same total gain
Figure	Sold once	Sold in two years
Total gain	₹2,40,000	₹2,40,000
Taxable	₹1,15,000	₹0
Tax with cess	₹14,950	₹0