India Capital Gains Tax
Detailed capital gains tax rates and rules for India in 2026.
India's capital gains tax depends on the asset type and holding period. From FY 2024-25, long-term capital gains (LTCG) on all assets are taxed at a uniform 12.5% without indexation benefit. Short-term capital gains (STCG) on listed equity and equity mutual funds are taxed at 20%, while STCG on other assets is taxed at the individual's applicable slab rate. Listed equity and equity mutual funds are considered long-term if held for more than 12 months; unlisted shares and immovable property require 24 months; and other assets require 24 months for long-term classification.
Short-Term Rate
20%
Long-Term Rate
12.5%
Standard Rate
20%
Exemptions
- Long-term capital gains on listed equity up to INR 1.25 lakh per year are exempt (Section 112A)
- Gains reinvested in residential property under Section 54
- Gains reinvested in specified bonds under Section 54EC (up to INR 50 lakh)
- Gains from sale of agricultural land in rural areas
How India Capital Gains compares
India’s capital gains tax rate of 20% is the 43rd highest of 203 countries TaxAtlas tracks, above the global average of 13.8% and Asia’s regional average of 13.9%.
