Capital Gains Tax Explained – Equity, Mutual Funds, Crypto & Real Estate (2026)

Capital gains arise when you sell a capital asset at a profit.
This guide simplifies:

• Short-Term vs Long-Term

• Tax rates

• Indexation

• Property gains

• Shares/Mutual Funds gains

• Crypto gains

• Exemptions & planning strategies

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🔍 What Are Capital Gains?

Whenever you sell an asset at a price higher than what you paid, the profit is called Capital Gain.

This applies to:

• Shares & Equity Mutual Funds

• Real Estate Property

• Gold

• Debt Mutual Funds

• Bonds, Jewellery & other assets

Capital gains are classified into:

• Short-Term Capital Gains (STCG)

• Long-Term Capital Gains (LTCG)

The tax treatment depends on:

• Type of asset

• Holding period

• Applicability of STT (for equities)

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🕒 How Long-Term vs Short-Term Works (Updated Rules)

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🔥 Updated Capital Gains Tax Rates (Budget 2024)

🟢 For Equity Shares & Equity Mutual Funds

➡ Exemption for Equity LTCG increased to ₹1,25,000 per year (Earlier ₹1,00,000)

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🟠 For Property & Other Non-Equity Assets

Plus:

• Indexation benefits apply for LTCG (property etc.)

• STCG is added to total income

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📈 Example — Equity LTCG (After Budget 2024)

Bought: ₹5,00,000
Sold: ₹7,40,000
Gain: ₹2,40,000

Exemption: ₹1,25,000
Taxable Gain: ₹1,15,000

Tax @ 12.5% = ₹14,375

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🏠 Example — Capital Gain on Property Sale

Bought in FY 2016: ₹50,00,000
Sold in FY 2024: ₹90,00,000
Let indexed cost = ₹70,00,000

Capital Gain: ₹20,00,000
Tax @12.5% = ₹2,50,000

→ If reinvested in another property / 54EC bonds, tax may be saved.

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💰 Capital Loss Rules (Important)

• You can carry forward capital losses for 8 years

• Short-term loss can be set off against both STCG & LTCG

• Long-term loss can be set off only against LTCG

✔️ Proper filing is essential to claim this.

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🧮 Capital Gains Calculator (Updated)

WonderTax Capital Gains Tax Calculator (2025) → Coming soon on https://wondertax.in

This will auto-apply:

• Updated rates (12.5% / 20%)

• Slab adjustments

• Indexation where applicable

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🧑‍⚖️ Tax-Saving Options for Capital Gains

For Property:

• Exemption under Section 54 (Reinvest in house property)

• 54EC Bonds (NHAI/REC/PowerGrid) within 6 months

For Mutual Funds or Shares:

• Harvest LTCG below ₹1.25L per year to reduce tax

• Optimal selling timing planning

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🛑 Important Compliance Notes

• Check sale date → new regime applies post 23 July 2024

• Maintain:

  • Contract notes

  • Purchase proofs

  • Indexation details

• Plan large gains before FY end

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🧠 Why You Must File Returns Correctly

If capital gains are not filed properly:

• You may receive Income Tax Notice

• Your refund may get delayed

• You may lose carry-forward business losses

At WonderTax, we ensure:

• Correct ITR forms

• Correct reporting under Schedule CG

• Indexation benefit calculation

• Supporting documentation

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📌 WonderTax Services

• ✔️ Capital Gains Tax Filing

• ✔️ Property Sale Tax Advisory

• ✔️ Equity/Mutual Fund CG Reporting

• ✔️ Crypto Taxation Compliance

Book a 30-minute expert call: https://wondertax.in/contact

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❓ FAQs — Capital Gains Tax (2025 Updated)

Q: Is LTCG on equity fully tax-free?
No. Only ₹1,25,000 per year is exempt. Beyond that → 12.5% tax

Q: Do I get indexation benefit for equities?
No. Indexation applies only to property, debt funds, bonds, gold etc.

Q: Do I need to pay tax if I reinvest in another house?
Yes, but you may get exemption under Section 54.

Q: Can I carry forward losses?
Yes, for 8 years, provided you file ITR before due date.

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🚀 Conclusion

Capital Gains taxation has seen major reforms in Budget 2024.
Higher rates mean professional tax-planning matters more than ever.

Whether you sold:

• Property

• Mutual funds

• Shares

• Bonds

WonderTax ensures the lowest possible tax legally payable.

https://wondertax.in/contact-us