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Tax & Business

Capital Gains Tax Calculator

Calculate short-term and long-term capital gains tax on the sale of assets with or without indexation benefits.

Inputs

01,00,00,00,000
01,00,00,00,000
1600

Calculation Results

Net Capital Gain

₹11,00,000

Capital Gains Tax

₹2,20,000

Effective Tax Rate

11.00%

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Formula & Mathematical Explanation

Capital Gain=Sale PriceIndexed/Actual Purchase Price\displaystyle \text{Capital Gain} = \text{Sale Price} - \text{Indexed/Actual Purchase Price}

Capital gain is the difference between the sale price and the cost of acquisition. If the asset is held for 24 months or longer, it is classified as Long-Term Capital Gain (LTCG) and taxed at 20% with indexation (which adjusts the purchase price for inflation, assumed at a factor of 1.3) or 10% without indexation. Assets held for less than 24 months generate Short-Term Capital Gains (STCG) taxed at 30%.

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