{"id":2348,"date":"2026-10-13T21:10:53","date_gmt":"2026-10-13T15:40:53","guid":{"rendered":"https:\/\/www.tiwaripedia.com\/index.php\/2026\/10\/13\/capital-gains-tax-shares-mutual-funds\/"},"modified":"2026-10-13T21:18:19","modified_gmt":"2026-10-13T15:48:19","slug":"capital-gains-tax-shares-mutual-funds","status":"publish","type":"post","link":"https:\/\/www.tiwaripedia.com\/index.php\/2026\/10\/13\/capital-gains-tax-shares-mutual-funds\/","title":{"rendered":"Capital Gains Tax on Shares and Mutual Funds in India (STCG 20%, LTCG 12.5%)"},"content":{"rendered":"

Last updated: October 2026 \u00b7 3 min read<\/em><\/p>\n

When you sell shares or mutual fund units at a profit, the gain is taxed as capital gains<\/b>. The rates changed from 23 July 2024 and continue for 2026-27. Here is a simple guide.<\/p>\n

\"Infographic:
Capital Gains Tax on Shares and Mutual Funds in India (STCG 20%, LTCG 12.5%) \u2013 infographic by Tiwaripedia<\/figcaption><\/figure>\n

Equity shares and equity mutual funds<\/h2>\n
Type<\/th>Holding period<\/th>Tax rate<\/th><\/tr><\/thead>
Short-term capital gain (STCG)<\/td>12 months or less<\/td>20%<\/td><\/tr>
Long-term capital gain (LTCG)<\/td>More than 12 months<\/td>12.5% on gains above \u20b91.25 lakh per year<\/td><\/tr><\/tbody><\/table><\/figure>

These apply to listed shares and equity-oriented funds where Securities Transaction Tax (STT) is paid. Add 4% cess and any surcharge.<\/p>\n

Debt mutual funds and other assets<\/h2>\n
Asset<\/th>Rule<\/th><\/tr><\/thead>
Debt mutual funds bought on or after 1 April 2023<\/td>Gains taxed at your slab rate regardless of holding period<\/td><\/tr>
Gold, property, unlisted shares (long term)<\/td>12.5% without indexation; for land or buildings bought before 23 July 2024, individuals may choose 20% with indexation if lower<\/td><\/tr>
Long-term holding period<\/td>24 months for most non-equity assets; 12 months for listed securities<\/td><\/tr><\/tbody><\/table><\/figure>\n

Worked example<\/h2>\n

Priya invested \u20b95 lakh in an equity mutual fund and sold after 2 years for \u20b97.5 lakh. Her LTCG is \u20b92.5 lakh. The first \u20b91.25 lakh is exempt, so tax = 12.5% \u00d7 \u20b91.25 lakh = \u20b915,625 (+ cess). Had she sold within 12 months, the full \u20b92.5 lakh would be taxed at 20% = \u20b950,000.<\/p>\n

Ways to reduce capital gains tax legally<\/h2>\n