IT Act 1961: s.111A, 112A · IT Act 2025: s.196–198 · Rates w.e.f. 23-07-2024 · FY 2026-27 (AY 2027-28)
If you bought in multiple batches (SIP or repeat purchases), add each as a separate row. Sale is matched oldest-first (FIFO) — same as your demat account and Indian tax rules.
s.111A, 112A · IT Act 2025: s.196–198 ·
Rates per Finance (No. 2) Act 2024 for transfers on/after 23-07-2024
The Tax Harvesting Calculator shows what you actually keep after tax when you sell shares or equity mutual fund units — not just the raw gain. If you bought in multiple batches (common with SIPs or repeated purchases), it matches your sale against the oldest purchases first (FIFO), exactly as Indian tax law and your demat statement do, and works out short-term and long-term gains lot by lot.
It also tells you, in plain language: whether waiting a little longer before selling would save tax on a still-short-term holding; whether a large long-term gain could attract less tax if split across two financial years to use two separate ₹1,25,000 exemptions; and — its signature feature — whether selling a currently loss-making holding can reduce the tax on gains you've already booked this year (tax-loss harvesting), which is especially useful before the 31 March financial year-end.
All computations use the flat rates applicable under the Finance (No. 2) Act 2024 for transfers on or after 23 July 2024: STCG at 20% under s.111A / s.196 and LTCG at 12.5% under s.112A / s.197 with the ₹1,25,000 yearly exemption. No data is transmitted to any server — everything runs entirely in your browser.
What does FIFO mean and why does it matter?
FIFO stands for "First In, First Out." When you sell shares or mutual fund units bought in multiple batches, tax rules treat the oldest holdings as being sold first. This matters because different batches may have different holding periods — some might qualify as long-term while others are still short-term — which changes the tax on each portion.
I'm close to the 12-month mark on my most recent batch — should I wait?
Often yes, purely from a tax standpoint — the tool shows the exact rupee amount you'd save by waiting for the relevant lot to cross 12 months. But the price could also move while you wait, and that's a real risk the tool doesn't predict.
My gain is already long-term — is there anything left to save?
Possibly. If your long-term gain is well above the ₹1,25,000 yearly tax-free limit, selling everything at once means only one exemption applies. Selling part now and the rest on or after 1 April (next financial year) can let you use two separate ₹1,25,000 exemptions. The tool shows this option automatically when it's likely to make a meaningful difference.
What is tax-loss harvesting and is it legal?
Yes, completely legal and commonly used. If a holding is currently worth less than what you paid, selling it creates a loss that can reduce the tax on gains you've made elsewhere this year. India has no rule stopping you from repurchasing the same share/fund afterwards if you still want to hold it. Just make sure the sale settles before 31 March for it to count in the current financial year.
What are the current STCG and LTCG rates for equity?
For listed equity and equity mutual funds (STT paid), short-term capital gains (held less than 12 months) are taxed at a flat 20% under s.111A. Long-term capital gains (held 12 months or more) are taxed at 12.5% under s.112A after a ₹1,25,000 exemption per financial year. These rates apply to transfers on or after 23 July 2024 per the Finance (No. 2) Act 2024.
Does this account for surcharge or cess?
No — to keep the numbers easy to follow, this tool shows the flat 20%/12.5% rates without surcharge or health & education cess, which can add a bit more depending on your total income. For an exact figure for your tax return, use this alongside a full computation or consult a Chartered Accountant.
Can I enter SIP investments with multiple NAVs?
Yes — that's exactly what the "Add another purchase batch" button is for. Add each SIP instalment (or manual purchase) as its own row with its date, price per unit (NAV), and quantity. The calculator matches them oldest-first automatically, just like your demat statement and the tax rules.
Indian tax law gives equity investors several completely legal ways to reduce the capital gains tax they pay. These are not loopholes — they are built into the Income-tax Act itself. Here are the five most effective strategies, all of which this calculator helps you model.
1. Use your ₹1,25,000 LTCG exemption every year — even if you don't need to sell
Under Section 112A, the first ₹1,25,000 of long-term capital gains from equity shares and equity mutual funds each financial year is completely tax-free. This exemption resets on 1 April every year. If you do not use it, it lapses — you cannot carry it forward. The strategy: every year before 31 March, sell enough units to book up to ₹1,25,000 of long-term gain, then immediately re-buy the same units. You pay zero tax, your cost of acquisition resets to the higher current price, and your future tax liability reduces. This is called "gain harvesting" or "LTCG harvesting."
2. Book a loss before 31 March to set off against gains you've already made
If you hold a share or fund that is currently worth less than what you paid, selling it before 31 March creates a capital loss. That loss can be set off against capital gains you have already made elsewhere this year — reducing your tax bill. A short-term loss can be set off against both short-term and long-term gains. A long-term loss can only be set off against long-term gains. After booking the loss, you can immediately re-buy the same share or fund — India has no "wash sale" rule that prevents this. Use the toggle on this calculator to see exactly how much tax you can save.
3. Wait for 12 months — convert STCG (20%) to LTCG (12.5%)
Short-term capital gains on equity (held less than 12 months) are taxed at a flat 20% under Section 111A. Hold the same shares for just one day more than 12 months and the gain becomes long-term, taxed at 12.5% after the ₹1,25,000 exemption under Section 112A. That is a 7.5 percentage point saving on your gain, plus the benefit of the exemption. This calculator shows you — for each purchase batch — exactly how many days to wait and how much tax you would save by waiting.
4. Split a large long-term gain across two financial years
If your long-term gain is well above ₹1,25,000, selling everything in one financial year means you only get one ₹1,25,000 exemption. But if you sell part of your holding before 31 March and the rest on or after 1 April, you use two separate ₹1,25,000 exemptions — one for each financial year — saving up to ₹15,625 in tax (₹1,25,000 × 12.5%). This calculator shows the split-FY option automatically when it applies and calculates the exact saving for your numbers.
5. Carry forward unused losses for up to 8 years
If your capital loss in a year is more than the gains you can set it off against, the unused loss is not wasted. It can be carried forward and set off against capital gains in any of the next 8 financial years (Section 74 of the Income-tax Act, 1961 / Section 135 of the Income-tax Act, 2025). The only condition: you must file your Income Tax Return on or before the due date of the year in which the loss was incurred. Missing the filing deadline means the loss cannot be carried forward.