Need Help Filing Your ITR?
What Is Capital Gain?
Sell an asset for more than you paid. That profit is a capital gain.
Capital assets include shares, mutual funds, bonds, gold, and property. They are taxed based on how long you hold them.
Your holding period decides everything. Hold short, pay one rate. Hold long, pay another.
Short-term and long-term are not the same. The line depends on the asset class.
Here is how EasyReturn classifies your assets:
| Capital Asset | Short Term | Long Term |
|---|---|---|
| Listed Shares | 1 year or less | More than 1 year |
| Equity-Oriented Mutual Funds | 1 year or less | More than 1 year |
| Property, Gold, Debt Funds & Other Assets | 2 years or less | More than 2 years |
Long-Term Capital Gains Tax (FY 2025-26)
Hold longer, and the rules shift in your favor. Your LTCG rate depends on the asset and the transfer date.
| Asset Type | Applicable Tax |
|---|---|
| Listed equity shares (STT paid) & equity mutual fund units | 12.5% on gains above ₹1.25 lakh, without indexation |
| Land, building, or both (Individuals & HUF) | 12.5% without indexation, or 20% with indexation |
| Other assets | 12.5% without indexation |
Short-Term Capital Gains Tax (FY 2025-26)
Sell early, and the rate climbs. Short holdings carry a heavier tax.
| Asset Type | Applicable Tax |
|---|---|
| Listed equity shares (STT paid) & equity mutual fund units | 20% without indexation |
| Other assets | Taxed at your income slab rate |
How the Easy Return Capital Gains Calculator Works
Numbers feel abstract. A worked example makes them real.
You buy 200 shares of a company at ₹1,000 each in May 2023. You sell all 200 at ₹1,800 each in January 2025.
You held them for more than one year. Your gain is ₹1,60,000 (₹3,60,000 − ₹2,00,000).
Now apply the exemption. The first ₹1.25 lakh stays tax-free.
You pay LTCG tax on ₹35,000 (₹1,60,000 − ₹1,25,000). At 12.5%, that is ₹4,375.
Easy Return runs this math instantly. You get your exact liability in seconds.
Use it in four steps:
- Select your holding period.
- Enter your sale value and purchase value.
- Add transfer costs (brokerage, fees) and the FMV where it applies.
- Get your gain and tax, calculated on the spot.
Why Growth-Minded Filers Choose Easy Return
You lead a business. Your time belongs to growth, not tax spreadsheets.
Easy Return gives you a system built for speed and certainty.
Frequently Asked Questions
Why does Easy Return ask for my holding period?
Your holding period decides your tax rate. Hold one year or less on equity, and you pay short-term tax. Hold more than one year, and long-term rates apply. Easy Return reads your dates and picks the correct rate for you.
Why does Easy Return ask for the Fair Market Value (FMV)?
The FMV protects gains you earned before the rules changed. For equity bought on or before 31 January 2018, the government grandfathered earlier gains.
Your cost of acquisition becomes the higher of two figures:
- The actual price you paid.
- The lower of the FMV on 31 January 2018 and your final sale value.
Easy Return applies this formula automatically. You keep the relief you are owed.
What is the grandfathering clause?
A new tax rule can leave older decisions untouched. That protection is called grandfathering.
Equity LTCG became taxable from 1 April 2018. Gains earned up to 31 January 2018 stay exempt. You made those investments under the old law, so you keep the benefit.
How much LTCG stays tax-free each year?
You pay no tax on the first ₹1.25 lakh of equity LTCG in a financial year. Easy Return applies this exemption before calculating your liability.
Can I file my full ITR with Easy Return?
Yes. Calculate your gains, then file your complete return on the same platform. One place, from first number to final submission.
CA Sagar Batra
ICAI Registered Chartered Accountant · 10+ Years of Professional Experience · 12,000+ Tax Filings
Chartered Accountant with experience in taxation, compliance and business advisory. His work covers Income Tax, GST, TDS, tax notices, business compliance and financial documentation for individuals and businesses across India.