Capital Gains Tax FY 2026-27: Rates, Holding Periods, Exemptions & Filing Guide
Budget 2024 rewrote the rules — STCG 20% on listed equity, LTCG 12.5% above ₹1.25 lakh, unified 12/24-month holding periods, indexation removed on most assets. Know your exact liability before you file ITR-2/3 for AY 2027-28.
Key Compliance Specifications
At-a-Glance Statutory Requirements
Any taxpayer (resident/non-resident) with capital asset transfer during FY 2026-27 (1 Apr 2026 – 31 Mar 2027). Mandatory ITR filing if total income > basic exemption limit OR to carry forward capital losses.
No government fee for capital gains tax payment; tax paid via challan (ITNS 280) on e-Filing portal. Professional CA fees vary: ₹5,000–₹25,000+ depending on portfolio complexity.
Tax computation: Immediate post-sale. ITR filing deadline: 31 July 2027 (non-audit), 31 Oct 2027 (audit). Refund/processing: 4–8 weeks post e-verification.
Annual compliance. Capital losses carried forward 8 assessment years if return filed by due date. LTCG exemption ₹1.25 lakh/FY resets each financial year.
Interest u/s 234A (1%/month), 234B/C (advance tax shortfall). 143(1) mismatch demand if AIS/TIS not reconciled. Loss carry-forward forfeited if return filed late. Penalty u/s 271F (₹5,000) for late filing. Black Money Act penalties for undisclosed foreign assets (Schedule FA).
What is Capital Gains Tax Filing & Planning?
Capital gains tax is levied under Section 45 (now Section 67 of Income-tax Act, 2025) on profits arising from the transfer of a capital asset during the financial year. For FY 2026-27 (Tax Year 2026-27, formerly AY 2027-28), the regime is governed by the Finance (No. 2) Act, 2024 amendments effective 23 July 2024. The law classifies assets by holding period into Short-Term Capital Assets (STCA) and Long-Term Capital Assets (LTCA) with unified thresholds: 12 months for listed equity shares, equity-oriented mutual funds, listed securities, zero-coupon bonds, and gold ETFs/MFs; 24 months for immovable property, unlisted shares, physical gold, debt mutual funds (pre-April 2023 units), and foreign shares. Gains are computed as Full Value of Consideration minus (Cost of Acquisition + Cost of Improvement + Transfer Expenses). For LTCA (except listed equity), indexation benefit using Cost Inflation Index (CII) has been withdrawn — except the grandfathering option for resident individuals/HUFs on property acquired before 23 July 2024. The LTCG exemption on listed equity/equity MFs is ₹1.25 lakh per financial year (Section 112A/198), applied across all such gains combined. Debt mutual funds acquired on/after 1 April 2023 are taxed at slab rates regardless of holding period.
Governing Act: Income-tax Act, 2025 (effective 1 April 2026) incorporating Finance (No. 2) Act, 2024 amendments; corresponding old Sections 45-55 of Income-tax Act, 1961
Regulatory Authority: Central Board of Direct Taxes (CBDT), Income Tax Department
Who Needs to Comply / Eligibility Criteria
Key Benefits & Strategic Advantages
Statutory protections and operational advantages of timely compliance.
Document Checklist
Required Proofs & Paperwork
Official Fee Schedule
Statutory Government Fees & Penalty Matrix
| Category / Taxpayer Slabs | Government Fee | Applicable Penalty / Late Fee | Compliance Notes |
|---|---|---|---|
| Listed Equity Shares / Equity MFs — STCG (≤12 months) | 20% flat + surcharge (capped at 15%) + 4% cess ≈ 23.92% effective max | Interest u/s 234A/B/C for delayed payment/filing; 271F ₹5,000 late filing fee | No ₹1.25L exemption. Surcharge cap 15% applies even if total income > ₹5 cr. |
| Listed Equity Shares / Equity MFs — LTCG (>12 months) | 12.5% on gains exceeding ₹1.25 lakh/FY + surcharge + 4% cess ≈ 14.95% effective max | Same as above. AIS mismatch → 143(1) demand notice. | ₹1.25L exemption aggregated across all listed equity/equity MF LTCG in FY. No indexation. Grandfathering (pre-31-Jan-2018) no longer applies post-23-Jul-2024. |
| Immovable Property (Land/Building) — LTCG (>24 months) | 12.5% without indexation (default) OR 20% with indexation (option for resident individual/HUF if acquired before 23 Jul 2024) | TDS u/s 194-IA (1% on sale > ₹50L) — buyer deducts; seller claims credit. 234A/B/C interest on shortfall. | Option exercised per property at filing. Non-residents & companies: only 12.5% no indexation. Stamp duty value (Section 50C) deemed sale consideration if lower. |
| Immovable Property — STCG (≤24 months) | Slab rates (as per applicable tax regime — old or new u/s 115BAC) | Same advance tax/filing penalties. | No indexation. Cost of improvement eligible with receipts. |
| Debt Mutual Funds (acquired ≥1 Apr 2023) | Slab rates regardless of holding period — no LTCG benefit | Standard interest/penalty provisions. | Hard cutoff: 1 April 2023. Pre-April 2023 units: LTCG >24 months at 12.5% no indexation. |
| Physical Gold / Silver / SGBs — LTCG (>24 months) | 12.5% without indexation | Standard provisions. | SGBs held to 8-year maturity: fully exempt. Gold ETFs/MFs: 12-month LTCG at 12.5%. |
| Unlisted Shares / Foreign Shares — LTCG (>24 months) | 12.5% without indexation | Schedule FA non-disclosure: Black Money Act penalty ₹10 lakh + 300% tax + prosecution. | Foreign shares STCG (<24 months): slab rate (not 20%). ESOP: perquisite tax at exercise (slab) + CG at sale. |
| Professional CA/CS Assistance (FinacBooks) | ₹5,000 – ₹25,000+ (portfolio complexity, entity type, foreign assets, scrutiny support) | N/A | Includes AIS/TIS reconciliation, computation, ITR-2/3 filing, advance tax planning, notice response, CGAS guidance. |
Official Filing Procedure
Step-by-Step e-Filing Workflow
Process executed on the official regulatory portal: Income Tax e-Filing Portal (incometax.gov.in)
Download & Reconcile AIS / TIS
Log in to incometax.gov.in → Services → Annual Information Statement (AIS). Download AIS (JSON/PDF) and TIS. Match every equity/MF/property/foreign transaction against your records. Flag mismatches (corporate actions, split/bonus misreporting, wrong ISIN). Use 'AIS Feedback' facility to raise corrections — response is logged and accompanies your return.
Classify Each Asset & Determine Holding Period
For every sale in FY 2026-27: identify asset class (listed equity, equity MF, debt MF, property, gold, unlisted shares, foreign shares, SGB, VDA/crypto). Compute holding period from acquisition date to sale date. Apply correct threshold: 12 months (listed equity, equity MF, listed securities, gold ETF/MF) or 24 months (property, unlisted shares, physical gold, debt MF pre-Apr-2023, foreign shares). Tag as STCG or LTCG.
Compute Cost of Acquisition & Improvement
Gather purchase contracts, broker notes, stamp duty, registration, improvement receipts. For inherited/gifted assets: use previous owner's actual cost & date. For pre-23-Jul-2024 property (resident individual/HUF): prepare two computations — (a) 12.5% without indexation, (b) 20% with CII=384 (FY 2026-27) indexation — choose lower. For equity MFs: use FIFO across folios. For corporate actions: allocate cost per Income Tax rules.
Calculate Gain/Loss per Asset & Apply Exemptions
Gain = Sale Consideration – (Indexed/Non-indexed Cost of Acquisition + Indexed/Non-indexed Cost of Improvement + Transfer Expenses). Aggregate all listed equity/equity MF LTCG; apply ₹1.25 lakh exemption (Section 112A/198). Compute tax: STCG equity 20%; LTCG equity 12.5% on excess; Property LTCG per chosen option; Debt MF slab; Gold 12.5% LTCG; Foreign shares 12.5% LTCG/ slab STCG. Set off losses: STCL vs STCG/LTCG; LTCL only vs LTCG. Unabsorbed loss → carry forward 8 years (file on time).
Pay Advance Tax / Self-Assessment Tax
If estimated total tax liability (including capital gains) ≥ ₹10,000, pay advance tax in installments: 15% by 15 Jun, 45% by 15 Sep, 75% by 15 Dec, 100% by 15 Mar. For capital gains arising after 15 Mar, pay self-assessment tax before filing. Use Challan 280 on e-Filing portal (e-Pay Tax). Select correct assessment year (2027-28) and tax head (0021 — Income Tax other than companies).
Prepare & File ITR (ITR-2 or ITR-3)
Choose form: ITR-2 (no business income) or ITR-3 (business income). Fill Schedule CG (all asset-wise details), Schedule 112A (equity LTCG), Schedule 115AD (NRI/FPI), Schedule VDA (crypto/VDA if any), Schedule FA (foreign assets). Auto-populate from pre-filled JSON (salary, TDS, AIS). Verify every capital gains entry against your computation sheets. Disclose exempt LTCG (₹1.25L) in Schedule 112A. Claim Section 54/54F/54EC/54EE deductions in Schedule CG.
E-Verify Return Within 30 Days
After submission, e-verify via Aadhaar OTP, net banking, DSC, EVC (bank/DEMAT), or send signed ITR-V to CPC Bengaluru. Return is treated as filed only after verification. Deadline: 30 days from filing. Unverified return = invalid → late filing penalties apply.
Track Processing & Respond to Notices
Monitor 'View Filed Returns' → 'e-Proceedings' for 143(1) intimation (usually 3–6 months). If demand raised due to AIS mismatch, respond via 'e-Proceedings' with supporting docs (contract notes, valuation reports). For scrutiny notice u/s 143(2), engage CA immediately. Keep all records 6 years from end of relevant AY.
Risk Mitigation & Error Prevention
Common Rejection Causes & Penalty Notices
- AIS/TIS not reconciled — leads to 143(1) auto-demand for unreported gains
- Wrong holding period classification (e.g., treating 13-month equity as LTCG but 23-month property as STCG)
- Missing ₹1.25 lakh LTCG exemption aggregation across multiple demat accounts/folios
- Ignoring debt MF April 2023 cutoff — claiming LTCG on post-April-2023 units
- Not filing Schedule FA for foreign shares/ESOPs/RSUs — Black Money Act exposure
- Forgetting to claim Section 54/54F/54EC investment within timelines (1 yr before/2 yr after/3 yr construction)
- Filing ITR-1 instead of ITR-2/3 when capital gains exist — defective return u/s 139(9)
- Not paying advance tax on lump-sum capital gains — 234B/C interest
Section 234A: 1% per month on unpaid tax if return filed after due date. Section 234B: 1% per month on advance tax shortfall (<90% of assessed tax). Section 234C: 1% per month on deferred installments. Section 271F: ₹5,000 late filing fee (if total income > ₹5 lakh; ₹1,000 if ≤ ₹5 lakh). Section 143(1) intimation: auto-demand for AIS mismatch — 30 days to respond. Section 143(2) scrutiny: detailed enquiry. Section 270A: 50–200% penalty on under-reported income. Black Money Act (foreign assets): ₹10 lakh penalty + 300% tax + up to 10 years imprisonment.
Engage a FinacBooks CA when: (1) Portfolio spans multiple asset classes (equity, property, debt MF, foreign shares, crypto/VDA) with complex holding periods; (2) Property sale involves grandfathering choice (pre-23-Jul-2024) requiring dual computation & indexation; (3) Capital gains > ₹50 lakh or property sale > ₹1 crore — higher scrutiny risk; (4) NRI/foreign asset holder needing DTAA relief, TRC, Form 10F, Schedule FA; (5) ESOP/RSU two-stage taxation (perquisite + CG) with vesting across years; (6) Corporate actions (bonus, split, demerger, buyback) distorting cost basis; (7) Received 143(1) mismatch notice or 143(2) scrutiny notice; (8) Want to optimize Section 54/54F/54EC/54EE reinvestment & CGAS deposit strategy; (9) Carry-forward losses from prior years needing set-off verification.
Frequently Asked Questions on Capital Gains Tax Filing & Planning
Get Expert CA Assistance for Error-Free Capital Gains Filing & Tax Planning
FinacBooks connects you with verified Chartered Accountants across India for end-to-end capital gains compliance: AIS/TIS reconciliation, multi-asset computation (equity, property, MFs, foreign shares, ESOPs, crypto), ITR-2/3 filing, advance tax optimization, Section 54/54F/54EC reinvestment strategy, CGAS guidance, and scrutiny notice response. 100% remote, pan-India support. Book a free 15-min consultation today.
Consult a Verified Professional for Capital Gains Tax Filing & Planning
Submit your details below to receive direct assistance from a registered practitioner.
Get in Touch
Tell us what help you are looking for.
Explore Related Topics
Related Statutory & Compliance Guides
Income Tax Return Filing (General)
File ITR for FY 2026-27 (AY 2027-28) by 31 Jul 2027. Check new/old tax slabs, Forms ITR-1 to ITR-7, documents, penalties & step-by-step e-filing guide.
GST Registration
Step-by-step guide to GST registration in India. Check eligibility, required documents, fees, timeline, penalties, and online application process on the GST portal.
PAN card application / e-PAN download
Apply for PAN Card or download e-PAN free in 10 mins. Verified 2026 fees (₹107/₹0), new Forms 93/94, step-by-step portal guide. Authoritative FinacBooks guide.
Trademark Registration in India
Complete guide to trademark registration in India 2026. Govt fees ₹4,500 (MSME/Startup) vs ₹9,000 (Company). Form TM-A filing, 12-18 month timeline, renewal rules. File via IP India portal.