Grandfathering (31 January 2018)
A rule that protects gains made before 1 February 2018 on shares and equity funds from long-term capital gains tax.
Long-term gains on listed equity became taxable from 1 February 2018. For anything bought before then, the cost used is the higher of what you paid and the lower of its value on 31 January 2018 and the sale price.
So only the growth after 31 January 2018 is taxed.
Example
Bought at ₹100 in 2015, worth ₹300 on 31 Jan 2018, sold at ₹400: the taxable gain is ₹100, not ₹300.
Capital Gains Tax Calculator
Short or long term, and the tax on selling shares, mutual funds, property or gold, under the 2026-27 rules.
Related terms
Rules as of tax year 2026-27. Written by the Welthr team; last reviewed on . Not financial advice.