STCG Tax Calculator 2026

Calculate Long-Term (12.5%), Short-Term (20%) Capital Gains Tax & Tax-Loss Harvesting strategies for Indian mutual funds & stocks.

Total Purchase Value (Buy Price)

₹

₹10,000₹1.00 Cr

Total Sale Value (Sell Price)

₹

₹10,000₹2.00 Cr

Holding Period (Months)

1120

Classification: Short-Term Capital Gain (STCG)

Holding period is 12 months or less. Taxed at 20% flat on total profits (Section 111A).

Total Tax Liability

₹72,800

Effective Tax Rate: 20.8% of gross profit

Gross Profit₹3.50 L

Net In-Hand Profit₹2.77 L

Profit vs Tax Breakdown

Net In-Hand Profit

₹2.77 L

Total Tax Paid

₹72,800

Net Return on Investment: 55.44%

Step-by-Step Tax Calculation

Step / Particulars	Amount (₹)	Notes & Applicable Rules
1. Purchase Value (Buy Price)	₹5.00 L	Initial cost of acquisition
2. Sale Value (Sell Price)	₹8.50 L	Gross realization on sale
3. Gross Capital Gain / Profit	₹3.50 L	Sale Value − Buy Value
4. Base STCG Tax (20%)	₹70,000	20% of Gross Profit
5. Health & Education Cess (4%)	₹2,800	4% on Base Tax
Total Tax Liability Payable	₹72,800	Base Tax + 4% Cess
Final Net In-Hand Profit	₹2.77 L	Gross Profit − Total Tax

Capital Gains Visual Breakdown

Comparison between total purchase value, gross capital profit, tax liability, and net retained profit.

About Capital Gains Tax on Mutual Funds & Stocks (Budget Rules)

Capital Gains Tax applies when you sell listed equity shares or equity-oriented mutual funds at a profit. Under revised regulatory guidelines:

Long-Term Capital Gains (LTCG — Section 112A): Applies when equity investments are held for more than 12 months. Taxed at 12.5% on gains exceeding ₹1.25 Lakhs per financial year.
Short-Term Capital Gains (STCG — Section 111A): Applies when equity investments are held for 12 months or less. Taxed at 20% flat on gross profits.
Tax-Loss Harvesting: An effective strategy where you sell profitable equity investments up to ₹1.25L before March 31 to utilize your zero-tax limit and immediately repurchase to reset your cost base.

Tax Formulas

LTCG Tax Formula (Section 112A):

Taxable LTCG = Gross LTCG − ₹1,25,000

Total LTCG Tax = (Taxable LTCG × 12.5%) × 1.04

STCG Tax Formula (Section 111A):

Total STCG Tax = (Gross STCG × 20%) × 1.04

Authoritative References

Short-Term Capital Gains (STCG) FAQs

What is the STCG tax rate on equity shares?

Under Section 111A, Short-Term Capital Gains on listed equity shares and equity mutual funds held for 12 months or less are taxed at a flat 20%, raised from 15% in Budget 2024. Cess applies on top.

Is there an exemption limit for short-term capital gains?

There is no separate STCG exemption. However, a resident individual whose other income falls below the basic exemption limit may adjust the unused portion of that limit against equity STCG, reducing the taxable gain.

Can short-term capital loss be set off against LTCG?

Yes. A Short-Term Capital Loss is the most flexible of capital losses — it can be set off against both STCG and LTCG in the same year, and carried forward for 8 assessment years if the return is filed by the due date.

How is STCG on debt funds and other assets taxed?

Only listed equity gets the flat 20% Section 111A rate. Short-term gains on debt funds, gold, unlisted shares and property are added to your total income and taxed at your slab rate, which can reach 30% plus surcharge and cess.

Is intraday equity trading taxed as short-term capital gains?

No. Intraday equity is speculative business income because no delivery takes place, so it is added to your total income and taxed at slab rates, not at the 20% section 111A rate. It is reported in ITR-3 under business income, and speculative losses can only be set off against speculative profits, carried forward four years. This is the single most common mistake in equity returns — traders wrongly file intraday turnover as STCG.

Are F&O profits treated as capital gains?

No. Futures and options are non-speculative business income, filed in ITR-3, and taxed at slab rates. Because it is business income you may claim expenses such as brokerage, internet, advisory fees and depreciation on the trading laptop, and losses can be set off against any head except salary, then carried forward eight years if you file by the section 139(1) due date. A tax audit under section 44AB may apply depending on turnover and declared profit.

Does the STT I paid reduce my short-term capital gain?

No. Securities Transaction Tax is specifically disallowed as a deduction while computing capital gains under section 48. Brokerage, exchange charges, GST on brokerage and stamp duty are allowed as transfer expenses, but STT is not. Paying STT is instead the condition that gets you the concessional 20% rate under section 111A — without it, a short-term equity gain would simply be added to your income and taxed at slab rates.

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