STCG Calculator
Enter what you paid and what you're selling for. You get the short-term capital gains tax on listed shares and equity mutual funds sold within a year, and what the same sale would cost if you held on past 12 months.
By Hardik Vegad, founder of WealthGamma · Last updated
STCG tax to pay
₹10,400
On a gain of ₹50,000, taxed at 20% plus 4% cess. Short-term gains have no tax-free limit.
Capital gain
₹50,000
Tax rate with cess
20.8%
Tax if held over 1 year
₹0
Net in-hand profit
₹39,600
What is STCG tax on shares and mutual funds?
STCG tax is the tax on profit from listed shares and equity mutual funds you sold within 12 months of buying. The rate is a flat 20% on the whole gain, plus 4% cess, which comes to 20.8%. There is no tax-free limit.
These are the rates set in the July 2024 Budget. Check the current rates before you file.
How is STCG tax calculated?
Take the gain and tax all of it:
Capital gain = Sell value − Purchase value
STCG tax = Capital gain × 20% × (1 + 4% cess)
Worked through for units bought at ₹2,50,000 and sold at ₹3,00,000:
- ₹3,00,000 − ₹2,50,000 = ₹50,000 of gain
- ₹50,000 × 20% × 1.04 = ₹10,400
- ₹3,00,000 − ₹10,400 = ₹2,89,600 in hand
How much more tax is STCG than LTCG?
A lot on small gains, because long-term gains get ₹1.25 lakh tax-free and a lower 12.5% rate. The same gain, short-term and long-term:
| Gain | STCG tax | LTCG tax | Extra tax |
|---|---|---|---|
| ₹50,000 | ₹10,400 | ₹0 | ₹10,400 |
| ₹1,00,000 | ₹20,800 | ₹0 | ₹20,800 |
| ₹2,00,000 | ₹41,600 | ₹9,750 | ₹31,850 |
| ₹5,00,000 | ₹1,04,000 | ₹48,750 | ₹55,250 |
LTCG column assumes no other long-term gains in the year. 4% cess included.
To work out the long-term side in full, use the LTCG calculator.
Should you wait until the gain turns long-term?
If you're a few weeks short of 12 months, waiting usually saves tax. On the example above, the tax falls from ₹10,400 to ₹0.
But the price can fall while you wait, and a small drop can cost more than the tax you save. Wait for the tax only when you'd be happy to keep holding anyway.
Can a short-term loss be set off?
Yes. A short-term capital loss can be set off against both short-term and long-term capital gains in the same year. Any loss left over can be carried forward for 8 years, as long as you file your return on time.
The tax harvesting calculator shows how much tax booking a loss saves.
What does this STCG calculator leave out?
It covers delivery trades in listed shares and redemptions of equity mutual funds. It doesn't count:
- Intraday and F&O. These are business income, taxed at your slab rate.
- Debt funds. Units bought after 1 April 2023 are taxed at your slab rate.
- Surcharge. It applies only at high incomes.
- Losses. Capital losses you can set off this year, or ones carried forward.
- Costs. Brokerage and exit loads, which lower your real gain.
Frequently asked questions
What is the STCG tax rate on shares and equity mutual funds?
20% on the whole gain, plus 4% cess, which works out to 20.8%. It applies to listed shares and equity mutual funds sold within 12 months of buying.
How do I calculate STCG tax?
Gain = sell value − purchase value. Multiply it by 20% and add 4% cess. A gain of ₹50,000 is taxed ₹10,400.
Is there a tax-free limit on STCG?
No. The ₹1.25 lakh yearly limit is only for long-term gains. Short-term gains on shares and equity funds are taxed from the first rupee.
Is STCG taxed at my income tax slab?
Not for listed shares and equity mutual funds. Those are taxed at a flat 20% whatever your slab. Debt funds bought after 1 April 2023 are taxed at your slab rate.
Can a short-term loss be set off?
Yes. A short-term capital loss can be set off against short-term or long-term capital gains in the same year. What is left can be carried forward for 8 years if you file your return on time.
Is intraday profit short-term capital gain?
No. Profit from buying and selling the same share on the same day is treated as business income and taxed at your slab rate. This calculator is for delivery trades and fund redemptions.