STCG Tax Calculator 2026
Calculate Long-Term (12.5%), Short-Term (20%) Capital Gains Tax & Tax-Loss Harvesting strategies for Indian mutual funds & stocks.
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
Profit vs Tax Breakdown
₹2.77 L
₹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.
Short-Term Capital Gains (STCG) Framework: The Section 111A 20% Rate
Gains generated from selling listed equity shares, equity mutual fund units, or business trust units within a holding period of 12 months or less are classified as Short-Term Capital Gains under Section 111A and taxed at a flat rate of 20% (plus 4% cess).
There is zero threshold exemption (no ₹1.25L relief) on short-term gains; every rupee of net short-term gain is taxable.
Short-Term Capital Gains (STCG) FAQs
Essential rules for active stock traders and swing investors in India.
Is there any basic exemption limit on equity STCG under Section 111A?
There is no special exemption threshold for STCG. However, if you are a resident individual or HUF and your total other taxable income (salary, interest, etc.) is less than the basic exemption limit (₹3 Lakhs), you can adjust your STCG against the shortfall in the basic exemption limit.
Is intraday trading treated as Short-Term Capital Gain?
No. Intraday equity trading without delivery is statutorily classified as Speculative Business Income, not capital gains. It is taxed at your regular income tax slab rates.
Are Futures and Options (F&O) trades considered capital gains?
No. Trading in exchange-traded derivatives (Futures and Options) is classified as Non-Speculative Business Income under Section 43(5), taxed at regular personal or corporate slab rates.
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