What is the difference between short-term and long-term capital gains?

Short-term gains come from stocks held for less than 12-24 months, depending on your country. Long-term gains come from stocks held longer. Long-term gains usually have lower tax rates. In India, short-term gains are taxed at 20%, while long-term gains are taxed at 12.5%.

How much tax do I pay when I sell shares in India?

In India, short-term capital gains on stocks are taxed at 20%. Long-term gains (stocks held over 12 months) are taxed at 12.5% for gains above ₹1.25 lakh. Securities Transaction Tax is paid separately when you sell.

Do I pay capital gains tax if I reinvest my profits?

Yes, you still owe capital gains tax when you sell stocks, even if you reinvest the money immediately. The tax is triggered by the sale, not by what you do with the money afterward.

Which country has the lowest capital gains tax?

The UAE does not levy personal income tax on individuals. However, an NRI or expat may still owe tax in India or another country where the investment or gain arises. Check both residence-country and source-country rules before selling.

Capital Gains Tax Calculator

Estimate tax on stock profits for US, UK, India, and UAE investors.

Example Calculation

Scenario: You bought 100 shares at $100 and sold at $150 after 2 years.

Purchase (100 × $100)$10,000

Sale (100 × $150)$15,000

Capital Gain$5,000

Tax (15% long-term)-$750

Net Profit$4,250

Country-Specific Tax Rates

Country	Short-Term Rate	Long-Term Rate	Holding Period for LTCG
India	20%	12.5%	Over 12 months
USA	Income-based	Income-based	Over 12 months
UK	Income-based	Income-based	No holding-period distinction
UAE	No personal income tax	No personal income tax	No holding-period distinction

Frequently Asked Questions

Capital gains tax is calculated on the profit you make when selling stocks. Subtract your purchase price from your sale price, then multiply by the number of shares. The tax rate depends on how long you held the stock and which country you live in.

Glossary

Capital Gain

The profit you make when you sell an asset for more than you paid. If you bought a stock at ₹100 and sold at ₹150, your capital gain is ₹50.

Holding Period

The length of time between when you bought a stock and when you sold it. This determines if your gain is short-term or long-term.

Long-Term Capital Gains (LTCG)

Profit from selling stocks held longer than the threshold period (usually 12 months). These gains are taxed at lower rates in most countries.

Short-Term Capital Gains (STCG)

Profit from selling stocks held for less than the threshold period. These are usually taxed at higher rates or as regular income.

Net Profit

The amount you actually keep after paying capital gains tax. This is your capital gain minus the tax owed.

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TradingKite

Use this calculator inside your India tax workflow.

TradingKite connects LTCG/STCG checks, exemption tracking, holdings review, and after-tax portfolio actions instead of leaving you with a one-off estimate.

Track India Holdings Review Tax Workflow