What is STCG tax rate in India?

Short-term capital gains (STCG) on listed equity shares held for less than 12 months is taxed at 20% under Section 111A. This is a flat rate regardless of your income tax slab.

How do I calculate capital gains on stocks?

Capital Gain = (Sale Price - Purchase Price) × Number of Shares. If the result is positive, you have a gain. If negative, you have a loss that can be set off against other capital gains.

Is STT deducted from capital gains?

STT (Securities Transaction Tax) is paid separately at the time of transaction and is not deducted from capital gains. However, STT payment is a condition for the lower LTCG/STCG rates under Section 112A and 111A.

Can I set off capital losses against gains?

Yes. Short-term losses can be set off against both short-term and long-term gains. Long-term losses can only be set off against long-term gains. Unabsorbed losses can be carried forward for 8 years.

Do I need to pay advance tax on capital gains?

If your total tax liability (including capital gains tax) exceeds ₹10,000 in a financial year, you need to pay advance tax in quarterly installments to avoid interest under Section 234B and 234C.

Capital Gains Tax Calculator India

Calculate LTCG and STCG tax on stocks under Section 112A and Section 111A. Includes ₹1.25 lakh exemption for long-term equity gains.

Calculate Your Tax

Buy Date

Sell Date

Buy Price (₹)

Sell Price (₹)

Quantity

What this calculator does

Calculates capital gain from your stock sale
Applies LTCG (12.5%) or STCG (20%) based on holding period
Accounts for ₹1.25 lakh LTCG exemption
Shows net profit after tax deduction

How to Use

Enter purchase price

The price you paid per share when buying

Enter sale price

Current price or your selling price

Add quantity

Number of shares you want to sell

Select holding period

More than 12 months = LTCG, less = STCG

Check exemption

First ₹1.25L of LTCG is tax-free

View results

See gain, tax amount, and net profit

Example

You bought 200 shares of Reliance at ₹2,400 per share in January 2024. You sold them at ₹2,900 per share in March 2025 (held for 14 months).

Purchase Value (200 × ₹2,400)₹4,80,000

Sale Value (200 × ₹2,900)₹5,80,000

Capital Gain₹1,00,000

LTCG Exemption (Section 112A)- ₹1,00,000

Taxable LTCG₹0

Tax @ 12.5%₹0

Net Profit₹1,00,000

Since the gain (₹1,00,000) is below the ₹1.25 lakh exemption limit, no tax is payable. You keep the entire profit.

India Capital Gains Tax Rates (2024-25)

Type	Holding Period	Tax Rate	Section
Listed Equity (LTCG)	> 12 months	12.5%	Section 112A
Listed Equity (STCG)	≤ 12 months	20%	Section 111A
Equity Mutual Funds (LTCG)	> 12 months	12.5%	Section 112A
Equity Mutual Funds (STCG)	≤ 12 months	20%	Section 111A

Note: First ₹1.25 lakh of LTCG under Section 112A is exempt per financial year.

Frequently Asked Questions

Long-term capital gains (LTCG) tax on listed equity shares held for more than 12 months is 12.5% under Section 112A. The first ₹1.25 lakh of LTCG in a financial year is exempt from tax.

Key Terms

LTCG

Long-Term Capital Gains. Profit from selling assets held for more than 12 months (for equity).

STCG

Short-Term Capital Gains. Profit from selling assets held for 12 months or less (for equity).

Section 112A

Income tax provision that taxes LTCG on equity at 12.5% above ₹1.25 lakh exemption.

Section 111A

Income tax provision that taxes STCG on equity at a flat rate of 20%.

STT

Securities Transaction Tax. A tax paid on purchase/sale of securities on recognized exchanges.

Holding Period

Duration between purchase and sale date. Determines if gain is short-term or long-term.