STCG Tax Calculator
Short Term Capital Gains - Tax on investments held < 12 months (equity)
About STCG Tax Calculator
The STCG (Short-Term Capital Gains) Tax Calculator computes tax on profits from selling shares, mutual funds, or securities held under 12 months (equity) or 36 months (debt). STCG is taxed higher than long-term � 20% for equity, slab rate for debt � significantly impacting net returns.
Get a complete breakdown of capital gains, applicable tax, and net profit after taxes. Essential for deciding when to book profits, whether to hold for LTCG, and structuring trading strategy for post-tax returns.
How STCG Works
Holding period: Equity: <12mo = STCG, >12mo = LTCG. Debt: <36mo = STCG, >36mo = LTCG. Rates: Equity STCG: flat 20%. Debt STCG: slab rate (5/20/30%). Formula: Sale - Purchase - Transaction costs = STCG. Equity tax = STCG � 20%.
Critical: Even 1 day short of 12 months = STCG. Bought 15-Jan-24, sell 15-Jan-25 = STCG; 16-Jan-25 = LTCG.
Benefits
Accurate tax liability; net profit after taxes; sell-now vs hold-for-LTCG decision support; transaction cost inclusion; year-end tax planning; tax loss harvesting (offset gains with losses).
Who Should Use
Active traders, swing traders, MF investors redeeming <1yr, F&O traders (all short-term), anyone selling equity within 12mo. Critical: "Should I sell at 11 months or hold 2 more for LTCG?"
Tax Loss Harvesting
Sell losing stocks to book loss; offset against gains; carry forward 8 years (file ITR). Example: Gain ₹1L, Loss ₹30K - net taxable ₹70K; tax saved ₹6K.
Example
Stock: 500 shares ₹800 to ₹1,050 in 8mo. STCG ₹1.24L, tax ₹24.9K, net ₹99.6K. STCG vs LTCG: ₹75K gain at 11mo-sell now tax ₹15K; hold 2mo tax ₹0 (under ₹1.25L). Hold if outlook positive. F&O: Treated as business income (slab), not capital gains.
FAQs
STCG vs income tax?
Income tax on salary/business at slab. Equity STCG: flat 20% separate. Salary ₹10L + STCG ₹2L: salary as slab + ₹40K STCG tax.
Prove holding period?
Contract notes, bank statements, demat statements, broker P&L. Date of purchase to date of sale.
Set off STCG loss?
Equity STCG loss: offset against equity LTCG/STCG only, not salary. Debt STCG loss: offset any capital gains. Carry forward 8yr.
Intraday tax?
Business income (slab), not capital gains. Different rules. May be preferable in lower bracket.
Sell before 1yr or hold for LTCG?
Calculate tax difference. ₹50K gain: sell now = ₹10K tax; hold 2mo = ₹0. Hold if confident; don't let tax tail wag dog.