STCG Tax Calculator (Short-Term Capital Gains)

Calculate your short-term capital gains tax on stocks and equity mutual funds held for 12 months or less. Incorporates the revised flat 20% statutory rate u/s 111A and evaluates set-off against basic exemption limits.

Selling listed shares within 6 months at a net profit of ₹1,28,000 incurs a flat 20% Section 111A tax of ₹26,624 including 4% cess.

Short-Term Equity Trades

Calculate Section 111A STCG tax on listed shares and equity mutual funds held for 12 months or less.

Total Purchase Value (Cost of Acquisition)

₹

Total Sale Value (Full Consideration)

₹

Holding Duration (Months)

months

Held for 12 months or less. (If held > 12 months, use the LTCG calculator).

Brokerage, STT & Transaction Fees

₹

Section 111A Tax20% Flat Rate

Total STCG Tax Payable

₹26,624

Effective Tax Rate: 20.8% (including 4% cess)

Gross Trading Gain

₹1,30,000

Sale - Purchase

Net Taxable STCG

₹1,28,000

After brokerage

Base Tax (20%)

₹25,600

Section 111A

4% Cess

₹1,024

Health & Education

Finance Act 2024 Rule:

Section 111A STCG rate was increased from 15% to 20% effective 23 July 2024. Capital losses can be carried forward for 8 assessment years if return is filed before the due date.

Total STCG Tax

₹26,624

Net profit: ₹1,28,000

Calculated strictly in accordance with Section 111A of the Income Tax Act, 1961 as amended by Finance (No. 2) Act, 2024.

What it is:: An Indian Short-Term Capital Gains (STCG) tax calculator for listed shares and equity mutual funds.
What it calculates:: Net short-term profit, flat 20% statutory tax u/s 111A, 4% cess, and net post-tax trading returns.

Key Assumptions

Equity investments held for 12 months or less are classified as short-term.
Transactions are subject to Securities Transaction Tax (STT).
Base statutory tax rate is 20% plus 4% cess (20.8% combined).

How it works

Section 111A Scope: Applies to equity shares sold on a recognized stock exchange and units of equity-oriented mutual funds on which Securities Transaction Tax (STT) is paid.

Revised 20% Rate: Finance (No. 2) Act 2024 increased the Section 111A STCG tax rate from 15% to 20% for sales executed on or after 23 July 2024.

Basic Exemption Limit Benefit: Resident individuals and HUFs can adjust unexhausted basic exemption limits (e.g. ₹3 Lakhs under New Regime, ₹2.5 Lakhs under Old Regime) against STCG to reduce taxable gains.

Loss Set-Off Rules: Short-term capital losses can be set off against both short-term capital gains and long-term capital gains within the same financial year.

Formula

STCG Tax u/s 111A = Net Short-Term Capital Gain × 20% × 1.04 Cess

Net Gain: = Sale price minus purchase price and transaction brokerage
20%: = Statutory Section 111A rate under Finance (No. 2) Act 2024
1.04: = Mandatory 4% Health and Education Cess

Short-term capital gains on unlisted shares, physical gold, and debt funds are taxed at regular personal income tax slab rates rather than flat 20%.

Example calculation

₹2,50,000 Short-Term Swing Trade Sold for ₹3,80,000 in 6 Months

Holding Duration: 6 Months (≤ 12 Months)
Net Short-Term Trading Gain: ₹1,28,000
Section 111A Tax Rate: 20% Flat
Base Tax u/s 111A: ₹25,600
4% Health & Education Cess: ₹1,024
Total STCG Tax Payable: ₹26,624

Frequently asked questions

What is the short-term capital gains tax rate on shares?

Under Section 111A, STCG on listed shares and equity mutual funds held for 12 months or less is taxed at a flat rate of 20% (plus 4% cess, effective 20.8%) for sales executed on or after 23 July 2024.

Is there any basic exemption for STCG?

There is no separate threshold exemption like the ₹1.25 Lakh limit for LTCG. However, resident individuals whose other regular income is below the basic tax exemption limit can adjust the deficit against STCG.

Can short-term capital loss be set off against salary income?

No. Capital losses (short-term or long-term) cannot be set off against income from salary, house property, or business. Short-term capital loss can only be set off against short-term or long-term capital gains.

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