STCG Equity Calculator — Short-Term Capital Gains Tax on Shares & MF

STCG Equity Calculator — Short-Term Capital Gains Tax on Shares and Mutual Funds

What is equity STCG?

Short-term capital gains (STCG) on equity arise when you sell listed equity shares, equity-oriented mutual funds, or REITs after holding them for 12 months or less. The gain is taxed at a flat rate under § 111A of the Income Tax Act.

Budget 2024 rate change (effective 23-Jul-2024)

Sale date	STCG rate	₹1L exemption
Before 23-Jul-2024	15%	No — not applicable to STCG
On/after 23-Jul-2024	20%	No — not applicable to STCG

Unlike LTCG, there is no ₹1L annual exemption for STCG. The entire gain is taxable.

How STCG is calculated

Capital gain = Sale price − Purchase price − Transfer expenses
Taxable gain = max(0, Capital gain)          ← no exemption
STCG tax     = Taxable gain × applicable rate (15% or 20%)

Grandfathering does not apply to STCG (it is a LTCG-only benefit).

Exactly 12 months = STCG, not LTCG

The IT Act § 2(42A) proviso specifies “more than twelve months” for long-term status. If you buy on 1 January 2025 and sell on 1 January 2026, you have held for exactly 12 months — that is STCG. To achieve LTCG status you must sell on 2 January 2026 or later.

Worked example — post-Budget 2024 STCG

Arjun buys 200 units of an equity MF on 1 January 2025 at ₹1,000/unit (total ₹2,00,000). He redeems on 1 August 2025 at ₹1,250/unit (proceeds ₹2,50,000).

Holding: 7 months → STCG (≤ 12 months)
Sale date: 1-Aug-2025 → post-Budget 2024 → 20%
Capital gain: ₹2,50,000 − ₹2,00,000 = ₹50,000
No exemption applies
Tax: ₹50,000 × 20% = ₹10,000

Worked example — pre-Budget 2024 STCG (15%)

Meena buys shares on 1 March 2024 for ₹3,00,000 and sells on 22 July 2024 for ₹3,60,000.

Holding: 4 months → STCG
Sale date: 22-Jul-2024 → before 23-Jul-2024 cutoff → 15%
Capital gain: ₹3,60,000 − ₹3,00,000 = ₹60,000
Tax: ₹60,000 × 15% = ₹9,000

One day later (sale on 23-Jul-2024) the tax would have been ₹12,000 at 20%.

Bridges

LTCG Equity Calculator — held shares for more than 12 months? Use LTCG — lower rate + ₹1L exemption
Income Tax Calculator — STCG is separate from slab income; calculate both together
Advance Tax Calculator — STCG creates advance tax liability if net tax exceeds ₹10,000

Frequently Asked Questions

What is the STCG tax rate on equity after Budget 2024?

For equity shares and equity-oriented mutual funds sold **on or after 23 July 2024**, STCG is taxed at **20%** under § 111A (up from 15% before that date). The rate applies to any listed equity instrument or equity MF unit held for 12 months or less. Unlike LTCG, there is **no ₹1L annual exemption** for STCG — the entire gain is taxable at the flat rate.

What exactly counts as the 12-month threshold?

For listed equity, the IT Act (§ 2(42A) proviso) says 'more than twelve months' for long-term. Holding for **exactly 12 calendar months** is therefore **still STCG**. For example: buying on 1 January 2025 and selling on 1 January 2026 = exactly 12 months = STCG. You need to hold until at least 2 January 2026 for LTCG. The calculator strictly applies: holdingMonths > 12 → LTCG, otherwise STCG.

Why can STCG hurt more than the income slab rate for low-income taxpayers?

If your regular income is below ₹3 lakh (basic exemption limit), you pay zero tax at the slab level. But **STCG under § 111A is taxed at a flat 20% regardless of your income slab**. There is no basic-exemption offset for STCG (unlike LTCG, where the basic exemption can partially offset the gain). So a student or homemaker with no salary income who books ₹50,000 in STCG still pays ₹10,000 in tax on those gains.

What is the difference between intraday trading and delivery-based STCG?

**Delivery-based short-term gains** (where you take delivery of shares and hold for ≤ 12 months) are taxed under § 111A at 15%/20%. **Intraday trading** (buy and sell on the same day without taking delivery) is treated as **speculative business income**, not capital gains. Intraday profits are added to your regular income and taxed at your applicable slab rate — not at the flat § 111A rate. F&O (futures and options) trading is also business income, not capital gains.

Can STCG be set off against capital losses?

**Yes.** Short-term capital loss (STCL) can be set off against **both** STCG and LTCG in the same year. If STCL exceeds the gain in the current year, the remaining STCL can be **carried forward for 8 assessment years** and set off against any future capital gains (short-term or long-term). However, a **long-term capital loss** can only be set off against LTCG — it cannot reduce STCG.

Does the tax regime (old vs new) affect STCG?

**No.** The § 111A flat rate of 15%/20% applies regardless of whether you choose the old or new tax regime. STCG is computed separately from your slab income. However, the choice of regime does affect the deductions available against your regular income, which in turn affects your advance-tax calculation when STCG is also in the picture.

Compliance disclaimer

The tax calculations on this page are based on the Income Tax Act, 1961 provisions applicable for the financial year shown. Tax laws change; always verify current provisions and consult a Chartered Accountant for filing decisions. This is educational content, not tax advice.