Salary-Tools.

STCG Calculator (Equity & Equity Mutual Funds)

Calculate short-term capital gains tax on listed shares and equity-oriented mutual funds held 12 months or less.

Flat 20% tax, no exemption threshold — even a small short-term gain is fully taxable. This covers listed equity and equity mutual funds only (Section 111A).

Assumes the holding period is 12 months or less. If it's over 12 months, use the LTCG Calculator instead — you'll likely owe significantly less tax.

STCG tax payable

₹10,296

Total gain (fully taxable)₹49,500
Tax @ 20%₹9,900
Cess @ 4%₹396
Net proceeds after tax₹1,89,204

STCG tax at different gain levels

Total gainTax payable
₹20k gain₹4,160
₹50k gain₹10,400
₹100k gain₹20,800
₹200k gain₹41,600
₹400k gain₹83,200
₹800k gain₹1,66,400

Why STCG hits harder than LTCG on equity

Short-term capital gains on listed equity get none of the treatment long-term gains get — no annual exemption, and a higher rate:

STCG tax = gain × 20% × 1.04 (cess)

Even a ₹1,000 short-term gain is taxable in full — there's no equivalent of LTCG's ₹1,25,000 buffer. This is one of the clearest reasons long-term holding is tax-favored for equity: the same gain taxed as LTCG instead would likely fall entirely within the exemption, or be taxed at a lower 12.5% rate on whatever exceeds it.

The rate was raised from 15% to 20% by the Finance (No. 2) Act, 2024, effective for transfers from 23 July 2024 onward — worth knowing if you're comparing against older articles or calculators that still quote 15%.

Frequently asked questions

No — STCG on listed equity has no exemption threshold at all. The entire gain is taxable at 20%, regardless of how small it is.