How is short-term capital gains taxed?
STCG from stocks is taxed as ordinary income using your regular tax slab rates. Your gain is added to your total income and the entire amount is taxed. If you earn ₹50 lakhs salary and ₹10 lakhs STCG, the entire ₹60 lakhs is taxed.
What is the holding period for STCG?
Short-term means less than 12 months from the date of acquisition to the date of sale. If you buy on January 1 and sell on December 31, it's still short-term (less than 365 days).
Can I offset trading losses against gains?
Yes, you can offset trading losses in the same year against trading gains. However, if losses exceed gains, you cannot carry forward the loss to future years for STCG (loss carry forward has specific rules).
Do I pay higher tax on STCG?
Yes, STCG is taxed much higher than LTCG. STCG uses your personal slab rate (up to 30%+) while LTCG has preferential rates (10-20%). This makes long-term holding more tax-efficient.
How do I calculate cost price for tax?
Cost price includes the purchase price plus all acquisition costs (brokerage, taxes, etc.). For inherited stocks, cost is the fair market value on the date of inheritance. For bonus shares, cost price is adjusted.
What if my STCG is huge—how much tax?
If you earned massive STCG, you'll pay significant tax at your marginal rate plus surcharge. For example, ₹1 crore STCG for a person in 30% slab = ₹30 lakhs tax + surcharge = approximately ₹34-35 lakhs tax.
What is short-term capital gain (STCG) in India?
Short-term capital gain is the profit earned by selling an asset (stocks, equity shares, mutual funds) held for less than 1 year (12 months). For listed securities held less than 1 year, the holding period is calculated from the date of acquisition to the date of transfer.
What is the tax rate on short-term capital gains?
Short-term capital gains on listed equity shares are taxed at a flat rate of 15% under Section 111A of the Income Tax Act, plus 4% Health & Education Cess for residents. NRIs are also taxed at 15% plus applicable surcharge. Gains on other securities may have different tax treatment.
How is holding period calculated for STCG?
For listed securities, holding period is the time between acquisition and transfer dates. If held for 12 months or less, it is short-term. For unlisted securities, the period is calculated from the date of receipt to date of transfer. The date of transfer is counted as the settlement/delivery date in stock exchanges.
Can I use losses to offset STCG gains?
Yes. Capital losses can be adjusted against capital gains. If you have short-term losses, they can first offset short-term gains. Excess losses can be carried forward for 8 years. If loss exceeds gain, you get a capital loss which reduces your total taxable income.
Is my data safe in this calculator?
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