STCG LTCG Tax Calculator: Capital Gains Tax India

What This Tool Does

The STCG LTCG Tax Calculator 2026 is an essential tool designed for Indian stock market traders, enabling them to accurately compute their short-term and long-term capital gains taxes. This calculator uses the listed-equity rates in force since 23 July 2024: 20% for short-term gains and 12.5% above a ₹1.25 lakh exemption for long-term gains. Confirm them for tax year 2026-27 with a CA. It is particularly useful for traders dealing with a variety of securities, including equities listed on major exchanges like the NSE and BSE, as well as mutual funds and other taxable investments.

For instance, if a trader buys 100 shares of Reliance Industries at INR 2,000 per share and sells them at INR 2,500 per share after more than 12 months, you choose Long term in the Holding Period field. The tool applies 12.5% to the gain above the ₹1.25 lakh exemption. Here the gain is ₹50,000, so the tax is zero. Conversely, if the same shares were sold within a year and you choose Short term, it applies 20% to the whole gain, which is ₹10,000 before the 4% cess.

• Holding period: you pick Short term or Long term yourself. The tool does not read dates.
• Fixed rates: 20% short-term and 12.5% long-term above ₹1.25 lakh for equity, as set in July 2024.
• No indexation: the tool does not use the cost inflation index. Indexation was removed for most assets from 23 July 2024.
• Tax rules come from the Income-tax law, not from SEBI. The tool only estimates tax and does not certify compliance.

The tool does not fetch the cost inflation index (CII) and does not apply indexation. Indexation never applied to listed shares and equity funds, and for most other assets it was removed for sales from 23 July 2024. Ask a CA about land, buildings and older holdings.

Additionally, the calculator is designed to accommodate various asset classes beyond equities. The Asset Type field has an equity group and a non-equity group. For anything outside the equity group the tool assumes 30% on short-term gains and 12.5% on long-term gains with no exemption. This is a simplification, so ask a CA about debt funds, gold and other assets. This makes it an indispensable resource for comprehensive portfolio management and tax planning.

The STCG LTCG Tax Calculator 2026 is meant for gains on shares and funds. Profit from Nifty and Bank Nifty futures and options is normally taxed as business income, not as capital gains, so this tool does not suit it. The tool takes a buy price, sell price and quantity for one entry at a time. It has no date fields and does not add up several trades.

Capital gains tax comes from the Income-tax law, not from SEBI. The tool gives an estimate only. It does not file returns, so check your return with a CA.

The calculator has no import and no link to portfolio systems. You type each entry in by hand.

the STCG LTCG Tax Calculator 2026 is a quick estimator for gains on shares and funds at fixed rates. It does not file returns and rates can change, so confirm the result with a CA.

STCG and LTCG rates and holding periods for listed equity

For listed shares and equity-oriented mutual funds on which STT was paid, the rules in force for the 2026-27 tax year are below. The Income-tax Act, 2025 applies from 1 April 2026, but the equity rates and the exemption were not changed in Budget 2026 according to the sources checked. Other assets such as debt funds, unlisted shares, gold and property follow different holding periods and rates, so ask a CA before using this tool for them.

Current rates and the July 2024 change

Before 23 July 2024 listed equity short-term gains were taxed at 15% and long-term gains at 10% above a ₹1 lakh exemption. Budget 2024 raised them to 20% and 12.5% and lifted the exemption to ₹1.25 lakh. A sale before 23 July 2024 uses the old figures, which this tool does not. The tool's own hint text compares 12.5% against 20%, so it matches the current rule for equity.

How to Use It Effectively

Utilizing a 'STCG LTCG Tax Calculator' effectively requires a thorough understanding of the tool's functionalities and the applicable tax regulations. This guide will walk you through the process step-by-step, ensuring you can accurately calculate your capital gains taxes for tax year 2026-27. It's crucial to comprehend how short-term and long-term capital gains are treated under Indian tax laws. Short-term capital gains (STCG) arise when equity shares or equity-oriented mutual funds are sold within a year, typically taxed at 20%. In contrast, long-term capital gains (LTCG) apply to holdings sold after a year and are taxed at 12.5% on gains exceeding INR 1.25 lakh. We explore how to use this calculator with real market scenarios.

• Start by gathering all the relevant transaction details for tax year 2026-27. This includes the purchase and sale dates, purchase price, sale price, and the total number of shares or mutual fund units. For example, if you bought 100 shares of Reliance Industries on 1 April 2025, at INR 2,400 each and sold them on 30 March 2026, at INR 2,800 each, you need these details handy.
• Input these details into the calculator. Most calculators have fields to enter the purchase and sale price, number of shares, and the holding period. Using our Reliance Industries example, input '100' for the number of shares, '2400' as the purchase price, and '2800' as the sale price.
• The calculator does not work this out from dates, so you choose Short term in the Holding Period field. In our Reliance example, since the shares were held for less than a year, the gains would be classified as STCG. The gain per share is INR 400, totaling INR 40,000 for 100 shares. At a 20% tax rate, your STCG tax liability would be INR 8,000.
• For long-term holdings, such as if you had held TCS shares for over a year, the process is similar. Assume you purchased 50 TCS shares at INR 3,000 each on March 15, 2023, and sold them at INR 3,500 each on March 20, 2026. The LTCG would be INR 25,000, and since LTCG over INR 1.25 lakh is taxable, you would need to account for any total LTCG exceeding this threshold across all transactions.
• This tool does not use indexation, which adjusts the purchase price for inflation. Indexation was removed for most assets from 23 July 2024, so ask a CA about assets other than listed shares and equity funds.
• Review the summary provided by the calculator. Ensure all your entries are correct and that the calculated tax liability aligns with your expectations. Double-check for any discrepancies, especially if handling numerous transactions.

Understanding the Inputs

To effectively use the STCG LTCG Tax Calculator 2026 for Indian stock markets, it is crucial to understand the various input fields that you will need to fill. This section will guide you through each field, offering insights into what data is required, how it influences your tax calculations, and practical examples from the Indian stock market.

• Purchase date: the calculator has no date field. Use your purchase date to count the months yourself, then pick Short term or Long term in the Holding Period field.
• Sale date: also not an input. The gap between your purchase and sale dates decides which holding period to choose.
• Purchase Price: Input the price at which you bought each share. For example, if you acquired shares at INR 2,500 each, this is the value to enter. Accurate entry ensures correct calculation of the capital gains.
• Sale Price: This is the price at which you sold each share. If you sold at INR 3,000 per share, use this figure. The difference between sale and purchase prices determines the gain or loss.
• Quantity: Specify the number of shares. If you purchased 100 shares of TCS, input '100'. The quantity helps calculate the total gain or loss.
• Exemptions: there is no exemption field. For equity the tool subtracts the ₹1.25 lakh yearly long-term exemption by itself. Other asset types get no exemption.

We explore a practical example using Nifty 50 stocks. Assume you bought 50 shares of Infosys on 1 April 2024, at INR 1,500 per share and sold them on 2 April 2026, at INR 1,800 per share. The holding period exceeds 12 months, so you choose Long term (LTCG). The total gain is (INR 1,800 - INR 1,500) * 50 = INR 15,000. If your total LTCG for the year exceeds INR 1.25 lakh, you pay 12.5% tax on the amount over INR 1.25 lakh. Here the gain of INR 15,000 is far below that, so the tax is zero.

Understanding these inputs allows you to use the tax calculator effectively, ensuring accurate computation of your tax liabilities. This not only aids in planning your investment strategies but also ensures compliance with Indian taxation laws. Additionally, being meticulous with the input details can help you optimize your tax obligations, taking full advantage of any available exemptions and deductions.

• Short-term Capital Gains (STCG): Gains from selling stocks held for less than 12 months are considered short-term. They are taxed at 20%, according to current tax laws.
• Long-term Capital Gains (LTCG): Gains from stocks held for more than 12 months fall under LTCG. As per the latest tax regulations, gains above INR 1.25 lakh in a year are taxed at 12.5%.
• Indexation: not applicable to listed shares and not used by this tool. It was removed for most assets from 23 July 2024.

Make sure to review the annual budget announcements and updates from SEBI, as these can influence taxation rules directly impacting your investments. For instance, changes in capital gains tax rates or exemption limits can significantly affect your tax planning strategies. As a trader or investor in the Indian stock market, staying informed ensures better decision-making and compliance.

Grandfathering for shares bought before 2018

Long-term gains on listed equity were tax-free until 31 March 2018. When Budget 2018 started taxing them, it protected the older gains with a cost step-up. For shares bought on or before 31 January 2018, the cost used is the higher of two numbers: the actual cost, and the lower of the market price on 31 January 2018 and the sale price. The sale-price cap means the step-up alone can never create a loss.

Example: you bought a share at ₹100. Its price on 31 January 2018 was ₹150. You sell at ₹400. The lower of ₹150 and ₹400 is ₹150, which is higher than ₹100, so your cost is ₹150 and the gain is ₹250, not ₹300. If you sold at ₹120 instead, the lower of ₹150 and ₹120 is ₹120, which equals the sale price, and the higher of ₹100 and ₹120 is ₹120, so the gain is zero. The calculator has no grandfathering field. Enter the stepped-up cost as the buy price. The glossary page on the grandfathering clause explains it further.

Interpreting the Results

Once you have input all necessary data into the STCG (Short-Term Capital Gains) and LTCG (Long-Term Capital Gains) tax calculator for the fiscal year 2026, understanding the output is crucial for effective tax planning and maximizing your net returns. The calculator's results will detail the tax liabilities based on your equity and mutual fund transactions, reflecting current government regulations and SEBI guidelines. This section will guide you through analyzing these results, using real-world examples from prominent Indian stocks such as Nifty, Bank Nifty, Reliance Industries, and Tata Consultancy Services (TCS), to ensure you fully use the calculator's insights.

For instance, suppose you bought shares of Reliance Industries in January 2024 and sold them in June 2024. These transactions qualify as short-term since the holding period is less than 12 months. The gains from this sale will be taxed at a rate of 20%, as per the Indian Income Tax Act. If your gain was ₹100,000, your tax liability would be ₹20,000. The calculator will show this amount, and you should prepare to include this in your tax filings for the year. Conversely, if you held TCS shares purchased in January 2023 until February 2026, the gains would be long-term, taxed at 12.5% on gains above ₹1,25,000. If your gains were ₹2,50,000, your taxable amount would be ₹1,25,000, and your tax would be ₹15,625 before the 4% cess.

• Short-term capital gains are applicable if the holding period is less than 12 months.
• Long-term capital gains apply for a holding period exceeding 12 months.
• STCG tax rate is 20%, while LTCG is 12.5% on gains exceeding ₹1,25,000.

Also, understanding the nuances of Section 112A of the Income Tax Act, which outlines the taxation regime for LTCG, is crucial. Section 112A came in with Budget 2018 and had a ₹1 lakh threshold. Budget 2024 raised it to ₹1.25 lakh and the rate to 12.5% from 23 July 2024. The Income-tax Act, 2025 applies from 1 April 2026 and renumbers sections, so check the section number for the tax year you file. Keeping track of these thresholds and regulations can significantly impact your financial planning and investment strategy.

Tax returns go to the Income Tax Department, not SEBI, and wrong or late filing can bring interest and penalties. Traders should maintain a meticulous record of all transactions, including purchase and sale dates, quantities, and prices. This practice makes your tax calculation and filing easier. For instance, if you engage in frequent trading in indexes like Nifty or Bank Nifty, your records should reflect each transaction detail to substantiate your tax liabilities.

Another aspect to consider is the impact of Securities Transaction Tax (STT) on your calculations. STT is levied on the sale of equity shares and equity-oriented mutual funds, which affects the net capital gains. This calculator does not take STT or brokerage into account. STT cannot be deducted from a capital gain, while brokerage can usually be included in the cost and sale value, so ask a CA. Understanding its role in your overall tax strategy can help you make more informed decisions.

Finally, always review your calculated results with the actual market conditions and tax law updates. Policy changes can occur, and staying informed will help you adjust your strategies accordingly. For example, any amendments to the tax rates or holding period definitions announced in the Union Budget 2026 should be promptly integrated into your financial planning.

Setting off and carrying forward capital losses

A short-term loss can be set off against short-term and long-term gains in the same year. A long-term loss can be set off only against long-term gains. A loss you cannot use in the year can be carried forward for up to eight assessment years, but generally only if you filed your return by the due date. The Income-tax Act, 2025 keeps the eight-year limit and calls the period a tax year.

This calculator treats a loss as zero gain and does not net losses against gains. Add up your gains and losses first, then enter only the net gain. The tax-loss harvesting calculator looks at this idea in more detail.

Practical Examples

To fully comprehend the impact of capital gains tax on your investments, let's examine some practical examples using real data from the Indian stock markets. These examples will demonstrate how to calculate Short-Term Capital Gains (STCG) and Long-Term Capital Gains (LTCG) using the STCG LTCG Tax Calculator for tax year 2026-27. We will consider transactions involving some of the most popular stocks and indices, such as Nifty, Bank Nifty, Reliance Industries, and Tata Consultancy Services (TCS).

Before proceeding, remember that under the Income-tax law, a short-term capital gain is realized when securities are sold within 12 months of purchase, while a long-term capital gain occurs when securities are held for more than 12 months. The current tax rate for STCG is 20%, whereas LTCG is taxed at 12.5% for gains exceeding INR 1.25 lakh.

• Example 1: Short-Term Capital Gain on Nifty
• Example 2: Long-Term Capital Gain on Reliance Industries
• Example 3: Mixed Portfolio Analysis with TCS and Bank Nifty

Example 1: Short-Term Capital Gain on Nifty. Suppose you bought 1,000 units of a Nifty 50 index fund traded on the exchange at INR 250 each on 1 January 2026 and sold them at INR 275 on 30 June 2026. The gain is INR 25,000 and you choose Short term. The tax is 20%, which is INR 5,000, plus INR 200 cess, so INR 5,200 in all and a net gain of INR 19,800. Nifty futures are different: their profit is normally business income, not a capital gain.

Example 2: Long-Term Capital Gain on Reliance Industries. Consider a scenario where you bought 50 shares of Reliance Industries at INR 2,000 each on March 1, 2023, and sold them on April 1, 2026, at INR 2,500 each. The total purchase cost was INR 1,00,000, and the selling price is INR 1,25,000, leading to a gain of INR 25,000. Since this is a long-term transaction, the LTCG tax rate of 12.5% applies only to gains exceeding INR 1.25 lakh. The gain is below that, so the taxable gain is zero, the tax is zero and the net gain stays at INR 25,000.

Example 3: Mixed Portfolio Analysis with TCS and Bank Nifty. Assume you have a diversified portfolio consisting of 30 shares of TCS, bought at INR 3,000 each on 1 February 2026, and sold at INR 3,200 on 1 September 2026, along with 20 units of a Bank Nifty option bought at INR 100 each and sold at INR 150 each. For TCS, the purchase cost is INR 90,000, and the selling price is INR 96,000, resulting in a short-term gain of INR 6,000 with a tax of INR 1,200 (20%). For the Bank Nifty option, the cost is INR 2,000 and the sale value is INR 3,000, a profit of INR 1,000. That profit is not taxed at the 20% capital gains rate. Index option profit is normally business income at your slab rate, so this calculator does not apply to it. Only the TCS part is a capital gain: INR 6,000 gain, INR 1,200 tax and INR 4,800 left after tax.

These examples highlight the importance of understanding the tax implications of your trading activities. By using the STCG LTCG Tax Calculator, traders can more accurately forecast their tax liabilities and make informed decisions to optimize their investment returns. Keep abreast of any changes in tax laws or SEBI regulations to ensure compliance and maximize your portfolio's performance.

SIP redemptions: each instalment has its own clock

Each SIP instalment is a separate purchase with its own date. When you redeem units, the earliest units are treated as sold first (first in, first out). So one redemption can contain long-term and short-term parts, and you tax each part by its own holding period.

Run the two parts as two entries: the long-term part with Long term selected, and the short-term part with Short term selected. Because the ₹1.25 lakh exemption is shared by all long-term gains in the year, remember to reduce it for gains you have already used.

Tax harvesting with the yearly exemption

The ₹1.25 lakh long-term exemption is per financial year and does not carry forward. Some investors sell equity holdings with up to ₹1.25 lakh of long-term gain and buy them back, which raises the cost for the future and uses that year's exemption. It is a planning idea, not a recommendation.

• Selling and buying again costs STT of 0.1% on each delivery trade. On ₹5,00,000 of shares that is ₹500 on the sale and ₹500 on the purchase, before brokerage.
• The rebought shares start a new holding period, so a quick sale of them is short-term and taxed at 20%.
• Savings can be at most ₹1.25 lakh × 12.5% = ₹15,625 in a year, before costs.
• Ask a CA whether the tax authorities could view repeated buy-backs as something other than a normal investment sale.

Tips for Best Results

Effectively using the STCG LTCG Tax Calculator can significantly enhance your financial planning and tax strategy when trading in the Indian stock market. By leveraging this tool, you can accurately compute your tax liabilities, thereby optimizing your investment decisions. Here are some expert tips to ensure you get the most out of this calculator.

• Keep your trading records meticulously organized. This includes transaction dates, purchase price, sale price, and any brokerage fees incurred. Accurate records will ensure that the calculator provides precise results.
• The tool has fixed rates and no rate inputs, so check them against the latest Union Budget and Finance Act. This includes staying informed about the short-term capital gains (STCG) tax rate of 20% and the long-term capital gains (LTCG) tax rate of 12.5% beyond the exemption limit of ₹1.25 lakh.
• Capital gains tax is set by the Income-tax law, not by SEBI, so follow the Finance Act and the Income Tax Department notices.
• Indexation was removed for most assets from 23 July 2024, and this tool does not use it.
• use the tool to simulate different scenarios. For example, calculate potential tax liabilities if you hold shares of Reliance Industries for over a year versus selling them within a year.
• dividends are taxed as income at your slab rate and are not part of this calculation.
• For traders involved in derivative markets like Nifty and Bank Nifty futures and options, note that this calculator does not handle them, because their profit is normally business income and not a capital gain.
• Periodically review your investment portfolio to capitalize on tax-loss harvesting opportunities. The calculator treats a loss as zero gain and does not offset losses, so work out loss set-off separately.

By employing these strategies, traders and investors can make informed decisions, reduce their tax liabilities, and enhance their returns. Remember, the key to effective tax planning lies in staying informed and proactive about regulatory changes and leveraging tools like the STCG LTCG Tax Calculator to their fullest potential.

A worked example that matches the calculator

Take Equity as the asset type, a buy price of ₹400, a sell price of ₹600 and a quantity of 1,000. The gain is (600 − 400) × 1,000 = ₹2,00,000. These are made-up numbers.

The long-term choice also shows Tax Saved (LTCG Exemption) of ₹1,25,000 × 12.5% = ₹15,625. The effective rate is total tax divided by the gain, which is 9,750 ÷ 2,00,000 = 4.875% for the long-term case (the tool shows it rounded to two decimals) and 20.8% for the short-term case. See also the short-term versus long-term capital gains calculator, which covers the US.

Common Mistakes to Avoid

Navigating capital gains tax in India can be complex, especially for traders who frequently engage in buying and selling securities. The STCG (Short-Term Capital Gains) and LTCG (Long-Term Capital Gains) Tax Calculator for 2026 is a valuable tool for estimating tax liabilities, but it is crucial to use it correctly to avoid mistakes that could lead to financial penalties or missed opportunities. Here, we explore common errors and how to prevent them, ensuring you make the most out of this tool and remain compliant with SEBI regulations.

• Misclassification of Gains: Traders often confuse short-term with long-term gains. For instance, selling Reliance Industries shares within 12 months would result in STCG, taxed at 20%. However, if held for over 12 months, it becomes LTCG, tax-exempt up to ₹1.25 lakh and taxed at 12.5% thereafter.
• Incorrect Calculation of Holding Period: The holding period is crucial for determining the type of capital gain. Traders sometimes miscalculate this by not considering the date of acquisition correctly. For example, if you purchased TCS shares on 1 April 2025 and sold them on 1 April 2026, treat it as short-term, because long-term needs more than 12 months. Confirm the exact day count with a CA.
• Overlooking Exemptions: Many traders fail to account for the ₹1.25 lakh exemption on LTCG. For instance, if your LTCG from Nifty stocks is ₹1.5 lakh, only ₹25,000 is taxable.
• Ignoring Securities Transaction Tax (STT): The 12.5% rate and ₹1.25 lakh exemption apply to listed equity shares and equity funds on which STT was paid on the sale, with rules about the buying side too. Check your contract notes. Bank Nifty derivatives do not come under this rule.
• Neglecting to Adjust for Indexation: Indexation benefits are not available for shares, and since 23 July 2024 they are not available for most other assets either, debt funds included. Some investors mistakenly apply indexation to equity, leading to incorrect tax calculations.
• Assuming the rates never change: this tool has fixed rates, so compare them with the current Finance Act before relying on the result.

A deep understanding of these common pitfalls can protect you from unnecessary tax liabilities and penalties. For instance, ensuring accurate classification between STCG and LTCG can significantly affect your tax calculations, as shown in the examples of Reliance and TCS shares. Additionally, staying updated with SEBI regulations and tax guidelines helps in maintaining compliance and leveraging potential tax benefits. By avoiding these mistakes, you can efficiently use the STCG LTCG Tax Calculator and optimize your financial outcomes.

What this calculator leaves out

• Surcharge: the tool adds 10% of the tax if the entered gain exceeds ₹50 lakh and 15% if it exceeds ₹1 crore. In law, surcharge depends on your total income, not on this one gain, and the rate on equity capital gains is capped at 15%.
• Cess: 4% health and education cess is added to the tax.
• STT, brokerage and other costs: not deducted. Include brokerage in your buy and sell values only after checking with a CA.
• Derivatives: Nifty and Bank Nifty futures and options give business income. See capital gains versus business income and futures versus stocks tax.
• Debt funds, gold, unlisted shares and property: the tool assumes 30% on short-term and 12.5% on long-term gains with no exemption, which is only a rough guide.
• Other exemptions: sections 54, 54F and 54EC relate to reinvesting gains from property and other assets, and the tool does not model them.

Frequently Asked Questions