Short-Term Capital Gains Tax Calculator (Equity)
What Is This Tool & Who Should Use It?
Short-term capital gains are profits from selling stocks held for less than 12 months. These gains are taxed as ordinary income at your slab rates, not at special capital gains rates. Our STCG calculator helps you instantly calculate your tax on stock trading profits and understand how much of your gains go to taxes.
Who should use this: Anyone earning income from this source in India needs to understand their tax obligations and calculate their liability accurately.
Why This Income Type Confuses Many Users
Many traders confuse short-term and long-term capital gains taxation. STCG from stocks is taxed at your regular slab rates just like salary, while LTCG gets preferential rates. Additionally, the holding period is calculated as per stock exchange rules, which sometimes confuses retail investors.
How This Tool Works (Simple Explanation)
This calculator takes your capital gain and adds it to your total income. It then applies your tax slab rate, calculates surcharge and cess, showing exactly how much tax you owe on your stock trading profits. The results show your effective tax rate on the gain.
Step-by-Step: How to Use This Tool Correctly
- 1.Enter your residency status
- 2.Input the capital gain from stock sale (selling price minus cost price)
- 3.Specify your residency status to apply correct slab rates
- 4.Review your tax liability on the short-term gain
- 5.See total tax and net profit after tax
Real-Life Situations Where This Tool Helps
- ✓Day traders calculating tax on weekly or monthly stock sales
- ✓Short-term investors selling stocks within 12 months for quick profits
- ✓Traders who bought stocks and sold within a year
- ✓People with trading accounts trying to understand profit after tax
- ✓Investment advisors helping clients understand STCG implications
Common Mistakes Users Make
- ⚠Confusing STCG with long-term capital gains which have much lower tax rates
- ⚠Forgetting that the holding period starts from the purchase date (stock exchange rules)
- ⚠Not accounting for transaction costs like brokerage which reduce the gain
- ⚠Assuming all gains are taxed at a flat rate when they're added to total income
- ⚠Not adjusting cost price for stock splits or bonus shares before calculating gain
How This Tool Makes Tax Filing Easier & Stress-Free
This calculator shows exactly how much tax reduces your trading profit. Instead of guessing, you see your exact liability. This helps day traders and short-term investors plan their trading strategy with full knowledge of tax impact and decide if trading frequency justifies the high tax burden.
Data Privacy & Security
Your financial information is completely safe with us. Here's how we protect your privacy:
- ✓No data storage: We do not store, save, or archive your personal or financial data
- ✓No accounts needed: You don't need to create an account or login
- ✓Session-based calculations: All calculations are temporary and performed in your browser only
- ✓Safe for all users: Whether you're a salaried professional, freelancer, or NRI, your privacy is our priority
Related Tools You Might Need
Depending on your financial situation, you may benefit from our other specialized calculators:
Long-Term Capital Gains Calculator
Calculate tax on stocks held over 12 months with preferential rates
Dividend Income Tax Calculator
Calculate tax on dividend income from stock holdings
Capital Gains (Property/Gold) Calculator
Calculate tax on property and gold sales
Frequently Asked Questions
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.
Ready to Calculate Your Tax Accurately?
Scroll up and enter your income details in the calculator to get your personalized results instantly.