Income Tax

Equity Capital Gains Tax Calculator

Calculate your exact Short Term (STCG) or Long Term (LTCG) tax liability on stock market profits based on the new Union Budget 2024 rules.

Trade Details (Stocks & Equity Mutual Funds)

Long Term Capital Gains (LTCG) @ 12.5%

Budget 2024 Updates

• STCG (Under 12 months): Increased from 15% to 20%.

• LTCG (Over 12 months): Increased from 10% to 12.5%.

• LTCG Exemption: Tax-free limit increased from ₹1 Lakh to ₹1.25 Lakhs per year.

Tax Liability Summary

Total Tax Payable

₹22,750

Includes 4% Health & Education Cess.

Gross Profit₹3,00,000
LTCG Exemption-₹1,25,000
Taxable Amount₹1,75,000
Net Profit (Post-Tax)₹2,77,250

Stock Market Taxation in India

  • The 12-Month Rule: For listed equity shares and equity-oriented mutual funds, the holding period to qualify for long-term taxation is 12 months. If you sell before 12 months, it is treated as a short-term trade.
  • Budget 2024 Shocker: The July 2024 Union Budget increased the STCG rate from 15% to 20%, and the LTCG rate from 10% to 12.5%. This makes trading significantly more expensive and heavily favors long-term "buy and hold" investing.
  • The ₹1.25 Lakh Exemption: To soften the blow of the LTCG hike, the government increased the annual tax-free threshold for long-term gains from ₹1 Lakh to ₹1.25 Lakhs. If your total LTCG for the financial year is ₹1,20,000, your tax is zero.
  • Setting Off Losses: You can carry forward Short Term Capital Losses (STCL) for 8 years and set them off against both STCG and LTCG. However, Long Term Capital Losses (LTCL) can only be set off against Long Term Capital Gains (LTCG).