STCG Tax Calculator
Finance & InvestmentCalculate Short Term Capital Gains tax on equity and mutual funds for FY 2025-26. Includes the 20% STCG rate, surcharge, and 4% health & education cess.
š®š³This tool is specific to India
ā¹5,00,000
ā¹
ā¹6,20,000
ā¹
ā¹10,00,000
ā¹
Total Tax Payable
ā¹24,960
Short Term Capital Gain
ā¹1.20 L
STCG Tax (20%)
ā¹24,000
Surcharge
ā¹0
Health & Education Cess (4%)
ā¹960
Effective Tax Rate on Gain
20.80%
Corpus Breakdown
How your investment grows over time
Invested
ā¹0
Returns
ā¹0
ROI
0%
What is a STCG?
An STCG Tax Calculator computes the Income Tax liability on Short Term Capital Gains from equity shares and equity-oriented mutual funds under Section 111A of the Income Tax Act. For FY 2025-26, STCG on equity is taxed at a flat 20% ā no exemption, no indexation, no slab rate benefit.
The Finance Act 2024 (Budget 2024) increased the STCG rate from 15% to 20% effective 23 July 2024. This makes short-term equity trading significantly more expensive from a tax standpoint ā a 20% tax on gains, plus surcharge and cess, can erode a substantial portion of short-term profits.
The calculator shows:
- Capital Gain ā gross short-term profit
- STCG Tax ā 20% on the entire gain
- Surcharge ā based on total income (not capped for STCG, unlike LTCG)
- Cess ā 4% Health and Education Cess
- Total Tax Payable ā the complete liability including all components
For equity held over 12 months, use the LTCG Tax Calculator. For overall income tax planning, use the Income Tax Calculator.
How to use this STCG calculator
- Enter the Purchase Value ā the cost of acquisition including brokerage.
- Enter the Sale Value ā total proceeds from the sale.
- Enter your Annual Income ā this determines the surcharge bracket.
- The calculator shows Capital Gain, STCG Tax (20%), Surcharge, Cess, and Total Tax Payable.
- Compare the effective tax rate with the LTCG Tax Calculator to see the benefit of waiting 12 months.
- Use the Total Tax Payable amount for advance tax computation (due dates: 15 Sep, 15 Dec, 15 Mar).
Formula & Methodology
Applicable law: Section 111A, Income Tax Act ā FY 2025-26 rates (Budget 2024) | Component | Rule | |---|---| | STCG rate | 20% (flat, on full gain ā no exemption) | | Surcharge | 10% (50Lā1Cr) / 15% (1ā2Cr) / 25% (2ā5Cr) / 37% (>5Cr) | | Cess | 4% on (tax + surcharge) | Calculation steps: 1.Capital Gain = Sale Value ā Purchase Value2.STCG Tax = Capital Gain Ć 20%3.Surcharge = STCG Tax Ć Surcharge Rate(based on total income) 4.Cess = (STCG Tax + Surcharge) Ć 4%5.Total Tax = STCG Tax + Surcharge + CessWorked example: Purchase ā¹5,00,000 ā Sale ā¹6,20,000 ā Gain ā¹1,20,000; annual income ā¹10 lakh. 1. Gain: ā¹1,20,000 2. STCG Tax: ā¹1,20,000 Ć 20% = ā¹24,000 3. Surcharge: 0% (income below ā¹50 lakh) 4. Cess: ā¹24,000 Ć 4% = ā¹960 5. Total tax: ā¹24,960 ā effective rate: 20.8% on gain Comparison with LTCG (same gain, held >12 months): Taxable LTCG = ā¹1,20,000 ā ā¹1,20,000 exemption = ā¹0 ā Zero tax. The 12-month holding difference saves the entire ā¹24,960 tax bill in this case.
Frequently Asked Questions
What is Short Term Capital Gains (STCG) tax on equity in India?
Short Term Capital Gains (STCG) on equity shares and equity-oriented mutual funds arises when you sell these assets within 12 months of purchase. Under Section 111A of the Income Tax Act, STCG on equity is taxed at a flat rate of 20% (effective 23 July 2024; previously 15%), regardless of your income tax slab. There is no basic exemption or annual limit as there is for LTCG.
What is the STCG tax rate for FY 2025-26?
For FY 2025-26, the STCG tax rate on equity shares and equity-oriented mutual funds under Section 111A is 20%. This rate was increased from 15% by the Finance Act 2024 (Budget 2024), effective from 23 July 2024. After the 20% base rate, a surcharge is added based on total income, and a 4% Health and Education Cess is applied on the total.
How does STCG differ from LTCG on equity?
STCG (holding period ā¤ 12 months) is taxed at 20% under Section 111A with no exemption. LTCG (holding period > 12 months) is taxed at 12.5% under Section 112A with an annual ā¹1.25 lakh exemption. Holding equity for just one additional day beyond 12 months converts STCG to LTCG, saving 7.5 percentage points in tax rate plus recovering the exemption benefit. Use the [LTCG Tax Calculator](/ltcg-tax-calculator/) to compare.
Is there any exemption available for STCG on equity?
No. There is no exemption threshold for STCG under Section 111A, unlike LTCG which has a ā¹1.25 lakh annual exemption. The entire short-term capital gain from equity and equity mutual funds is taxed at 20%. However, short-term capital losses can be set off against both short-term and long-term capital gains.
How is surcharge calculated on STCG?
For STCG under Section 111A, surcharge rates are: 10% (total income ā¹50 lakh to ā¹1 crore), 15% (ā¹1 crore to ā¹2 crore), 25% (ā¹2 crore to ā¹5 crore), and 37% (above ā¹5 crore). Unlike LTCG under Section 112A, there is no 15% surcharge cap for STCG. A 4% Health and Education Cess applies on tax plus surcharge.
Does the STCG rate apply to all mutual funds or only equity funds?
The 20% STCG rate under Section 111A applies only to equity-oriented mutual funds ā those with at least 65% of their portfolio in Indian equity. Debt funds, international funds (under 35% domestic equity), and fund-of-funds with domestic exposure are not covered by Section 111A. Gains from those funds are taxed at the individual's slab rate, not 20%.
Can short-term capital losses be set off against STCG?
Yes. Short-term capital losses from any capital asset can be set off against STCG. Short-term capital losses can also be set off against long-term capital gains. If losses exceed gains in a financial year, they can be carried forward for up to 8 assessment years. Losses cannot be set off against salary or other non-capital income.
What is Securities Transaction Tax (STT) and is it applicable to STCG?
Securities Transaction Tax (STT) is levied at the time of purchase and sale of equity shares and equity mutual funds on recognised exchanges. STT is charged at 0.1% of the transaction value for both buyer and seller on equity delivery trades. STCG under Section 111A is only applicable when STT has been paid ā off-market transactions are not eligible for the 20% flat rate and are taxed at slab rate.
How does STCG interact with the basic income tax exemption limit?
STCG under Section 111A is not added to your other income for the purpose of determining slab rates. However, if your total income (excluding STCG) is below the basic exemption limit (ā¹2.5 lakh in old regime, ā¹3 lakh in new regime), the shortfall can be applied against the STCG before computing tax at 20%. This effectively reduces STCG tax for very low-income individuals.
Can I set off STCG against business losses?
No. Capital gains cannot be set off against business losses (other than losses from speculative business). Business losses can be set off against other business income (and to a limited extent against other heads), but not against capital gains. Conversely, short-term capital losses cannot be set off against salary or business income.
Is intra-day equity trading STCG or speculative income?
Intra-day equity trading (buy and sell on the same day without delivery) is treated as speculative business income, not capital gains. This means it is taxed at your income slab rate, not 20%, and cannot benefit from capital loss set-off rules. Only delivery-based equity transactions held for under 12 months are taxed as STCG under Section 111A.