Estimate short-term capital gains tax on equity, mutual funds and other assets.
Note
Short-term gains on listed equity / equity mutual funds (Section 111A) are taxed at 20% (for transfers on or after 23 July 2024). Short-term gains on other assets are added to income and taxed at your slab rate. A 4% health and education cess applies on the tax. Verify against current rules before filing.
When a gain is short-term
Listed shares and equity mutual funds are short-term if sold within 12 months of purchase. Most other assets — property, gold, unlisted shares — are short-term if held 24 months or less. Debt fund units bought after 1 April 2023 are always taxed at your slab rate, whatever the holding period.
STCG tax rates (FY 2026-27)
| Listed equity and equity funds (STT paid) | 20% flat |
| Everything else | Your income-tax slab rate |
Add 4% health and education cess, plus surcharge at higher incomes. The 20% rate has applied to equity sales since 23 July 2024; Budget 2026 did not change it.
Worked example
You buy shares for ₹5 lakh and sell them for ₹7 lakh after eight months. Short-term gain ₹2 lakh × 20% = ₹40,000, plus 4% cess = ₹41,600. Brokerage and charges paid on buying and selling reduce the gain; STT does not.
Ways to reduce STCG legally
- Hold past 12 months if possible: equity gains then become long-term, taxed at 12.5% only above ₹1.25 lakh a year.
- Set off short-term capital losses against the gain; unused losses carry forward for 8 years if you file on time.
- Harvest losses before 31 March — see tax loss harvesting.
The capital gains calculator handles long-term gains and property, and our capital gains tax guide covers reporting in your ITR.
FAQs
Can the ₹12 lakh rebate wipe out STCG tax?
The Section 87A rebate cannot be used against tax on gains taxed at special rates such as 20% equity STCG.
Does STCG count towards my income for slab purposes?
It is part of total income, but equity STCG is taxed at its own 20% rate rather than your slab.
Figures last checked October 2026. Calculator results are estimates; actual lender, fund or tax outcomes can differ.