Capital Gain Calculator

Capital gains tax applies when you sell shares at a profit. For listed equity, Short-Term Capital Gains (STCG) on shares held less than 12 months are taxed at 20%, while Long-Term Capital Gains (LTCG) on shares held over 12 months are taxed at 12.5% above the Rs 1.25 lakh annual exemption. This calculator computes both STCG and LTCG based on your buy price, sell price, and holding type.

Enter your buy price per share, sell price per share, and quantity. Select whether the holding is long-term (over 12 months) or short-term (under 12 months). The calculator computes total buy value, total sell value, profit or loss, applicable tax rate, tax liability, and net profit after tax. It accounts for the Rs 1.25 lakh LTCG exemption for long-term holdings.

STCG applies to listed shares held for less than 12 months and is taxed at 20% (plus cess). LTCG applies to listed shares held for 12 months or more, taxed at 12.5% on gains exceeding Rs 1.25 lakh per financial year. For unlisted shares, the holding period threshold is 24 months. LTCG is more tax-efficient, incentivizing longer holding periods.

Under the current tax regime, LTCG on listed equity shares up to Rs 1.25 lakh per financial year is completely exempt from tax. Only gains above this threshold are taxed at 12.5%. This exemption is per individual per year, combining all listed equity and equity mutual fund LTCG. For example, if your total LTCG is Rs 2 lakh, only Rs 75,000 is taxable at 12.5%.

STT paid on sale of equity shares is not deductible from capital gains for computing tax. However, brokerage charges, GST on brokerage, stamp duty, and SEBI turnover fees can be added to the cost of acquisition (for buy) or deducted from sale consideration. This effectively reduces your taxable capital gain. Include all transaction costs for accurate calculation.

Use the First-In-First-Out (FIFO) method as mandated by the Income Tax Act. Shares purchased first are deemed sold first. If you bought 100 shares at Rs 200 in January and 100 at Rs 300 in March, and sell 150 in December, the cost for STCG is: 100 x Rs 200 + 50 x Rs 300 = Rs 35,000. Use our stock average calculator to track weighted average cost.

For shares acquired before February 1, 2018, the cost of acquisition is the higher of: (a) actual purchase price, or (b) the lower of (fair market value on January 31, 2018, and actual selling price). This grandfathering ensures that gains accrued before the LTCG tax was reintroduced in 2018 are not taxed. FMV is typically the highest traded price on January 31, 2018.

Indexation benefit is available only for unlisted shares, not for listed equity shares. For listed equity, LTCG is simply: Sale Price - Cost of Acquisition (with grandfathering if applicable). For unlisted shares, you can index the purchase cost using the Cost Inflation Index (CII) to account for inflation, effectively reducing the taxable gain. Listed equity LTCG is taxed at a flat 12.5% without indexation.

Short-term capital losses can be set off against both STCG and LTCG. Long-term capital losses can only be set off against LTCG. Losses not fully set off in a year can be carried forward for 8 assessment years. You must file ITR on time to carry forward losses. Use our stock return calculator to compute individual trade profits/losses.

Intraday trading profits are classified as speculative business income, not capital gains. They are taxed at your income tax slab rate. Speculative losses can only be set off against speculative income and carried forward for 4 years. If you do frequent trading (F&O or delivery), the Income Tax department may classify you as a trader with business income treatment instead of capital gains.

F&O profits are classified as non-speculative business income and taxed at your applicable slab rate. They are not capital gains. F&O losses can be set off against any income except salary. This calculator is specifically for delivery-based equity capital gains. For F&O tax computation, consult a CA who can determine your appropriate tax treatment based on trading frequency and intent.

NRIs pay the same STCG rate (20%) and LTCG rate (12.5% above Rs 1.25 lakh) on Indian equity investments. However, TDS is deducted at source: 20% on STCG and 12.5% on LTCG. NRIs can claim lower rates under DTAA (Double Taxation Avoidance Agreement) with their country of residence. They must file Indian ITR to claim refund on excess TDS deducted.

For stock splits, the cost per share is adjusted by dividing the original cost by the split ratio. For bonus shares received after April 2018, the cost is zero. The holding period for bonus shares starts from allotment date. Use our stock split calculator and bonus calculator to determine adjusted cost basis.

Yes, if your total tax liability for the year exceeds Rs 10,000, you must pay advance tax. Capital gains should be included in advance tax computation in the quarter they arise. Due dates: 15% by June 15, 45% by September 15, 75% by December 15, and 100% by March 15. Late payment attracts interest under Sections 234B and 234C.

Strategies include: (1) Hold for over 12 months for lower LTCG rate. (2) Utilize the Rs 1.25 lakh annual LTCG exemption by booking profits strategically. (3) Harvest losses to offset gains. (4) Invest LTCG in specified bonds (Section 54EC) for unlisted shares. (5) Time profit booking across financial years. (6) Consider the overall tax slab for STCG planning.

Surcharge applies if total income including capital gains exceeds certain thresholds: 10% for income above Rs 50 lakh, 15% above Rs 1 crore, 25% above Rs 2 crore, and 37% above Rs 5 crore. However, for LTCG on listed equity, the maximum surcharge is capped at 15% regardless of income level. Additionally, a 4% health and education cess applies on tax plus surcharge.

The cost of acquisition is the IPO issue price you paid. If you sell within 12 months of allotment, the gain is STCG (taxed at 20%). If sold after 12 months, it is LTCG (taxed at 12.5% above Rs 1.25 lakh). For shares listed after the IPO, the holding period starts from the allotment date, not the listing date. Pre-IPO shares have different rules based on acquisition date.

Keep these documents: contract notes for buy and sell transactions, demat account statements, profit and loss reports from broker, STT payment proof, and bank statements showing trading account transfers. Most brokers provide a consolidated P&L report and tax statement. Use your broker annual report as the primary document for capital gains computation in ITR.

The 2024-25 budget revised capital gains rates: STCG on listed equity is 20% (up from 15%) and LTCG is 12.5% (up from 10%). The LTCG exemption limit was raised from Rs 1 lakh to Rs 1.25 lakh. The holding period classification remains 12 months for listed equity. These rates apply from July 23, 2024, for the current assessment year.

No. Capital gains cannot be set off against salary, rental, or business income. They can only be set off against other capital gains: STCL against both STCG and LTCG, LTCL only against LTCG. Similarly, losses from other heads cannot be set off against capital gains. Each head of income has specific set-off rules as per the Income Tax Act.

For gifted shares, the recipient cost of acquisition is the same as the donor cost, and the holding period includes the donor holding period. For inherited shares, the cost is the cost to the previous owner, and the holding period includes the deceased holding period. If the shares were acquired before 2001, you can use FMV as on April 1, 2001, as the cost.

The cost of acquisition for rights issue shares is the amount paid for them (rights premium + rights issue price). The holding period starts from the date of allotment of rights shares. If you sell the rights entitlement instead, the sale proceeds minus nil cost (for entitlement received free) is taxable as capital gains. The nature (STCG/LTCG) depends on the holding period.

Holding periods for LTCG classification: listed equity shares and equity mutual funds: 12 months. Unlisted shares: 24 months. Immovable property: 24 months. Debt mutual funds: as per slab (no LTCG benefit after April 2023). Gold and gold ETFs: 12 months. REITs and InvITs: 12 months. Foreign equity: 24 months. Bonds and debentures: 12 months.

Report capital gains in ITR-2 or ITR-3. Schedule CG has separate sections for STCG and LTCG. Provide: full value of consideration (sell value), cost of acquisition, cost of improvement, exemptions claimed, and net taxable gain. Report each scrip separately or use the summary method for multiple transactions. Link your broker P&L statement data to the appropriate ITR sections.

A wash sale occurs when you sell a security at a loss and repurchase the same security within a short period to claim the tax loss while maintaining the position. India does not have formal wash sale rules like the US (30-day rule). However, the tax department can invoke GAAR (General Anti-Avoidance Rules) if transactions are considered tax avoidance arrangements.

Each SWP redemption triggers a capital gains event. Units are redeemed on FIFO basis. If held over 12 months, gains are LTCG (12.5% above Rs 1.25 lakh). Under 12 months, gains are STCG (20%). SWP can be tax-efficient if structured to stay within the Rs 1.25 lakh annual LTCG exemption. Use SWP for regular income while managing capital gains tax liability.

Corporate actions require cost basis adjustments: stock splits divide cost by split ratio, bonus shares have nil or FMV cost, mergers/demergers require proportional allocation of cost based on the exchange ratio, and buybacks do not create capital gains for shareholders (the company pays buyback tax). Maintain records of all corporate actions for accurate capital gains computation.

No. Capital losses can only be carried forward if the ITR is filed on or before the due date (usually July 31). If you miss the deadline, you lose the ability to carry forward that year losses. This is a strict rule under Section 80. Always file ITR on time if you have capital losses, even if your total income is below the taxable threshold.

The Income Tax department scrutinizes penny stock transactions closely. Unusual price movements (sudden spike and fall) or trading in stocks with no genuine business operations may be treated as unexplained income under Section 68 (taxed at 60% + surcharge + cess). Genuine capital gains must be supported by proper documentation, trading through recognized exchanges, and payment of STT.

If you trade frequently with the intention of earning profits, the Income Tax department may classify your income as business income (taxed at slab rate) instead of capital gains (preferential rates). Factors considered: frequency of transactions, holding period, volume of trade, and whether trading is the primary income source. CBDT Circular distinguishes investors from traders based on intent and holding pattern.

Review your portfolio gains quarterly. Book LTCG up to Rs 1.25 lakh annually to utilize the exemption (buy back immediately if desired). Offset gains against losses before March 31. Pay advance tax on time to avoid interest. Consider the overall tax bracket for STCG planning. Keep detailed transaction records throughout the year. Consult a CA for complex portfolios with multiple asset classes.

STT is levied on all listed equity transactions on recognized exchanges. Rates: equity delivery buy/sell at 0.1% each side (0.1% on both buyer and seller), intraday sell at 0.025%, F&O sell at 0.0125% (futures) and 0.1% (options on premium). STT ensures that equity transactions are recorded and the government gets revenue even if the investor does not pay capital gains tax.

For ESOP shares, the cost of acquisition is the exercise price (price you paid to acquire shares). The difference between FMV on exercise date and exercise price is taxed as salary perquisite. When you sell, capital gains are calculated as: Sale Price minus FMV on exercise date. The holding period starts from the exercise (allotment) date for determining STCG/LTCG classification.

PMS generates capital gains at the individual investor level since the portfolio is held in your name. Each buy/sell transaction creates a capital gains event. PMS with frequent churning may result in significant STCG. The PMS provider gives an annual statement with transaction details and capital gains computation. Some PMS strategies are designed to be tax-efficient with longer holding periods.

When dividends are reinvested to buy more shares, the cost of those additional shares is the price at which they were purchased using dividend money. The dividend itself is taxed as income (not capital gains). When you eventually sell dividend-reinvested shares, capital gains are computed using the actual cost at the time of reinvestment purchase, with FIFO for holding period determination.

Switching between mutual fund schemes is treated as a redemption of one scheme and a fresh purchase of another. The redemption triggers capital gains based on your holding period in the original scheme. For equity-oriented funds held over 12 months, gains above Rs 1.25 lakh are taxed at 12.5 percent. For switches within 12 months, gains are taxed at 20 percent as STCG. Switching between equity and debt funds has different tax implications since the holding period rules differ for each category.