Short-Term Capital Gains (STCG) Tax Calculator

Introduction

If you are actively trading or planning to invest in the stock market, keeping your tax liability in mind is important. A short-term capital gains tax (STCG) calculator allows you to quickly determine the tax amount payable on profits earned from selling shares or equity mutual funds held for a period of 12 months or less.

Given the current changes in the short-term capital gains tax rate, mainly post Budget 2024, you need to plan efficiently. Whether you are a new investor or a seasoned trader, using an online STCG calculator can assist you to make well-informed decisions and avoid any kind of tax surprises.

What are short-term capital gains?

As per the Income Tax Act, any profit earned from selling capital assets is called capital gains. These are classified into short-term and long-term depending on the period of holding.

Profits from the sale of listed equity shares and equity funds held for 12 months or less are considered short-term capital gains. As per Budget 2024, these gains are taxed at 20% for transactions made on or after July 23, 2024 (previously 15%).

Further, STCG is divided into two categories:

1. STCG as per Section 111A: This applies to listed equity shares, equity-oriented mutual funds and units of business trusts, wherein the transaction takes place through a recognised stock exchange and is subject to Securities Transaction Tax (STT).

2. STCG other than Section 111A: This applies to assets not included above, i.e., real estate, unlisted shares. These gains are taxed as per the investor’s applicable income tax slab rates.

With such varied rules, using a short-term capital gains tax calculator allows you to calculate taxes precisely and stay compliant.

How to calculate short-term capital gains?

To manually calculate short-term capital gains, use this formula:

Short-Term Capital Gains = Net Sale Consideration – Cost of Acquisition

Also, remember that additional charges like cess and surcharge may apply based on your total income bracket.

If you are making investments regularly, calculations become cumbersome and prone to errors. With a trusted online short-term gains tax calculator, not only is the process faster but also accurate, especially when handling several transactions during the year.

How to use the Kotak Securities short-term capital gains calculator online?

The short-term capital gains calculator offered by Kotak Securities simplifies tax computation for retail investors and traders. Here’s how to use it:

Step-by-step guide:

1. Enter bought value (₹): Input the amount you paid while purchasing the shares or units.

2. Enter sold value (₹): Input the amount received from the sale.

3. Enter transfer expenses (₹): Input expenses such as brokerage and STT

4. The STCG calculator will instantly compute:

   1. Short-term capital gains

   2. Tax amount (based on the applicable short-term capital gains tax rate)

Example:

• Bought value: ₹2,00,000
• Sold value: ₹2,50,000
• Transfer expenses: ₹2,000
• Short-term capital gains: ₹48,000
• Tax amount (20%): ₹9,600

Key features:

• User-friendly design for quick inputs.

• Automatically applies the correct short-term capital gains tax rate.

• Helps you plan redemptions or sales more tax efficiently.

• Works for equity shares, equity mutual funds, and units listed on recognised stock exchanges.

Whether you are calculating for shares listed on NSE/BSE or equity mutual funds, this calculator for short-term capital gains gives accurate results. Use it regularly to track your gains and tax liabilities so you can optimise your investment strategy.

Short-term capital gains tax rate

The short-term capital gains tax rate is determined based on the type of asset and transaction.

1. For listed equity shares, equity-oriented mutual funds, and units of business trusts

If sold within 12 months, Section 111A is applicable.

Updated tax rate:

• Before Budget 2024: 15%

• After budget 2024 (Effective July 23, 2024): 20%

2. For other assets like real estate and unlisted shares

If sold within the applicable short-term holding period (24 months or less for real estate and unlisted shares), the gains are taxed at your applicable income tax slab rates.

That is, the rate of tax will be different based on your overall taxable income for the financial year, ranging from 0% to 30% (plus applicable surcharge and cess).

Stay updated with the latest rules using Kotak Securities’ short-term capital gains tax calculator to avoid surprises and ensure correct tax planning.

Short-term capital gain tax on shares

When you sell listed equity shares, equity-oriented mutual fund units or units of business trusts held for 12 months or less, they attract short-term capital gains tax. These gains are categorised under Section 111A of the Income Tax Act.

Key points:

• Applies to shares traded through recognised stock exchanges (NSE/BSE).
• Units of business trusts includes units of Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs).
• STT must be paid on the transaction.
• For transactions in International Financial Services Centres (IFSCs), STT is not required, but the concessional rate still applies.
• STCG under Section 111A is taxed at 20%

For resident individuals, the basic exemption limit can be adjusted against STCG under Section 111A. For instance, if your total income is below ₹2.5 lakh (₹3 lakh for senior citizens), the STCG up to the exemption limit is not taxed. However, non-resident investors are not entitled to this adjustment and must pay full tax on gains.

This tax affects short-term traders and equity mutual fund investors the most.

Short-term capital gains tax on property

If you sell an immovable property, like land or an apartment, within 24 months of purchase, the profit qualifies as a short-term capital gain.

Tax treatment:

• Taxed as per your regular income slab rates (10%–30%).

• No indexation benefit allowed.

Example:

If you bought an apartment in April 2023 for ₹50 lakh and sold it in March 2025 for ₹60 lakh, the ₹10 lakh profit is treated as STCG and added to your income for tax calculation.

Unlike equities, property STCG does not qualify for concessional rates under Section 111A.

Therefore, using a specialised short-term capital gains tax calculator is essential to account for applicable slabs, especially if you fall in the 30% bracket.

Exemption on short-term capital gains

Usually, short-term capital gains do not qualify for the tax exemptions available to long-term capital gains under various sections.

In most cases, STCG, especially on equity shares and equity mutual funds under Section 111A, is fully taxable, and no exemption is available except in the following limited scenarios:

• Adjustment against the basic exemption limit Resident individuals and HUFs can adjust STCG (under Section 111A) against their unused basic income tax exemption limit (₹2.5 lakh for those below 60).
• Set-off against capital losses STCG can be set off against short-term or long-term capital losses in accordance with the Income Tax Act.

In specific scenarios, such as when agricultural land or industry property are involved, certain exemptions like those under Section 54 are available even for STCG. However, conditions such as reinvestment in a similar asset, timelines (one-three years), and the use of the Capital Gains Account Scheme (CGAS) must be fulfilled.

Benefits of using a short-term capital gains calculator

An online short-term capital gains tax calculator is a valuable tool for retail investors and traders. Here’s how it helps:

1. Accurate: Computes STCG on equity shares or mutual funds in just seconds, which lowers manual errors.

2. Better planning: Gives a clear picture of your tax liability, enabling informed decisions about when to buy or sell to minimise taxes.

3. Saves time: Eliminates the need to manually apply tax rates, STT conditions, or section-based exemptions.

4. Complies with recent laws: Automatically updates the tax rate depending on any changes like the 2024 budget update.

5. Helps optimise post-tax returns: Helps in comparing post-tax returns on short-term and long-term investments. By using the Kotak Securities STCG calculator, you can ensure better tax planning, enhancing your post-tax returns.

Conclusion

Understanding and managing short-term capital gains is essential for smart tax planning, especially in light of the recent changes to tax rates. As an investor, staying informed and proactive can help you avoid surprises and make the most of your returns.

Whether trading in stocks or investing in mutual funds, knowing your exact tax liability is now easier than ever with the short-term capital gains tax calculator by Kotak Securities.

Get quick, accurate, and investment-specific calculations to plan better, stay compliant, and maximise your gains. Use the trusted STCG calculator today and take the guesswork out of your tax strategy.