# STCG on Stocks Calculator

> Short-term capital gains on listed shares and equity mutual funds sold within 12 months, where STT is paid, are taxed at a flat 20% under Section 111A (15% before 23 July 2024), regardless of your slab. Intraday trading is not STCG — it is speculative business income taxed at slab rates — and F&O is business income.

Interactive calculator: https://www.industax.com/calculators/stcg-stocks

- **STCG rate (from 23 Jul 2024):** 20%
- **Short-term if held:** 12 months or less
- **87A rebate:** Not available on STCG

## Which trades fall where

| Activity | Head of income | Rate |
| --- | --- | --- |
| Delivery shares/equity MF held ≤ 12 months | STCG (111A) | 20% |
| Delivery held > 12 months | LTCG (112A) | 12.5% above ₹1.25 lakh |
| Intraday equity | Speculative business | Slab rates |
| Futures and options | Non-speculative business | Slab rates |
| Debt MFs bought from April 2023 | Deemed STCG | Slab rates |

## Set-off and planning

- Short-term capital losses can be set off against both STCG and LTCG
- Carry forward losses for 8 years if you file on time
- Pay advance tax on STCG in the instalment following the sale
- Low-income taxpayers can use the unexhausted basic exemption against STCG

## Worked example: selling within a year

1. Bought shares for ₹4,00,000 and sold after 7 months for ₹5,00,000.
2. STCG = ₹1,00,000. Tax at 20% = ₹20,000, plus 4% cess = ₹800.

**Result:** Tax ≈ ₹20,800.

## FAQs

### Is STCG added to my income for slab purposes?

It is part of total income (and can push surcharge), but it is taxed at the special 20% rate, not at slab rates.

### Can I use the basic exemption limit against STCG?

Yes, for resident individuals: if other income is below the basic exemption limit, the unused portion reduces the STCG taxed at 20%.

### How are short-term gains on debt funds taxed?

Debt mutual funds bought from 1 April 2023 are taxed at slab rates regardless of holding period.

## Official sources

- incometaxindia.gov.in: https://www.incometaxindia.gov.in/

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Publisher: Indus Tax — CA-led tax and compliance firm (https://www.industax.com). Contact: info@industax.com, 9059139258.
This is general information, not advice for your specific facts.