Tax guide
Capital Gains Tax on Stocks & Mutual Funds
Understand STCG and LTCG on equity investments, broker statements, holding periods, exemptions, AIS checks, and filing handoff steps.
- capital gains
- stocks
- mutual funds
- STCG
- LTCG
Understand STCG vs LTCG
Know the difference between short-term and long-term capital gains.
- STCG: Holding period < 12 months for listed equity
- LTCG: Holding period ≥ 12 months for listed equity
- Listed equity includes stocks and equity mutual funds
- Different rules apply to debt funds and other assets
Know the Tax Rates
Current tax-rate estimate for equity capital gains (FY 2025-26).
- STCG: 20% flat rate
- LTCG: 12.5% above ₹1.25 lakh exemption
- No indexation benefit for listed equity
- Add 4% Health & Education Cess
Calculate Your Gains
Step-by-step calculation of capital gains.
- Get purchase price and date from contract notes
- Get sale price and date from contract notes
- Calculate: Sale Price - Purchase Price - Expenses
- Separate STCG and LTCG transactions
- Sum up gains/losses by category
Set-off and Carry Forward
Rules for offsetting gains with losses.
- STCG loss can set off against both STCG and LTCG
- LTCG loss can only set off against LTCG
- Losses can be carried forward for 8 years
- File ITR on time to carry forward losses