Gross Profit
₹ 0.00
Brokerage
₹ 0.00
STT
₹ 0.00
Exchange Charges
₹ 0.00
SEBI Charges
₹ 0.00
Stamp Duty
₹ 0.00
GST (18%)
₹ 0.00
Total Charges
₹ 0.00
Holding Days & Tax Type
-
Capital Gains Tax
₹ 0.00
Final Net Profit
₹ 0.00
About the Stock Trade Profit & Capital Gains Calculator
Our free Stock Trade Profit & Capital Gains Calculator is designed for active equity investors and traders in India. It computes your exact net trading returns by automatically factoring in statutory transaction charges, brokerage fees, and applicable Short-Term Capital Gains (STCG) or Long-Term Capital Gains (LTCG) tax frameworks.
1. Stock Trade Profit & Capital Gains Mathematical Formulas
Net stock trading returns and capital gains tax liabilities are computed using standard statutory transaction rates and progressive holding period brackets:
Gross Profit = (Sell Price × Sell Qty) − (Buy Price × Buy Qty)
Total Transaction Charges = Brokerage + STT + Exchange Charges + SEBI Charges + Stamp Duty + GST
Net Profit Before Tax = Gross Profit − Total Transaction Charges
Capital Gains Tax (STCG if under 365 days) = Net Profit Before Tax × STCG Rate (20%)
Capital Gains Tax (LTCG if over 365 days) = Max(0, Net Profit Before Tax − ₹1,25,000) × LTCG Rate (12.5%)
Final Net Profit = Net Profit Before Tax − Capital Gains Tax
Where the defined variables are:
- Buy & Sell Price / Qty: Execution price and traded unit quantities.
- Holding Period: Calendar days elapsed between the buy execution date and the sell execution date.
- Statutory Charges: Mandated regulatory fees including Securities Transaction Tax (STT), SEBI turnover fees, stamp duty, and GST on brokerage.
2. Practical Worked Example
Let us review a standard equity trade profit and capital gains scenario:
- Buy Trade: 100 shares at ₹500 per share (Total Buy Value = ₹50,000 on January 1, 2025)
- Sell Trade: 100 shares at ₹650 per share (Total Sell Value = ₹65,000 on February 1, 2026)
- Holding Period: 396 days (greater than 365 days $\rightarrow$ classified as Long-Term Capital Gains / LTCG)
Calculation Breakdown:
- Gross Profit = ₹65,000 − ₹50,000 = ₹15,000
- Total Transaction Charges (Brokerage, STT, Exchange, SEBI, Stamp Duty, GST) $\approx$ ₹98.50
- Net Profit Before Tax = ₹15,000 − ₹98.50 = ₹14,901.50
- LTCG Tax Computation: Since total profit (₹14,901.50) is well below the ₹1,25,000 annual exemption limit for equity LTCG, tax payable = ₹0.00
- Final Net Profit = ₹14,901.50 − ₹0.00 = ₹14,901.50
Accurately accounting for statutory charges and holding periods ensures you track your actual take-home trading returns correctly!
3. Frequently Asked Questions (FAQs)
1. What is the holding period threshold for equity stocks in India?
For listed equity shares and equity mutual funds in India, the holding period threshold is 12 months (365 days). Holding beyond 12 months qualifies assets for long-term tax treatment (LTCG).
2. Are transaction charges deductible from capital gains?
Yes, direct expenses incurred on the transfer of shares—such as brokerage, STT, exchange turnover fees, and stamp duty—are fully factored into net profit and capital gains calculations.
3. Is there any exemption limit for long-term capital gains on equities?
Yes, long-term capital gains on equity up to ₹1,25,000 per financial year are completely exempt from tax, with gains exceeding this threshold taxed at the specified LTCG rate.
4. What are the current tax rates for STCG and LTCG on shares?
Under current Indian tax laws, Short-Term Capital Gains (STCG) on listed equities are taxed at 20%, while Long-Term Capital Gains (LTCG) above ₹1.25 Lakhs are taxed at 12.5%.
5. Does intraday trading qualify for capital gains tax?
No, intraday equity trading (where delivery is not taken) is classified as speculative or non-speculative business income, not capital gains, and is taxed according to your applicable income tax slab rates.
6. What is Securities Transaction Tax (STT) and when is it levied?
STT is a mandatory direct tax levied by the Government of India on all transactions done on recognized stock exchanges. It is charged primarily on the sell side for delivery equity trades.
7. Can stock trading losses be set off against capital gains?
Yes, short-term capital losses can be set off against both STCG and LTCG, whereas long-term capital losses can only be set off against LTCG. Unabsorbed losses can be carried forward for up to 8 years.
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