LTCG vs STCG Tax Comparison
Same profit, different tax. Compare how holding period changes your tax from 20% STCG to 12.5% LTCG (with exemption).
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Quick Tax Calculator for LTCG vs STCG Tax Comparison
Enter your buy and sell price to estimate the capital gains tax.
Capital Gain/Loss
₹2,00,000
LTCG
Tax Rate
12.5%
LTCG rate
Exemption Used
₹1,25,000
of Rs 1.25L limit
Tax Owed
₹9,375
Effective rate: 4.7%
Estimates assume this is your only capital gain for the FY. Actual tax depends on total gains, losses, and carry-forward. For exact FIFO-based calculation, upload your tradebook.
How This Tax Is Calculated
The holding period makes a dramatic difference in tax. On the same Rs 2 lakh gain: STCG = Rs 40,000 tax (20%), LTCG = Rs 9,375 tax (12.5% on Rs 75K after Rs 1.25L exemption). That's a Rs 30,625 difference — just by holding 12 months instead of less.
Tax Breakdown
Enter values in the calculator to see the tax breakdown for your scenario.
Key Rules That Apply
- 1STCG (< 12 months): 20% flat, no exemption
- 2LTCG (> 12 months): 12.5% above Rs 1.25L exemption
- 3On Rs 2L gain: STCG = Rs 40,000 vs LTCG = Rs 9,375
- 4Tax saved by holding long-term: Rs 30,625
How to Reduce This Tax
- Always check lot holding periods before selling — some lots may already be long-term
- Use FIFO awareness: oldest lots are sold first and may have different tax treatment
- TaxHarvestLab separates your holdings into ST and LT lots automatically
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Common questions about this holding period
How much tax difference between LTCG and STCG?
On Rs 2 lakh gain: STCG costs Rs 40,000 vs LTCG costs Rs 9,375 (assuming no other LTCG). That's 77% less tax by holding long-term.
What if I have both STCG and LTCG in the same year?
They are computed and taxed separately. STCG at 20%, LTCG at 12.5% above exemption. Losses can be set off according to type rules.
Can I choose which lots to sell for better tax treatment?
No. India mandates FIFO — the oldest lots are sold first, regardless of tax preference. This is why knowing your exact lot dates is crucial.