Short-term scenario

STCG Tax on Rs 1 Lakh Profit

Rs 1 lakh in STCG is taxed at 20% flat — Rs 20,000. Unlike LTCG, there is no exemption for short-term gains.

Try it yourself

Enter values to calculate your tax

Quick Tax Calculator for STCG Tax on Rs 1 Lakh Profit

Enter your buy and sell price to estimate the capital gains tax.

Capital Gain/Loss

₹1,00,000

STCG

Tax Rate

20.0%

STCG rate

Tax Owed

₹20,000

Effective rate: 20.0%

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

Short-term capital gains of Rs 1 lakh attract Rs 20,000 in tax. If the same gain were long-term, it would be entirely tax-free under the Rs 1.25 lakh exemption. This illustrates why holding period matters enormously for tax efficiency.

Tax Breakdown

Profit amountRs 100,000
Tax rate20% flat
Tax owedRs 20,000

Key Rules That Apply

  • 1STCG tax: 20% of Rs 1,00,000 = Rs 20,000
  • 2Same gain as LTCG would be Rs 0 tax (within Rs 1.25L exemption)
  • 3Difference: Rs 20,000 in tax savings by holding 12+ months
  • 4STCL from other stocks can offset this STCG

How to Reduce This Tax

  • Check if any holdings are close to the 12-month mark — waiting may save the entire tax
  • Harvest short-term losses to offset gains
  • TaxHarvestLab shows holding periods for each lot using FIFO

Upload your portfolio for personalized analysis

Upload your tradebook for exact FIFO-based calculations and personalized tax optimization recommendations.

Analyze my portfolio — free

Upload your tradebook · No data stored permanently

Common questions about this tax amount

How much tax on Rs 1 lakh STCG?

Rs 20,000. STCG is taxed at a flat 20% with no exemption limit.

What if I had held for 12 months?

The gain would become LTCG and fall entirely within the Rs 1.25 lakh annual exemption — zero tax.

Is STCG added to my income?

No. STCG on listed equities under Section 111A is taxed separately at 20%, not added to your income slab.

💚