Short-term scenario

STCG Tax on Rs 2 Lakh Profit

Rs 2 lakh in STCG means Rs 40,000 in tax at the flat 20% rate. Loss harvesting is your best tool to reduce this.

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Quick Tax Calculator for STCG Tax on Rs 2 Lakh Profit

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

Capital Gain/Loss

₹2,00,000

STCG

Tax Rate

20.0%

STCG rate

Tax Owed

₹40,000

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

At Rs 2 lakh, STCG tax of Rs 40,000 becomes a meaningful amount. Active loss harvesting — selling stocks that are down to offset these gains — is the primary strategy to reduce your tax bill.

Tax Breakdown

Profit amountRs 200,000
Tax rate20% flat
Tax owedRs 40,000

Key Rules That Apply

  • 1STCG tax: 20% of Rs 2,00,000 = Rs 40,000
  • 2STCL offsets STCG first, then can offset LTCG
  • 3LTCL cannot offset STCG
  • 4Carry-forward STCL from prior years can also offset

How to Reduce This Tax

  • Identify unrealized short-term losses in your portfolio and harvest them
  • Check carry-forward losses from previous ITRs
  • Consider deferring some sales to next FY if lots are close to 12-month mark

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Common questions about this tax amount

How much tax on Rs 2 lakh STCG?

Rs 40,000 at the flat 20% rate, plus 4% cess.

Can long-term losses reduce STCG?

No. Long-term capital losses can only offset long-term capital gains, not short-term.

What if I have both STCG and LTCG?

They are taxed separately. STCG at 20% and LTCG at 12.5% above Rs 1.25 lakh. Losses are set off according to the type hierarchy.

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