Capital Gains Tax If Sold After 1 Month
Shares sold after 1 month are short-term. Any profit is taxed at 20% flat with no exemption.
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Quick Tax Calculator for Capital Gains Tax If Sold After 1 Month
Enter your buy and sell price to estimate the capital gains tax.
Capital Gain/Loss
₹20,000
STCG
Tax Rate
20.0%
STCG rate
Tax Owed
₹4,000
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
Selling after just 1 month means the gain is clearly short-term (holding period < 12 months). The entire profit is taxed at 20%. If you're considering selling for tax harvesting, this is fine — but if selling a profitable position, consider whether waiting for the 12-month mark is feasible.
Tax Breakdown
Enter values in the calculator to see the tax breakdown for your scenario.
Key Rules That Apply
- 11 month holding = Short-term capital gain
- 2STCG rate: 20% flat on listed equities
- 3No exemption for short-term gains
- 4FIFO determines which lots are being sold
How to Reduce This Tax
- If harvesting losses, short holding period doesn't matter — sell and rebuy
- For profitable positions, consider if waiting to 12 months is feasible
- Offset with short-term losses from other stocks
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Common questions about this holding period
What tax rate applies if I sell after 1 month?
20% flat (STCG) on listed equities. No exemption applies.
Is there a wash sale rule in India?
India does not have a formal wash sale rule like the US. You can sell and rebuy immediately for loss harvesting. However, the tax department may scrutinize if the intent appears non-genuine.
How is the gain calculated for 1-month holding?
Sale price minus purchase price, using FIFO if you have multiple lots of the same stock.