Investor guide · 10 min · Reviewed 2026-09-02
Capital Gains Tax on Equity in India
India’s equity CGT conversation centres on holding-period classification, rates for listed shares and equity-oriented funds, and set-off of losses. Budget language changes - treat this as a research map and confirm with a CA for the financial year you file.
Listed equity vocabulary
Investors and brokers talk about STCG and LTCG on listed shares and equity-oriented funds. Cutoffs and rates have moved across Finance Acts. Classify each lot by acquisition and sale date from contract notes before you trust a dashboard summary.
Set-off and carry forward
Capital losses may set off only certain gains under the Act’s matrix. Equity losses do not automatically reduce salary income. Harvesting discussions in India are really set-off planning before 31 March.
Broker P&L vs ITR
Discount brokers publish tax P&L exports. Reconcile them with contract notes, off-platform holdings, and corporate actions before you file.
Use StockWatch next
Open the India capital-gains desk, India harvesting guide, short-term vs long-term overview, and the India market hub or Nifty quote for tape context only.
Simple illustration
Educational numbers only - not your return.
You sell listed shares bought 14 months ago at a profit and also book a short-term loss on another name in the same financial year. Set-off depends on character and current rules - not on a U.S.-style Schedule D template.
Interactive worksheet
Capital gains worksheet
Educational tool only - not tax, legal, or investment advice.
Sketch one sale, then optionally fold in other realized gains/losses for the year. This is worksheet math - not a filing estimate.
Enter proceeds and cost basis to estimate the gain or loss on one disposal.
Common mistakes
- Using outdated LTCG exemption folklore after a Budget change.
- Mixing debt-fund and equity-fund holding rules.
- Trusting a broker tax PDF without reconciling trades.
- Assuming U.S. wash-sale day counts apply.
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Guide FAQ
Short answers for discovery.
Is securities transaction tax (STT) the same as CGT?
No. STT is a transaction tax on certain trades. CGT is about gains on disposal. Both can appear in an equity year.
Do mutual funds use the same cutoffs as stocks?
Equity-oriented funds often follow equity-style conversations, but categories differ. Check current law for your fund type.
Does StockWatch prepare ITRs?
No.