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Tax on your trading gains
Short-term and long-term capital gains tax and intraday income on NSE shares, at the FY 2026-27 rates. Enter your totals, or open your Zerodha tradebook and let it split every sale by holding period and financial year.
- Tax, with cess
- ₹34,710
- On short-term gains
- ₹24,000
- On long-term gains
- ₹9,375
Short-term gains of ₹1,20,000 are taxed at 20%. The first ₹1.25 lakh of long-term gains is tax-free, so ₹75,000 is taxed at 12.5%. A 4% cess is added to the tax.
| Short-term gains after set-off | ₹1,20,000 |
|---|---|
| Tax at 20% | ₹24,000 |
| Long-term gains after set-off | ₹2,00,000 |
| Taxable above ₹1.25 lakh | ₹75,000 |
| Tax at 12.5% | ₹9,375 |
| Tax on intraday profit at 30% | ₹0 |
| Health and education cess (4%) | ₹1,335 |
| Total | ₹34,710 |
Download the Equity tradebook from Zerodha Console (Reports, then Tradebook) for every year you held shares in, and choose all the files. Your browser reads them, and nothing is uploaded.
How trading gains are taxed in India
Short-term capital gains on listed shares sold within 12 months of buying are taxed at a flat 20%, whatever your income. There is no tax-free allowance.
Long-term capital gains on shares held for more than 12 months are taxed at 12.5%, but only on the part above ₹1.25 lakh in a financial year.
Intraday trading, buying and selling the same shares on the same day, is a speculative business. The profit is added to your income and taxed at your slab rate, and you report it as business income in ITR-3.
Losses reduce the tax. A short-term loss can be set off against short-term or long-term gains, a long-term loss only against long-term gains, and an intraday loss only against speculative profit. What is left can be carried forward if you file on time.
Rates as they stand for FY 2026-27, checked October 2026. Budget 2026 left them unchanged from Budget 2024. This is an estimate for planning, not tax advice. It leaves out surcharge for high incomes (capped at 15% on these gains), shares bought before 1 February 2018 (taxed from their 31 January 2018 price), and futures and options. Check your return with a chartered accountant. To see what charges cost you over the year, use the trade journal analyser.
Common questions
What is the tax on short-term capital gains from shares?
Listed shares sold within 12 months of buying are short-term, and the gain is taxed at a flat 20% plus 4% cess, whatever your income, with no tax-free allowance. This is the rate for FY 2026-27, unchanged since Budget 2024.
What is the tax on long-term capital gains from shares?
Shares held for more than 12 months give long-term gains, taxed at 12.5% plus 4% cess on the part above ₹1.25 lakh in a financial year. A long-term gain of ₹2 lakh is taxed on ₹75,000, which comes to ₹9,750 with cess.
How is intraday trading taxed in India?
Buying and selling the same shares on the same day is speculative business income. The profit is added to your income and taxed at your slab rate, reported in ITR-3. An intraday loss can only be set off against speculative profit, and carried forward for four years.
Can I deduct brokerage and STT from capital gains?
Brokerage, exchange charges, stamp duty and GST on them can be deducted from the sale value when working out capital gains. Securities transaction tax (STT) cannot. For intraday business income, STT is allowed as an expense.
Can a short-term loss reduce long-term gains?
Yes. A short-term capital loss can be set off against both short-term and long-term gains. A long-term loss can only be set off against long-term gains. Losses not used can be carried forward for eight years if the return is filed on time.