What is the Stock Profit Loss?
Every equity trade carries costs beyond brokerage: STT (0.1% on delivery sell), exchange transaction charges, GST at 18% on brokerage and exchange fees, SEBI turnover fees and stamp duty. On small trades these can quietly consume a large share of a modest gain.
Then comes tax: 12.5% LTCG on equity held over a year (above ₹1.25 lakh of annual gains) or 20% STCG if held under a year.
Formula & worked example
Work down from gross to net:
Net = Gross − brokerage − STT − exchange/GST/stamp − capital gains tax
Worked example: 200 shares bought at ₹450 and sold at ₹560 → gross profit ₹22,000. Charges of roughly ₹190 leave ₹21,810 pre-tax; at 12.5% LTCG the tax is ₹2,726, so you keep about ₹19,084 — a 21.2% net return instead of the 24.4% the gross figure suggested.
How to use this stock profit loss calculator
- Enter quantity plus your actual buy and sell prices.
- Set your broker's per-order charge — ₹20 flat for most discount brokers, or 0 for zero-brokerage delivery.
- Choose the tax rate: 12.5% if held over a year, 20% if under.
- Read the breakdown to see exactly what each cost takes.
Smart tips
- STT applies on the sell side for delivery trades. Frequent trading multiplies it quickly.
- Holding just past 12 months cuts your tax rate from 20% to 12.5% — often worth waiting a few weeks.
- The ₹1.25 lakh LTCG exemption resets every financial year. Booking gains up to that limit annually is tax-free.
- Losses can be set off against gains and carried forward for 8 years, provided you file your return on time.
Frequently asked questions
How is profit on shares taxed in India?
Equity held over 12 months: 12.5% LTCG on gains above ₹1.25 lakh a year. Held under 12 months: 20% STCG on the full gain.
What is STT?
Securities Transaction Tax — 0.1% of turnover on the sell side for delivery equity trades, collected automatically by the broker.
Why is my actual profit less than the price difference?
Brokerage, STT, exchange fees, 18% GST on those fees, stamp duty and capital gains tax all come out of the gross gain.
Can I offset stock losses against gains?
Yes. Short-term losses offset both short and long-term gains; long-term losses offset only long-term gains. Unused losses carry forward 8 years if you file on time.
Want the theory behind the numbers? Read our trading guides on the Money Blog.