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. Trading charges of ₹182 (₹40 brokerage, ₹112 STT, ₹30 of exchange fees, GST and stamp duty) leave ₹21,818 pre-tax; at 12.5% LTCG the tax is ₹2,727, so you keep ₹19,091 — a 21.21% 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.
Written by Gurjeet Singh, Sharpen Solutions. Last reviewed 15 Oct 2026. Sources: GST Council — 56th meeting: 5% merit rate, 18% standard rate, 40% special rate, in force 22 Sep 2025. How we check these numbers.