IPO Capital Gains Tax Calculator
Work out the income tax on your IPO share sale profit — whether it counts as short-term (STCG) or long-term (LTCG) capital gains depends on how long you held the shares, and each is taxed differently.
Tax Payable (STCG @ 20%)
₹1,200
Short-term gains get no exemption — the full gain is taxable.
Gross Gain
₹6,000
Net Gain (after tax)
₹4,800
How the IPO Capital Gains Tax Calculator works
For listed equity shares (including IPO allotments once listed), the holding period splits gains into two buckets: short-term (STCG) if sold within 12 months of allotment, taxed at a flat 20%; and long-term (LTCG) if held beyond 12 months, taxed at 12.5% (without indexation) on gains above a ₹1,25,000 per financial year exemption. These rates were set in Budget 2024 (23 July 2024) and were left unchanged in Union Budget 2026.
The ₹1.25 lakh exemption applies once per person per financial year, pooled across allyour LTCG-eligible equity/equity-fund gains — not once per IPO. If you've already used some of it elsewhere this year, enter that amount so the calculator applies only the remaining exemption.
If your sale results in a loss instead of a gain, no tax is payable — capital losses can be carried forward (up to 8 assessment years) and set off only against future capital gains, not other income. This calculator does not perform loss carry-forward tracking; consult a tax advisor for that.
See the listing day profit/loss calculator for the transaction-charges (STT/brokerage/DP) side of a sale, which is separate from this income-tax calculation.
Disclaimer: This calculator is for educational purposes only and does not constitute investment advice. Always read the Red Herring Prospectus and verify current rates before applying for any IPO.