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.

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Frequently Asked Questions

What is the current STCG tax rate on IPO/listed shares?

20% flat, for shares sold within 12 months of purchase/allotment. This rate was set in Budget 2024 and confirmed unchanged in Union Budget 2026.

What is the current LTCG tax rate on IPO/listed shares?

12.5% on gains above ₹1,25,000 per financial year, for shares held more than 12 months. No indexation benefit applies. Unchanged since Budget 2024, reconfirmed in Union Budget 2026.

Is the ₹1.25 lakh LTCG exemption per IPO or per year?

Per financial year, per person — pooled across all your long-term equity and equity-fund gains combined, not a separate ₹1.25 lakh allowance for each IPO or each stock you sell.

What counts as the holding period start date for an IPO allotment?

The holding period is generally counted from the date of allotment (the date shares are credited to your demat account), not the application date or the listing date.

Do I pay tax if I sell at a loss?

No — capital losses aren't taxed. A short-term capital loss can be set off against both STCG and LTCG; a long-term capital loss can only be set off against LTCG. Unused losses can be carried forward up to 8 assessment years.