Sell now, or wait a little?
Selling shares? Keep more of the profit.
- The tax if you sell today
- What waiting or splitting the sale saves
- The price fall that makes waiting not pay
- Profit on this sale
- ₹3 L
- 60% on cost
- You keep
- ₹7.93 L
- after tax, best plan
- All long-term
- Jan 2027
Ways to sell, by tax
- Sell now₹62,400
Short-term units pay 20%
- Wait until Jan 2027₹22,750
Every unit is long-term by then
- Split across 31 MarchLeast tax₹6,500
42% in Jan 2027, the rest from Apr 2027: two exemptions
Price held at today's, so plans differ only in tax.
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What this means
- Waiting saves ₹39,650, unless the price falls over 5.7% by Jan 2027.
Why?
Prices can move that much in a few months. Don't let tax alone decide.
- Selling on both sides of 1 April uses the exemption twice.
Why?
It resets every financial year: up to ₹2.5 L tax-free across the two.
- Switching leaves you ₹40,889 more after 5 years.
Why?
The new investment needs 11.2% a year to match holding at 10%: tax paid today stops compounding.
- No TDS on share sales. Pay advance tax that quarter.
More details
Tax if you sell in a given month
- Some short-term: 20%
- All long-term: 12.5% above ₹1.25 L
Sell and switch, or hold?
What you'd have after tax, selling at each year end.
The tax, worked out
| Financial year | This year, to 31 Mar | From 1 April |
|---|---|---|
| Long-term gain from this sale | ₹1.26 L | ₹1.74 L |
| −Exemption on long-term gains (₹1.25 L) | ₹1.25 L | ₹1.25 L |
| =Taxed at 12.5% (long-term) | ₹1,000 | ₹49,000 |
| Tax at those rates | ₹125 | ₹6,125 |
| +Cess, 4% | ₹5 | ₹245 |
| =Tax on gains for the year | ₹130 | ₹6,370 |
How it's calculated
- Short-term (held under 12 months): 20% on the whole gain under Section 111A.
- Long-term (held 12 months or more): 12.5% on gains above ₹1.25 lakh a financial year under Section 112A. The ₹1.25 lakh is shared by all your shares and equity funds, so gains you've already booked this year use it up first.
- Losses: short-term losses are set off against short-term gains first, then long-term; long-term losses only against long-term gains.
- Basic exemption: if your other income is below ₹4 lakh (new regime) or ₹2.5 lakh (old), the gap covers gains, short-term first.
- Then: surcharge on high incomes (capped at 15% on these gains) and 4% cess. The 87A rebate isn't applied.
- Plans: the price is held at today's value, so plans differ only in tax. The break-even fall is the price drop at which waiting to turn long-term leaves you exactly what selling today would, after tax.
For listed shares and equity funds where STT is paid. Shares bought before 1 February 2018, unlisted shares, buybacks and non-residents aren't covered. Check your final figures when you file your return.
Tax figures follow Budget 2025 rules, for FY 2025-26 onward.