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
The best plan saves you
tax ₹6,500 instead of ₹62,400 selling now
- 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.
Your inputs
Your holding
You bought it
₹
₹10K₹5 Cr
₹
₹10K₹10 Cr
0 mo5 yrs
%
1%100%
This financial year
₹
₹0₹50 L
₹
₹0₹50 L
Your income
₹
₹0₹1 Cr
Tax regime
After selling
%
0%30%
%
0%30%
1 yrs20 yrs
Keep your inputs as a file; it never leaves your device.
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.
Common questions
How much tax do I pay on selling shares?
Held under a year, 20% of the gain plus 4% cess. Held a year or more, 12.5% plus cess on gains above ₹1.25 lakh in the financial year; the first ₹1.25 lakh of long-term gains across all your shares and equity funds is tax-free.
Should I wait a year before selling to pay less tax?
Waiting cuts the rate from 20% to 12.5% and brings in the ₹1.25 lakh exemption. It's worth it only if the price doesn't fall more than the tax you save in the meantime; this calculator shows that break-even fall.
Can I sell before and after 31 March to save tax?
Yes. The ₹1.25 lakh exemption resets every financial year, so selling part of a long-term holding by 31 March and the rest from 1 April books up to ₹2.5 lakh of long-term gains tax-free.
Can I use my losses to reduce tax on gains?
Yes. Short-term losses can be set off against both short- and long-term gains; long-term losses only against long-term gains. Unused losses carry forward for 8 years if you file your return on time.
Is TDS deducted when I sell shares?
Not for residents. You pay the tax yourself as advance tax in the quarter you sell (by 15 June, 15 September, 15 December or 15 March), or interest is charged.