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Have you ever sold stocks and wondered, "What about the taxes?" Capital gains tax can feel like a complex maze, but fear not, Ventura is here to be your guide! This blog will equip you with the knowledge of Long-Term Capital Gains (LTCG) and Short-Term Capital Gains (STCG) applicable to stocks transactions. We'll even unveil an insightful feature that simplifies tax calculations, making tax season a smooth ride.

What are long-term capital gains and short-term capital gains?

Whenever you sell an investment asset like a stock for a profit, you incur a capital gain. The tax treatment of this gain depends on how long you held the asset before selling. Here's a breakdown of LTCG and STCG:

  • Holding Period: This is the crucial factor. Equity (stocks) held for more than 1 year are considered Long-Term Capital Assets (LTCG). Conversely, stocks held for less than a year are classified as Short-Term Capital Assets (STCG).
  • Tax Implications: Now, for the nitty-gritty:

    • LTCG: In India, LTCG from equities above ₹1 lakh are taxed at a concessional rate of 10%. This translates to significant savings compared to other income sources. But wait, there's more! The first ₹1 lakh of LTCG is completely exempt from tax, offering a welcome buffer for smaller investors.
    • STCG: STCG on equities attracts a flat rate of 15%. This is higher than the LTCG rate, reflecting the government's intention to encourage long-term investment in the stock market.

Make your tax season simple

We at Ventura understand that navigating capital gains tax can be a daunting task. Juggling calculations, exemptions, and deadlines can leave even the most seasoned investor with a headache. That's why we offer a unique feature designed to streamline the process:

  • Capital Gain/Loss Statement: Get a clear and comprehensive picture of your equity transactions for the financial year 2023-24. This detailed statement includes:

    • A breakdown of your realised capital gains (both LTCG and STCG).
    • Identification of unrealised capital losses that can be strategically used to offset gains and minimise your tax burden.
    • Insights into unrealised capital gains that can be booked to maximise the benefit of the ₹1 lakh LTCG exemption.

Important notes for investors

  • The last trading day for considering capital gains in the current financial year is March 27th, 2024. Make sure to factor this in while making investment decisions towards the end of the financial year.
  • These calculations are specifically designed for listed securities, excluding mutual funds (except Equity Traded Funds or ETFs).
  • We employ the average cost method for unrealised gains/losses. However, if you decide to sell a portion of your holdings, the actual gain/loss will be determined using the First-In-First-Out (FIFO) method.
  • Our calculations prioritise long-term holdings when you have a mix of short-term and long-term holdings in the same stock. This ensures you take advantage of the lower LTCG tax rate whenever possible.

Things to keep in mind

  • Securities transferred from external sources without proper cost information are excluded from our calculations.
  • Buyback transactions and bonus shares with potential bonus stripping restrictions are not considered in these calculations.
  • The benefit of grandfathering for new shares received through corporate actions on holdings before January 31st, 2018, is not applied.


  • Brought forward losses from previous years (up to 8 years) can be a valuable tool to offset capital gains and reduce your tax liability.
  • Long-term capital losses can only be set off against long-term capital gains, while short-term capital losses can be used to offset short-term or long-term gains.

Ventura’s investment platform makes understanding your tax liabilities much simpler. If you invest in stocks, the platform shows your liable tax after tax harvesting and loss offsetting. What’s more? We are soon coming up with an excellent digital-first platform for your stocks and mutual fund investments along with trading and more. Sign up for early access and get exclusive benefits.

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