india-capital-gains ยท diff
git:20261101.6dbf093 to git:20261101.d029a84
62 added, 0 removed. Audit A to A.
---
name: india-capital-gains
description: STCG and LTCG on Indian listed shares and equity mutual funds using FIFO, with the Rs 1.25 lakh exemption. Use when the user asks "how much tax if I sell", "LTCG", "STCG", "tax harvesting", or uploads a Zerodha/Groww/Upstox tradebook or capital gains statement.
---
# Capital gains on Indian equity
## Input
A CSV with `date,action,symbol,qty,price,charges`. Broker tradebooks (Zerodha Console, Groww, Upstox) have similar columns: rename them to match. For mutual funds use the CAS from CAMS/KFintech; each purchase is a lot.
## Run
```
python scripts/cg.py trades.csv
```
Prints STCG, LTCG and estimated tax per tax year (April to March).
## Rules (unchanged for 2026-27)
- FIFO: the oldest shares are sold first (that's how demat works).
- Held more than 12 months = long term.
- STCG on listed equity / equity MF (STT paid): 20%.
- LTCG: 12.5% on gains above Rs 1.25 lakh per year, no indexation.
- 4% cess on top. The 87A rebate does not apply to these gains.
- Short-term loss can be set off against STCG or LTCG; long-term loss only against LTCG. Unused losses carry forward 8 years if the return is filed on time.
- Share buybacks are taxed as capital gains from 2026-27 (not dividends).
## Not covered
Debt funds bought after 1 April 2023 (taxed at slab rate), property, gold, F&O and intraday (business income). Say so if asked.
## Useful tip
Tax harvesting: selling and rebuying long-term holdings before 31 March to book up to Rs 1.25 lakh LTCG tax-free each year. India has no superficial-loss rule like Canada or the US, but mention that rebuying costs brokerage and STT.
+ ## Calculator code
+ If `scripts/cg.py` isn't in this skill's folder (some apps keep only SKILL.md), save this code as `cg.py` and run it the same way. Don't do the arithmetic by hand.
+
+ <!-- embed: scripts/cg.py -->
+ ```python
+ """Equity / equity MF capital gains for India (FIFO). Usage: python cg.py trades.csv
+ CSV columns: date,action,symbol,qty,price,charges (action = buy/sell, date = YYYY-MM-DD)
+ """
+ import csv
+ import sys
+ from collections import defaultdict, deque
+ from datetime import date
+
+
+ def run(rows):
+ lots = defaultdict(deque) # symbol -> [qty, cost per unit, buy date]
+ stcg, ltcg = defaultdict(float), defaultdict(float)
+ for r in sorted(rows, key=lambda r: r["date"]):
+ s, q, px = r["symbol"].upper(), float(r["qty"]), float(r["price"])
+ fee, d = float(r.get("charges") or 0), date.fromisoformat(r["date"])
+ if r["action"].lower() == "buy":
+ lots[s].append([q, px + fee / q, d])
+ continue
+ fy = d.year if d.month >= 4 else d.year - 1 # tax year starts 1 April
+ net_px = px - fee / q
+ while q > 1e-9:
+ if not lots[s]:
+ raise ValueError(f"{r['date']}: selling more {s} than held")
+ lot = lots[s][0]
+ used = min(q, lot[0])
+ gain = used * (net_px - lot[1])
+ b = lot[2] # long term if held more than 12 months
+ (ltcg if (d.year, d.month, d.day) > (b.year + 1, b.month, b.day) else stcg)[fy] += gain
+ lot[0] -= used
+ q -= used
+ if lot[0] <= 1e-9:
+ lots[s].popleft()
+ return stcg, ltcg
+
+
+ def tax(stcg, ltcg):
+ # ponytail: losses set off simply (STCL against STCG then LTCG); no carry-forward
+ if stcg < 0:
+ ltcg, stcg = ltcg + stcg, 0
+ return round((max(stcg, 0) * .20 + max(ltcg - 125000, 0) * .125) * 1.04)
+
+
+ if __name__ == "__main__":
+ t = [{"date": "2025-01-10", "action": "buy", "symbol": "INFY", "qty": "100", "price": "1500"},
+ {"date": "2026-06-01", "action": "buy", "symbol": "INFY", "qty": "50", "price": "1600"},
+ {"date": "2026-07-01", "action": "sell", "symbol": "INFY", "qty": "120", "price": "1700"}]
+ s, l = run(t)
+ assert l[2026] == 20000 and s[2026] == 2000 # FIFO: 100 old lots long term, 20 new lots short term
+ assert tax(2000, 20000) == round(400 * 1.04)
+
+ with open(sys.argv[1], newline="") as f:
+ stcg, ltcg = run(list(csv.DictReader(f)))
+ for fy in sorted(set(stcg) | set(ltcg)):
+ print(f"Tax year {fy}-{str(fy + 1)[2:]}: STCG Rs {stcg[fy]:,.0f}, LTCG Rs {ltcg[fy]:,.0f}, "
+ f"est. tax incl. cess Rs {tax(stcg[fy], ltcg[fy]):,.0f}")
+ ```
+