The retail intuition compares STCG to LTCG and stops there. The right comparison is after-tax CAGR on the same starting capital. Two different questions. Two different answers.
01
The tax taxes the gain
A higher rate on a bigger number can still be smaller in rupees. The frequency of the rebalance does not determine the tax. The size of the realised gain does.
02
The break-even bar is low
STCG 20 vs LTCG 12.5 is a 7.5 percentage point higher rate. A 2W cadence needs roughly 7.5 pp of extra gross to wash the bracket. Most well-built systematic strategies clear that by triple digits in basis points.
03
After-tax CAGR is the only honest number
Brochure CAGR is gross. Tax bracket is a feature, not a verdict. Compute net after tax for both strategies on the same Rs 10 lakh. Whichever number is bigger wins. Brackets do not.
The deal, in one line
The STCG bill is bigger. The cheque is bigger by more. Stop arguing brackets and start measuring rupees.
Tanmay Kurtkoti . Builder of RupeeCase
Walk the after-tax math step by step. Same setup, your own numbers, your own bracket.