Short tem capital gain
This query is : Resolved
30 July 2017
Dear Expert,
please provide me provision regarding short term capital gain.this information helpful to us in filling of income tax
please provide me provision regarding short term capital gain.this information helpful to us in filling of income tax
30 July 2017
https://www.bankbazaar.com/tax/short-term-capital-gain.html
25 July 2025
Sure! Here's a clear summary of **Short Term Capital Gains (STCG)** provisions under Indian Income Tax for your reference:
---
### **Short Term Capital Gains (STCG) — Overview**
**Definition:**
Short Term Capital Gain arises when a **capital asset** is sold within a specified short period from the date of acquisition.
---
### **Holding Period to Qualify as Short Term**
| Asset Type | Holding Period for Short Term Capital Asset |
| ----------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------- |
| Equity shares or units of Equity Mutual Funds (listed on recognized stock exchange) | **Less than 12 months** |
| Other capital assets | **Less than 36 months (earlier 12 months for immovable property; now 24 months for some assets)** |
> *Note:* Holding period rules differ depending on asset type. Always check specific asset category.
---
### **Tax Rates on Short Term Capital Gains**
| Asset Type | Tax Rate |
| -------------------------------------------------------------- | --------------------------------------------------------------------------- |
| Equity shares or equity mutual funds (STT paid on transaction) | **15%** flat on gains (STCG on listed equity) |
| Other assets (immovable property, debt mutual funds, etc.) | Taxed at **normal slab rates** applicable to the taxpayer (added to income) |
---
### **Key Points**
* **STT (Securities Transaction Tax):**
Applicable on equity transactions. If STT is paid, concessional rate of 15% applies.
* **Set-off & Carry Forward:**
Short Term Capital Loss can be set off against both STCG and LTCG in the same year.
Loss can also be carried forward for 8 years.
* **Calculation of Gains:**
STCG = Sale Price - (Purchase Price + Expenses related to sale/purchase).
---
### **Example**
If you buy shares in March 2023 and sell them in November 2023, the gain will be STCG and taxed at 15%.
---
If you want, I can also share specific Income Tax sections or examples for calculation. Would you like that?
---
### **Short Term Capital Gains (STCG) — Overview**
**Definition:**
Short Term Capital Gain arises when a **capital asset** is sold within a specified short period from the date of acquisition.
---
### **Holding Period to Qualify as Short Term**
| Asset Type | Holding Period for Short Term Capital Asset |
| ----------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------- |
| Equity shares or units of Equity Mutual Funds (listed on recognized stock exchange) | **Less than 12 months** |
| Other capital assets | **Less than 36 months (earlier 12 months for immovable property; now 24 months for some assets)** |
> *Note:* Holding period rules differ depending on asset type. Always check specific asset category.
---
### **Tax Rates on Short Term Capital Gains**
| Asset Type | Tax Rate |
| -------------------------------------------------------------- | --------------------------------------------------------------------------- |
| Equity shares or equity mutual funds (STT paid on transaction) | **15%** flat on gains (STCG on listed equity) |
| Other assets (immovable property, debt mutual funds, etc.) | Taxed at **normal slab rates** applicable to the taxpayer (added to income) |
---
### **Key Points**
* **STT (Securities Transaction Tax):**
Applicable on equity transactions. If STT is paid, concessional rate of 15% applies.
* **Set-off & Carry Forward:**
Short Term Capital Loss can be set off against both STCG and LTCG in the same year.
Loss can also be carried forward for 8 years.
* **Calculation of Gains:**
STCG = Sale Price - (Purchase Price + Expenses related to sale/purchase).
---
### **Example**
If you buy shares in March 2023 and sell them in November 2023, the gain will be STCG and taxed at 15%.
---
If you want, I can also share specific Income Tax sections or examples for calculation. Would you like that?
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