Capital gain

Yes, if securities transaction tax is paid

Section 111A is applicable in case of STCG arising on transfer of equity shares or units of equity oriented mutual-funds  or units of business trust, which are transferred on or after 1-10-2004 through a recognised stock exchange and such transaction is liable to securities transaction tax (STT).

(*) Equity oriented mutual fund means a mutual fund specified under section 10(23D) and 65% of its investible funds, out of total proceeds are invested in equity shares of domestic companies.

If the conditions of section 111A as given above are satisfied, then the STCG is termed as STCG covered under section 111A. Such gain is charged to tax at 15% (plus surcharge and cess as applicable).

With effect from Assessment Year 2017-18, benefit of concessional tax rate of 15% shall be available even where STT is not paid, provided that

- transaction is undertaken on a recognised stock exchange located in any International Financial Service Centre, and

- consideration is paid or payable in foreign currency

Yes. In all cases, it will remain constant @ 15%

thanks..so for 30% tax slab person ,even for short term investment in equity is better as its going to get taxed at 15% whereas investment in debt if withdrawn before 3 yrs will bve taxed at 30% as per the slab

Correct.....