{"id":2498,"date":"2025-07-08T17:57:24","date_gmt":"2025-07-08T12:27:24","guid":{"rendered":"https:\/\/www.caclubindia.com\/guide\/?p=2498"},"modified":"2025-07-08T18:01:24","modified_gmt":"2025-07-08T12:31:24","slug":"short-term-capital-gain-tax-on-shares","status":"publish","type":"post","link":"https:\/\/www.caclubindia.com\/guide\/short-term-capital-gain-tax-on-shares\/","title":{"rendered":"Short Term Capital Gain Tax On Shares For AY 2025-26"},"content":{"rendered":"\n<p><strong><a href=\"https:\/\/www.caclubindia.com\/guide\/short-term-capital-gains-tax\/\">Short-Term Capital Gains (STCG)<\/a><\/strong> on shares occur when equity shares or equity mutual funds are sold within 12 months. For AY\u202f2025\u201326 (FY\u202f2024\u201125), STCG is taxable under Section\u202f111A.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\r\n<div class=\"ez-toc-title-container\">\r\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\r\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\r\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.caclubindia.com\/guide\/short-term-capital-gain-tax-on-shares\/#What_Shall_be_the_Rate_of_Tax_for_STCG_for_AY_2025%E2%80%9326\" >What Shall be the Rate of Tax for STCG for AY 2025\u201326?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.caclubindia.com\/guide\/short-term-capital-gain-tax-on-shares\/#Computation_of_STCG\" >Computation of STCG<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.caclubindia.com\/guide\/short-term-capital-gain-tax-on-shares\/#Exemptions_Set-Off_Rules\" >Exemptions &amp; Set-Off Rules<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.caclubindia.com\/guide\/short-term-capital-gain-tax-on-shares\/#Can_the_Assessee_Claim_Any_Deductions\" >Can the Assessee Claim Any Deductions?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.caclubindia.com\/guide\/short-term-capital-gain-tax-on-shares\/#Compliance_Reporting\" >Compliance &amp; Reporting<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.caclubindia.com\/guide\/short-term-capital-gain-tax-on-shares\/#Tax-Saving_Planning_Tips\" >Tax-Saving &amp; Planning Tips<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.caclubindia.com\/guide\/short-term-capital-gain-tax-on-shares\/#Points_To_Note\" >Points To Note<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.caclubindia.com\/guide\/short-term-capital-gain-tax-on-shares\/#FAQs\" >FAQs<\/a><\/li><\/ul><\/nav><\/div>\r\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Shall_be_the_Rate_of_Tax_for_STCG_for_AY_2025%E2%80%9326\"><\/span>What Shall be the Rate of Tax for STCG for AY 2025\u201326?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>With effect from 23rd July  2024, <strong>20% flat rate <\/strong>on gains from listed equity shares and equity-oriented MF units sold in <strong>recognized stock exchanges<\/strong>, with <strong>STT paid<\/strong>. Along with <strong>4% Health &amp; Education Cess<\/strong>. This rate is applicable regardless of total income.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Criteria<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>Rate<\/strong><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">STT-paid listed equity transactions before 23rd July 2024<\/td><td class=\"has-text-align-center\" data-align=\"center\">15% + 4% cess<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">STT-paid listed equity transactions after 23rd July 2024<\/td><td class=\"has-text-align-center\" data-align=\"center\">20% + 4% cess<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">Non-STT \/ off-market transactions<\/td><td class=\"has-text-align-center\" data-align=\"center\">Taxed at your income slab rate<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Computation_of_STCG\"><\/span>Computation of STCG<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Gain = Sale Price \u2013 Purchase Price \u2013 STT\/Applicable charges.<\/p>\n\n\n\n<p><strong>Example :<\/strong><\/p>\n\n\n\n<p>Transaction after 23rd July 2024<\/p>\n\n\n\n<figure class=\"wp-block-table is-style-stripes\"><table class=\"has-fixed-layout\"><tbody><tr><td>Buy shares for \u20b91,00,000 \u2192 Sell for \u20b91,50,000 \u2192 Gain = \u20b950,000<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<figure class=\"wp-block-table is-style-stripes\"><table class=\"has-fixed-layout\"><tbody><tr><td>Tax = 20% \u00d7 \u20b950,000 = \u20b910,000 \u2192 + 4% cess \u2192 \u20b910,400<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Exemptions_Set-Off_Rules\"><\/span>Exemptions &amp; Set-Off Rules<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>No exemption via Section 54\/54F for securities.<\/p>\n\n\n\n<p>Set-off allowed against STCG:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>First: <\/strong>Short-term losses (other assets\/securities).<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Then: <\/strong>Long-term capital losses.<\/li>\n<\/ul>\n\n\n\n<p>Unabsorbed losses can be carried forward up to 8 years.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Can_the_Assessee_Claim_Any_Deductions\"><\/span>Can the Assessee Claim Any Deductions?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Unfortunately, <strong><a href=\"https:\/\/www.caclubindia.com\/guide\/80c-deduction\/\">Section 80C<\/a> deductions don\u2019t apply to STCG<\/strong> under Section 111A.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Compliance_Reporting\"><\/span>Compliance &amp; Reporting<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Report STCG in ITR Form ITR\u20112 or ITR\u20113, under \u201cCapital Gains \u2013 Short-Term\u201d.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>File within due date (<strong><a href=\"https:\/\/www.caclubindia.com\/guide\/last-date-to-file-itr\/\">usually July 31, for AY 2025-26 the due date is September 15, or October 31st with audit<\/a><\/strong>).<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Keep contract notes, Demat statements, STT &amp; broker statements as proof.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Tax-Saving_Planning_Tips\"><\/span>Tax-Saving &amp; Planning Tips<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Holding shares for &gt;1 year to avail 10% LTCG exemption (above \u20b91\u202fLakh).<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Selling loss-making shares to offset gains.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Invest in index\/infrastructure funds to diversify.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Points_To_Note\"><\/span>Points To Note<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>STCG = Profit from shares\/MFs sold &lt;12 months.<\/li>\n\n\n\n<li>Flat 15% tax + 4% cess before 23rd July 2024 or 20% tax + 4% cess after 23rd July 2024 if STT is paid.<\/li>\n\n\n\n<li>Use loss set-offs smartly.<\/li>\n\n\n\n<li>Report gains in ITR with documentation.<\/li>\n\n\n\n<li>Plan exits wisely to reduce tax outgo.<\/li>\n<\/ul>\n\n\n\n<p><strong>Also Read &#8211;<\/strong> <strong><a href=\"https:\/\/www.caclubindia.com\/guide\/share-market-taxation\/\">Share Market Taxation For AY 2024-25<\/a><\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FAQs\"><\/span>FAQs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1751525173055\"><strong class=\"schema-faq-question\">What is the tax slab for short term capital gains?<\/strong> <p class=\"schema-faq-answer\">If the total annual income (including STCG) doesn&#8217;t exceed the basic exemption threshol i.e \u20b92.5\u202flakh for individuals under 60, \u20b93\u202flakh for seniors, \u20b95\u202flakh for super-seniors STCG up to that limit remains un-taxed.<br\/><strong>For example, <\/strong>a resident under 60 earning \u20b91.5\u202flakh salary + \u20b91\u202flakh STCG = \u20b92.5\u202flakh total\u2014completely tax-free since it&#8217;s within the \u20b92.5\u202flakh slab .<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1751525217290\"><strong class=\"schema-faq-question\">What is the 87A rebate for short term capital gain?<\/strong> <p class=\"schema-faq-answer\">Section 87A provides tax relief to resident individuals falling under lower income brackets. For FY 2024-25, Rs. 25,000 rebate is allowed for income within 7 lakhs under the new regime and Rs. 12,500 is allowed for income within 5 lakhs under the old regime.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1751525231913\"><strong class=\"schema-faq-question\">Are dividends from shares taxable?<\/strong> <p class=\"schema-faq-answer\">Yes, they are taxed at your normal income slab rate. No longer exempt like before FY 2020\u201321.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1751525245536\"><strong class=\"schema-faq-question\">Is tax automatically deducted when selling shares?<\/strong> <p class=\"schema-faq-answer\">No, TDS is deducted on short-term or long-term capital gains when you sell shares through stock exchanges. STT is a tax levied on the purchase and sale of securities in the stock market.<\/p> <\/div> <\/div>\n","protected":false},"excerpt":{"rendered":"<p>Short-Term Capital Gains (STCG) on shares occur when equity shares or equity mutual funds are sold within 12 months. For [&hellip;]<\/p>\n","protected":false},"author":10,"featured_media":2500,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[4],"tags":[],"class_list":["post-2498","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-income-tax"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\r\n<title>Short Term Capital Gain Tax On Shares For AY 2025-26 - Tax Guide<\/title>\r\n<meta name=\"description\" content=\"Learn how short-term capital gains on shares are taxed and calculated! 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