Short term capital gain tax: Short - Term Capital Gains

Short - Term Capital Gains are taxed at the applicable income tax rate for your income slab, except in case of equity shares or equity-oriented mutual funds, which attract a flat tax rate of 20% as of Budget 2024-2025. Short term capital gains (STCG) under Section 111A apply to profits earned from the sale of listed equity shares or equity-oriented mutual funds held for 12 months or less, where Securities Transaction Tax (STT) has been paid. Currently, short term capital gains on shares under Section 111A is taxed at 20%. Under the new tax regime for FY24-25, short - term capital gains (STCG) and long- term capital gains (LTCG) on listed equity shares, equity oriented mutual funds, and units of business trusts are treated differently. STCG, covered under Section 111A, applies when securities are held for less than 12 months. Short - Term Capital Gains (STCG) are gains from the sale of assets held for less than 24 months. For listed equity shares and mutual funds, this period is reduced to 24 months. When securities transaction tax (STT) applies, STCG is taxed at a rate of 15% to 20% under Section 111A of the Income Tax Act.