All You Need To Know About Short Term Capital Gains Tax

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Short Term Capital Gains Tax

The short-term capital gains tax applies to gains on the holding and sale of assets for less than 36 months. If a taxpayer holds a principal asset for three years or less before selling it, it is considered short-term capital.


Tax On STCGs

The tax on short-term gains is imposed by the government and is subject to Section 111A of the Income Tax Act. The current rate is 15 percent, minus copayments and fees, which generally overlap.

Income Tax Act

Tax Exemption Under Section 111A

1. Short-term gains are made by selling shares in stock through an unrecognized stock market. Short-term gains on any shares sold except for equity shares.

Tax Exemption

Short Term Gains

2. Short-term gains from the sale of non-equity-related MFs.


Gains From Bonds

3. Short-term gains from the sale of bonds, government securities, and debentures. Short-term gains from the sale of real estate, silver, gold, etc.


Tax Calculations For HUFs

For individuals or Hindu undivided families, if their total income (after reducing short-term capital gains) falls below the maximum non-taxable amount, the short-term capital gains are adjusted accordingly, and the tax on the remaining gains is calculated at a 15 per cent rate.

Compiled by Syed Muskan