What is a Short-Term Capital Gain (STCG)?

Capital gains are classified based on the holding period. Short-Term Capital Gains (STCG) include: 

Security Type
Holding Period 
Tax Rate 
Equity and Equity-oriented Mutual Funds 
Less than 1 year 
15% of the gain 
Debt Mutual Funds 
As per your income tax slab
Listed Bonds & Debentures 
Less than 1 year
As per your income tax slab
Unlisted Bonds & Debentures
More than 1 year 
As per your income tax slab 

For example, Mr Martin buys 100 Tata Motors shares at Rs. 500 per share (Rs. 50,000). He sells the shares after 50 days for Rs. 75,000. His gain of Rs. 25,000 will be considered as an STCG and he will be liable to pay 15% of Rs. 25,000 (Rs. 3,750) as tax.

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