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

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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	NA	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.