Short Term Capital Gain Tax in India (FY 2024-25) – Rates, Calculation & Latest Updates
- PRITI SIRDESHMUKH
- Jul 22
- 19 min read
Short term capital gain tax is a tax you pay on profits from selling certain investments quickly. The Union Budget 2024-25 brought some important changes to short term capital gain (STCG) tax in India, and these new rules started on July 23, 2024. Understanding these STCG tax rules is very important for anyone who invests. This article will explain what short-term capital gains are. It will also cover the new tax rates from the Financial Year 2024-25 (Assessment Year 2025-26). You will learn how to calculate this tax, how it affects different types of assets, and some ideas for tax planning. Taxbuddy has deep expertise in Indian tax laws and can help you with understanding capital gains and how to file your income tax return. Have you ever wondered how much tax you might owe on your recent investment profits?
Table of Content
What is Short Term Capital Gain (STCG)?
A short term capital gain arises when you sell a "capital asset" for a profit in a short time. The Income Tax Act, 1961, defines a capital asset; it generally includes things like property, shares, and mutual funds. A short-term capital asset is a capital asset you hold for a specific, relatively brief period before selling it. Section 2(42A) of the Income Tax Act defines a short-term capital asset based on this holding period. When you make a transfer (like a sale) of a short-term capital asset and get more money than you spent to get it, that profit is a short term capital gain. This STCG meaning is distinct from Long Term Capital Gain (LTCG), which comes from selling assets you've held for a longer time. The exact holding period that decides if an asset is short-term or long-term can vary for different capital assets in India.
Here's a simple table to show the basic difference:
Feature | Short Term Capital Gain (STCG) | Long Term Capital Gain (LTCG) |
Holding Period | Shorter (e.g., 12 months for some, 24 for others) | Longer (e.g., more than 12 or 24 months respectively) |
Tax Treatment | Often different rates, some at slab, some fixed | Often different rates, some with indexation benefits |
You can learn more about Long Term Capital Gains (LTCG) to understand the contrast better.
Crucial Update: Impact of Union Budget 2024-25 on STCG Tax
The stcg budget 2024, presented as the Finance (No.2) Bill 2024, introduced significant capital gains tax changes in India for 2024, especially for short term capital gains. These new stcg rates and rules, announced by Finance Minister Nirmala Sitharaman and the Ministry of Finance, became effective for transfers made on or after July 23, 2024. A key change involves the tax rate for STCG under Section 111A of the Income Tax Act. This section typically applies to gains from selling listed equity shares and equity-oriented mutual fund units where Securities Transaction Tax (STT) was paid. Before this update, the rate was 15%. However, for transactions from July 23, 2024, this rate has changed.
Key STCG Tax Changes (Effective July 23, 2024):
The tax rate for STCG covered under Section 111A (e.g., sale of listed equity shares with STT paid) increased from 15% to 20%. This is a major shift for many investors. It is important to note that these changes are effective for transfers made on or after July 23, 2024.
The Union Budget 2024 also aimed to rationalize some holding periods, which could affect whether a gain is classified as short-term or long-term for certain assets, although the primary STCG holding periods for common assets like listed shares (12 months) and immovable property (24 months) largely remain consistent for STCG classification. Investors should consult the Official Budget 2024 Capital Gains Update or the PIB Clarification on Capital Gains for meticulous details. You can also find more information in Taxbuddy's Union Budget 2024 highlights.
Here's a summary of the key change for Section 111A:
Change Detail | Old Provision (Before July 23, 2024) | New Provision (On or After July 23, 2024) | Effective Date |
Tax Rate for STCG u/s 111A (STT paid assets) | 15% (+ surcharge & cess) | 20% (+ surcharge & cess) | July 23, 2024 |
This alteration means profits from short-term trading in STT-paid shares and equity mutual funds now attract a higher tax.
Holding Periods for Determining Short-Term Capital Assets
The stcg holding period is vital for classifying an asset as short-term. Understanding the short term asset holding period in India helps in determining the tax implications. Following the Union Budget 2024, the holding periods for most assets to be considered short-term remain largely unchanged, but it's crucial to be precise. Any rationalization attempts generally aim for clarity rather than wholesale changes to these established periods.
Here is a table showing the holding period for different asset types to be classified as short-term:
Asset Type | Holding Period to be Classified as Short-Term |
Listed Equity Shares / Equity Oriented MFs | Sold within 12 months of acquisition. |
Units of Business Trust (REITs, InvITs) | Sold within 12 months of acquisition. |
Unlisted Shares | Sold within 24 months of acquisition. |
Immovable Property (land, building) | Sold within 24 months of acquisition. |
Debt Mutual Funds | See special note below. |
Gold (Physical, Gold ETFs) | Sold within 36 months of acquisition. |
Bonds (other than Zero Coupon Bonds), Debentures | Generally, sold within 12 months if listed, 36 months if unlisted. |
Other Capital Assets | Sold within 36 months of acquisition. |
Special Note on Debt Mutual Funds: For units of debt mutual funds acquired on or after April 1, 2023, any capital gain arising from their sale is treated as a Short Term Capital Gain (STCG) regardless of the actual holding period, and it's taxed at the individual's applicable slab rates. For units acquired before April 1, 2023, the old rule (less than 36 months for STCG) applies. It's always good to check specifics if Taxbuddy has a page on Tax on Property Sale for property-related queries.
Short Term Capital Gain Tax Rates in India (FY 2024-25)
The short term capital gain tax rate in India for the Financial Year 2024-25 (Assessment Year 2025-26) depends on the type of asset and, crucially, the date of sale due to the Union Budget 2024 changes effective July 23, 2024. It's vital to distinguish gains under Section 111A from other short-term capital gains.
STCG Tax Rates FY 2024-25 (For transactions on or after July 23, 2024)
Asset Type / Scenario | STCG Tax Rate | Conditions |
Sale of listed equity shares (STT paid) | 20% (+ surcharge & cess) | Section 111A applies. Securities Transaction Tax (STT) must be paid. |
Sale of units of equity-oriented mutual funds (STT paid) | 20% (+ surcharge & cess) | Section 111A applies. STT must be paid. |
Sale of units of a business trust (STT paid on recognized stock exchange) | 20% (+ surcharge & cess) | Section 111A applies. |
STCG from property, unlisted shares (other than some specific cases), gold, etc. | Taxed at applicable slab rates | Added to total income and taxed as per individual/entity income tax slab rates. |
STCG from Debt Mutual Funds (units acquired on or after April 1, 2023) | Taxed at applicable slab rates | Irrespective of holding period, taxed at individual/entity income tax slab rates. |
STCG Tax Rates FY 2024-25 (For transactions before July 23, 2024) For assets falling under Section 111A (like STT-paid listed equity shares and equity MFs), if sold before July 23, 2024, but within FY 2024-25, the STCG tax rate was 15% (+ surcharge & cess). Other STCGs (like on property, gold, unlisted shares, non-equity MFs) were, and continue to be, taxed at the applicable income tax slab rates.
Surcharge and Health & Education Cess are applicable on the tax amount as per the taxpayer's income level. For STCGs taxed at slab rates, you should refer to the current income tax slab rates or the official Income Tax Slab Rates. The stcg tax slab means that for certain assets, the gain gets added to your total income, and you pay tax based on whichever income slab you fall into. The short term capital gain tax on shares (listed, STT paid) is now a noteworthy 20% if sold on or after July 23, 2024. The stcg on property tax rate remains at your individual slab rate.
How to Calculate Short Term Capital Gain Tax
To calculate stcg, one needs to follow a clear process. The stcg formula is straightforward. You must first determine the profit from the sale, and then apply the correct tax rate. Indexed cost of acquisition, which involves adjusting the purchase price for inflation, is NOT available for calculating Short Term Capital Gains.
The basic STCG formula is: STCG = Full Value of Consideration – (Cost of Acquisition + Cost of Improvement + Expenses on Transfer)
Step-by-Step Calculation
Here’s how you can compute STCG and the tax on it:
Determine Full Value of Consideration
The full value of consideration is the total amount of money or value you received (or will receive) from selling the asset. For instance, if you sell shares for ₹1,50,000, this is your full value of consideration.
Identify Cost of Acquisition
The cost of acquisition is the original price you paid to buy the asset. If you bought those shares for ₹1,00,000, this is your cost of acquisition.
Identify Cost of Improvement (if any)
The cost of improvement refers to any capital expenses you incurred to make additions or improvements to the asset. For shares, this is usually not applicable, but for a house, it could be the cost of adding a new room.
Identify Expenses Incurred Exclusively for Transfer
Expenses on transfer are costs directly related to selling the asset. This can include brokerage fees, stamp duty, legal fees, etc. For share sales, brokerage and STT (though STT isn't deductible from gain, its payment is a condition for Sec 111A rate) are common.
Compute STCG
Now, use the formula: Subtract the sum of cost of acquisition, cost of improvement, and expenses on transfer from the full value of consideration. STCG = ₹1,50,000 – (₹1,00,000 + ₹0 + ₹500 brokerage) = ₹49,500.
Calculate Tax Payable
Finally, calculate tax payable by multiplying the STCG amount by the applicable tax rate. If this STCG is from listed equity shares sold after July 23, 2024 (STT paid), the rate is 20%. So, Tax = ₹49,500 * 20% = ₹9,900 (plus applicable surcharge and cess).
Calculation Examples
Let’s look at some stcg tax examples:
Example 1: STCG on Listed Equity Shares (post-July 2024, STT paid)
An investor, Priya, buys 100 shares of ABC Ltd. for ₹100 per share on January 15, 2025 (Total Cost of Acquisition = ₹10,000). She sells them on June 15, 2025, for ₹130 per share (Total Full Value of Consideration = ₹13,000). She paid brokerage of ₹100 on sale. STT was paid.
Holding Period: 5 months (Short-Term)
Full Value of Consideration: ₹13,000
Cost of Acquisition: ₹10,000
Cost of Improvement: ₹0
Expenses on Transfer (Brokerage): ₹100
STCG = ₹13,000 – (₹10,000 + ₹0 + ₹100) = ₹2,900
Tax Rate (u/s 111A, post July 23, 2024): 20%
Tax Payable = ₹2,900 * 20% = ₹580 (plus surcharge/cess if applicable)
Example 2: STCG on Sale of Property
Raj bought a small plot of land for ₹5,00,000 on August 1, 2023. He sold it on May 1, 2025, for ₹7,00,000. He paid ₹10,000 as brokerage during the sale.
Holding Period: 21 months (Short-Term, as it's less than 24 months for property)
Full Value of Consideration: ₹7,00,000
Cost of Acquisition: ₹5,00,000
Cost of Improvement: ₹0
Expenses on Transfer: ₹10,000
STCG = ₹7,00,000 – (₹5,00,000 + ₹0 + ₹10,000) = ₹1,90,000
Tax Rate: This STCG will be added to Raj's other income and taxed at his applicable income tax slab rate. If Raj falls in the 30% slab, the tax on this gain (ignoring other income complexities) would be roughly ₹1,90,000 * 30% = ₹57,000 (plus surcharge/cess).
Example 3: STCG on Debt Mutual Fund (acquired after April 1, 2023)
Anita invested ₹2,00,000 in a Debt Mutual Fund on May 15, 2023. She redeemed it on December 1, 2024, for ₹2,20,000.
Holding Period: Over 18 months. However, since units were acquired after April 1, 2023, gains are treated as STCG irrespective of holding period.
Full Value of Consideration: ₹2,20,000
Cost of Acquisition: ₹2,00,000
STCG = ₹2,20,000 – ₹2,00,000 = ₹20,000
Tax Rate: This STCG of ₹20,000 will be added to Anita's total income and taxed at her applicable income tax slab rate.
Try Our Interactive Short Term Capital Gain Tax Calculator
An stcg calculator online can simplify figuring out your potential tax. This short term capital gain tax tool helps you estimate the gain and the tax you might owe. While Taxbuddy does not currently offer an embedded calculator on this page, using such a tax tool can be very helpful. You would typically input your purchase price, sale price, relevant dates, and asset type. For gains under Section 111A, the calculator would use the fixed 20% rate (for sales post-July 23, 2024). For STCG taxed at slab rates, a good calculator would determine the gain amount, which you then add to your income to see the tax impact based on your slab. Remember, any calculator provides an estimation and should not replace professional tax advice.
STCG Tax Provisions for Specific Assets
The stcg tax implications vary for different assets, particularly concerning holding periods and tax rates after the Budget 2024 updates. Understanding stcg on shares, stcg on mutual funds, stcg on property, stcg on gold, and stcg on debt funds is crucial for investors.
STCG on Equity Shares
The stcg tax on stocks that are listed and where Securities Transaction Tax (STT) is paid applies if you sell them within 12 months of buying. For such sales made on or after July 23, 2024, the equity stcg rate is 20% under Section 111A (plus applicable surcharge and cess). The payment of STT is a mandatory condition to avail this specific rate; otherwise, the STCG might be taxed differently (usually at slab rates if STT is not paid, though this is uncommon for stock exchange transactions).
STCG on Equity-Oriented Mutual Funds
The mutual fund short term capital gain tax for equity-oriented mutual fund units (where STT is paid at the time of redemption) mirrors that of listed equity shares. If units are sold within 12 months of allotment, the gain is STCG. For redemptions on or after July 23, 2024, this STCG is taxed at 20% under Section 111A (plus surcharge and cess). STCG on equity mf units is a common occurrence for investors who churn their portfolio quickly.
STCG on Debt Mutual Funds
The stcg on debt funds new rules brought a significant change. For debt mutual fund units acquired on or after April 1, 2023, any capital gain, regardless of the holding period, is considered Short Term Capital Gain (STCG) and is taxed at the investor's applicable income tax slab rate. This means the earlier distinction of holding for more than 36 months to qualify for long-term (and potential indexation) is no longer available for these new investments. For debt fund units acquired before April 1, 2023, the old rule still applies: if held for less than 36 months, it's STCG taxed at slab rates. The debt fund taxation 2024 changes have made these investments less tax-efficient for longer holding periods compared to the past.
STCG on Real Estate / Immovable Property
For short term capital gain on property sale, the holding period is less than 24 months from the date of acquisition. If you sell an immovable property (like land, a house, or an apartment) within this period, the profit is an STCG. This real estate stcg India is added to your total income and taxed at your applicable income tax slab rates. No benefit of indexation is available for STCG on property.
STCG on Gold
The stcg on gold investment arises if you sell physical gold or Gold ETFs within 36 months of acquiring them. Such STCG is added to your income and taxed at your applicable slab rates. For Gold ETFs, the STCG treatment is similar to non-equity funds, not equity ETFs. Sovereign Gold Bonds (SGBs) have specific rules. Interest from SGBs is taxable. If SGBs are redeemed on maturity (after 8 years), the capital gains are tax-exempt. However, if SGBs are sold in the secondary market before maturity, capital gains arise. If sold after 12 months but before maturity, it's treated as LTCG with specific tax rates/indexation benefits depending on the exact period. Gains from SGBs sold within 12 months would be STCG, taxed at slab rates.
STCG on Unlisted Shares
The holding period for stcg unlisted shares is generally less than 24 months. If unlisted shares (shares not traded on a recognized stock exchange) are sold within 24 months of acquisition, the resulting profit is STCG. This STCG is added to the seller's total income and taxed at their applicable income tax slab rates. There are specific rules for certain types of unlisted shares or scenarios, but this is the general treatment.
STCG Tax for Non-Resident Indians (NRIs)
The nri stcg tax India rules have specific considerations for Non-Resident Indians. When NRIs earn short term capital gains from assets in India, they are liable to pay tax in India. For STCG covered under Section 111A (like on STT-paid listed equity shares sold on or after July 23, 2024), the tax rate for NRIs is also 20% (plus applicable surcharge and cess). For other STCGs (e.g., on property, unlisted shares, debt funds), NRIs are generally taxed at their applicable slab rates, but they might not always get the benefit of the basic exemption limit against such STCGs if they have other specified incomes.
A crucial aspect for NRIs is Tax Deducted at Source (TDS) on capital gains. The buyer of an asset from an NRI is often required to deduct TDS at the prescribed rates before making the payment. For STCG, the TDS rates can be specific. For example, TDS on STCG under Section 111A could be 20% (plus surcharge/cess). On other STCGs like from property, TDS rates can be higher (e.g., slab rates, potentially the maximum marginal rate if PAN is not provided). NRIs may be able to claim relief under a Double Taxation Avoidance Agreement (DTAA) between India and their country of residence, if applicable, to avoid paying tax on the same income in both countries. It's advisable for NRIs to understand NRI taxation rules in India or consult the Income Tax Department NRI Guidelines.
Key points for NRIs regarding STCG:
STCG under Sec 111A: Taxed at 20% (post July 23, 2024) + SC/Cess.
Other STCG: Generally taxed at applicable slab rates.
TDS is usually applicable on capital gains for NRIs.
DTAA provisions might offer relief.
Exemptions and Deductions for Short Term Capital Gains
Many taxpayers wonder about stcg tax exemption and deductions against short term capital gain to save tax on stcg. Generally, the scope for exemptions on STCG is limited compared to Long Term Capital Gains. The basic exemption limit (e.g., ₹2.5 lakhs, ₹3 lakhs depending on the regime and age) can be adjusted against STCG only if the taxpayer's total income (excluding STCG u/s 111A) is below this exemption limit. For resident individuals, if other income is less than the basic exemption limit, the shortfall can be set off against STCG under Section 111A and also other STCGs. However, this adjustment is subject to specific conditions.
Regarding Chapter VI-A deductions (which include popular ones like Section 80C for PPF, ELSS, insurance premium, etc., up to Section 80U), these deductions cannot be claimed against Short Term Capital Gains covered under Section 111A (i.e., STCG from STT paid listed equity shares/equity MFs). However, Chapter VI-A deductions can be claimed against other STCGs (e.g., STCG from property, unlisted shares, debt funds, gold) that are taxed at normal slab rates, provided the taxpayer is eligible for these deductions.
Q&A on Exemptions/Deductions:
Can I claim 80C against STCG u/s 111A? No, deductions under Chapter VI-A (like Section 80C deductions) are not allowed from STCG taxable under Section 111A.
Can the basic exemption limit be used against STCG? Yes, for resident individuals, if your other taxable income is below the basic exemption limit, you can use the unexhausted limit to reduce STCG (both under Sec 111A and other STCGs).
Setting Off and Carry Forward of Short Term Capital Losses
The rules to set off stcl (Short Term Capital Loss) and carry forward short term capital loss are important for tax management. If you incur an STCL in a financial year, you can set it off against any Short Term Capital Gain (STCG) or Long Term Capital Gain (LTCG) made in the same year. This is a valuable capital loss adjustment India allows.
If the STCL cannot be fully set off in the same year, the unabsorbed STCL can be carried forward to subsequent assessment years. This carried-forward STCL can then be set off against STCG or LTCG in those future years. You can carry forward STCL for a maximum of 8 assessment years immediately succeeding the assessment year in which the loss was incurred. It is mandatory to file your Income Tax Return within the due date to be eligible to carry forward these losses (except for loss from house property).
Loss Setting Off & Carry Forward Summary:
Loss Type | Can be Set Off Against (in current year) | Carry Forward Period | Can be Set Off Against (in future years) |
Short Term Capital Loss (STCL) | STCG, LTCG | 8 Assessment Years | STCG, LTCG |
Long Term Capital Loss (LTCL) | Only LTCG | 8 Assessment Years | Only LTCG |
Knowing these rules can help in tax loss harvesting strategies.
Reporting STCG in Income Tax Return (ITR)
Taxpayers must report stcg in itr accurately. When filing your Income Tax Return (ITR), you need to declare your short term capital gains in the Capital Gains Schedule of the relevant ITR form. Typically, individuals with capital gains income (who do not have business income) would use ITR-2. If an individual has business income along with capital gains, ITR-3 would be applicable. ITR-1 (Sahaj) is generally not for individuals with capital gains income, though minor exceptions for very small, specific gains might exist but usually direct to ITR-2. It's crucial to know how to show short term capital gain in itr correctly.
Key ITR reporting aspects:
Select the correct ITR form (usually ITR-2 or ITR-3 for capital gains).
Fill in the 'Schedule CG' (Capital Gains) with details of each asset sale.
Provide dates of acquisition and sale, sale consideration, cost of acquisition, and expenses.
Calculate STCG for each transaction and report them under the correct categories (e.g., STCG u/s 111A, other STCG). Taxbuddy can assist you to File your ITR with Taxbuddy, ensuring accurate reporting.
Tips for Managing Short Term Capital Gain Tax Liability
Taxpayers can use some legitimate tips for short term capital gains to manage their stcg tax. Here are some ways to potentially reduce stcg tax or manage the liability effectively:
Extend Holding Period: If your investment goals allow, consider holding assets for a longer duration to qualify for Long Term Capital Gains (LTCG). LTCG often has more favorable tax treatment (e.g., lower rates for some assets, indexation benefits for others) compared to STCG. However, this should align with your overall financial planning.
Tax Loss Harvesting: You can offset your capital gains with capital losses. If you have incurred Short Term Capital Losses (STCL), set them off against STCG or LTCG. Similarly, if you have unrealized losses in some investments, you might consider booking those losses to set them off against realized gains, a strategy known as tax loss harvesting.
Plan Investments Considering Post-Tax Returns: When making investment decisions, always factor in the potential tax impact on returns. An investment that looks attractive pre-tax might be less appealing after considering the STCG tax it might attract.
Utilize Basic Exemption Limit (if applicable): For resident individuals, if your total income (excluding STCG u/s 111A) is below the basic exemption limit, you can adjust this unexhausted limit against STCG.
Advance Tax Payments: If your total tax liability (including on STCG) for the year is expected to exceed ₹10,000, you should pay advance tax in installments to avoid interest under section 234B and 234C.
It's always wise to seek expert tax planning advice for personalized strategies. These tips are for informational purposes and should be applied after consulting with a tax advisor.
Conclusion: Navigating STCG Tax in India
Understanding stcg tax is crucial for every investor in India. Short Term Capital Gain refers to the profit from selling an asset held for a short period. The Union Budget 2024 has brought key changes, notably increasing the STCG tax rate for assets under Section 111A (like STT-paid shares and equity MFs) to 20% for sales from July 23, 2024. Other STCGs continue to be taxed at applicable slab rates. Knowing the calculation basics, which involves deducting the cost of acquisition and transfer expenses from the sale price, is essential. Careful tax planning and stcg compliance can help manage your tax outgo effectively. For any assistance with your STCG tax queries or filing, feel free to Contact Taxbuddy today.
Frequently Asked Questions (FAQs) on Short Term Capital Gain Tax
What is the STCG tax rate on shares in India for FY 2024-25?
For listed equity shares where STT is paid, if sold on or after July 23, 2024, the STCG tax rate is 20% (u/s 111A) plus applicable surcharge and cess. If sold before July 23, 2024 (within FY 2024-25), the rate was 15% plus surcharge/cess. For unlisted shares, STCG is taxed at your applicable income tax slab rate.
Is STCG tax applicable even if my total income is below the taxable limit?
For resident individuals, if your total income (excluding STCG u/s 111A) is below the basic exemption limit, you can adjust the unexhausted portion of the limit against STCG (both u/s 111A and other STCG). So, you might not pay tax if the total, after adjustment, is within the non-taxable limit.
How is STCG on property calculated in India?
STCG on property = Sale Price – (Cost of Acquisition + Cost of Improvement + Expenses on Transfer). This gain is then added to your total income and taxed at your applicable income tax slab rates. The holding period for property to be short-term is 24 months or less.
Is there any indexation benefit for short term capital gains?
No, the benefit of indexation (adjusting cost for inflation) is not available for calculating Short Term Capital Gains. It is only available for Long Term Capital Gains on certain assets.
What is the holding period for STCG on debt mutual funds after Budget 2024?
For debt mutual fund units acquired on or after April 1, 2023, any capital gain arising from their sale is treated as STCG and taxed at your applicable slab rates, irrespective of the actual holding period. For units acquired before April 1, 2023, the holding period for STCG is less than 36 months.
Can I set off STCL against LTCG?
Yes, a Short Term Capital Loss (STCL) can be set off against both Short Term Capital Gain (STCG) and Long Term Capital Gain (LTCG) in the same assessment year.
How many years can I carry forward STCL?
You can carry forward unadjusted Short Term Capital Loss (STCL) for 8 assessment years immediately following the assessment year in which the loss was incurred.
What is STT and is it deductible from STCG?
STT is Securities Transaction Tax, levied on transactions of securities (like shares, equity MF units) on a recognized stock exchange. STT paid is not deductible as an expense from the capital gain itself. However, the payment of STT is a condition for availing the concessional tax rate of 20% (earlier 15%) under Section 111A for STCG.
Is STCG applicable on inherited assets?
Yes, STCG can be applicable on inherited assets if sold by the inheritor. For calculating capital gains, the cost of acquisition for the inheritor will be the cost for which the previous owner acquired the asset. The holding period also includes the period for which the previous owner held the asset. Tax liability depends on this combined holding period and the nature of the asset.
What if I sell shares before July 23, 2024, but in FY 2024-25? What STCG rate applies?
If you sold listed equity shares (STT paid) before July 23, 2024, and it resulted in STCG (held for 12 months or less), the applicable tax rate under Section 111A was 15% (plus surcharge and cess).
Are gains from intraday trading considered STCG?
No, profits from intraday trading in shares are generally treated as "Speculative Business Income" and not as Capital Gains. This income is taxed at the normal slab rates applicable to your income.
What is the STCG tax implication for ULIPs after Budget 2024?
ULIP taxation rules are specific. For ULIPs issued on or after Feb 1, 2021, if the aggregate annual premium exceeds ₹2.5 lakh, the maturity proceeds (except death benefits) are generally taxable as capital gains. The holding period and whether it's STCG or LTCG would depend on how long the ULIP was held and specific provisions. If classified as STCG, it would typically be taxed at slab rates. The Budget 2024 changes to general STCG rates (like Sec 111A) might not directly apply unless specified for ULIP gains.
Is STCG on gold ETFs taxed like equity ETFs?
No. STCG on Gold ETFs is not taxed like STCG on equity-oriented ETFs (which fall under Sec 111A if STT paid). STCG on Gold ETFs (held for less than 36 months) is added to your total income and taxed at your applicable income tax slab rates.
Do I need to pay advance tax on STCG?
Yes, if your total advance tax liability (including tax on STCG) for a financial year is ₹10,000 or more, you are required to pay advance tax in installments throughout the year.
Where do I show STCG in ITR-1?
Generally, ITR-1 (Sahaj) is not the form for reporting capital gains. If you have capital gains income, including STCG, you will likely need to file ITR-2 (if you don't have business income) or ITR-3 (if you have business income). These forms have dedicated schedules (Schedule CG) to report capital gains in detail.
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