What is Short Term Capital Gains Tax (STCG)?

A Short-Term Capital Gain refers to any profit or gain arising from the transfer of a capital asset, that has been held by an assessee (tax-payer) for 36 months or less. In the case of listed Securities, Units, and Zero Coupon Bonds the time can be 12 months or less, and in the case of unlisted shares and immovable property held for 24 months or less. In simple words, Short-Term Capital gain is a profit earned by a sale of Short-term capital assets.

Table of Content

  • What are Capital Assets?
  • How Short-term Capital Gains are Taxed?
  • Calculation of Short-Term Capital Gain Tax
  • Exemptions on Short-Term Capital Gains Tax

Short Term Capital Gains Tax (STCG) : Meaning, Calculation and Exemptions

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What is Short Term Capital Gains Tax (STCG)?

A Short-Term Capital Gain refers to any profit or gain arising from the transfer of a capital asset, that has been held by an assessee (tax-payer) for 36 months or less. In the case of listed Securities, Units, and Zero Coupon Bonds the time can be 12 months or less, and in the case of unlisted shares and immovable property held for 24 months or less. In simple words, Short-Term Capital gain is a profit earned by a sale of Short-term capital assets....

What are Capital Assets?

Capital Assets can be:...

How Short-term Capital Gains are Taxed?

The tax rate levied on Short-term Capital gain has been divided into two categories:...

Calculation of Short-Term Capital Gain Tax

Before computing tax on Short-Term Capital Gain, it is mandatory to determine the value of Short-Term Capital Gain....

Exemptions on Short-Term Capital Gains Tax

1. Any Short-Term Capital Gain arising on transfer of units of Unit Scheme 1964 if Unit Trust of India is exempt under Section 10(33)....

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