Short-term capital gain
Profit on an investment sold within the short-term holding period, taxed at a higher rate.
A short-term capital gain is the profit from selling an investment before it has been held long enough to count as long term. For listed shares and equity mutual funds that line is 12 months. Short-term gains are usually taxed more heavily than long-term ones. Rates change at Budget time, so check the current rules.
Questions people ask
What is the full form of STCG?
STCG stands for short-term capital gain, the profit from selling an investment before it has been held long enough to count as long term. For listed equity that line is 12 months.
What is the STCG tax rate on shares?
For listed equity sold within 12 months after 23 July 2024, short-term gains are taxed at 20%. Earlier the rate was 15%. Rates change at Budget time, so confirm on incometax.gov.in.
Why is a short-term gain taxed more than a long-term one?
The tax system nudges people toward holding investments longer, so short-term gains usually carry a higher rate than long-term ones on the same asset.
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