BooksIQSTCG on listed equity shares / equity mutual funds / business-trust units (on which STT is paid) is taxed at a special rate of 15%, raised to 20% for transfers on or after 23-Jul-2024. Other short-term gains are taxed at normal slab rates.
Key points
- §111A taxes SHORT-TERM CAPITAL GAIN (holding ≤ 12 months) on EQUITY SHARES, units of an EQUITY-ORIENTED mutual fund, or units of a BUSINESS TRUST, where the transaction is subject to SECURITIES TRANSACTION TAX (STT), at a concessional flat rate of 15% — raised to 20% for transfers on or AFTER 23 JULY 2024 (Finance (No.2) Act 2024).
- A resident individual/HUF may adjust the gain against the unexhausted basic exemption limit.
- No Chapter VI-A deductions are allowed against this gain.
- STCG on assets NOT covered by §111A (e.g. unlisted shares, property held ≤ 24 months, debt funds) is taxed at NORMAL SLAB rates.
- (Long-term gains on the same listed securities fall under §112A — 10%/12.5% above the annual exemption.)
Reference: §111A ITA 1961 — under ITA 2025 (FY 26-27 onwards), this is §196
This page is general information for Indian businesses, current as of the
financial year shown above — not legal or tax advice. Tax law changes,
and how a provision applies depends on your specific facts. Confirm the
current position with a qualified professional before you act.
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