Securing Hannav Ledger...
Securing Hannav Ledger...
Glossary
Short-Term Capital Gains are profits from selling capital assets held for a period shorter than the applicable long-term threshold.
Sell shares or mutual funds too quickly and profits may count as short-term gains, often taxed at higher rates.
For equity-oriented mutual funds and listed shares, holding period below 12 months triggers STCG. Debt fund STCG rules changed post-April 2023 — gains typically taxed at slab rates regardless of period for many debt categories. Always verify current IT Act provisions.
You invest ₹2 lakh in an equity fund and redeem at ₹2.4 lakh after 8 months. ₹40,000 STCG is taxed per applicable equity STCG rate in your assessment year.
Tax rates change with Finance Acts. Check the latest rate for equity STCG — historically a flat rate distinct from slab taxation applied.
STT paid is not deductible against capital gains tax for most investors, though it is levied on transaction value at sale or purchase.
FIFO method applies — earliest units purchased are deemed sold first, mixing short and long-term lots if SIP ran over a year.