What is STCG Tax on Stocks in India?

Short-Term Capital Gains (STCG) arise when eligible listed equity shares are sold within 12 months from the date of purchase. For listed equity shares covered under Section 111A, where applicable Securities Transaction Tax (STT) conditions are met, STCG is taxed at 20% (for transfers on or after July 23, 2024).

Short Term Capital Gains India 2026 Example

Suppose the listed shares are purchased for ₹2 lakh and sold for ₹2.6 lakh after 6 months. In this case, the STCG would be ₹60,000 (₹2.6 lakh – ₹2 lakh). After applying the short-term capital gains tax rate in India, the tax liability comes out to be ₹12,000, before applicable cess and surcharge.

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