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regulation · intermediate

STCG on equity

Short-term capital gains on listed equity apply when shares are sold before completing the long-term holding period.

Classify using the holding-period test against LTCG on equity under the Income-tax Act for the assessment year.

Listed equity STCG where STT conditions are met is taxed at a special rate under the Act for the relevant year, not automatically at slab rates — check the current Finance Act.

Frequent trading can raise business-income characterisation depending on facts and assessment.

Clear buy and sell dates are essential for STCG versus LTCG classification.

Part of the Market Pulse Term of the Day series — factual market vocabulary, not investment advice.