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Capital Gains

Short Term Capital Gains Tax Rate in India

Short-term capital gains (STCG) arise when you sell an asset within the short-term holding period. The rate depends on the asset type.

Written byDirector, TaxClue
Published
Updated
Reading time
4 min
Questions
4 answered
  • Medium Complexity
Topic
Capital Gains
Published
August 20, 2026
Last updated
Aug 20, 2026
Reading time
4 min
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Last updated: August 2026Verified against: Government sources

Short Term Capital Gains explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.

Short-term capital gains (STCG) arise when you sell an asset within the short-term holding period. The rate depends on the asset type.

STCG rates

  • Listed shares/equity funds (with STT) held up to 12 months — 20%
  • Other assets (property, gold, debt funds, unlisted shares) — taxed at your slab rate
  • Holding period: 12 months for listed securities, 24 months for property/unlisted shares

How it is taxed

STCG on non-equity assets is added to your total income and taxed at your applicable slab rate, unlike the flat rate on equity STCG.

Note

No indexation benefit is available for short-term gains.

Frequently Asked Questions

What is the STCG rate on shares?

20% on listed equity shares/funds (with STT) held up to 12 months.

How is STCG on property taxed?

At your applicable income-tax slab rate.

Is indexation available for STCG?

No — indexation applies only to long-term gains.

What is the holding period for short-term?

12 months for listed securities and 24 months for property/unlisted shares.

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Quick recapKey facts & short answers

Key Facts About Short Term Capital Gains

  • Applies in: All states across India, under the relevant central law.
  • Mode: Mostly online via the official government portal.
  • Typical timeline: Ranges from a few days to a few weeks depending on the case.
  • Non-compliance: May attract penalties, interest or late fees.
  • Expert help: TaxClue completes the entire process end to end for you.

What is the STCG rate on shares?

20% on listed equity shares/funds (with STT) held up to 12 months.

How is STCG on property taxed?

At your applicable income-tax slab rate.

File the return even in a loss year — a loss you do not report is a loss you cannot carry forward.

— TaxClue Direct Tax Desk

Short Term Capital Gains: a key compliance topic in Indian tax and corporate law that businesses and individuals must understand to remain compliant.

Related Services & Guides

Why This Matters

Staying compliant with Indian regulations protects your business from penalties, interest and unnecessary legal trouble. It is always wise to maintain proper records and documentation so that any future scrutiny can be handled smoothly. Rules and thresholds in capital gains are revised periodically, so it helps to review your obligations at the start of each financial year. Professional guidance from a qualified CA, CS or advocate ensures that filings are accurate and submitted well before the due date.

Small businesses and startups especially benefit from setting up a simple compliance calendar to track recurring deadlines. Government portals now allow most applications and filings to be completed online, reducing paperwork and turnaround time. Keeping your PAN, registration certificates and board resolutions organised makes every subsequent filing faster. When in doubt, it is better to seek clarification early rather than risk a notice or a late-filing penalty later.

A clear understanding of the applicable law helps you make confident, well-informed business decisions. TaxClue's experts regularly assist businesses across India with end-to-end capital gains support at transparent, affordable pricing. Timely compliance also improves your credibility with banks, investors and government authorities. Reviewing your obligations with a professional at least once a year keeps your business audit-ready and stress-free.

Staying compliant with Indian regulations protects your business from penalties, interest and unnecessary legal trouble. It is always wise to maintain proper records and documentation so that any future scrutiny can be handled smoothly. Rules and thresholds in capital gains are revised periodically, so it helps to review your obligations at the start of each financial year. Professional guidance from a qualified CA, CS or advocate ensures that filings are accurate and submitted well before the due date.

Small businesses and startups especially benefit from setting up a simple compliance calendar to track recurring deadlines. Government portals now allow most applications and filings to be completed online, reducing paperwork and turnaround time. Keeping your PAN, registration certificates and board resolutions organised makes every subsequent filing faster. When in doubt, it is better to seek clarification early rather than risk a notice or a late-filing penalty later.

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Monika Sharma Director at TaxClue
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Disclaimer: This article is for general informational purposes only and does not constitute professional tax, legal or financial advice. Laws, rates and due dates change and can vary by individual case — always verify with the relevant government source (e.g. mca.gov.in, incometax.gov.in) or consult a qualified professional before acting. TaxClue accepts no liability for decisions taken based on this content.

People also ask

Questions, answered

Short, direct answers to the 4 questions readers ask most on this topic.

20% on listed equity shares/funds (with STT) held up to 12 months.

At your applicable income-tax slab rate.

No — indexation applies only to long-term gains.

12 months for listed securities and 24 months for property/unlisted shares.

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