Taxes & charges

What is Capital gains tax (STCG and LTCG)?

Also called: STCG, LTCG, Short-term capital gains, Long-term capital gains

Hinglish mein padhein: Capital gains tax (STCG aur LTCG) kya hota hai?

Profit on listed shares held up to 12 months is short-term capital gain (STCG); held longer, it is long-term (LTCG). They are taxed at different rates.

From 23 July 2024, STCG on listed equity is taxed at 20% and LTCG at 12.5% on gains above ₹1.25 lakh in a financial year (plus surcharge and cess). Check the latest Budget for changes.

Intraday profits are speculative business income and F&O profits are non-speculative business income, taxed at your slab rate.

Related terms

STT (Securities transaction tax)STT is a tax charged by the government on every purchase or sale of shares and derivatives on Indian exchanges.
Delivery tradingIn a delivery trade you buy shares and keep them in your demat account beyond the trading day, for as long as you like.
Intraday tradingIntraday trading means buying and selling the same stock within one trading day, so no shares are delivered to your demat account.
Tax-loss harvestingTax-loss harvesting means booking losses on investments to offset taxable capital gains in the same year.