Short-Term Capital Gains (STCG) tax applies to profits earned from the sale of an asset held for a short duration, here are some things to know about it.
1
STCG tax is levied on the profits earned from the sale of assets held for a short period.
2
For equity shares and equity-oriented mutual funds, the STCG tax rate is 15% if Securities Transaction Tax (STT) is paid.
3
The gain is calculated by subtracting the cost of acquisition and expenses incurred on the transfer from the sale proceeds.
4
No specific deductions under Section 80C to 80U are allowed from STCG covered under Section 111A.
5
STCG can be set off against short-term capital losses or long-term capital losses from other assets.
6
Advance tax payment might be required if the tax liability exceeds Rs. 10,000 in a financial year to avoid interest penalties.
7
Non-residents are also subject to STCG tax on assets sold in India.