What is the tax treatment of short-term capital gains in India?

Short-term capital gains (STCG) arising from the transfer of a capital asset held for 36 months or less are taxed at normal slab rates under Section 111A of the Income Tax Act, 1961. For equity shares/units where STT is paid, STCG is taxed at a concessional rate of 15% (plus applicable surcharge and cess). There are no changes introduced by Finance Act 2025 regarding STCG taxation. Supporting Case Law: CIT v. D.P. Krishnakumar (2015) – Kerala High Court – ITA No. 218/2013 – Link: https://indiankanoon.org/doc/104832283/ – Ratio: The court upheld the taxability of STCG under Section 111A and the concessional rate for STT-paid equity shares/units. Current Status: The STCG taxation regime is well-settled, though disputes may arise regarding valuation and computation.

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Prashant Thakur

The author has spent more than 30 years in the field of taxation. Wrote four books -3 on on Indian Tax Law and 1 on US tax law for cryptocurrency. Apart from https:taxworry.com , he also writes on https://irstaxapp.com which is for US tax laws. He is a tech enthusiast and manages a cloud computing company that publishes innovative software.