Tax Glossary Definition
Short-Term Capital Gain (STCG): The profit arising from the transfer of a capital asset held for a period shorter than the prescribed threshold — generally up to 12 months for listed equity shares and up to 24 months for most other assets. Such gains are taxable at applicable short-term capital gains rates.
Example: Selling listed shares after holding them for 6 months at a profit of ₹50,000 attracts tax at 20% under Section 111A.
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