capital gain

Section 111A is applicable to any short-term gains made from investments in equity or equity-based mutual funds. For such instruments, short-term is considered as 1 year. As per Section 111A, such short-term capital gains are taxed at a flat rate of 15%.

"equity oriented fund" means a fund—

(i)  where the investible funds are invested by way of equity shares in domestic companies to the extent of more than sixty-five per cent of the total proceeds of such fund; and

(ii)  which has been set up under a scheme of a Mutual Fund specified under clause (23D):

Provided that the percentage of equity share holding of the fund shall be computed with reference to the annual average of the monthly averages of the opening and closing figures;