what is short term capital gain?

 in ur case if u sell the securities with in 1year of purchase than it will be termed as short term capital gain and its taxable @ 15%. as per section 111A.

It is taxable, as it is a capital gain. for more information on CAPITAL GAIN CALCULATION and income tax sections for the F.Y 2008-09 you can visit

https://www.payit.in/forums/viewtopic.php?f=10&t=12  (or) https://www.payit.in/2008itactsections.php

sale of shares of security within 1 yr of purchase are short term capital assets and  gain on such sale are liable to short trem capital gain. the rate of STCG is 15%. STCG= sales- cost of acquistion.