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what is short term capital gain?

rajendra (student) (95 Points)

18 June 2009

Hi! I have invested some amount in equity / share market of india. As my scriptts are giving me good return i want to withdraw my share. (to sell my stock) I am not understanding tax calculation in this matter. 1. what is short term capital gain? 2. do i have to pay short term capital gain?( if I do not pay ???) 3. how it is calculated on my profit? 4. who can help me out in calculation and paying STCG tax? 5. how much % of my profit it would be? Thanks in advance

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3 Replies

CA Devanshi Gandhi (Ajani) (FCA DISA Mcom CIFRS & LLB) (9060 Points)
Replied 19 June 2009

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.

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saleemoddin (php developer) (66 Points)
Replied 07 July 2009

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

Ratan Deep Saxena (Asstt Manager (Accounts & Finance)) (2998 Points)
Replied 25 July 2009

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.