Stcg tax rate: When securities transaction tax

When securities transaction tax (STT) applies, STCG is taxed at a rate of 15% to 20% under Section 111A of the Income Tax Act. This tax structure helps simplify the taxation process for investors in the stock market and mutual funds. Short-Term Capital Gains Tax Rate for FY 2024-25 What Shall be the Rate of Tax for STCG for AY 2025–26? With effect from 23rd July 2024, 20% flat rate on gains from listed equity shares and equity-oriented MF units sold in recognized stock exchanges, with STT paid. Tax Rates under section 111A The tax rate for short-term capital gains ( STCG ) under Section 111A depends on the date of sale of securities: For sales before 23rd July 2024, STCG is taxed at 15%, without indexation benefits. For sales on or after 23rd July 2024, STCG is taxed at 20%, also without indexation benefits. STCG Tax Rate : Short-term capital gains from debt funds held for less than the holding period (varies depending on the fund type) are taxed according to the individual’s income tax slab rate .