Short Term Gains and Taxation



Gains and losses on short-term investments.
If an equity share purchased on a stock exchange is sold within 12 months of purchase, the seller can make a short-term capital gain or loss. If shares are sold at a higher price than when they were purchased, the seller makes a short-term capital gain.

Short-term capital gains are subject to a tax.
Short-term capital gains are taxed at a rate of 15%. What if your tax rate is ten per cent, twenty per cent, or thirty per cent? Short-term capital gains are taxed at a special rate of 15%, regardless of the tax bracket.

Capital loss in the short term.
Any short-term capital loss from the selling of stock can be offset against any short- or long-term capital gain from any capital asset.