Stems from Finance (Union Budget) 2024, where the tax rate under Section 111A for STCG was raised from 15% to 20%

Short-Term Capital Gains (STCG) tax rate for listed equity shares in India for Assessment Year (AY) 2025-26 (Financial Year 2024-25):


STCG Rate for Listed Shares – AY 2025-26

Transaction Date             Applicable STCG Rate (Section 111A)
On or before 22 July 2024
            15%  + applicable surcharge & cess
On or after 23 July 2024                          20% + surcharge & cess 

Why the change?

This revision stems from Finance (Union Budget) 2024, where the tax rate under Section 111A for STCG was raised from 15% to 20%, applicable to listed equity shares, equity-oriented mutual funds, and business trusts, provided conditions like STT payment are met.

Key Takeaway:

  • STCG for listed equity sold before 23 July 2024: 15%

  • STCG for listed equity sold on/after 23 July 2024: 20%


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