1. Taxability of Short Term Capital Gains of Equity Shares.

Question

Accepted Answer

Short term capital gains on equity shares are taxable.

Short term capital gains on equity shares are taxed at a rate of 15%.
Short term capital gains are gains made on the sale of equity shares held for less than 1 year.
The gains are added to the individual's total income and taxed accordingly.
However, if the individual has incurred short term capital losses, they can be set off against the gains.
If the losses exceed the gains, the remaining loss can be carried forward for up to 8 years.
For example, if an individual sells equity shares after holding them for 6 months and makes a profit of Rs. 50,000, they will have to pay a tax of Rs. 7,500 (15% of Rs. 50,000).

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