{"id":7619,"date":"2025-07-10T12:23:45","date_gmt":"2025-07-10T12:23:45","guid":{"rendered":"https:\/\/lemonn.co.in\/blog\/?post_type=glossary&#038;p=7619"},"modified":"2025-07-10T12:23:46","modified_gmt":"2025-07-10T12:23:46","slug":"short-term-capital-gain-stcg","status":"publish","type":"glossary","link":"https:\/\/lemonn.co.in\/blog\/glossary\/short-term-capital-gain-stcg\/","title":{"rendered":"Short Term Capital Gain (STCG)"},"content":{"rendered":"<p>When you buy <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/shares\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>shares<\/a> and sell them within <strong>1 year (12 months)<\/strong> at a <strong>profit<\/strong>, the money you earn is called a <strong><a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/short-term-capital-gain-stcg\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Short Term Capital Gain (STCG)<\/a><\/strong>.<\/p>\n\n\n\n<p>Let&#x2019;s break it down in easy words.<\/p>\n\n\n\n<h3 id=\"what-is-short-term-capital-gain-stcg\" class=\"wp-block-heading\"><strong>What is Short Term <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/capital-gain\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Capital Gain<\/a> (STCG)?<\/strong><\/h3>\n\n\n\n<p>If you buy shares and sell them <strong>within 12 months<\/strong> for a higher price, the profit is <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/tax\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>tax<\/a>ed as <strong>short term capital gain<\/strong>.<\/p>\n\n\n\n<p>This applies only to shares listed on <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/stock-exchange\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">stock exchange<\/a>s like <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/nse\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>NSE<\/a> or <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/bse\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>BSE<\/a>.<\/p>\n\n\n\n<h3 id=\"stcg-tax-rate-on-shares\" class=\"wp-block-heading\"><strong>STCG Tax Rate on Shares<\/strong><\/h3>\n\n\n\n<p>The government charges <strong>15% tax<\/strong> on your short term capital gain from shares.<\/p>\n\n\n\n<p>&#x2705; This is <strong>flat 15%<\/strong>, no matter how much profit you earn.<br>&#x274C; No extra tax slabs like in salary income.<\/p>\n\n\n\n<h3 id=\"how-to-calculate-stcg-on-shares\" class=\"wp-block-heading\"><strong>How to Calculate STCG on Shares<\/strong><\/h3>\n\n\n\n<p><strong>Formula:<\/strong><\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><strong>STCG = Selling Price &ndash; Purchase Price &ndash; <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/broker\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>Broker<\/a>age or Charges<\/strong><\/p>\n<\/blockquote>\n\n\n\n<p>Then apply <strong>15% tax<\/strong> on the gain.<\/p>\n\n\n\n<h3 id=\"simple-example-1\" class=\"wp-block-heading\"><strong>Simple Example 1:<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>You bought 100 shares of a company at &#x20B9;100 = &#x20B9;10,000<\/li>\n\n\n\n<li>Sold them in 6 months at &#x20B9;120 = &#x20B9;12,000<\/li>\n\n\n\n<li>Profit = &#x20B9;2,000<\/li>\n\n\n\n<li>STCG Tax = 15% of &#x20B9;2,000 = &#x20B9;300<\/li>\n<\/ul>\n\n\n\n<p>So you pay &#x20B9;300 as tax.<\/p>\n\n\n\n<h3 id=\"simple-example-2-with-charges\" class=\"wp-block-heading\"><strong>Simple Example 2 (With Charges):<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Buy 50 shares at &#x20B9;200 = &#x20B9;10,000<\/li>\n\n\n\n<li>Sell at &#x20B9;220 = &#x20B9;11,000<\/li>\n\n\n\n<li>Brokerage and other charges = &#x20B9;100<\/li>\n\n\n\n<li><a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/net-profit\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Net profit<\/a> = &#x20B9;900<\/li>\n\n\n\n<li>STCG Tax = 15% of &#x20B9;900 = &#x20B9;135<\/li>\n<\/ul>\n\n\n\n<h3 id=\"when-stcg-tax-is-not-applicable\" class=\"wp-block-heading\"><strong>When STCG Tax is Not Applicable<\/strong><\/h3>\n\n\n\n<p>You don&#x2019;t need to pay tax if:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Your <strong>total taxable income (including STCG)<\/strong> is less than &#x20B9;2.5 lakh (basic exemption limit for individuals under 60).<\/li>\n\n\n\n<li>If your total income is within the tax-free limit, even short term gains can be <strong>tax-free<\/strong>.<\/li>\n<\/ul>\n\n\n\n<h3 id=\"stcg-vs-long-term-capital-gain-ltcg\" class=\"wp-block-heading\"><strong>STCG vs Long Term Capital Gain (LTCG)<\/strong><\/h3>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th>Type<\/th><th>Holding Period<\/th><th>Tax Rate<\/th><\/tr><\/thead><tbody><tr><td>STCG<\/td><td>Less than 12 months<\/td><td>15%<\/td><\/tr><tr><td>LTCG<\/td><td>More than 12 months<\/td><td>10% (above &#x20B9;1 lakh gain)<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 id=\"why-stcg-matters\" class=\"wp-block-heading\"><strong>Why STCG Matters<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Useful for traders and investors who buy\/sell shares frequently.<\/li>\n\n\n\n<li>Helps plan your tax on profits smartly.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>When you buy shares and sell them within 1 year (12 months) at a profit, the money you earn is called a Short Term Capital Gain (STCG). Let&#x2019;s break it down in easy words. What is Short Term Capital Gain (STCG)? If you buy shares and sell them within 12 months for a higher price, [&#x2026;]<\/p>\n","protected":false},"author":9,"featured_media":0,"menu_order":0,"template":"","meta":{"footnotes":""},"class_list":["post-7619","glossary","type-glossary","status-publish","hentry"],"blocksy_meta":[],"_links":{"self":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/7619","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary"}],"about":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/types\/glossary"}],"author":[{"embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/users\/9"}],"version-history":[{"count":1,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/7619\/revisions"}],"predecessor-version":[{"id":7620,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/7619\/revisions\/7620"}],"wp:attachment":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/media?parent=7619"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}