Short term capital gains tax: India

As per AY 2008-09 Dividends that are distributed attract a tax of 15 per cent.Short term capital gains attract a tax of 10 per cent under Section 111A.

There is merit in equating the rates and hence increased the rate of tax on short term capital gains under Section 111A and Section 115AD to 15 per cent. [ This encourages investors to stay invested for a longer term.]

Short-term Capital gains tax Long-term capital gains tax
Sale transactions of securities which attracts STT:- 10% NIL
Sale transaction of securities not attracting STT:-
Individuals (resident and non-residents) Progressive slab rates 20% with indexation;

10% without indexation (for units/ zero coupon bonds)

Partnerships (resident and non-resident) 30%
Individuals (resident and non-residents) 30%
Overseas financial organisations specified in section 115AB 40% (corporate)
30% (non-corporate)
FIIs 30% 10%
Other Foreign companies 40% 20% with indexation;

10% without indexation (for units/ zero coupon bonds)

Local authority 30%
Co-operative society Progressive slab rates

5 Responses to Short term capital gains tax: India

  1. The best thing would be to use the free online tool from elagaan ( and let them figure out the details..

  2. VENKATRAJ says:

    What is the Progressive slab rates for individuals capital gail.

  3. I’ve been engaged in taxes for lengthier then I care to acknowledge, both on the personal side (all my working life!!) and from a legal stand since satisfying the bar and pursuing tax law. I’ve put up a lot of advice and corrected a lot of wrongs, and I must say that what you’ve put up makes utter sense. Please carry on the good work – the more people know the better they’ll be outfitted to comprehend with the tax man, and that’s what it’s all about.

  4. Wow! Thank you! I usually wanted to write in my web-site some thing like in which. Can I take portion of the post to my web log?

  5. Hi Marlin,

    Thanks, Yes why not you can use the content from this website.


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