The capital gains tax is one of the most important factors to take into account when selling assets. The profit from the sale of a capital asset, such as real estate, stocks, or bonds, is subject to capital gains tax. Coming to your query, how are short term capital gains taxed? These gains are taxed differently based on the nature of the asset sold.
How is Short Term Capital Gains Taxed?
The Short-Term Capital Gains (STCG) arise when you sell a capital asset within a specified holding period, which varies depending on the type of asset. As I mentioned, they are taxed based on the asset sold.
For most assets like real estate, gold, or debt mutual funds, the holding period to qualify as short-term is 36 months.
However, for listed equity shares, equity-oriented mutual funds, and certain other securities, the holding period is reduced to just 12 months to be considered short-term.
The calculation of STCG is straightforward. It's the difference between the sale price and the purchase price, with no adjustment for inflation allowed.
I hope you found this helpful.
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How are Short Term Capital Gains Taxed?
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2025-05-30T06:44:50+00:00 2025-05-30T06:44:52+00:00Comment
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