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A capital gain is a profit or gains derived from the selling of assets. The tax on this capital gain must be paid in the year in which the asset is transferred. So, what is the definition of short-term capital gains tax? Short-term capital gains tax, sometimes known as STCG, is a tax applied on profits made from the sale of an asset that has been held for a government-defined short period. The short-term period varies by item; for example, the holding period for immovable property such as land, buildings, and houses was reduced in FY 2017-18 from 36 months or less to 24 months or less to qualify as "short term."
In other words, Short-term capital gains are treated as ordinary income and are taxed accordingly. You must include any income from investments you held for less than a year in your taxable income for that year.
For example, if your taxable income from your salary is 1,00,000 and your taxable income from short-term investments is 20,000, your total taxable income is 1,20,000.
Short-term capital gains are taxed according to the same tax rates as ordinary income.
Note - These gains are applicable till 31st march 2022