What is short-term capital loss?

A capital gain is any profit realized from the disposition, transfer, or sale of any investment property or asset. The profit created from the sale of these properties is referred to as short-term capital gain if the holding period for these properties is less than 12 months (36 or 24 months in some cases).

A holding duration of fewer than 12 (or 36) months is considered a short-term investment in equity shares. The difference between the basis of a short-term share, or its purchase price, and the price earned on its sale is known as a short-term capital gain on shares. Gains from cryptocurrency must be calculated in order to understand the tax implications.

Short-term capital gains on shares are gains made through the sale or transfer of these assets.

Alternatively, if these equity shares are sold for less than their purchase price, the investor suffers a capital loss.

Note - These gains and losses are applicable till 31st march 2022