Is STT separately deductible?

STT paid on STCG transactions is not deductible. STT paid on the purchase side may be added to the cost of acquisition in some interpretations — consult your tax advisor for borderline cases.

Educational guide

Short-Term Capital Gains Tax (STCG) — Rules Across Assets

Short-term capital gains tax rates were raised significantly in Budget 2024. The new rules are simpler — but more expensive — across most asset classes.

// equity stcg @ 20%

Listed equity shares and equity mutual fund units held for ≤ 12 months → STCG at 20% (raised from 15% on 23 Jul 2024). Applies only to STT-paid transfers; off-market transfers without STT are taxed at slab rate.

// non-equity stcg at slab

Property, gold, unlisted shares, debt MFs (held short-term) → added to total income and taxed at applicable slab rate. There is no concessional flat rate for short-term non-equity gains.

// loss set-off

Short-term capital losses can be set off against both STCG and LTCG of the same year. Unabsorbed STCL can be carried forward for 8 assessment years and set off against any future capital gain (short or long).

// frequently asked questions

No. Intraday trades are treated as speculative business income, not capital gains. They are taxed at slab rate and reported under business income in the ITR.