Glossary · Income Tax
STCG
Profit arising from the sale of a capital asset held for less than the holding period prescribed for that asset class.
When a capital asset is transferred within a period shorter than the prescribed holding period for that asset, the resulting profit is a Short-Term Capital Gain (STCG). The qualifying holding period and the tax treatment differ across asset classes such as listed securities, immovable property and other assets, and are governed by the Income Tax Act. STCG is reported along with the taxpayer’s other income for the year.
Examples
Selling listed equity shares before the prescribed equity holding period ends results in STCG rather than LTCG.