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How to read section numbers: s.80C→s.123 means Section 80C of the Income-tax Act, 1961 is now Section 123 of the Income-tax Act, 2025 (in force from 1 April 2026). Returns for FY 2025-26 still use the old numbers; Tax Year 2026-27 onwards uses the new ones. Section Finder
How it is taxed
- Flat 20% plus surcharge (capped at 15%) and 4% cess — not slab rates
- A resident whose other income is below the basic exemption limit can use the unused limit against STCG
- Chapter VI-A deductions (80C, 80D…) cannot be set off against 111A gains
- Intraday trading is speculative business income, and F&O is non-speculative business income — neither is 111A
Short-term losses
A short-term capital loss can be set off against both short and long-term gains, and carried forward 8 years if you file the return on time.
Worked example
Example
Example: Salary ₹9 lakh (new regime) and STCG ₹1.5 lakh. Salary tax is nil after rebate, but STCG tax = 20% × ₹1.5 lakh = ₹30,000 + cess = ₹31,200.
Common mistakes
- Treating intraday profits as STCG
- Expecting the ₹12 lakh rebate to cover STCG
- Not filing on time and losing the loss carry-forward
Frequently asked questions
No. STCG on property, gold and unlisted shares is taxed at your slab rate.
Last reviewed on 11 November 2026 by Vinay Jaglan, VJ & Associates. Law and portal screens change — verify before acting, or ask the office.
