STT and Capital Gains: India's Tax Rules for Short‑ and Long‑Term Equity
In India, short‑term capital gains on listed shares and equity‑oriented mutual funds, provided Securities Transaction Tax (STT) is paid, incur a flat 20% tax. Long‑term gains (held over 12 months) are taxed at 12.5% on amounts above ₹1.25 lakh, with STT required for the concessional rate. The rules, unchanged ahead of the 2026 Union Budget, shape investor behavior and market liquidity.