Section 111A - STCG Tax on Listed Equity Shares & Equity Mutual Funds
Short-term capital gains from sale of listed equity shares, equity-oriented mutual funds, or units of business trust (held ≤ 12 months) where STT is paid are taxed at flat 20% (from Budget 2024).
Key provisions
- Rate: 20% on STCG (increased from 15% by Finance Act 2024)
- STT must have been paid on both purchase and sale
- No benefit of basic exemption limit for non-resident taxpayers
- Basic exemption limit can be adjusted against STCG for resident individuals
- Losses under 111A can be set off against any STCG (under any head); can be carried forward 8 years
- Applies to equity shares, equity mutual funds, and units of business trust on recognised stock exchange
FAQs
Since the holding period (8 months) is less than 12 months, the gain is STCG. Tax rate under Section 111A is 20% (rate applicable from July 23, 2024) plus 4% cess = effective rate of 20.8%.
Use via API
GET/v1/tax-law/sections/by-2025-ref/111A
Programmatic access - free, no signup required. ISR-cached for 24 hours.
REQUEST · cURL
curl https://api.thynktax.com/v1/tax-law/sections/by-2025-ref/111A
RESPONSE · 200 OK
{
"act_2025_ref": "111A",
"old_reference": "Section 111A, Income Tax Act 1961",
"title": "Section 111A - STCG Tax on Listed Equity Shares & Equity Mutual Funds",
"category": "Capital Gains",
"limit_or_rate": "20% flat (increased from 15% by Budget 2024, effective July 23, 2024)",
"applicable_to": "All assessees",
"effective_from": "2026-04-01"
}