Short term capital gain means capital gain arising from transfer of short term capital asset. No indexation benefit is available for short term capital gains.
Short term capital gain is computed as under
|Short Term Capital Gain/Loss||Amount|
|Full value of consideration
Less: Expenses incurred wholly and exclusively in connection with such transfer
Net ConsiderationLess: Cost of acquisition
Less: Cost of improvement Short Term Capital Gains
Less: Exemption under section 54B, 54D, 54G, 54GA
|Taxable Short Term Capital Gain (Loss if negative)||XXX|
Securities Transaction Tax (STT) is not allowed as deduction of expenses while calculating capital gain whether short term or long term.