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From the Financial year 2008-09, all Short Term Capital gains will be charged at the rate of 15%, compared to earlier rate of 10%.

This is applicable for the Capital gain arising on or after 01/04/2008.

To be clear, below is the summary of finance bill:

Increase in tax rates for Short Term Capital Gain

Section 111A and 115AD provide for special tax rate of ten per cent on short-term capital gain arising from the transfer of a short-term capital asset, being an equity share in a company or a unit of an equity oriented fund , where such transaction is chargeable to securities transaction tax.

It is proposed to increase the rate of tax on such short-term capital gain to fifteen percent.

These amendments will take effect from the 1st day of April, 2009 and will accordingly apply in relation to assessment year 2009-10 and subsequent assessment years.

Source: Relyon | Back to Budget Page