STCG Tax applies to the tax levied on any equity-related transaction (equity mutual fund or stocks).
If an equity mutual fund or capital offering is sold within one year of purchase, the owner must pay a 15 percent tax on the income.
In other words, 15% of the earnings must be collected in taxation. The capital invested is not included in this figure.
A individual is not allowed to pay taxes if they do not make any gains or profits.