I read that the short term capital gains tax in India is 15% if there is securities transaction tax, and if there is not, short term capital gains is taxed as ordinary income. I have the following two questions.
Securities transaction tax is 0.01% which is relatively small. Does this mean that if one is not charged this tax one might have to pay short term capital gains tax at a much higher rate than 15%? Indeed, the 30% tax bracket starts at only 10 lakh INR.
What about foreign short term capital gains? There is no concept of securities transaction tax for foreign securities. So how are their short term gains taxed?