Yes, NCDs can be subject to both Short Term Capital Gain (LTCG) and Long-Term Capital Gain (LTCG) taxes.
Capital gain taxes will apply if the NCDs are traded on the stock exchange.
Short term capital gains taxes will apply to NCDs that are sold within 12 months of the date of allotment.
Long term capital gains taxes apply to NCDs that are sold within 12 months of the date of allotment. The rate is either 10% without indexation, or 20% with indexation.