Capital Gain

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Capital gains are classified as either long-term or short-term based on how long you've held an asset before selling it. Generally, holding an asset for over 24 months results in a long-term capital gain, while selling within 24 months leads to a short-term gain. Specific asset types, like unlisted shares, property, and certain securities, have different holding periods (e.g., 12 or 36 months) that determine whether a gain is considered short or long-term.

TARIQUE RIZVI

TARIQUE RIZVI (Querist)
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29 February 2020 What is the difference between long term and short term capital gain ?

Eswar Reddy S

Eswar Reddy S (Expert)
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29 February 2020 If you buy now and sell within 24 months then it is short term .Beyond 24 months long term. For few assets this period is 12 months

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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29 February 2020 Any gain on sale of long term capital asset is treated as long term capital gains. Gain from sale of short term capital asset is short term capital gains.
Short-term Capital Asset:
If capital asset is held for a period of 36 months or less preceding the date of its transfer, it will be treated as a short-term capital asset.

However, the period of 36 months has been reduced to 24 months in case of unlisted shares and immovable property being land, building, and house property.

Further, in case of listed securities, unit of the Unit Trust of India, unit of an equity oriented fund or a zero coupon bond, the period of holding of capital asset shall be taken as 12 months to treat capital asset as short-term.

Any capital asset other than short-term capital asset is treated as long-term capital asset.

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