Cpital gain
This query is : Resolved
17 January 2012
for determination of long or short term capital assets in some cases period is taken 36 months & in some cases 12 month. in second category only govt. securities should quoted on stock exchange. why this provision is not applicable to shares
17 January 2012
Section 2(42A) defines short term capital asset.
As per Section 2(42A), short term capital asset means a capital asset held by an assessee for not more than thirty-six months immediately preceding the date of its transfer.
It further provides that in case of
(i)share held in a company or
(ii)any other security listed in a recognised stock exchange in India or
(iii)a unit of the Unit Trust of India or
(iv)a unit of a Mutual Fund or
(v)a zero coupon bond
the period shall be 12 months.
So, if a share(listed or unlisted) is held for more than 12 months it shall be long term capital asset and not short term capital asset.
As per Section 2(42A), short term capital asset means a capital asset held by an assessee for not more than thirty-six months immediately preceding the date of its transfer.
It further provides that in case of
(i)share held in a company or
(ii)any other security listed in a recognised stock exchange in India or
(iii)a unit of the Unit Trust of India or
(iv)a unit of a Mutual Fund or
(v)a zero coupon bond
the period shall be 12 months.
So, if a share(listed or unlisted) is held for more than 12 months it shall be long term capital asset and not short term capital asset.
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17 January 2012
thank u sir
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