Capital Gains Tax: Short-Term vs. Long-Term Explained

This query is : Resolved

Quick Summary

If you bought shares on 5 August 2024 and sold them on 4 August 2025, this is considered a Short-Term Capital Gain (STCG) as the holding period is less than 12 months. Discrepancies in your AIS, such as shares held for under 10 months being shown as long-term or costs appearing as nil, are common issues often due to third-party reporting errors. Always rely on your verified broker contract notes and capital gains statements for accurate tax filing.

SHAHNH

SHAHNH (Querist)

22 July 2026 Purchased shares on 5 August 2024 and sold it on 4 August 2025.
Which type of capital gains will it qualify for.
The dates are of actual contract note.
Also found discrepancies in AIS for shares sold within 10 months still it reflects as long-term in AIS. Many costs are shown as nil eventhough purchased 2 years ago. Is their Data in AIS not updated. Is it experienced by everyone.

Thanks in advance

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

22 July 2026 The transaction qualifies as a Short-Term Capital Gain (STCG) because the holding period is under 12 months (from 5 August 2024 to 4 August 2025). The incorrect long-term classifications and nil costs in the AIS are common reporting discrepancies originating from third-party intermediaries, and you should file your return using your verified broker contract notes and capital gains statements.

SHAHNH

SHAHNH (Querist)

22 July 2026 Thanks for your prompt revert.
One view we got as - Indian income tax using dynamic method and they take 364 days for ascertaining transaction as short or long term.
Is it true.

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