SHORT TERM CAPITAL ASSET

Hi,

Section 2(42A) of the Income Tax Act, 1961, defines short term capital asset as any capital asset held by the taxpayer for a period of not more than 36 months immediately preceding the date of its transfer.

However, in respect of certain assets like shares (equity or preference) which are listed in a recognised stock exchange in India, units of equity oriented mutual funds, listed securities like debentures and Government securities, Units of UTI and Zero Coupon Bonds, the period of holding to be considered is 12 months.

Also, Period of holding to be considered as 24 months in case of unlisted shares of a company or an immovable property being land or building or both.