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Short Term or Long Term

Mayur Khetshi Nisar (Practice) (139 Points)

19 April 2010

Dear Experts,

If a scrip is purchased on 24th April 2007 and sold on 24th April 2008 (making it 367 days - after considering both days inclusive), will the transaction be considered as short term or long term ?

The relevant section uses the words 12 months.

Regards

Mayur

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28 Replies

Amir (Learner) (4016 Points)
Replied 19 April 2010

Dear Sir,

More then 365 days will be treated as Long Term.

But few things to consider -

1) DATE OF SALE IS TO BE EXCLUDED

2) As per Boards Circular - Period of holding in case of dematted securities is to be counted from the date of entry and exit in Demat account on FIFO Basis

So if above dates are as per DEMAT Account then YES resultant gain will be Long Term.

1 Like

Max Payne (employed) (2569 Points)
Replied 19 April 2010

There has been a mistake in this post, of serious consequence, go to the next page.

I REQUEST YOU TO IGNORE THE HIGHLIGHTED PORTION

It will be long term since

the holding period is more than 12 months.

The 12th month ends on 23rd april 2008.

1 Like

SUDHIR & PRADEEP JI (CA FINAL+LLB + DISA) (2299 Points)
Replied 19 April 2010

yes it sholud be treateted as long term capital gain because it has been kept with the assessee with more than 365 days .

manoj (student) (5205 Points)
Replied 19 April 2010

long term gain

Dharmendra kumar (CA) (201 Points)
Replied 19 April 2010

Long term.

CA Devanshi Gandhi (Ajani) (FCA DISA Mcom CIFRS & LLB) (9058 Points)
Replied 19 April 2010

its long term

CA Punit GoSwaMi (Chartered Accountant) (310 Points)
Replied 20 April 2010

yes it is long term...bcoz 12 months completing on 23rd april...

CA Jimmit D Mehta (Employed) (494 Points)
Replied 20 April 2010

ya it will be long term as it is more than 12 months

Nitin Grover (CS) (1228 Points)
Replied 20 April 2010

Dear Friend

As per your own clarification you are saying that Just take an example a year starts on Jan 01 and ends on December 31

same as in your case Starts on April 24 and ends on April 23.

Regards

CA Prasad Atmakuri (Consultant) (26 Points)
Replied 20 April 2010

ya its a long term

(Guest)

Yes it will be Long Term Gain.

Amir (Learner) (4016 Points)
Replied 20 April 2010

Hey Friends,

Really sorry but I want to change my opinion.

{Actually my earlier post was not based on the dates (which I overlooked) cos when I read this query where the no. of days was mentioned as 367 and if we exclude the date of sale still it would make 366 Days which is more than an year but I dint realise that in the present case what makes it to 366 days is the fact that 2008 was a Leap year}

So in this case assesee has held the asset exactly for a period of 12 months & to become a Long term Asset Period of holding should EXCEED 12 months.

Hence, The resultant Gain will be Short Term...

Though I was the first one to post a reply to this thread....really sorry for that....

Regds

Amir