could you please explain me the short term capital gain and a long term capital gain concept, how they are calculating ??
briefly plse
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Quick Summary
This discussion clarifies the difference between short-term and long-term capital gains, primarily based on the holding period of an asset. Generally, assets held for over three years are considered long-term, while those held for less are short-term. Specific rules apply to shares and property, with shorter holding periods often qualifying for long-term gains. Indexation, which adjusts the purchase price for inflation, is also explained as a method to reduce taxable profit on long-term gains.
Indexation is used to adjust the purchase price of an investment to reflect the effect of inflation on it. A higher purchase price means lesser profits, which effectively means a lower tax.