Short versus long

could you please explain me the short term capital gain and a long term capital gain concept, how they are calculating ??



briefly plse
Replies (6)
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.

When assets sold after 3 year then long term capital gain otherwise short term.

However in case of shares, period of holding is 1 year
My honorable mam what is mean by indexation in this capital gain
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.
Long term Capital gain and short term Capital gain are two seperate concepts.
Already known....
Period of holding for STCA is 36 months.

24months for land n building and unlisted shares.

12 months for foll. four assets:-
1.listed securites
2.zero coupon bonds
3.Units of UTI
4.Units of mutual funds u/s 10(23D)

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