29 February 2020
Any gain on sale of long term capital asset is treated as long term capital gains. Gain from sale of short term capital asset is short term capital gains. Short-term Capital Asset: If capital asset is held for a period of 36 months or less preceding the date of its transfer, it will be treated as a short-term capital asset.
However, the period of 36 months has been reduced to 24 months in case of unlisted shares and immovable property being land, building, and house property.
Further, in case of listed securities, unit of the Unit Trust of India, unit of an equity oriented fund or a zero coupon bond, the period of holding of capital asset shall be taken as 12 months to treat capital asset as short-term.
Any capital asset other than short-term capital asset is treated as long-term capital asset.
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