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capital Gain

Shranik Baradia (Industrial Trainee) (107 Points)

12 November 2010

if some securities (shares) are purchased on 1-1-2009 and sold on 1-1-2010.

then these securities are long term asset?or short term?

please clarify .

thanking you in anticipation.

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10 Replies

CA Manoj Tilokani (JOB) (163 Points)
Replied 12 November 2010

These are considered as LONG TERM Assets.

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vkbothra (Learning ) (690 Points)
Replied 12 November 2010

One Year Period is knows as Long Term ;)

yashsaxena (Managing Director) (71 Points)
Replied 12 November 2010

I think long term capital gain period is more than one year and Tax rates are 5% for taxpayers in the 10% and 15% tax brackets (zero percent starting in 2008)

Azim Khan ACA,CS,CMA*,LLB* (Proprietor) (1312 Points)
Replied 12 November 2010

if purchased on 1/1/2009 then the period of one year ends on 31/12/2009. in your case, the period is ending on 1/1/2010, which is more than 12 months and a capital asset if held for more than 12 months qualify as LONG TERM CAPITAL ASSET.

Sharad Saini (Student) (286 Points)
Replied 12 November 2010

for calculation of period ... period is considered from the date of acquisition to the date immediately preceding the date of trf so period of holding in your case is from 1-1-09 to 31-12-09 which is excatly 1 year. One year or less is considered as short term so in your case answer will be SHORT TERM CAPITAL GAIN.....AND NOT LONG TERM CAPITA GAIN

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CA Ghanshyam Joshi (CA, Dip IFR (ACCA UK)) (3229 Points)
Replied 12 November 2010

However, in the case of company shares, various securities listed in a recognised Stock

Exchange in India, units of the Unit Trust of India and of Mutual Funds specified under section

10(23D) or a Zero Coupon Bond, the said assets will be considered as long-term capital

assets if they are held for more than 12 months.

harshshree jaiswal (CA Final) (56 Points)
Replied 12 November 2010

i agree with Sharad Sain,.it will be considered as short term capital gain.

CA Lokesh Pokharna (CA (Ahmedabad Bhilwara Chittorgarh)) (4128 Points)
Replied 13 November 2010

AS PER SEC. 2(42A) -IF ANY ASSETS (OTHER THAN SHARES,SECURITIES,MF UNITS,) HELD FOR MORE THAN 36 MONTHS THEN THESE ASSETS R TREATED AS LONG TERM CAP ASSETS , BUT IN THE CASE OF SHARES THIS TIME LIMIT SHOULD B MORE THN 12 MONTHS......

HENCE IN UR CASE HOLDING PERIOD GOING MORE THN 12 MONTHS HENCE IT SHOULD B LONG TERM CAP ASSETS ,SO LTCG APPLICABLE ON THF. OF THESE SHARES

Prachi Jindal (CA-Article-Final-Student) (129 Points)
Replied 13 November 2010

the POH is more than 12 months hence long term capital asset and consequently long term capital gain will arise...!!

Karthik (student) (147 Points)
Replied 13 November 2010

Originally posted by : Sharad Saini
	for calculation of period ... period is considered from the date of acquisition to the date immediately preceding the date of trf so period of holding in your case is from 1-1-09 to 31-12-09 which is excatly 1 year. One year or less is considered as short term so in your case answer will be SHORT TERM CAPITAL GAIN.....AND NOT LONG TERM CAPITA GAIN