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Short versus long

25 June 2022

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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6 Replies

CA Rashmi Gandhi (Chartered Accountant) (86313 Points)
Replied 25 June 2022

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

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MPR Sanjay Kumar (3106 Points)
Replied 25 June 2022

My honorable mam what is mean by indexation in this capital gain

CA Rashmi Gandhi (Chartered Accountant) (86313 Points)
Replied 25 June 2022

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.

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sabyasachi mukherjee (27330 Points)
Replied 26 June 2022

Long term Capital gain and short term Capital gain are two seperate concepts.

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CA Rashmi Gandhi (Chartered Accountant) (86313 Points)
Replied 26 June 2022

Already known....

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Devansh Choksi (31 Points)
Replied 27 June 2022

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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