Types of Capital Assets under Capital Gain Tax [Amended Topic]

Types of Capital Assets under Capital Gain Tax

Short Term Capital Asset

• An asset held for a period of 36 months or less is a short-term capital asset.
• The criteria is 24 months for immovable properties such as land, building and house property
• Some assets are considered short-term capital assets when these are held for 12 months or less.
• Following are the asset are held  for 12 months or less treated as short term capital assets

1. Equity or preference shares in a company listed on a recognized stock exchange in India
2. Securities (like debentures, bonds, govt securities etc.) listed on a recognized stock exchange in India
3. Units of UTI, whether quoted or not
4. Units of equity oriented mutual fund, whether quoted or not
5. Zero coupon bonds, whether quoted or not

 Long-term capital asset 

• An asset held for more than 36 months is a long-term capital asset. They will be classified as a long-term capital asset if held for more than 36 months as earlier.
• Capital assets such as land, building and house property shall be considered as long-term capital asset if the owner holds it for a period of 24 months or more.
• Whereas, below-listed assets if held for a period of more than 12 months, shall be considered as long-term capital asset.

1. Equity or preference shares in a company listed on a recognized stock exchange in India.
2. Securities (like debentures, bonds, govt securities etc.) listed on a recognized stock exchange in India.
3. Units of UTI, whether quoted or not.
4. Units of equity oriented mutual fund, whether quoted or not.
5. Zero coupon bonds, whether quoted or not.