taxation

Introduction:- Any profits or gains arising from the transfer of capital asset in the previous year shall be chargeable to income tax under the head ‘Capital Gains‘.

Short Term Capital Asset

Short term capital asset means a capital assets held by an assessee for not more than 36 months immediately the date of its transfer.

Exception:-

The following shall be treated as short term capital asset if capital asset held by an assessee for not more than 12 months.

1. A Security (other than a unit ) listed in a recognized stock exchange in India or
2. Unit of Unit Trust of India or a unit of an equity oriented fund or Zero Coupon Bonds.

Exception:

The following shall be treated as short term capital asset if capital asset held by an assessee for not more than 24 months.

1. A share of a company [not listed in a recognized stock exchange or
2. An immovable property.

Long Term Capital Asset

Capital asset which not a short-term capital asset.