Short term capital asset:
For all capital assets other than Financial Assets: Capital Assets held by an assessee for not more than 36 months immediately preceding to the date of transfer, are treated as short term capital assets (STCA).
For Financial Assets:
- Equity or Preference Shares of a Company
- Securities listed in a recognized Stock Exchange
- Units of UTI or Units of Mutual Funds
- Zero Coupon Bonds
Note: In case of shares held in a company in liquidation, period subsequent to the date on which company goes into liquidation, shall be excluded to determine the nature of the asset.
Long term Capital Asset (LTCA): Not a Short term Capital Asset.
Capital Gains:
- Long-term Capital Gain (LTCG): Capital Gains arising from transfer of Long Term Capital Asset.
- Short- term Capital Gain (STCG): Capital Gain arising from transfer of Short Term Capital Asset.