Taxes Income Taxes

Short Term Capital Asset And Long Term Capital Asset

Short Term Capital Asset And Long Term Capital Asset

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.
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