Short term and Long-term Capital Assets

STCG ( Short-term capital asset ) An asset held for a period of 36 months or less is a short-term capital asset. The criteria of 36 months have been reduced to 24 months for immovable properties such as land, building and house property from FY 2017-18. For instance, if you sell house property after holding it for a period of 24 months, any income arising will be treated as long-term capital gain provided that property is sold after 31st March 2017. 2. LTCG ( Long-term capital asset ) An asset that is held for more than 36 months is a long-term capital asset. The reduced period of the aforementioned 24 months is not applicable to movable property such as jewellery, debt-oriented mutual funds etc. They will be classified as a long-term capital asset if held for more than 36 months as earlier. Some assets are considered short-term capital assets when these are held for 12 months or less. This rule is applicable if the date of transfer is after 10th July 2014 (irrespective of what the date of purchase is). The assets are:

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

Capital asset is held for more than 12 months it shall be treated as long term capital asset

• Equity or preference shares held in a company listed in recognized stock exchange in India
• Any other security listed in recognized stock exchange in India
• Units of UTI (whether quoted or not)
• Units of an equity-oriented fund
• Zero coupon bonds (whether quoted or not)
• Unlisted Equity or preference shares held in a company (if transfer of such shares takes place on or before 10th July, 2014)
• Units of mutual fund specified under section 10(23D) other than equity oriented fund (whether quoted or not, if transfer of such shares takes place on or before 10th July, 2014)