How to classify long term capital gain and short term capital gain

Term short term and long term capital gain is classified on the basis of period of holding assets

1 . Financial assets

• Equity shares
• Equity oriented mutual fund
• Listed shares

Holding period is for less than 12 months then on sale of such asset short term capital gain is arises.

If such asset is held for more than 12 months then on sale it will arise Long Term capital gain.

2 ) Unlisted shares and Land and Building

In this case period of holding criteria is decided for 24 months

If held for less than 24 months then short term capital gain will arise

If held for more than 24 months then long term capital gain arises

3 ) other assets

In this case period of holding is for 36 months

If held for less than 36 months the short term capital gain will arise on sale of such asset

Held for more than 36 months then on sale of such assets long term capital gain will arise

Hope so this article will help you to classify nature of your assets that are present in your portfolio

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