What is a short term and a long term capital asset?
Capital asset is classified as a short term or long term capital with reference to the period of holding of the asset by the assessee or the previous owner under certain circumstances. The period of holding of the asset is computed from the date of acquisition to the date immediately preceding its transfer. The relevant periods in this regard are: Nature of asset Short term capital asset Long term capital asset (i) For assets being share in a company or any other security listed in a recognised stock exchange in India or unit of the UTI/administrator of the specified undertaking/specified company or a unit of mutual fund specified under Section 10(23D) of the Act or from assessment 2006-07 a zero coupon bond. Held for not more than 12 months. Held for more than 12 months. (ii) For assets other than these specified above held for not more than 36 months. Held for more than 36 months. Short term/long term capital gain and taxability of such gains? Long term capital gain means capital ari
