What is a short term asset?
Capital asset is divided as long term and short term with reference to the period of holding of the asset by you. The period of holding is computed from the date of acquisition to the date immediately preceding its sale. If the shares, units of specified mutual fund u/s 10(23D) or any other listed security are held by you for less than 12 months then such shares/units or listed security would be treated as short term assets. In all other cases, the asset is required to be held for 36 months so as to qualify for long-term capital gain.
