What is a short term and long term capital asset?
"Short-term capital asset” means a capital asset held by an assessee for not more than 36 months immediately prior to its date of transfer. However, in the following cases, an asset, held for not more than 12 months, is treated as short-term capital asset—
- Equity or preference shares in a company (whether shares are quoted or not). Securities (like debentures, Government securities) listed in a recognised stock exchange in India.
- Units of UTI (whether quoted or not).
- Units of mutual funds specified (whether quoted or not).
- Zero coupon bonds (whether quoted or not)
An asset other than a short-term capital asset is regarded as a long-term capital asset.