How to differentiate between short term and long term capital gains?

To differentiate capital gains into long term and short term the period is 36 months and 12 months - which one to consider?

Hey Kunal,

For capital assets like Equity & preference share, Debentures & Government securities, Units of UTI and equity-oriented mutual funds and Zero-Coupon Bonds where STT is paid

  • If such assets are sold within 12 months of purchase, it is considered short term capital gains
  • If assets are held for more than 12 months, it is considered long term capital gains

However, the holding period is 36 months for other capital assets like house property, machinery, vehicles, etc

You can refer to Capital Gains guide on our learn center.