There are two varieties of capital property relying upon their holding interval:
- Brief time period Capital Gains
- Long run Capital Gains
Following is the kind of capital gain and its interval of holding to qualify as both ‘short-term capital gain’ or a ‘long-term capital gain’
| Capital Asset | Holding interval to qualify as Short-Time period Capital Asset | Holding interval to qualify as Long-Time period Capital Asset |
| Shares/ debentures of an organization listed on a acknowledged inventory alternate in India/ Zero coupon bond | 12 month or less | Greater than 12 months |
| Models of fairness oriented mutual funds/ UTIs (whether or not quoted or not) | 12 month or less | Greater than 12 months |
| Shares of firms not listed on any Stock Exchange(NSE or BSE) in India | 24 month or less | Greater than 24 months |
| Immovable property, being land or constructing or each (situated in India or in International nation) | 24 month or less | Greater than 24 months |
| Models of debt oriented mutual funds | 36 month or less | Greater than 36 months |
| Models of Enterprise belief | 36 month or less | Greater than 36 months |
| Others | 36 month or less | Greater than 36 months |
Features or losses on switch of brief time period capital property are termed as short-term capital gain/ loss and good points or losses on switch of long run capital property is termed as lengthy time period capital gain/ loss.
Tax Rates in India on Short-Time period and Long-Time period Capital Gain
| Particulars | Kind of Gain |
Tax rate |
| Sale of Fairness shares or Models of equity-oriented Funds or Models of enterprise belief (if STT is paid) | Brief time period capital acquire | 15% |
| Sale of Securities resembling Desire shares, Debentures, Deep low cost bonds, Models of mutual funds | Brief time period capital acquire | Regular Income Tax Slabs |
| Sale of Fairness shares or Models of equity-oriented Funds or Models of enterprise belief (if STT not paid) | Brief time period capital acquire | Regular Income Tax Slabs |
| Another sort of Asset | Brief time period capital acquire | Regular Income Tax Slabs |
| Zero coupon bond | Long run capital acquire | Decrease of 20% after indexation or 10% with out indexation |
| Listed debentures or Bonds | Long run capital acquire | Decrease of 20% after indexation or 10% with out indexation |
| Listed fairness shares bought apart from by means of acknowledged inventory alternate | Long run capital acquire | Decrease of 20% after indexation or 10% with out indexation |
| Models of debt oriented mutual funds | Long run capital acquire | 20% |
| Another sort of Asset | Long run capital acquire | 20% |
| Listed fairness shares bought by means of acknowledged inventory alternate, Fairness oriented fund or items of enterprise belief (if STT Paid) | Long run capital acquire | Upto 1,00,00zero: Tax shall be nil Exceeding 1,00,00zero: Tax @10% |
