Zero coupon bonds, whether quoted or notĬlassification of Inherited Capital Asset.Whereas, below-listed assets if held for a period of more than 12 months, shall be considered as long-term capital asset. They will be classified as a long-term capital asset if held for more than 36 months as earlier.Ĭapital assets such as land, building and house property shall be considered as long-term capital asset if the owner holds it for a period of 24 months or more (from FY 2017-18). LTCA ( Long-term capital asset ): An asset held for more than 36 months is a long-term capital asset. Zero coupon bonds, whether quoted or notĢ.Units of equity oriented mutual fund, whether quoted or not.Securities (like debentures, bonds, govt securities etc.) listed on a recognized stock exchange in India.Equity or preference shares in a company listed on a recognized stock exchange in India.

This rule is applicable if the date of transfer is after 10th July 2014 (irrespective of what the date of purchase is). Some assets are considered short-term capital assets when these are held for 12 months or less. The reduced period of the aforementioned 24 months is not applicable to movable property such as jewellery, debt-oriented mutual funds etc. For instance, if you sell house property after holding it for a period of 24 months, any income arising will be treated as a long-term capital gain, provided that property is sold after 31st March 2017.

The criteria is 24 months for immovable properties such as land, building and house property from FY 2017-18. STCA ( Short-term capital asset ) An asset held for a period of 36 months or less is a short-term capital asset. If the population of the municipality/cantonment board is more than 10 lakhġ. If the population of the municipality/cantonment board is more than 1 lakh but not more than 10 lakhĨ kms from local limit of municipality or cantonment board If the population of the municipality/cantonment board is more than 10,000 but not more than 1 lakhĦ kms from local limit of municipality or cantonment board Also, it should not fall within a distance given below DistanceĢ kms from local limit of municipality or cantonment board *Definition of rural area (effective from AY 2014-15) – Any area which is outside the jurisdiction of a municipality or cantonment board, having a population of 10,000 or more is considered a rural area. Gold deposit bond issued under the gold deposit scheme (1999) or deposit certificates issued under the Gold Monetisation Scheme, 2015 6½% gold bonds (1977) or 7% gold bonds (1980) or National Defence gold bonds (1980) issued by the central governmentį. Personal goods such as clothes and furniture held for personal useĭ. Any stock, consumables or raw material, held for the purpose of business or professionī. The following do not come under the category of capital asset:Ī. It also includes the rights of management or control or any other legal right. This includes having rights in or in relation to an Indian company. Land, building, house property, vehicles, patents, trademarks, leasehold rights, machinery, and jewellery are a few examples of capital assets. We will delve into the chapter on ‘Capital gains’ in detail here. Similarly, capital gains or losses may arise from sale of different types of capital assets.

Consequently, any gain or loss incurred from the sale of a house property may be subject to tax under the 'Capital Gains' head. It is important to note that a house property is regarded as a capital asset for income tax purposes. While others may invest with the intention of earning a profit upon selling the property in the future. Investment in a house property is one of the most sought out investments primarily because you get to own a house. There are two types of Capital Gains: short-term capital gains (STCG) and long-term capital gains(LTCG). Such capital gains are taxable in the year in which the transfer of the capital asset takes place. Any profit or gain that arises from the sale of a ‘capital asset’ is known ‘income from capital gains’.

Income tax brackets 2021 india