The difference between
long term and short term capital gain
lies in the duration for which the asset is held before its sale and the corresponding tax treatment:
Short-Term Capital Gains (STCG): STCG applies when assets like stocks, mutual funds, real estate, etc., are held for a short period before being sold. For equity-oriented assets such as stocks and equity mutual funds, if held for less than 12 months, the gains are considered short-term.
For other assets like debt mutual funds, immovable property (real estate), gold, etc., if held for less than 36 months, the gains are considered short-term.
Short-term capital gains are taxed at the applicable slab rates of the taxpayer as per the Income Tax Act of India. The gains are added to the individual's total income and taxed accordingly.
Long-Term Capital Gains (LTCG): LTCG applies when assets are held for a longer duration before being sold. For equity-oriented assets like stocks and equity mutual funds, if held for 12 months or more, the gains are considered long-term.
For other assets like debt mutual funds, immovable property (real estate), gold, etc., if held for 36 months or more, the gains are considered long-term.
LTCG on listed equity shares and equity-oriented mutual funds exceeding Rs. 1 lakh in a financial year are taxed at a rate of 10% without the benefit of indexation. For other assets like real estate, LTCG is taxed at a rate of 20% after indexation benefit.
This should tell you what is the difference between long and short term capital gains.
Get Property Tax Assessment and Assistance on Tax Payment with NoBroker Legal ServicesRead more
How to calculate long term capital gain on property?
Your Feedback Matters! How was this Answer?
Shifting, House?
✔
Lowest Price Quote✔
Safe Relocation✔
Professional Labour✔
Timely Pickup & Delivery
Intercity Shifting-Upto 25% Off
Check Prices
Intracity Shifting-Upto 25% Off
Check Prices
City Tempo-Upto 50% Off
Book Now
What is the Difference Between Long and Short Term Capital Gains?
tatheer
243 Views
1
1 Year
2024-03-05T11:56:32+00:00 2024-03-05T12:03:02+00:00Comment
Share