Short-term (STCA) and Long-term Capital Asset (LTCA) and gain or loss

Short-term Capital Asset (STCA) [Section 2( 42A)]

(a) For all Capital Assets other than financial assets: Capital assets held by an assessee for not more than
36 months Immediately preceding the date of transfer are treated as short-term capital assets.
(b) For Financial Assets:
Equity (or) Preference shares of a company, Unit of UTI or unit of Mutual Fund u/s 10(23D), Securities
listed in a recognized stock exchange, Zero Coupon Bonds treated as STCA if they are not held for more
than 12 months.

Long-term Capital Asset (LTCA) [Section 2(29A)] –

Not a short-term capital asset.

Capital Gains
(a) Long-term Capital Gain [Section 2(29B)] – Capital Gain arising from transfer of Long Term Capital asset.

(b) Short-term Capital Gain [Section 2(42B)] – Capital Gain arising from transfer of Short Term Capital asset.

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