![]() Any capital asset held for a period of 36 months or more is classified as a long-term capital asset. What makes a capital asset a long-term capital asset is its period of holding, i.e., how long it has been held from its time of acquisition until its transfer or disposition. For example, special bearer bonds, specific gold bonds, rural agricultural land, etc. There are some other assets that do not have high liquidity, yet they are not considered capital assets. Similarly, if somebody holds a movable property for his/her personal use, the same also does not come under the ambit of capital assets. In-trade invested stocks, raw and intermediate materials for production, and consumables held for a business are not considered capital assets. For example, any kind of property (irrespective of whether it is owned for personal use or for running a business), securities, land, vehicle, artefacts, jewellery, machinery, paintings, sculpture, lease rights, patents – all these come under capital assets. Before heading on to understanding the calculation of the long-term capital gains and their treatment in terms of various long-term assets, it is important to know basics like, what are capital assets and how long-term capital gains are determined.Īlso Read: Section 194IA & Form 26QB: TDS on Purchase of Immovable Property What are long-term capital assets?Īlmost any asset that does not have a liquidity quotient like cash is a capital asset. The tax that these gains attract is called long-term capital gains tax. Long-term capital gains (LTCG) as the name suggests are the gains earned on the disposition of long-term capital assets. ![]() ![]() How are long-term capital gains calculated?.Is long-term capital gains on shares exempted from taxation?.Long term assets not covered in Section 112A.Long term assets covered in Section 112. ![]()
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