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CAPITAL GAIN DEFINITION AND TYPES


What is Capital Gain ?

Capital Gain is a major head of Income under Indian Income Tax Act 1961.

Its relate to Profits or Gain occurs by Sale of capital Assets Like Building, Land, any major property or Equity Shares.

Types  of Capital Gain-

There is two types of Capital Gain

 i) Short term Capital Gain

ii) Long term Capital Gain.


i) Short term Capital Gain -

Short Term Capital Gain is two types
  • For Fixed Assets Like Land and Building or Gold:
 If Profit or Gain arise  from this kind of assets you held less then 36 month that will be considered under Short Term Capital Gain.
  • For Variable Assets Like Equity Share or Debenture:
 If Profit or Gain arise  from this kind of assets you held less then 12 month that will be considered under Short Term Capital Gain.

ii) Long term Capital Gain -

Long Term Capital Gain is two types
  • For Fixed Assets Like Land and Building or Gold:
 If Profit or Gain arise  from this kind of assets you held More then 36 month that will be considered under Short Term Capital Gain.
  • For Variable Assets Like Equity Share or Debenture:
 If Profit or Gain arise  from this kind of assets you held More then 12 month that will be considered under Short Term Capital Gain.



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