Differences Between Long Term Capital Gain & Short Term Capital Gain
Capital gain is the profit you gain from selling or transferring a capital asset, such as jewellery, property, shares, etc. Securities that come under the rules of the SEBI Act of 1992 are known as capital assets in India.
Typically, these assets constitute short-term and long-term investments.
Keep reading to know the key differences between long term and short term capital gains.
List of Differences Between Short Term and Long Term Capital Gains
Take a look at the following comparison between short term and long term capital gains:
Both short and long term capital gains are taxable as these are leading means of income. However, the Income Tax act defines the applicable exemptions for individuals.
Meanwhile, the table above sums up all the differences between long term and short term capital gains. The primary difference is in the holding period, profit and risk among these two capital gains.
Frequently Asked Questions
Are capital gains taxable in India?
Being one of the heads of earning, capital gains, both short and long-term, are taxable in India.
What is the difference between the holding period of financial assets in STCG and LTCG?
The holding period of financial assets is less than 1 or 2 or 3 years in case of short-term capital gain. On the other hand, it is over 1 or 2 or 3 years in case of long-term capital gains.