Period of Holding of a Capital Asset
Find whether your capital gain is short-term or long-term from the asset type and how long you held it — under section 2(42A), with the Finance Act 2024 holding periods.
Switch calculator — current: Period of holding
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Still needed: the purchase date.
- The figure, and how it compares where there is a choice
- Every step of the working, line by line
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For guidance only — not tax advice. Every figure is drawn from BharatX’s verified rule book, with the sections and rules shown alongside it.
Period of holding: how it works and FAQs
FY 2025-26 (Income-tax Act 1961) and FY 2026-27 (Income-tax Act 2025) · Updated
How it works
Whether a capital gain is short-term or long-term depends on how long the asset was held and what kind it is.
Whether a capital gain is short-term or long-term depends on how long the asset was held and what kind it is. Listed securities, equity-oriented mutual-fund units, UTI units and zero-coupon bonds are long-term after 12 months; unlisted shares and immovable property after 24 months; other assets after 24 months (36 months if sold before 23 July 2024).
- Count the completed months between the date of purchase and the date of transfer.
- Pick the long-term threshold for the asset: 12 months (listed securities, equity-oriented MF units, UTI units, zero-coupon bonds), 24 months (unlisted shares, immovable property).
- Other assets (and unlisted "other securities / units") are long-term after 36 months if sold before 23 July 2024, and after 24 months on or after that date (Finance Act 2024).
- Held for at least the threshold → long-term capital gain; less → short-term (section 2(42A)).
Worked example
The gain is long-term.
Listed equity shares bought on 1 January 2023 and sold on 1 March 2024.
- Completed months held: 14.
- Threshold for listed shares: 12 months.
- 14 months is at least 12.
The gain is long-term.
Frequently asked questions
How do I know if my capital gain is long-term or short-term?
Compare the holding period with the threshold for the asset — 12 months for listed securities and equity-oriented funds, 24 months for unlisted shares and immovable property. Hold for at least the threshold and the gain is long-term.
What is the holding period for immovable property?
Land or building is a long-term capital asset if held for more than 24 months.
Did the holding periods change in 2024?
Yes. From 23 July 2024 the holding period for assets other than listed securities was simplified to 24 months; before that date "other" assets needed 36 months.
What is the holding period for listed shares?
Listed equity or preference shares are long-term if held for more than 12 months; unlisted shares need 24 months.
Every figure the calculator shows lists the sections it relies on under “Legal basis”. For guidance only — not tax advice.