Question

6 differences between short term capital assets and long term capital assets​

Answer 1

Answer:

1:short term capital gain can be earned on short term assets_long term capital gain can be earned on long term assets

2:in case of a final assets the short term capital gain can be earned when the assest is held for less than a year for later the financial assets has to be held for more than a year

3:for stcg one needs to pay a normal tax rate. For long term capital gain one needs to pay 20% of tax.

Answer 2

Answer:

SHORT TERM CAPITAL GAIN

Meaning Profit arising out of sale of short term capital asset is known as short term capital gain. Long term capital gain is one that arises on the transfer of long term capital asset from an individual.

LONG TERM CAPITAL GAIN

Capital Asset Less than 24 months for immovable property and 36 months in case of movable one. More than 24 months for immovable property and 36 months in case of movable one.

SHORT TERM CAPITAL GAIN

Holding period is less than 12 months

LONG TERM CAPITAL GAIN

Holding period is more than 12 months

SHORT TERM CAPITAL GAIN

no taxation

LONG TERM CAPITAL GAIN

Normal income tax rate 20%