Question

difference between short term and long term capital gain ?​

Answer 1

Answer:

• Short-term capital gain can be earned on short-term assets and long-term capital gain can be earned on long-term assets.
• In the case of financial assets, the short-term capital gain can be earned when the asset is held for less than a year. For long-term capital gain, the financial asset has to be held for more than a year.
• If a capital asset is held for less than 24 months (for immovable asset) and 36 months (for movable asset), we will have short-term capital gain (STCG) and if a capital asset is held for more than 24 months (for immovable asset) and 36 months (for movable asset), we will receive long-term capital gain by selling it off.

• For short-term capital gain, one needs to pay normal tax rate. For long-term capital gain, one needs to pay 20% of tax.