LTCG, STCG holding periods for capital gains calculation of equity,property, gold, financial, non-financial assets changed in Budget 2024: Which gains, which loses
Budget 2024 has proposed to rationalise the holding periods for different asset classes for the purpose of capital gains taxation calculation. The new proposals says that there will be only two holding periods for all asset classes to determine whether the gains are short-term or long term capital gains. The two holding periods will be 12 months and 24 months.
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For all listed securities, the holding period is proposed to be 12 months and for all other assets, it shall be 24 months. The units of listed business trust will now be at par with listed equity shares at 12 months instead of earlier 36 months. The holding period for bonds, debentures, gold will reduce from 36 months to 24 months. For unlisted shares and immovable property it shall remain at 24 months.
«The taxation of capital gains is proposed to be rationalized and simplified. There are three components to this simplification. Firstly, it is proposed that there will only be two holding periods, 12 months and 24 months, for determining whether the capital gains is short-term capital gains or long term capital gains. For all listed securities, the holding period is proposed to be 12 months and for all other assets, it shall be 24 months. Accordingly, amendment is proposed in clause (42A) of section 2 of the Act. Thus units of listed business trust will now be at par with listed equity shares at 12 months instead of earlier 36 months. The holding period for bonds, debentures, gold will reduce from 36 months to 24 months. For unlisted shares and immovable property it shall remain at 24 months,» as per the Budget 2024
