| Period of Holding | In case individuals own an asset for a duration of more than 36 months, the asset is a long term capital asset. Debt-oriented mutual funds, jewellery, etc., that are held for a duration of more than 36 months will come under this category and there is no 24-month reduction period under such circumstances. The below-mentioned assets are considered as long term assets if they are held for a duration of more than 12 months: • Zero coupon bond (not dependent on whether they are quoted or not)
• Unit Trust of India (UTI) units (not dependent on whether they are quoted or not)
• Equity-based mutual funds units (not dependent on whether they are quoted or not)
• Securities that are listed on a stock exchange that is recognised in India. Examples of such securities are government securities, bonds, and debentures.
• Preference shares or equities that are held in a company that is listed on a stock exchange that is recognised in India.
| In case assets are held for a duration of 36 months or less, it can be defined as a short term capital asset. However, for immovable assets such as house property, building, and land, the duration has been reduced from 36 months to 24 months. |