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Home / Finance / Taxes / How many types of capital gain?
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How many types of capital gain?

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0 2022-10-31T23:20:26+00:00

Hey,

Every investment has a certain value. There are many people who invest in security assets to make a profit. Depending on how the investor holds onto the asset, they will have to have capital gains tax. The tax amount is dependent on the types of capital gain. I will share details about the types below. 

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Before I share with you valuable information on capital gain and its types. Let me share a few examples of capital assets. The most common ones are houses and buildings. Take a look at the table to know the complete list. 

Eligibility of Certain Assets for Capital Gains Tax Treatment

Eligible Assets

Not Eligible 

Stocks

Business inventory

Bonds

Depreciable business property

Jewelry

Real estate used by your business or as a rental property

Cryptocurrency (including NFTs)

Copyrights, Patents, and Inventions

Homes and Household furnishings

Literary or Artistic Compositions

Vehicles

Collectibles

Timber

Fine artworks

How many types of capital gain?

Capital gains are classified into two types. The holding period of the capital gains is

the differentiating factor between the two. These are :

 Short-Term Capital Gain : 

These are the capital gains that are realised after selling the invested asset within a period of 36 months. The holding period of these gains is less than twelve months. 

  Long-Term Capital Gain :

These are the capital gains that are realised after selling the invested asset after a period of 36 months. The holding period of these gains is more than twelve methods.  

You can check out the types of capital gain in income tax in the table below.

Types of Capital Gain

Short term duration

Long term duration

Immovable assets (e.g. real estate)

Less than 2 years

More than 2 years

Moveable property(e.g. Gold)

Less than 3 years

More than 3 years

Listed Shares

Less than 1 year

More than 1 year

Equity Oriented Mutual Funds

Less than 1 year

More than 1 year

I hope my explanation has helped you grasp the meaning of different types of capital gain.

Read more: What are the rules regarding the exemption of capital gains? Capital gain account scheme interest rate Till what limit LTCG is tax free? What is a capital gain account scheme?
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