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.
Take expert legal guidance on types of capital gain from NoBroker legal assistance service Choose the NoBroker utility payment service and get the full benefits of paying the bills.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 |
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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Authors Of The Question
How many types of capital gain?
Sahil
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2 Year
2022-10-31T23:19:13+00:00 2022-10-31T23:19:14+00:00Comment
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