Explain The Difference Between Short Term Capital Asset And Long Term Capital assets.

Short-term capital assets – Any asset owned by an individual (taxpayer) for less than 3 years since the date of transfer/ownership is referred to as a short-term capital asset. This duration should be less than 12 months in the case of shares.

Long-term capital assets – Any asset owned by an individual (taxpayer) for more than 3 years since the date of transfer to his/her name is treated as a long-term capital asset. This duration is taken as 12 months or more in the case of shares.