Can LTCG be availed if equity is sold in the next FY rather than completing 12 m

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Can LTCG be availed if equity is sold in the next FY rather than completing 12 m

I understand that LTCG can be availed for certain investments (such as equity, traded bonds etc) after completion of 12 months. Instead of completing 12 months, can LTCG be availed if the investments are sold in the next financial year. For instance, if the equity is bought in January 2017 and sold in May 2017 (next financial year), can one avail of LTCG?

Profile photo of Ram Mohan Narasimhan Asked By: Ram Mohan Narasimhan 1 replies 1 helpful answers Last Updated: 5 months, 2 weeks ago
  • I understand that LTCG can be availed for certain investments (such as equity, traded bonds etc) after completion of 12 months. Instead of completing 12 months, can LTCG be availed if the investments are sold in the next financial year. For instance, if the equity is bought in January 2017 and sold in May 2017 (next financial year), can one avail of LTCG?

  • Profile photo of Chetan ChandakChetan Chandak
    Moderator

    Usually the capital assets are considered as long term only if these are held for more than 36 months. But certain listed securities and equity shares are considered as long term if those are held for more than 12 months.

    So to make the capital gain on sale of shares as long term those should be held for minimum 12 months. Purchasing it in Jan of current F.Y. And selling it in May of immediate next F.Y. will not complete the holding period of 12 months and as such gain will be treated as Short Term.

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