India Capital Gains TaxHolding period for capital gains
A capital asset is short-term if you held it for not more than 24 months before the transfer; for a security listed on a recognised stock exchange in India, a unit of the Unit Trust of India, a unit of an equity-oriented fund or a zero-coupon bond the limit is 12 months (section 2 of the Income-tax Act, 2025, read on 13 November 2026). A capital asset that is not short-term is long-term.
| Asset | Long-term if held more than |
|---|---|
| Listed shares (any listed security) | 12 months |
| Equity-oriented fund unit, UTI unit, zero-coupon bond | 12 months |
| Unlisted shares, land, building, gold and everything else | 24 months |
How the period is counted
The section adds in the period for which the previous owner held the asset in the cases it lists (for example an asset that comes to you under section 73(1), shares received in an amalgamation or demerger), and leaves out the period after a company goes into liquidation for shares in it.
Common questions
How many months make a gain long-term?
More than 24 months for most assets, and more than 12 months for a security listed on a recognised stock exchange in India, a unit of the Unit Trust of India, a unit of an equity-oriented fund or a zero-coupon bond (section 2 of the Income-tax Act, 2025).
Sources
- The Income-tax Act, 2025, as published in the Gazette of India Extraordinary: section 2 (short-term and long-term capital asset), sections 196, 197 and 198 (tax on capital gains). The enacted text was read on 13 November 2026.
- Slab tax on other income, the ₹4,00,000 first slab and the 4% cess for 2026-27: the Tax Slabs section of this family (its own sources apply).
Rules read on 13 November 2026 from the Income-tax Act, 2025. Surcharge, losses, reinvestment exemptions and indexation are not worked. This site is independent, not connected with the Income Tax Department, and gives arithmetic, not tax advice. Ask a chartered accountant about your own sale.