what is short term & Long term capital gain explain me detail?

Answer 1

More than one year is long term
Other than above are short term

Answer 2

The terms Short Term Capital Gain and Long Term Term Capital Gain are being defined in Income Tax Act, 1961. I hope that u understand the meaning of Capital Gain. Capital Gain is a gain which one makes by selling/disposing off a capital asset. Short Term Capital Gain is a gain made by selling/disposing off a capital asset which has been held for less than 36 months from the date of its acquisition and Long Term Capital Gain is a gain which has been made by selling/disposing off a capital asset which has been held for a period of more than 36 months from the date of its acquisition. There is, however, an exception in the case of sale of shares and securities where the above period of 36 months in case of a short term capital gain has been reduced to just 12 months. It means that if shares and securities are sold after a period of 12 months, it would be considered as a long term capital gain and if sold prior to that, it would be taken as short term capital gain. Short Term capital gain is taxed at normal rate of income tax except shares and securities which are taxed @ 10%.plus @% education cess The tax rate for long term capital gain is currently 20%plus 2% education cess.If u still have any doubt, u r welcome to ask any further question.Best wishes.

Answer 3

Short-term capital gain is taxed at the same rate as ordinary income (like wages and interest income), unless you have a capital loss that offsets it. If you are in the highest federal tax bracket and you pay state capital gains tax, it's possible to owe more than 40% of your investment gain in short-term capital gains taxes.

If the date of the sale is more than one year (366 days or more) after the date of the purchase, you have a long-term capital gain.

Answer 4

if u buy a share and sell it after 365 days of purchase the gain so made is long term capital gain. If the period of holding is less than 365 days it is short term capital gain.

Answer 5

Long term capital gain-LT- when u sell a capital asset like land , building,car,jewellery etc

short term capital gain- ST- when u sell capital assets- like cars, land too, major- shares, stocke, debentures

major difference- LT is applicable when the property u sold is with u for more than 3(three) years- IMPORTANT

if the asset u sold is with u for less then 3 years - then it is STCG(short term)

for shares & bonds- period for short term is 1 yr, beyond that - considered as long term

why the difference ?

Income tax on LTGN is less compared to STCG

LTCG- tax is usually 10 %

STCG- tax is usually 20 %


how to calculate tax- long procedure- u have to find the current market value by INDEXTATION-
u have to find out- cost of holding etc

better to refer a book for all the procedure

refer a book used by CA or CS students- like Book by MANOHARAN etc

u can also go to CA for all the calculations- but he will charge

jay ;-)

Answer 6

according to the IRS

short term cap gains are those accrued from investments held for less than one year

long term cap gains are those accrued from investments held for longer than one year


You bought stock in GE two years ago at $28.00...you sold the stock today at $34. The difference is a cap gain of $6; since you had the stock for longer than one year...it is a long term gain

If you had bought stock in GE in March of this year for $31 and sold it today at $34...you would have a short term cap gain of $3


The importance????? short term tax rates are significantly higher than long term rates..

One problem....if you own mutual funds, ETFs, closed-end funds...you don't control the buying and selling of stocks....
you'll get a fed tax form "1099" from the company...let's say...
Vanguard for instance...that delineates the long and short term gains....

Be advised though, if you buy and sell stocks yourself , the brokerage house will record your proceeds as "barter"...and will only have the amount that you received from the sale of the holdings...the cost basis is readily available from them for you to determine the long and short term cap gains


If you want to read about the terminology...

"investopedia.com" is a good start...as well as "investorwords.com"

I hope this helps

Answer 7

profit earn from selling security or other capital assets is called capital gain.

in short term, period for security hoding is less then 12 month.
in long term security holding period is more then 12 monts.

Answer 8

couple of minutes period is higer than lengthy time period as fas as capital positive factors tax is going i comprehend its 15% for lengthy time period (secheduled to be eliminated on the right of this 3 hundred and sixty 5 days owing on your communist authorities) no longer positive what that is for couple of minutes period yet imagine its 20%. As for oweing something it relies upon on how a lot funds you made.

Answer 9

short term, period for security hoding is less then 12 month.
in long term security holding period is more then 12 monts

Answer 10

this is one of those questions that you should just save everyone time and do a web-search for it.

you'll get an answer quickly, and an accurate and thorough answer as well.