Long Term or Short term capital assets considering holding period

[PRIYAM KHAMBHATA]

Respected Sir

My client has sold equity shares on 04/06/2025 and the same has been purchased on 04/06/2024, Now my question is in such sale transaction what type of capital gain Long Term or Short Term would be treated. As per my understanding it would be short term capital gain. Am I right ?

Please guide me for tax treatment

[Eshaan Singal]

If the asset is 112A asset, then its long term. POH will be from 04/06/2024 - 03/06/2025. This is 12 Months. In your case it has exceeded by 1 day. So it's LTCG.

AI Summary

Holding period determines whether equity share gains are treated as short-term or long-term capital gains. Classification of capital gains on sale of equity shares depends on the holding period of the shares as a capital asset. The issue raised concerns shares purchased on 04/06/2024 and sold on 04/06/2025, with tax treatment turning on whether that period places the gain within short-term or long-term capital gain treatment.