InvestorQ : I understood the concept of long term capital gains. Is the concept of a long term loss also the same or is it different?
Dilmini Mercia made post

I understood the concept of long term capital gains. Is the concept of a long term loss also the same or is it different?

Answer
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Dhwani Mehta answered.
1 year ago


The concept of long term remains the same. The only difference is on the outcome which is a loss in this case instead of a profit. That means the selling price of the asset is lower than the cost of acquisition of the asset. If a financial asset is held for more than 12 months then that asset is treated as Long Term Capital Asset. And the investor will make either Long Term Capital Gain (or) Long Term Capital Loss on that investment.

If a non-financial asset is held for more than 36 months then an investor will make either Long Term Capital Gain (or) Long Term Capital Loss on that investment.

With effect from FY 2017-18 / AY 2018-19, the Holding period for long term capital gains for all immovable residential properties has been reduced to 2 years from 3 years.