InvestorQ : Is long-term capital gains only applicable to equity shares?
sanjana Tulsiani made post

Is long-term capital gains only applicable to equity shares?

Answer
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AR Kadam answered.
8 months ago


  • long term capital asset: Debt-oriented mutual funds, jewellery, etc., that are held for a duration of more than 36 months will come under this category.
  • The below-mentioned assets are considered as long term assets if they are held for a duration of more than 12 months:

    • Zero coupon bonds
    • Unit Trust of India (UTI) units
    • Equity-based mutual funds units
    • Securities that are listed on a stock exchange that is recognised in India. Examples of such securities are government securities, bonds, and debentures.
    • Preference shares or equities that are held in a company that is listed on a stock exchange that is recognised in India.


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Anusha Savla answered.
1 year ago


No. While one might get the feeling that long-term capital gains tax (LTCG) is only applicable on equity shares, that’s not true. However, it is true that it is mostly spoken about in context of equity shares, though. Finance Minister Arun Jaitley reintroduced LTCG tax in India in Union Budget 2018-19. Thus, now investors have to pay 10% tax on a LTCG above Rs 1 lakh in a financial year. The investments that attract the LTCG tax are: 1. Equity shares 2. Equity-oriented mutual fund units 3. Business trust units (such as Real Estate Investment Trusts (ReITs) and Infrastructure Investment Trusts (InvITs)