Long-term capital asset
In income tax, Long-term capital asset refers to any asset that is held by an individual or a company for a period of more than 36 months before being sold. The sale of such assets generates long-term capital gains or losses, which need to tax at a different rate than short-term capital gains or losses.
Examples include property (land, buildings, and homes), shares, mutual fund units, bonds, and debentures.
For more information visit this site: https://www.incometax.gov.in
It’s important to note that there are some exceptions to the 36-month rule. Assets such as shares of a company, listed securities, and units of mutual funds that trade on a recognized stock exchange can consider as a long-term capital assets if held for more than 12 months. Additionally, assets such as paintings, sculptures, and drawings consider this if held for more than 24 months.
Overall, the tax implications are important to consider when making investment decisions.