Long Term Capital Assets - Reduced from 3 years to 2 years (36 months to 24 months) - Budget 2017-18 w.e.f. AY 2018-19

Clause - 003 - Amendment of section 2.

THE FINANCE BILL, 2017

The existing provisions contained in clause (42A) of the said section defines the expression "short-term capital asset" to be a capital asset held by an assessee for not more than thirty-six months immediately preceding the date of its transfer. Further Explanation 1 of the said clause provides for determining the period for which the capital asset is held by the assessee.

It is proposed to amend the third proviso to the said clause so as to provide that in the case of an immovable property being land or building or both, the aforesaid period of holding shall be less than twenty-four months for it to be treated as short term capital asset.

Dated: 2-2-2017