Short term capital asset

A  capital asset held by an assessee for not more than 36 months immediately preceding the date of its transfer is know as a short term capital assest.

Exceptions

1. As perthe first proviso to section 2 (42A) the following assets shall be treated as short-term capital assets if they are held for not more than 12 months ( instead of 36 months mentioned above) immediately preceeding the date of its transfer:                                                   a. a scurity ( other than a unit ) listed in a rcognised stock exchange in India.( for meaning of a security.                                                                                                                                                     b.  a unit of an equity oriented fund                                                                                                                                                                                                                                                                                                                     c. Zero coupon  bonds.
2.  As per third proviso to section 2 (42A) unlisted shares and units of a mutal fund other than units of an equity orinented fund shall be trated as short-term capital assets if these are held for not more than 24 months immediately preceding the date of its transfer.