Long-term Capital Asset – Section 2(67) | Income-tax Act, 2025 vs 1961

§ 2(67) · Income-tax Act, 2025

Long-term capital asset

ITA 2025 · 2(67) ITA 1961 · 2(29AA)
Definition — Section 2(67)

Means a capital asset which is not a short-term capital asset as defined under Section 2(101) of this Act. Under Section 2(101), a capital asset is short-term if held for not more than 24 months immediately preceding the date of transfer — or not more than 12 months in the case of listed securities, units of Unit Trust of India, units of equity-oriented funds, and zero coupon bonds. Any capital asset held beyond these thresholds is automatically a long-term capital asset. For example: listed equity shares held for more than 12 months, or immovable property held for more than 24 months, qualify as long-term capital assets.

Act Comparison
Income-tax Act, 2025
2(67)
Long-term capital asset
Income-tax Act, 1961
2(29AA)
Long-term capital asset
Key Points
  • Maps to Section 2(29AA) of the 1961 Act — identical residual definition in both Acts
  • Holding period thresholds: 12 months for listed securities, equity-oriented fund units and zero coupon bonds; 24 months for all other capital assets including immovable property
  • Post Budget 2024, indexation benefit has been removed for most long-term capital assets — LTCG on listed equity above ₹1.25 lakh taxed at 12.5%; other assets at 12.5% without indexation
💡 Practical Note

The holding period threshold for LTCA was changed for immovable property from 36 months to 24 months by Budget 2017 — still commonly misquoted as 3 years.

Published by Simplified Tax India — Clear, section-wise comparison of Income-tax Acts. ← Back to Section 2 Definitions Table
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