Does holding period count from purchase or settlement?

From the date of acquisition (settlement date) for listed securities. For property, it's the date of registration. For mutual funds, the NAV-allotment date.

Comparison guide

LTCG vs STCG — Holding Period & Tax Rate Comparison

Holding period is the single dial that flips your capital gains tax bill — sometimes by a factor of two. Understand the line clearly before you sell.

// holding period thresholds

Listed equity & equity MFs: > 12 months is long-term. Unlisted shares, property, gold, debt MFs: > 24 months is long-term. Miss the threshold by even one day and the entire gain flips to short-term.

// rate comparison

Equity LTCG: 12.5% above ₹1.25 lakh exemption. Equity STCG: 20%. Property/gold/unlisted LTCG: 12.5% no-indexation (or 20% with indexation for legacy property). Property/gold/unlisted STCG: slab rate (up to 30%). Debt MF (post Apr-23): slab rate always.

// set-off & carry-forward

STCL → can offset both STCG and LTCG. LTCL → can offset only LTCG. Both can be carried forward for 8 assessment years and must be claimed in the year of incurrence via the ITR.

// frequently asked questions

Absolutely — and it's one of the most legitimate tax optimisations available. For a large equity position close to the 12-month mark, deferring a sale by a few days/weeks to cross the long-term threshold can cut your tax rate by nearly half.