Pending professional review. This content was drafted with Claude from official sources and has not yet been reviewed by an ArthaKara professional. Verify against the official sources before relying on it.
Simple meaningProfit from selling an asset held longer than the short-term limit.
Relevant ActIncome-tax Act, 1961
Section / ruleSections 112, 112A
Technical meaning
Gain from transfer of a long-term capital asset, taxed at special rates (12.5% for most assets transferred on or after 23 July 2024).
Practical example
Gain on listed equity held 2 years is long-term, taxable at 12.5% above Rs 1.25 lakh.
Related terms
Official reference
Income-tax Act, 1961, Sections 112, 112A
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