Period of holding in case
of land or building or both is reduced from 36 months to 24 months, to qualify
as long term capital asset.
It is good for individuals
for tax saving purpose as taxation under long term capital gain calculated at
20% after indexation as against short term capital where tax treatment is done
on marginal income tax rate.
Budget 2017 amend section
2(42A) of the Act so as to reduce the period of holding from the existing 36 months
(3 years) to 24 months (2 years) in case of immovable property, being land or
building or both, to qualify as long term capital asset.
This amendment will be
effective for all transaction occurred on or after 1st April 2017.
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