Income Tax Article 1

Short-term capital asset means a capital asset held by an assessee for not more than thirty-six months immediately preceding the date of its transfer. [Sec.2(42A)]

But, in the case of a share held in a company or any other security listed in a recognised stock exchange in India a security (other than a unit) listed in a recognized stock exchange in India or a unit of the Unit Trust of India established under the Unit Trust of India Act, 1963 or a unit of a Mutual Fund specified under clause (23D) of section 10 a unit of an equity oriented fund or a zero coupon bond, if such share, security,bond or unit are held by the assessee for not more than 12 months than it will be treated as short term capital asset. (First Proviso) [Changes made by the F.A.2014 w.e.f. AY 2015-16]

Reduction in holding period of Unlisted shares of Company from 36 months to 24 months to be treated as Short-term Capital Assets –Insertion of Third Proviso to section 2(42A) [F.A. 2016 w.e.f. AY 2017-18]

In the case of a share of a company (not being a share listed in a recognised stock exchange in India), the provisions of this clause shall have effect as if for the words “thirty-six months”, the words “twenty-four months” had been substituted.

• Unlisted share of a company shall be treated as long term if its holding period exceeds 24 months. [Amendment by the F.A. 2016 w.e.f. AY 2017-18]
• Amendment in third proviso to Section 2(42A)-when immovable property shall be treated as long term capital asset [FA 2017]

Now, “an immovable property, being land or building or both,” shall be treated as long term capital asset if held for more than 24 months in place of earlier requirement of 36 months.