Q.Classify each of the following as a Short-Term or Long-Term Capital Asset, given the stated holding period immediately before transfer:

Two different holding-period thresholds apply depending on the TYPE of capital asset involved.

Listed securities/equity-oriented mutual fund units use a 12-month threshold; every other asset (including unlisted shares and immovable property) uses a 24-month threshold.

Section 2(42A) applies a 12-month threshold to listed securities, units of UTI, units of an equity-oriented mutual fund, and zero-coupon bonds, and a 24-month threshold to every other capital asset (unlisted shares, immovable property, jewellery, gold, and unlisted securities).

1. Listed equity shares held 10 months: 10 months is NOT MORE than the 12-month threshold applicable to listed shares → Short-term Capital Asset.
2. Residential flat held 30 months: immovable property uses the 24-month threshold; 30 months EXCEEDS 24 months → Long-term Capital Asset.
3. Unlisted shares held 20 months: unlisted shares use the 24-month threshold (NOT the 12-month threshold reserved for LISTED shares); 20 months does not exceed 24 months → Short-term Capital Asset.
4. Units of an equity-oriented mutual fund held 13 months: these units use the 12-month threshold; 13 months EXCEEDS 12 months → Long-term Capital Asset.
   ✓Final answer

   (a) Short-term; (b) Long-term; (c) Short-term; (d) Long-term — the deciding factor each time is which threshold (12 or 24 months) applies to that PARTICULAR type of asset, then comparing the actual holding period against it.

The most common error is applying the 12-month threshold to UNLISTED shares just because 'shares' were mentioned — the 12-month threshold is reserved specifically for LISTED securities and equity-oriented mutual fund units; unlisted shares always use the 24-month threshold, exactly like immovable property.