An individual holds listed equity shares of an Indian company as capital assets and not as…

Under section 67 of the Income-tax Act, 2025 profits from the transfer of a capital asset are charged under the head Capital gains. Section 2(101) treats a security listed on a recognised stock exchange in India as short-term only if held for not more than twelve months (formerly section 2(42A) of the Income-tax Act, 1961), and section 2(67) makes any other capital asset long-term, so shares held for fourteen months yield a long-term capital gain under section 2(68). Because the shares are capital assets, the business and other-sources heads do not apply.