Capital gains refer to the profit or net earnings one makes from the sale of a capital asset. These gains are classified into short-term capital gains if the period for which they are held falls under the definition of short-term. The short-term holding period depends on the nature of assets.

For example, if capital assets such as debt funds, jewelry are held for less than 36 months, they fall under the short-term category. However, in case of immovable assets such as real estate, land, etc. the criteria is reduced to 24 months.