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CA Intermediate · Taxation · Capital Gains

Four taxpayers each sold one capital asset in tax year 2026-27. Which asset is a long-term capital asset on the date of transfer?

The residential house held for 26 months is the long-term capital asset. Immovable property and gold need more than 24 months, and unlisted shares also need more than 24 months. Listed shares need more than 12 months. The other three assets fall short of their thresholds.

  1. AListed equity shares of an Indian company, held for 10 months
  2. BUnlisted shares of a private company, held for 20 months
  3. CA residential house, held for 26 monthsCorrect
  4. DGold jewellery, held for 22 months

Explanation

A house (immovable property) becomes long-term once held for more than 24 months, so 26 months qualifies. Listed shares need more than 12 months, so 10 months is short-term. Unlisted shares need more than 24 months, so 20 months is short-term. Gold jewellery needs more than 24 months, so 22 months is short-term.

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