NISM Certifications · NISM-Series-X-B: Investment Adviser (Level 2) · Capital Gains
Rohan sold several assets after holding each for exactly 18 months. Under current rules, which of these sales results in a long-term capital gain?
Listed equity shares sold after 18 months give a long-term capital gain, as the threshold for them is 12 months. Unlisted shares, houses and gold jewellery need a holding of more than 24 months, so those would be short-term at 18 months.
- AEquity shares of an unlisted private company
- BA residential house
- CGold jewellery
- DEquity shares listed on a recognised stock exchangeCorrect
Explanation
Listed equity shares become long-term after more than 12 months, so 18 months qualifies. Unlisted shares, land or buildings and gold or jewellery need more than 24 months to be long-term. All three other assets are therefore short-term at 18 months.
Did you get it right without looking?
One question tells you little. A timed set on Capital Gains shows your real accuracy, how long you take and where you lose marks.
More Capital Gains questions
- Under the Income-tax Act, a seller who has a long-term capital gain on land or building can claim exemption by investing in specified bonds …
- Meera Iyer, a resident individual, bought 500 listed equity shares of an Indian company on 10 June 2022 at Rs 400 per share (Securities Tran…
- Asha inherited listed equity shares from her father, who had bought them ten years ago. She sold them on the exchange three months after inh…
- Mr. Arvind Nair, a resident individual, sold listed equity shares (STT paid) after holding them for 8 months. Purchase cost was Rs 4,00,000 …
- Caselet: Mrs Iyer, a resident, sold a residential house bought in 2012 for ₹60 lakh. The sale price was ₹1.50 crore and she paid ₹3 lakh in …
- Under the current capital gains provisions, an unlisted equity share held by a resident individual is treated as a long-term capital asset i…