NISM Certifications · NISM-Series-X-B: Investment Adviser (Level 2) · Capital Gains
Under current capital gains provisions, a unit of a listed equity-oriented mutual fund redeemed with STT paid is treated as long-term when it is held for more than how long?
The holding period is more than 12 months. Units of equity-oriented mutual funds and listed shares become long-term assets after 12 months, so gains on redemption after that are taxed as long-term capital gains.
- A12 monthsCorrect
- B24 months
- C36 months
- D6 months
Explanation
Units of equity-oriented mutual funds are listed-security-like for holding period purposes: more than 12 months makes the gain long-term. 24 months applies to unlisted shares and immovable property, and 36 months was the old rule for other assets.
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