NISM Certifications · NISM-Series-X-B: Investment Adviser (Level 2) · Capital Gains
Under the current capital gains provisions, a resident individual sells listed equity shares on which STT has been paid. What is the minimum holding period for the gain to qualify as long-term?
Listed equity shares become long-term capital assets when held for more than 12 months. Gains on sale after that period are long-term capital gains. The 24-month period applies to unlisted shares and land or buildings, not to listed shares.
- AMore than 12 monthsCorrect
- BMore than 24 months
- CMore than 36 months
- DMore than 6 months
Explanation
Listed equity shares are treated as long-term capital assets if held for more than 12 months. The 24-month period applies to unlisted shares and immovable property, and the 36-month period is the older rule for most other assets, so neither applies here.
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