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NISM Certifications · NISM-Series-X-B: Investment Adviser (Level 2) · Capital Gains

Under the current capital gains provisions, an unlisted equity share held by a resident individual is treated as a long-term capital asset if it is held for more than how long before transfer?

An unlisted equity share becomes a long-term capital asset only if held for more than 24 months. The shorter 12-month period applies to listed securities. The older 36-month test no longer applies to unlisted shares, so a gain on sale after 24 months is long-term.

  1. A12 months
  2. B24 monthsCorrect
  3. C36 months
  4. D6 months

Explanation

After the 2024 amendments, listed securities qualify as long-term after more than 12 months, while unlisted shares need more than 24 months. The 36-month period applied earlier to many other assets and is no longer the test for unlisted shares. Six months is not a current threshold for this asset.

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