NISM Certifications · NISM-Series-X-B: Investment Adviser (Level 2) · Capital Gains
Under the Income-tax Act, 1961 as applicable to individuals, which of the following is treated as a long-term capital asset when sold by a resident individual?
Unlisted equity shares held for 18 months are not long term, so check the periods again.
- AUnlisted equity shares of an Indian company held for 18 monthsCorrect
- BListed equity shares held for 10 months
- CGold jewellery held for 20 months
- DUnits of a listed debt exchange traded fund held for 11 months
Explanation
Unlisted shares become long-term after 24 months; 18 months would not qualify, so this option is the trap. Let me restate: listed shares need more than 12 months, unlisted shares more than 24 months, and gold more than 24 months. None of the stated options except the correct one is long term under the stated periods.
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.
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