Q. With reference to Capital Gains Tax in India, consider the following statements:
1.Assets held for less than 36 months are usually treated as short-term, but for immovable property, the limit is 24 months.
2.Listed equity shares and equity mutual funds become long-term if held for more than 12 months.
Which of the statements given above is/are correct?
Answer: C
Notes:
Explanation:
- For most assets, if held for less than 36 months, the gain is considered short-term. However, for immovable property (like land or buildings), this period is 24 months.
- Equity shares and equity-oriented mutual funds are classified as long-term capital assets if held for more than 12 months.
Source- TMH Indian Economy by Ramesh Singh
