Unlisted equity shares of a company qualify as a short-term capital asset if held for not more than:
A12 months immediately preceding the transfer
B24 months immediately preceding the transfer
C36 months immediately preceding the transfer
D48 months immediately preceding the transfer
Answer & Solution
Correct answer: B. 24 months immediately preceding the transfer
1. Section 2(42A) sets two holding-period thresholds: 12 months for listed securities, units of an equity-oriented fund/UTI and zero coupon bonds, and 24 months for every other capital asset.
2. Unlisted shares are not covered by the 12-month category, so the general 24-month threshold applies.
3. Held for not more than 24 months, unlisted shares are a short-term capital asset; beyond 24 months they become long-term.
_Source: ICAI CA Inter P3(A) Income-tax SM (May 2026), Ch 3 Unit 4 Capital Gains, PDF p. 10_
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