n NISM Certifications
V-A NISM Series V-A
Medium

Which of these statement(s) is/are FALSE? (A) If an investor holds his investments in a debt fund for more than three years, the capital gain will be considered a long-term capital gain (B) As the purchase and repurchase is done with the mutual fund, the investor does not have to pay any capital gain tax

Practice question from NISM Series V A - Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Only 'a' is false

  2. B

    Only 'b' is false

  3. Both 'a' and 'b' are false

    Correct answer

Why this is the answer

Statement a: The Finance Act of 2023 changed the taxation for debt funds. Growth options in debt funds are now taxable as short-term capital gains (STCG) regardless of the holding period, removing the long-term capital gains (LTCG) tax benefit for debt funds.

Test yourself for real

Take a full NISM Series V-A mock test.

Same duration, same weighting, same difficulty distribution as the real exam — with explanations on every question.

NISM Series V A - Mock Test 3 Free