n NISM Certifications
NSM General NISM
Medium

Which taxation rule applies to Equity SIFs held for more than 12 months?

Practice question from Advanced B1 S2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Gains taxed at slab rate only

  2. LTCG taxed at 12.5%

    Correct answer

  3. C

    Completely tax-free

  4. D

    30% flat taxation

Why this is the answer

Equity-oriented SIFs follow equity taxation rules, where long-term gains beyond the holding threshold are taxed at 12.5%.

Test yourself for real

Take a full General NISM mock test.

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