5.3How long can I hold shares?
1What is it?
As long as you want: days, years, or even a lifetime. There is no expiry for shares in demat.
2Why does it exist?
This freedom is the biggest advantage of delivery: you are never forced to sell because of time.
3Stock market example
Holding over 12 months qualifies for long-term capital gains tax (12.5% above ₹1.25 lakh), which is lower than the 20% short-term rate.
4Quick revision
- No time limit on holding.
- Holding >12 months = LTCG tax benefit.
5Knowledge check
Q1. Do delivery shares expire?Show answer
No.
Q2. After how long do gains become long-term?Show answer
More than 12 months.
Q3. Is there any annual charge to hold shares?Show answer
Possibly a demat AMC, depending on the broker.