Taxation on selling shares of new company resulting from demerger

I have been holding shares of company A for many years. Company A has been demerged and I have been issued shares of a newly listed company B in 1:1 ratio. Since company B is newly listed and I want to sell it, will this be taxable or is it considered LTCG because I have been holding company A for many years.


It will be considered as Long term only as it can merger /demerger holding period of early share is taken. When such transaction happen , they are not regarded as transfer for taxable purpose .