Calcution of long term capital gain

The second option is correct.

i feel the first option is correct, bcos it says calendar month, i.e may 2011 to april 2012=12 months.

27,may 2011 to 26 may 2012

HOW TO COMPUTE CAPITAL  GAINS

https://www.incometaxindiapr.gov.in/incometaxindiacr/contents/tpi/How-to-Compute-your-Capital-Gains-1.pdf

If the transfer of MFs takes place more than 12 months from the date of acquisition of the MFs, the resultant capital gain or loss will be treated as long term capital gain or loss.

Therefore in the above given case, when the MFs are sold after 27.05.2012, then the resultant capital gain or loss shall be long term capital gain or loss.

Regards, 

Devendra Kulkarni