NISM Certifications · NISM-Series-XXI-A: Portfolio Management Services (PMS) Distributors · Taxation (NISM XXI-A)
A PMS client's portfolio has two equity trades in a year, both short-term gains on listed shares with STT paid: a gain of Rs 50,000 on one and a loss of Rs 18,000 on the other. What is the net short-term capital gain before any set-off against other heads?
The net short-term capital gain is Rs 32,000. A short-term loss can be set off against a short-term gain in the same year, so 50,000 minus 18,000 leaves 32,000. Adding the loss or ignoring it would give a wrong figure.
- ARs 68,000
- BRs 50,000
- CRs 32,000Correct
- DRs 18,000
Explanation
Losses under the same head and same category can be set off against gains within the year. Net = 50,000 - 18,000 = Rs 32,000. Rs 68,000 wrongly adds the loss, and Rs 50,000 ignores the loss.
Did you get it right without looking?
One question tells you little. A timed set on Taxation (NISM XXI-A) shows your real accuracy, how long you take and where you lose marks.
More Taxation (NISM XXI-A) questions
- A PMS client sold listed equity shares at a total value of ₹5,40,000 that were bought for ₹4,50,000 earlier in the same year and held for 7 …
- In a PMS account, a client's short-term capital loss on listed equity shares in a year can be treated how under income-tax law?
- A PMS client's portfolio sold listed equity shares (STT paid) with a long-term capital gain of Rs 1,50,000 in a year, with no other long-ter…
- A PMS client's portfolio realised a short-term capital loss of ₹2,00,000 on shares and a long-term capital gain of ₹5,00,000 on other shares…
- Under the Indian income tax framework as applied to PMS, how is a PMS client's portfolio of listed equity shares treated for the purpose of …
- A PMS client's portfolio realises a short-term capital gain of Rs 2,00,000 and a short-term capital loss of Rs 80,000 on different listed eq…