NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Taxation
A resident investor redeems equity-oriented fund units held for 10 months and earns a short-term capital gain of ₹80,000. Assuming a short-term capital gains tax rate of 20% (ignoring surcharge and cess), what is the tax payable on this gain?
The tax is ₹16,000. The short-term capital gain of ₹80,000 on equity-oriented fund units is taxed at the stated flat rate of 20%, ignoring surcharge and cess, so 80,000 multiplied by 20% equals ₹16,000.
- A₹8,000
- B₹12,000
- C₹16,000Correct
- D₹20,000
Explanation
Short-term capital gain on equity-oriented units is taxed at the flat rate stated, 20%. Tax = 80,000 × 20% = ₹16,000. ₹8,000 would come from using 10%, and ₹12,000 from using 15%.
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