NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Taxation
An investor in a resident-individual category sold units of a debt mutual fund (bought after 1 April 2023, specified mutual fund) after 5 years at a gain of Rs 2,00,000. She is in the 30% slab. What is the tax on the gain, excluding surcharge and cess?
The tax is Rs 60,000. Under the rules for specified mutual funds, gains are treated as short-term irrespective of holding period and taxed at the investor's slab rate, here 30% of Rs 2,00,000, excluding surcharge and cess.
- ARs 25,000
- BRs 40,000
- CRs 60,000Correct
- DRs 20,000
Explanation
Specified mutual funds (units bought on or after 1 April 2023 with not more than 35% in equity) are deemed short-term regardless of holding period and taxed at slab rate. Tax = 30% of 2,00,000 = Rs 60,000. Rs 25,000 wrongly applies 12.5% long-term, and Rs 40,000 applies 20%.
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