NISM Certifications · NISM-Series-X-B: Investment Adviser (Level 2) · Capital Gains
Anita received 1,000 bonus shares of a listed company 15 months ago. She sold them on the exchange (STT paid) at Rs 400 per share and has no other capital gains this year. Ignoring surcharge and cess, and taking LTCG tax at 12.5% above the Rs 1,25,000 exemption, what is her tax liability on this sale?
Her tax is Rs 34,375. Bonus shares carry nil cost, and holding is counted from allotment, so 15 months makes the Rs 4,00,000 gain long-term. After the Rs 1,25,000 exemption, Rs 2,75,000 is taxed at 12.5%.
- ARs 80,000
- BRs 50,000
- CRs 34,375Correct
- DRs 55,000
Explanation
Bonus shares have nil cost of acquisition, and the holding period runs from the allotment date. At 15 months the gain is long-term: 1,000 x 400 = Rs 4,00,000. Taxable after exemption = 2,75,000, and 12.5% gives Rs 34,375. Rs 50,000 forgets the exemption, and Rs 80,000 wrongly treats the gain as short-term at 20%.
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