CA Intermediate · Taxation · Capital Gains
Anita sold listed equity shares of an Indian company on a recognised stock exchange in tax year 2026-27 after holding them for 18 months, STT paid on both purchase and sale. Sale value Rs 5,40,000; cost Rs 3,50,000; brokerage on sale Rs 5,000. She has no other capital gains. What is the taxable long-term capital gain, applying the exemption threshold under the Act as amended by Finance Act, 2026 (Rs 1,25,000)?
Taxable long-term capital gain is Rs 60,000. Net gain is sale value less brokerage and cost, giving Rs 1,85,000, and the first Rs 1,25,000 of long-term gain on listed equity shares is exempt, leaving Rs 60,000.
- ARs 60,000Correct
- BRs 1,85,000
- CRs 1,90,000
- DRs 65,000
Explanation
Gain = 5,40,000 - 5,000 - 3,50,000 = 1,85,000. Listed shares held over 12 months are long-term. Less exemption of Rs 1,25,000 gives taxable Rs 60,000. Rs 1,90,000 ignores brokerage; Rs 65,000 results from that error too.
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