Skip to content

NISM Certifications · NISM-Series-X-B: Investment Adviser (Level 2) · Comparison of Products Across Categories

Caselet: Anita is in the 30% slab (ignore surcharge and cess). She sells listed equity shares held 3 years, with a long-term capital gain of Rs 2,50,000, and separately redeems a debt mutual fund (purchased after 1 April 2023) held 4 years, with a gain of Rs 2,50,000. Assume LTCG on listed equity is taxed at 12.5% above an exemption of Rs 1,25,000 and that the debt fund gain is taxed at slab rate regardless of holding period. What is the total tax on both gains?

Total tax is Rs 90,625. Equity LTCG of Rs 2.5 lakh less the Rs 1.25 lakh exemption is taxed at 12.5%, giving Rs 15,625, while the Rs 2.5 lakh debt fund gain is taxed at the 30% slab rate, giving Rs 75,000.

  1. ARs 90,625Correct
  2. BRs 31,250
  3. CRs 75,000
  4. DRs 1,06,250

Explanation

Equity: (2,50,000 - 1,25,000) = 1,25,000 x 12.5% = Rs 15,625. Debt fund: 2,50,000 x 30% = Rs 75,000. Total = Rs 90,625. Rs 31,250 taxes only the equity gain without exemption; Rs 75,000 ignores equity tax; Rs 1,06,250 taxes 12.5% on the full equity gain plus 30% on the debt fund gain... which is 31,250+75,000.

Did you get it right without looking?

One question tells you little. A timed set on Comparison of Products Across Categories shows your real accuracy, how long you take and where you lose marks.

Practise Comparison of Products Across CategoriesFree diagnostic mock

More Comparison of Products Across Categories questions