NISM Certifications · NISM-Series-X-B: Investment Adviser (Level 2) · Taxation of Other Products
Caselet: Mr. Rao, a resident individual, invested Rs 5,00,000 in a unit of a non-equity debt-oriented fund purchased after 1 April 2023 and redeemed after 3 years for Rs 7,00,000. Assume gains on such units are taxed as short-term capital gains at his slab rate of 30%, ignoring cess and surcharge. What is the tax payable?
The tax payable is Rs 60,000. The gain of Rs 2,00,000 is taxed at the 30% slab rate regardless of the three-year holding period, giving Rs 60,000, because such debt fund units are deemed short-term gains under the stated assumption.
- ARs 60,000Correct
- BRs 25,000
- CRs 1,40,000
- DRs 2,10,000
Explanation
Gain = 7,00,000 - 5,00,000 = Rs 2,00,000. Under the assumed slab-rate treatment regardless of holding period, tax = 30% of 2,00,000 = Rs 60,000. Rs 25,000 wrongly uses 12.5%. Rs 2,10,000 applies 30% on the redemption value.
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