NISM Certifications · NISM-Series-X-B: Investment Adviser (Level 2) · Capital Gains
Caselet: Ms. Iyer, a resident individual, sold listed equity shares after holding them for 18 months. Sale value was Rs 5,00,000 and cost of acquisition Rs 3,50,000; STT was paid on both purchase and sale. She has no other capital gains this year. Assume long-term capital gains on listed equity above Rs 1,25,000 are taxed at 12.5% (ignore cess and surcharge). What is her tax on this gain?
The tax is Rs 3,125. The gain of Rs 1,50,000 is long-term because the shares were held 18 months. After the Rs 1,25,000 exemption, Rs 25,000 is taxable at 12.5%, giving Rs 3,125, ignoring cess and surcharge.
- ARs 3,125Correct
- BRs 18,750
- CRs 30,000
- DRs 0
Explanation
Gain = 5,00,000 − 3,50,000 = 1,50,000, and 18 months makes it long-term. Exempt amount is 1,25,000, so the taxable gain is 25,000. Tax at 12.5% = 3,125. Rs 18,750 taxes the full gain; Rs 30,000 uses 20% on the excess.
Did you get it right without looking?
One question tells you little. A timed set on Capital Gains shows your real accuracy, how long you take and where you lose marks.
More Capital Gains questions
- Mr. Rohan Mehta, a resident individual, bought a flat in Pune in May 2019 for Rs 60 lakh. He sold it in August 2024 (after 23 July 2024) for…
- Meera received listed equity shares as a gift from her father. He had bought them three years ago for Rs 2,00,000. Meera sells them on the e…
- 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…
- Mrs Kavita Iyer inherited a residential flat from her father, who had bought it 10 years ago. She sold the flat 6 months after inheriting it…
- Which statement about set-off of capital losses is correct for a resident individual?
- Under the Income-tax Act, 1961 as applicable to individuals, which of the following is treated as a long-term capital asset when sold by a r…