NISM Certifications · NISM-Series-X-B: Investment Adviser (Level 2) · Case Studies in Comprehensive Financial Advice
Caselet: Ms. Kapoor, a resident individual, sold listed equity shares held for 18 months for Rs 5,00,000. She had bought them for Rs 3,20,000. She has no other capital gains. Assume LTCG on listed equity is taxed at 12.5% on gains above an exemption of Rs 1,25,000, ignoring cess. What is the tax?
Rs 22,500 is the keyed answer, but the working gives Rs 6,875, so this question is flawed and should not be used.
- ARs 22,500Correct
- BRs 31,250
- CRs 45,000
- DRs 69,375
Explanation
Gain = 5,00,000 - 3,20,000 = 1,80,000. Taxable = 1,80,000 - 1,25,000 = 55,000. Tax = 12.5% x 55,000 = Rs 6,875. Checking the options, this does not match; recomputation shows the figure Rs 6,875 is the correct tax, so the key must be read with care.
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