NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Taxation
Meena sold units of an equity-oriented fund after 3 years and had a long-term capital gain of Rs 1,75,000 in the year, with no other long-term gains on equity. Under the rules applicable after July 2024 (exemption Rs 1,25,000 and rate 12.5%), what is the tax on this gain, excluding surcharge and cess?
The tax is Rs 6,250. The long-term gain of Rs 1,75,000 is reduced by the Rs 1,25,000 exemption, leaving Rs 50,000, which is taxed at 12.5%, excluding surcharge and cess.
- ARs 6,250Correct
- BRs 21,875
- CRs 8,750
- DRs 15,625
Explanation
Taxable gain = 1,75,000 - 1,25,000 = 50,000. Tax at 12.5% = Rs 6,250. Rs 21,875 taxes the full gain, and Rs 8,750 uses a 20% rate on the excess... actually 10,000 would result; the stated options reflect wrong bases.
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