CA Intermediate · Taxation · Capital Gains
Meera, a resident individual, sold listed equity shares on a recognised stock exchange (STT paid) during tax year 2026-27 for Rs 6,50,000. She had bought them 3 years ago for Rs 3,00,000. She paid brokerage of Rs 10,000 on the sale. She has no other capital gains. What is her long-term capital gain chargeable to tax at the special rate, after the annual exemption limit of Rs 1,25,000?
The taxable long-term capital gain is Rs 2,15,000. Sale value less brokerage is Rs 6,40,000, and subtracting the cost of Rs 3,00,000 gives Rs 3,40,000. The first Rs 1,25,000 of long-term gains on listed equity with STT is exempt, leaving Rs 2,15,000.
- ARs 2,15,000Correct
- BRs 2,25,000
- CRs 3,40,000
- DRs 2,05,000
Explanation
Net consideration = 6,50,000 - 10,000 = 6,40,000. Gain = 6,40,000 - 3,00,000 = 3,40,000. Less exemption limit 1,25,000 = 2,15,000. Rs 2,25,000 ignores the brokerage; Rs 3,40,000 ignores the exemption limit.
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
- Suresh, a resident individual with a high salary income, sold listed equity shares in tax year 2026-27 on which STT was paid on acquisition …
- Rohan held 100 listed equity shares of a company, bought in 2023 at Rs 500 each. On 10 January 2026 the company issued 1:1 bonus shares to h…
- Rohit, a resident individual, bought a residential house in 2019 for ₹40,00,000 and spent ₹5,00,000 on an extension in 2021. He sold it in t…
- In 2018 Mr. Dinesh Rao received a plot of land as a gift from his father. The father had bought it in 2015 for ₹10,00,000. The market value …
- Meera inherited a flat from her father in January 2026. Her father had bought it in 2015 for ₹20,00,000 and had spent ₹3,00,000 on improveme…
- Four taxpayers each sold one capital asset in tax year 2026-27. Which asset is a long-term capital asset on the date of transfer?