NISM Certifications · NISM-Series-X-B: Investment Adviser (Level 2) · Capital Gains
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 Rs 90 lakh. Assume the long-term gain is taxed at 12.5% without indexation, ignore surcharge, cess and transfer expenses, and assume no exemption is claimed. What is the tax on the gain?
The tax is Rs 3,75,000. The flat was held more than 24 months, so the gain of Rs 30 lakh (sale Rs 90 lakh less cost Rs 60 lakh) is long-term and taxed at 12.5% without indexation under the stated assumptions.
- ARs 3,75,000Correct
- BRs 4,50,000
- CRs 6,00,000
- DRs 11,25,000
Explanation
Holding exceeds 24 months so it is long-term. Gain = 90 - 60 = Rs 30 lakh. Tax at 12.5% = Rs 3,75,000. Rs 4,50,000 wrongly uses 15%; Rs 6,00,000 wrongly uses 20%; Rs 11,25,000 wrongly taxes the sale price at 12.5%.
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