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NISM Certifications · NISM-Series-X-B: Investment Adviser (Level 2) · Taxation of Other Products

Mr. Sharma, a resident individual, sold physical gold jewellery bought 5 years ago for Rs 4,00,000. Sale was effected at Rs 7,00,000 on a date after 23 July 2024. Ignoring surcharge, cess and indexation, what is the long-term capital gain tax at the standard rate applicable to such assets, assuming the current regime of 12.5% on long-term gains without indexation?

The long-term gain is Rs 3,00,000 (7,00,000 minus 4,00,000). Physical gold held over 24 months is taxed at 12.5% without indexation, giving tax of Rs 37,500 before surcharge and cess.

  1. ARs 37,500Correct
  2. BRs 60,000
  3. CRs 75,000
  4. DRs 87,500

Explanation

Gain = 7,00,000 - 4,00,000 = Rs 3,00,000. Gold held beyond 24 months is long-term, taxed at 12.5% = Rs 37,500. Rs 60,000 uses 20%, Rs 87,500 taxes the full sale value at 12.5%.

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