NISM Certifications · NISM-Series-X-B: Investment Adviser (Level 2) · Capital Gains
Mrs. Kavita Nair, a resident individual, sold units of an equity-oriented mutual fund held for 8 months, making a gain of Rs 80,000, after the Budget of July 2024. At what rate is this gain taxed, ignoring surcharge and cess?
The gain is taxed at 20%. Equity-oriented mutual fund units held for 12 months or less produce short-term capital gains, which for transfers after 23 July 2024 are taxed at a special rate of 20%, not the old 15%.
- A12.5%
- B15%
- C20%Correct
- DSlab rate
Explanation
Units held 12 months or less are short-term, and STCG on equity-oriented fund units with STT paid is taxed at 20% after July 2024. 15% was the old rate; 12.5% is the LTCG rate; slab rate applies to non-equity short-term assets.
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