NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Taxation
Ms. Kapoor bought units of a debt fund (acquired after 1 April 2023, not a specified equity-oriented fund) on 1 June 2024 for Rs 5,00,000 and redeemed them on 1 September 2025 for Rs 5,60,000. She is in the 30% slab. Ignoring surcharge and cess, what is the tax on the gain?
The tax is Rs 18,000. Gains on debt funds bought on or after 1 April 2023 are taxed at the investor's slab rate regardless of holding period. The gain of Rs 60,000 at 30% gives Rs 18,000, excluding surcharge and cess.
- ARs 7,500
- BRs 18,000Correct
- CRs 12,000
- DRs 6,000
Explanation
For a specified mutual fund (debt-oriented, acquired on or after 1 April 2023), gains are taxed at the slab rate irrespective of holding period. Gain = 60,000; at 30% tax = Rs 18,000. Rs 7,500 applies 12.5% and Rs 12,000 applies 20%, neither of which applies.
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