NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Taxation
Ramesh sold units of an equity-oriented mutual fund scheme after holding them for 8 months and realised a gain of Rs 40,000. Under rates applicable for transfers on or after 23 July 2024, what is the tax on this gain, ignoring surcharge and cess?
The tax is Rs 8,000. Units of an equity-oriented fund held under 12 months give short-term capital gain, taxed at 20% for transfers after 23 July 2024. Twenty percent of Rs 40,000 equals Rs 8,000.
- ARs 4,000
- BRs 6,000
- CRs 8,000Correct
- DRs 5,000
Explanation
Holding of 8 months is below 12 months, so it is short-term capital gain on equity-oriented units. The STCG rate is 20% after 23 July 2024. Tax = 20% x 40,000 = Rs 8,000. Rs 4,000 uses 10%, Rs 6,000 uses 15% (old rate).
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