NISM Certifications · NISM-Series-X-B: Investment Adviser (Level 2) · Taxation of Equity Products
Rohan, a resident individual, has in FY 2024-25 (sales after 23 July 2024) a short-term capital loss of Rs 80,000 on listed equity shares and a long-term capital gain of Rs 2,10,000 on listed equity shares (STT paid). He has no other gains. Assume LTCG is taxed at 12.5% above Rs 1,25,000 exemption, ignoring surcharge and cess. What is his tax?
Tax is Rs 625 after setting the short-term loss against the long-term gain, but this figure is not among the options.
- ARs 0
- BRs 1,250Correct
- CRs 3,750
- DRs 16,250
Explanation
A short-term capital loss can be set off against long-term gains. Net LTCG = 2,10,000 - 80,000 = 1,30,000. After exemption of 1,25,000, taxable is 5,000; tax at 12.5% = Rs 625. Check: 12.5% x 5,000 = 625, so Rs 625 is the result, and the option list must be corrected: the nearest listed value is not valid.
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