NISM Certifications · NISM-Series-X-B: Investment Adviser (Level 2) · Taxation of Equity Products
Rohan, a resident individual, sold listed equity shares after 3 years, realising a long-term capital gain of Rs 2,25,000 in the year. He has no other capital gains. Assume LTCG on listed equity is taxed at 12.5% on gains exceeding Rs 1,25,000, ignoring surcharge and cess. What is his tax?
The tax is Rs 12,500. The Rs 1,25,000 exemption limit is deducted from the Rs 2,25,000 gain, leaving Rs 1,00,000, which is taxed at the assumed 12.5% rate, ignoring surcharge and cess.
- ARs 12,500Correct
- BRs 28,125
- CRs 22,500
- DRs 18,750
Explanation
Taxable LTCG = 2,25,000 - 1,25,000 = Rs 1,00,000. Tax at 12.5% = Rs 12,500. Rs 28,125 taxes the entire gain with no exemption. Rs 22,500 uses 22.5% wrongly, and Rs 18,750 is 12.5% on a Rs 1,50,000 base.
Did you get it right without looking?
One question tells you little. A timed set on Taxation of Equity Products shows your real accuracy, how long you take and where you lose marks.
More Taxation of Equity Products questions
- Ms. Neha Kapoor, a resident individual, bought listed equity shares for ₹2,00,000 and sold them after 8 months for ₹2,80,000, with STT paid …
- Caselet: Vikram has an unabsorbed short-term capital loss of Rs 80,000 from listed equity shares in the current year and long-term capital g…
- Ms. Kavita Rao, a resident individual, has total taxable income only from long-term capital gains on listed equity shares (STT paid) of Rs 2…
- Ms. Kavita Menon, a resident individual, has a long-term capital gain of Rs 3,25,000 on listed equity shares (STT paid) sold in the year, wi…
- Mr. Arvind Rao, a resident individual, sold listed equity shares on a recognised stock exchange after paying STT on both purchase and sale. …
- Mr. Sunil Verma, a resident individual, receives a dividend of Rs 40,000 from an Indian listed company. Under the current provisions, how is…