Question

Mr. Y sold listed equity shares during the Financial Year 2024-25 after holding them for 18 months. The sale consideration amounted to ₹8,00,000, while the cost of acquisition was ₹4,50,000. Securities Transaction Tax (ST

Q: Answer-Mr. Y sold listed equity shares during the Financial Year 2024-25 after holding them for 18 months....

Holding period 18 months treated as Long-Term Capital Asset since listed equity shares held 12 months. LTCG Sale Cost 8,00,000 4,50,000 3,50,000 As per Sec. 112A, LTCG on listed equity shares with STT is exempt up to 1,00,000 balance taxable 10 without indexation. Taxable LTCG 3,50,000 1,00,000 2,50,000 10 25,000 cess. Final LTCG of 2,50,000 taxable 10 us 112A.

T was duly paid at the time of sale. You are required to determine the nature of capital gain, the amount of taxable capital gain, and the applicable tax rate.

A LTCG of Rs. 3,50,000 taxed @ 20% with indexation

B LTCG of Rs. 3,50,000 exempt fully

C LTCG of ₹2,50,000 taxable @10% u/s 112A

D STCG taxed @ 15%

E Business income

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