Question

    Section 112 A deals with

    A Computation of LTCG Correct Answer Incorrect Answer
    B LTCG tax on sale of listed equity shares Correct Answer Incorrect Answer
    C LTCG surcharge on listed equity shares Correct Answer Incorrect Answer
    D LTCG on sale of immovable assets Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Section 112A provides for long-term capital gains tax on the sale of listed equity shares, equity-oriented mutual funds and business trust. The rate of long-term capital gains tax on these listed securities is 10% for gains exceeding the threshold of Rs 1 lakh.    Section 112A was inserted by the Finance Act 2018 to tax long-term capital gains from the sale of listed equity shares, units of equity-oriented mutual funds and units of business trust. Earlier, section 10(38) allowed a capital gains exemption from the sale of listed equity shares, units of mutual fund and business trust. Section 48 deals with method of computing capital gain.

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