Surcharge on LTCG under Section 112A is capped at:
A37%
B10%
C25%
D15%
Answer & Solution
Correct answer: D. 15%
1. Section 112A taxes LTCG above Rs. 1 lakh on listed equity at 12.5% (post Finance Act 2024).
2. Surcharge on income under Section 112/112A is capped at 15% even for higher-income individuals.
3. Same cap applies to dividend income to prevent excessive layering.
_Source: ICAI BoS CA Final Paper 7, Ch 1 "Basic Concepts"_
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