LTCG on listed equity above Rs. 1 lakh under Section 112A is taxed at:
A30%
B10%
C20% with indexation
D12.5% (post Finance Act 2024)
Answer & Solution
Correct answer: D. 12.5% (post Finance Act 2024)
1. Section 112A taxes LTCG on listed equity, equity MFs, business trust units above Rs. 1 lakh.
2. Finance Act 2024: rate increased from 10% to 12.5% (effective 23 July 2024).
3. Indexation NOT available under Section 112A; only Rs. 1 lakh threshold.
_Source: ICAI BoS CA Final Paper 7, Ch 4 "Capital Gains"_
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