Market-linked debentures (MLDs) under Section 50AA are taxed at:
AConcessional LTCG
BSlab rates as deemed STCG
CExempt
DFlat 10%
Answer & Solution
Correct answer: B. Slab rates as deemed STCG
1. Section 50AA (FA 2023, AY 2024-25) — transfer/redemption of MLDs and specified MFs.
2. Gains DEEMED short-term capital gain regardless of holding period.
3. Taxed at slab rates; cost includes already-taxed interest.
_Source: ICAI BoS CA Final Paper 7, Ch 4 "Capital Gains"_
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