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"_
Related questions
A resident individual sells a building in January 2026 that was acquired in 2010. While coAn asset bought in June 2004 for Rs 50,000 was converted into stock-in-trade in November 2A residential plot bought in 1995 for Rs 30,000 had a fair market value of Rs 1,40,000 andA non-resident individual (aged 45) has agricultural income from rural land of Nil taxableNet sale consideration on transfer of a long-term plot of land is Rs 9 crore, yielding capAn individual earned long-term capital gains of Rs 12 crore on selling a residential houseIn a slump sale of an undertaking owned and held for 5 years, which statement is correct?Mr. X bought 300 listed equity shares at Rs 400 each in 2016 (STT paid). Their highest quo