Question

Consider the following statements about the Long Term Capital Gains tax:
1. It will help to boost governments revenue through tax on listed securities.
2. It will be applicable on capital gains exceeding Rs. 5 Lakhs
Which of the above statements is/are correct?

• A. 1 only
• B. 2 only
• C. 1 and 2
• D. Neither 1 nor 2

Answer 1

The correct option is A 1 only

Long term Capital Gains Tax is the tax paid on profit generated by an asset such as real estate, shares or share-oriented products held for a particular time-frame. The Union re-introduced LTCG tax on stocks. Investors will have to pay 10 per cent tax on profit exceeding Rs 1 lakh made from the sale of shares or equity mutual fund schemes held for over one year. It will help to boost governments revenue through tax on listed securities.