Ch.8: Capital Gains

Under what head of income is profit from the sale of securities taxed if those securities are held as an investment by the assessee?

Mr. Q purchased 300 unlisted bonds of XYZ Ltd. at Rs. 900 each on April 15, 2020. He sold these bonds on September 10, 2024, at Rs. 1,100 each. What will be the nature of the capital gain arising from this transaction?

Ms. R purchased 500 listed bonds of PQR Ltd. at Rs. 1,050 each on October 1, 2022. She sold all these bonds on July 15, 2024, at Rs. 1,300 each. There were no transfer expenses. Compute the Long-Term Capital Gain (LTCG) and the tax payable on it for Ms. R.

Mr. D sold unlisted debentures that he had held for 3 years. Which of the following statements accurately describes the tax treatment of the gain arising from this sale, as per the provided text?

Mr. C, a resident individual, purchased 500 unlisted bonds of PQR Ltd. at ₹900 each on May 15, 2023. The face value of each bond is ₹1,000. He sold these bonds on August 20, 2024, at ₹1,100 each. Assuming all conditions are met, what is the nature and amount of capital gain chargeable to tax in Mr. C's hands for the financial year 2024-25?

Mr. B received shares of a company from a non-relative for an inadequate consideration during the financial year. The fair market value (FMV) of these shares was ₹1,80,000, and Mr. B paid ₹1,35,000 for them. What amount will be chargeable to tax in Mr. B's hands under the head 'income from other sources' for this transaction?

As per the Income Tax Act provisions for 'Gift of Securities', which of the following scenarios would NOT lead to income being charged to tax in the hands of the recipient?

As per the Income Tax Act provisions regarding the gift of shares and securities, when is the aggregate amount of difference between the fair market value of properties received during the year and the consideration paid in respect thereof *not* chargeable to tax in the hands of the recipient?

Mr. D, a resident individual, purchased 200 listed bonds of XYZ Ltd. at Rs. 1,500 each on July 1, 2018. The face value of each bond is Rs. 1,000. He sold all these bonds on January 15, 2025, for Rs. 2,200 each. Assuming no other expenditures, what will be the Long-Term Capital Gain (LTCG) chargeable to tax for Mr. D for the financial year 2024-25, and at what rate?

Ms. C purchased 200 unlisted bonds of PQR Ltd. at Rs. 1,500 each on April 1, 2020. The face value of each bond is Rs. 1,000. She sold all these bonds on July 31, 2024, at Rs. 2,500 each. Assuming Ms. C is a resident individual and the applicable tax rate for short-term capital gains for her is 30%, compute the capital gain chargeable to tax and the tax liability for the financial year 2024-25.

Mr. P received a gift of shares worth Rs. 1,50,000 from his wife's grandfather on his 50th birthday. No consideration was paid for these shares. Under the provisions of the Income Tax Act regarding gifts of movable property, how will this gift be treated for tax purposes in Mr. P's hands?

Mr. S, a stockbroker, regularly buys and sells securities as part of his business operations. In the financial year 2024-25, he makes a profit from the sale of these securities. Under which head of income will this profit be chargeable to tax?

Mr. A, a resident in India, purchased 1,000 bonds of an Indian Company at ₹100 each on 01-01-2024. The bonds have a face value of ₹100 each, a coupon rate of 7.50% per annum, and mature on 31-12-2029. Interest is paid half-yearly on June 30 and Dec 31. If Mr. A follows the mercantile system of accounting, what is the amount of interest income chargeable to tax in his hands for the financial year 2024-25?

Which of the following relationships is NOT considered a 'specified relative' for the purpose of exemption from tax on gifted shares and securities under the Income Tax Act, as per the provided text?

Mr. C, a resident in India, purchased 500 listed bonds of an Indian Company at Rs. 100 each on October 1, 2023. The face value of each bond is Rs. 100, and the coupon rate is 8% per annum. Interest is paid half-yearly on March 31 and September 30 every year. If Mr. C follows the mercantile system of accounting, what amount of interest income will be chargeable to tax in his hands for the financial year 2024-25?

According to the NISM guidelines provided, what is the correct tax treatment for gains arising from the transfer of unlisted bonds or market-linked debentures?

If an individual holds securities as an investment rather than stock-in-trade, under which head of income is any profit arising from the sale of such securities primarily chargeable to tax?

For income from securities earned in foreign currency that is taxable in India, what is the general rule for converting it into Indian Rupees?

As per the provisions for 'Gift of Securities', under what condition is tax NOT charged on movable property (including shares and securities) received for inadequate consideration?

Ms. Priya received shares worth ₹75,000 as a gift from her maternal uncle's son (cousin) during the financial year. Assuming no other gifts were received, how will this gift be treated for tax purposes in Ms. Priya's hands?

If securities are held by an assessee as an investment, any profit arising from their sale is chargeable to tax under which head of income?

When securities are held by an assessee as an investment, any profit arising from their sale is chargeable to tax under which head?

Mr. P purchased 1,500 bonds of an Indian Company at Rs. 100 each on January 1, 2024. The bonds have a face value of Rs. 100 each and a coupon rate of 8% per annum. Interest is paid half-yearly on June 30 and December 31 every year. If Mr. P follows the mercantile system of accounting, what is the amount of interest income chargeable to tax for the financial year 2024-25?

Mr. C, a resident in India and following the mercantile system of accounting, purchased 500 listed bonds of XYZ Ltd. at ₹1,100 each on October 1, 2018. The face value of each bond is ₹1,000, carrying a coupon rate of 8% per annum. Interest is paid half-yearly on March 31 and September 30. Mr. C sold all these bonds on August 15, 2024, for ₹1,500 each. Compute the amount of interest income and capital gain chargeable to tax in Mr. C's hands for the financial year 2024-25.

Mr. B, an Indian resident, purchased 500 listed bonds of XYZ Ltd. at Rs. 100 each on October 1, 2023. The bonds have a face value of Rs. 100 each and a coupon rate of 8% per annum. Interest is paid half-yearly on March 31 and September 30 every year. If Mr. B follows the mercantile system of accounting, what amount of interest income will be chargeable to tax in his hands for the financial year 2024-25?

As per the Income Tax Act, if an individual receives shares and securities from a non-relative for inadequate consideration, the difference between the fair market value and the consideration paid is chargeable to tax as income from other sources. What is the aggregate threshold for this difference to become taxable in a financial year?

According to the Income Tax provisions for the gift of securities, which of the following persons is *not* treated as a 'relative' for the purpose of exemption from tax on gifts?

How are securities held by Foreign Portfolio Investors (FPIs) always treated for the purpose of income tax in India?

Ms. Rina, a resident individual, undertook the following transactions during the financial year 2024-25: 1. Purchased 200 listed bonds of XYZ Ltd. at ₹1,100 each on January 1, 2023, and sold them on October 31, 2024, at ₹1,500 each. 2. Purchased 100 unlisted debentures of PQR Ltd. at ₹800 each on June 1, 2023, and sold them on November 30, 2024, at ₹1,200 each. Assuming Ms. Rina's applicable slab rate for short-term capital gains is 20% and ignoring any other expenses, what is the total capital gain and the applicable tax rates for these transactions?

Mr. Sunder, a resident individual, purchased 500 listed bonds of an Indian Company at ₹150 each on April 1, 2024. The bonds have a face value of ₹100 each and carry a coupon rate of 8% per annum, paid half-yearly on September 30 and March 31. Mr. Sunder follows the mercantile system of accounting. What is the amount of interest income chargeable to tax in his hands for the financial year 2024-25?