BUSINESS ADMINISTRATION
BUSINESS MATHEMATICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Gain.
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Loss.
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Detailed explanation-1: -Long term capital gain on share is calculated by deducting the sale price and cost of acquisition of an asset that has been held for more than 12 months by an investor. This is given by the net profit that investors earn while selling the asset.
Detailed explanation-2: -The difference between the purchase price and the sale price represents the gain or loss per share. Multiplying this value by the number of shares yields the total dollar amount of the transaction.
Detailed explanation-3: -You have held the shares for less than one year. The profit of Rs 1, 00, 000 (200*1500 – 200*1000) is called short-term capital gains. You must pay short-term capital gains tax at 15% on the short-term capital gains which is Rs 1, 00, 000 *15% = Rs 15, 000.
Detailed explanation-4: -Exception: As per Budget 2018, long-term capital gains on the sale of equity shares/ units of equity oriented fund, realised after 31st March 2018, will remain exempt up to Rs. 1 lakh per annum.