Turning to rationalization of LTCG, the Finance Minister has noted buoyancy in the equity market, as a result of reforms and incentives given so far. LTCG stands for

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

A	Long Term Capital Gains
B	Long Term Capital General
C	Long Term Core Gains
D	Long Term Company Gains

Explanation:

Detailed explanation-1: -Long Term Capital Gains Tax (LTCG) Investments that provide returns over a longer period of time are called as long-term capital gains or LTCG. All the investments that offer returns in periods that range between 1 and 3 years can be called as long-term capital gains.

Detailed explanation-2: -Debt Funds –These Mutual Funds are used to purchase debt instruments from the market. LTCG tax rate on Mutual Funds is 20% after indexation. Indexation is done through the Cost Inflation Index (CII) which involves factoring in inflation in the cost of acquisition. It helps in lessening the capital gain amount.

Detailed explanation-3: -Circulating asset is asset which is turned over and while being turned over yields profit or loss whereas fixed asset is one on which the owner earns profit by keeping it in his own possession.

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.

There is 1 question to complete.