ENTREPRENEURIAL PLANNING
BUSINESS PLAN DEVELOPMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Monica owns a real estate agency. She decided to purchase a property and then resold it six months later. What type of tax would Monica be liable to pay?
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Group tax
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Capital gains tax
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Fringe benefits tax
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Goods and services tax
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Explanation:
Detailed explanation-1: -In India, the Long Term Capital Gains (LTCG) tax rate on the profit earned from the sale of a property is 20%, which the seller is required to pay.
Detailed explanation-2: -Rate of Taxation for LTCG: The LTCG computed as above is chargeable to tax at a special rate of tax, i.e. 20% (plus surcharge and cess as applicable). Further, no deduction under Chapter VIA is allowed against the LTCG.
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