BUISENESS MANAGEMENT
BUSINESS PLANNING
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Group tax
|
|
|
Capital gains tax
|
|
|
Fringe benefits tax
|
|
|
Goods and services tax
|
Detailed explanation-1: -The LTCG Tax is applicable when a particular property is sold after 24 months of buying it. The time period was reduced from 3 years to 2 years in Budget 2017. The rate of LTCG Tax is 20%. This is over and above the regular income tax payable by the seller, on the income earned through salary or business profit.
Detailed explanation-2: -Currently, the long term capital gain tax rate on property is set at 20% with the addition of cess and surcharge.
Detailed explanation-3: -Long-term capital gain = Final Sale Price – (indexed cost of acquisition + indexed cost of improvement + cost of transfer), where: Indexed cost of acquisition = cost of acquisition x cost inflation index of the year of transfer/cost inflation index of the year of acquisition.
Detailed explanation-4: -The short-term capital gains would attract a tax at the rate of 15% of the investor decides to sell it within a year. A long-term Mutual Funds capital gains tax would be charged at a rate of 10% on profits exceeding Rs. 1 Lakh generated through equity-oriented funds and shares.