BUISENESS MANAGEMENT
TAXES
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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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Either A or B
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None of the above
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Detailed explanation-1: -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-2: -To calculate your profit or loss, subtract the current price from the original price. The percentage change takes the result from above, divides it by the original purchase price, and multiplies that by 100.
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.