Economics · Economy
An individual earns a Long-Term Capital Gain (LTCG) of 1,20,000 Rupees from equity-oriented mutual funds (ELSS) in a financial year. Under Section 112A of the Income Tax Act, how will this gain be taxed?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Full exemption from Capital Gains Tax.
- 2Tax at 10% on the entire 1,20,000 Rupees.
- 3Tax at 10% on the amount exceeding 1,00,000 Rupees (i.e., on 20,000 Rupees).✓
- 4Tax at the normal slab rate of the individual.
Correct answer
Tax at 10% on the amount exceeding 1,00,000 Rupees (i.e., on 20,000 Rupees).
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