Correct option is A
The correct answer is: (a) 12.5%
Explanation:
In the Union Budget 2024–25, the government reduced the LTCG tax rate from 20% to 12.5% while removing the indexation benefit, which previously
allowed taxpayers to adjust the purchase price of assets for inflation.
The move simplifies the capital gains tax system but may lead to higher tax liability for long-term asset holders.
Information Booster:
• Applies to assets like real estate, unlisted shares, gold.
• Holding period standardized to 1 year for listed and 2 years for others.
• Exemption limit increased from ₹1 lakh to ₹1.25 lakh.
• Rollover benefits under sections 54, 54EC, 54F remain available.
• Move aims to simplify tax compliance and widen the tax base.
English
100 Questions
100 Marks
90 Mins
