CAF-2 · Chapter 9 · Question 7 of 15
When a capital gain arises on a "Market-Based Transaction" of a security (settled through NCCPL), how are incidental expenses like brokerage and commission treated for calculating the gain?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) C) A notional expense equal to 0.5% of the sale proceeds and 0.5% of the security's cost is applied instead of actual charges.
Explanation
In the case of a Market-Based Transaction involving a security, a notional expense equal to 0.5% of the sale proceeds and 0.5% of the security's cost will be applied instead of actual charges like brokerage, commission, and other incidental expenses.
More Capital Gains MCQs
- Q9Mr. A acquired shares in a private (unlisted) company. Under Section 37(6), what is his obligation regarding withholding tax at the time…
- Q10Under Section 7E, resident persons are subjected to a tax on the "deemed income" arising from their capital assets (immovable property)…
- Q11Which of the following immovable properties is NOT excluded from the levy of tax on deemed income under Section 7E?
- Q12Mr. Junaid sold his personal use car for Rs. 2,000,000, which he had originally purchased for Rs. 1,500,000. He also sold an antique watch…
- Q13Mr. X purchased an open commercial plot having a fair market value of Rs. 12,000,000. He paid Rs. 6,000,000 through a crossed banking…