LTCG_MCQs.pdf

Long-Term Capital Gains (LTCG) Multiple-Choice Questions 1. What is the key change made to the LTCG tax on immovable properties in the Finance Bill, 2024? A. The LTCG tax rate was increased from 12.5% to 20%. B. The indexation benefit on LTCG was reintroduced for all properties. C. The indexa...

Long-Term Capital Gains (LTCG) Multiple-Choice Questions 1. What is the key change made to the LTCG tax on immovable properties in the Finance Bill, 2024? A. The LTCG tax rate was increased from 12.5% to 20%. B. The indexation benefit on LTCG was reintroduced for all properties. C. The indexation benefit was removed for properties sold after 23rd July 2024. D. The LTCG tax rate was reduced to 12.5% without indexation for properties bought after 23rd July 2024. Correct Answer: D 2. As of the 2024 amendment, what options do taxpayers have under the new LTCG tax provisions for immovable properties? A. Pay a flat tax of 15% on all property sales. B. Choose between the old scheme with indexation or a new lower rate without indexation. C. Pay no LTCG tax on properties bought after 2024. D. Automatically pay higher taxes on older properties. Correct Answer: B 3. What is the definition of Long-Term Capital Gains (LTCG) Tax? A. Tax on the profit from the sale of short-term held assets. B. Tax levied only on the sale of listed equities. C. Tax on the profit from the sale of capital assets held for a long period. D. A fixed rate tax applied on all capital gains. Correct Answer: C 4. What new LTCG tax exemption has been introduced for listed equity, equity-oriented mutual funds, and business trust units? A. Exemption limit decreased to Rs 1 lakh. B. Exemption limit increased from Rs 1 lakh to Rs 1.25 lakh. C. Complete removal of exemption on all equity investments. D. Exemption available only on new investments made after 2024. Correct Answer: B