How to calculate tax rate on capital gains?
1 Answer(s)
Satya
Hi, This is interesting question.
The answer however, would be 20%. Suppose, investor invests Rs. 100 in both the portfolio.
Case 1: High yield; His earning from dividend would be=5-40%of 5=Rs.3
And earnings from capital gain would be =9-20%of 9=Rs.7.2
Total earnings=Rs.10.2
Case 2:Low yield;His earning from dividend would be=1-40%of 1=Rs.0.6
And earnings from capital gain would be =12-20%of 12=Rs.9.6
Total earnings=Rs.10.2
Feb 05 2013 01:08 AM
The answer however, would be 20%. Suppose, investor invests Rs. 100 in both the portfolio.
Case 1: High yield; His earning from dividend would be=5-40%of 5=Rs.3
And earnings from capital gain would be =9-20%of 9=Rs.7.2
Total earnings=Rs.10.2
Case 2:Low yield;His earning from dividend would be=1-40%of 1=Rs.0.6
And earnings from capital gain would be =12-20%of 12=Rs.9.6
Total earnings=Rs.10.2