Ms. Netra acquired 1,000 equity shares of MMC Ltd. (unlisted company) for ₹ 4 lakhs in April, 2007. She received bonus shares on 1:1 basis in April, 2018 from the company. She sold bonus shares in January, 2020 for ₹ 8 lakhs. The capital gain chargeable to tax in the hands of Ms. Netra for the assessment year 2020-21 is:
A. ₹ 8lakhs
B. Nil, since the entire gain is exempt from tax
C. ₹ 2 lakhs
D. ₹ 80,000
Answer:B
Ms. Netra acquired 1,000 equity shares of MMC Ltd. (unlisted company) for ₹ 4 lakhs in April, 2007. She received bonus shares on 1:1 basis in April, 2018 from the company. She sold bonus shares in January, 2020 for ₹ 8 lakhs. The capital gain chargeable to tax in the hands of Ms. Netra for the assessment year 2020-21 is:
A. ₹ 8lakhs B. Nil, since the entire gain is exempt from tax C. ₹ 2 lakhs D. ₹ 80,000