Capital Gain

Q1. Mr. X bought 10,000 equity shares of TT ltd., listed in stock exchange in India and abroad and a
constitution of BSE 500 on 15.3.2009 at Rs. 2,250 per share. He sold the shares at Rs. 5,000 per share on
31.12.2011. The brokerage and securities transaction tax deducted were at 0.5% and 0.075% respectively.

Examine the liability of Mr. X to Income Tax for the Assessment year 2012-13. Will your answer be
different if instead of selling the shares in the market Mr. X privately transferred the shares to his son at
the same price?

Q2. A Purchased 250 equity shares of ABC Ltd. On 1.4.1997 for Rs. 270 per share and incurs expenditure
of Rs. 500 on brokerage and share transfer fees. On 1.7.2001 he gets 200 Bonus shares. On 1.9.2007 he
gets 300 rights shares for Rs. 140 per share. On 28.2.2012 he sells all the 750 shares for Rs. 400 per share
and incurs an expenditure of Rs. 1500 on Brokerage compute his taxable income for AY 2012-13. He
does not have any other source of income.