Question:medium

Under the act,_____ gains tax is______ on both long term and short term gains.

Updated On: Nov 25, 2025
  • lottery... charged
  • property.... calculated
  • bonus..... deducted
  • capital.... levied
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The Correct Option is D

Solution and Explanation

The correct answer is option (D):
capital.... levied

The correct answer is "capital.... levied". This is because the sentence is describing how capital gains are treated under a specific act (likely a tax law).

* **Capital Gains:** These are profits made from the sale of assets like stocks, bonds, or real estate.
* **Levied:** This word means "imposed" or "charged". So, capital gains tax is imposed on these gains.

Let's look at why the other options are incorrect:

* "Lottery... charged": While lottery winnings can be taxed, the general term for this type of tax isn't a "capital gains tax." It's more of an income tax.

* "Property... calculated": While property sales can generate capital gains, the act doesn't generally "calculate" the gains but imposes a tax.

* "Bonus..... deducted": Bonuses might be subject to income tax and various deductions, but it doesn't align with the concept of capital gains tax.
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