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Answer Posted / raviprakash
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Mr. Sohan works for Azania Company. The company grants 1000 shares to Mr. Sohan in 2008. At that point each share is worth Rs. 100. In 2010, he decides to sell his entire stake and at that point, the value is Rs. 120 per share. The government declares that the tax to be paid is 10% of the entire profit. Due to the inflation, the value of a rupee in 2010 is equivalent to 0.8 of a rupee in 2008. In this situation, which of the following model indicates the actual tax to be paid by the investor?
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