Income from Capital Gains – CS Executive Tax Laws MCQs

Chirag entered into an agreement for the sale of his house property located at Jaipur to Yash on 1st August 2020 for a total sale consideration of ₹ 95 lakh. Yash paid an amount of ₹ 20 lakh by account payee cheque to Chirag on 1st August 2020, and the balance was agreed to be paid at the time of registration of the Conveyance Deed which could only be executed by Chirag on 1st September 2020. The Stamp Valuation Authority determined the value of the house property on the date of registration of deed at ₹ 140 lakh. However, the value determined by the Stamp

Indexed cost of acquisition of the house property purchased for ₹ 80 lakh in June 1998 and was sold in December 2020 will be ₹ (worked out by taking the CD of 1998-99 as 351; of the year 2001-02 as 100; of the year 2020-21: 301) and FMV of the house property as on 1st April 2001 of ₹ 90 lakh.

D transferred Zero-Coupon Bonds on 20th August 2020. These bonds were acquired during the financial year 2011-2012. The capital gain computed on the redemption with indexation benefit is ₹ 2 lakh and without indexation benefit is ₹ 3 lakh.

Durafon (P) Ltd., engaged in the steel industry, acquired a vacant piece of land on 15th May 2018. The company sold the said land in December 2020. The profit earned on the sale of vacant land of ₹ 10 lakh shall be taxable as:

B joined Avtar & Co. as a partner on 1st June 2020. He contributed his vacant land in the firm as his capital which was recorded in the books of the firm at ₹ 5 lakh. The land was inherited by B from his father in April 2010 and the Fair Market Value (FMV) on that date was ₹ 2 lakh. The land was originally acquired by his father in August 2005 for ₹ 1 lakh. The Fair Market Value (FMV) on 1st June 2018 was ₹ 10 lakh.

Nair, a retired person of 68 years of age obtained ₹ 10,000 per month from 1st April 2020 on a reverse mortgage of his self-occupied residential property from a bank. The fair rent of the property is ₹ 15,000 per month. The income chargeable to tax in respect of amount received on reverse mortgage for his self-occupied house property for the FY 2020-21 would be:

Exemption under section 54G on fulfilling of specified conditions is available on:

Radhey has sold his residential house on 11th Sept. 2020 for ₹ 75 lakh. The value applied by the Stamp Valuation Authority on the date of registration of the Conveyance Deed on 15th Sept. 2020 was ₹ 115 lakh. Radhey disputed the valuation made by the Stamp Valuation Authority and asked the departmental valuation officer to determine the value of the house on the date of registration of the deed. The departmental valuation officer determined the value of the house on the date of registration of the deed at ₹ 120 lakh.

Radhey has sold his house on 11th August 2020 for ₹ 80 lakh. The value applied by Stamp Valuation Authority is 1100 lakh. He disputed this valuation and the departmental valuation cell made the valuation at ₹ 110 lakh.

In a scheme of buyback of shares, XYZ Ltd., a listed company, paid ₹ 6 lakh to a shareholder X on 12.3.2021. The buy-back was through the recognized stock exchange. The sum of ₹ 6 lakh received by X who had bought these shares 2 years back will be:

The cost of improvement in relation to the capital asset being goodwill of the business shall be taken to be as:

X entered into an agreement for the sale of his house located at Jaipur to Y on 1st April 2020 for a total sale consideration of ₹ 90 lakh. Y paid an amount of ₹ 20 lakh by account payee cheque to X on the date of the agreement and the balance was to be paid at the time of registration of the deed. However, the conveyance deed could not be executed till 1st September 2020. The Stamp Valuation Authority determined the value of the property on the date of registration of conveyance deed at ₹ 120 lakh and the value determined by the Stamp Valuation Authority on the date of the agreement was ₹ 100 lakh.

The base year for the purpose of calculation of the indexed cost of acquisition or the cost of improvement in respect of long term capital asset acquired prior to 1st April 2001 shall be taken as:

Land or building, or both, if transferred on or after 1st April 2019 shall be treated as a long term capital asset, if it is being held immediately prior to the date of its transfer for more than:

Out of the following, which income is chargeable as capital gain:

Dr. Sam sold vacant land to Mr. Roy for ₹ 36 lakhs. For stamp-duty purposes, the value of land was ₹ 41 lakhs. The indexed cost of acquisition of land was computed at ₹ 20 lakhs.

On 1.6.2020 Kamlesh transferred his vacant land to Raj esh for ₹ 12 lakhs. The land was acquired on 1.9.2017 for ₹ 3 lakh. The indexed cost of acquisition of the said land is ₹ 3,28,409.

Which of the following is not a capital asset for Mr. Rao who is employed in a public sector bank?

Mr. Madan sold vacant land for ₹ 120 lakh on 10.10.2020. The indexed cost of acquisition amounts to ₹ 18 lakhs. He deposited ₹ 50 lakhs in REC bonds in January 2021 and another ₹ 50 lakh in March 2021.

Ms. Netra acquired 1,000 equity shares of MMC Ltd. (unlisted company) for ₹ 4 lakh in April 2009. She received bonus shares on a 1:1 basis in April 2020 from the company. She sold bonus shares in January 2021 for ₹ 8 lakhs. The capital gain chargeable to tax in the hands of Ms. Netra for the assessment year 2021-22 is:

Mrs. Lakshmi purchased shares of ABB Ltd. for ₹ 5 lakhs on 3rd April 2018. The shares were sold on 5th June 2020 for ₹ 7 lakhs. She paid STT of ₹ 700 and brokerage of ₹ 500. Capital gain chargeable to tax:

Rajat purchased a car for his personal use for ₹ 5,00,000 in April 2020 and sold the same for ₹ 5,50,000 in July 2020. The taxable capital gains would be

Long-term capital gains on the sale of a long-term capital asset in October 2020 is 1105 lakh. The assessee invested 150 lakh in REC bonds in March 2021 and ₹ 55 lakh in MIAI bonds in May 2021.

Cost of acquisition of securities held with depositories is to be computed by –

Manoj acquired 1,000 equity shares of ₹ 10 each in a listed company for ₹ 35,000 on 1 st July 2013. The company issued 1,000 rights shares in April 2015 at ₹ 15 per share. The company issued 2,000 bonus shares in June 2020. The market price was ₹ 50 per share before the bonus issue and ₹ 25 after such an issue. The cost of the acquisition of bonus shares would be

A foreign institutional investor (FIT) has total income which includes the short-term capital gains on the sale of listed shares of ₹ 30 lakh. The rate of tax for charging such income to tax is

Short-term capital gains arising from the transfer of equity shares in a company or units of an equity-oriented fund or units of a business trust charged with security transaction tax are subject to income tax at the rate of

Under which section, the assessee has to reinvest the entire net consideration to claim a full exemption for the long-term capital gains earned during a previous year

Ms. Smita inherited a vacant site land consequent to the demise of her father on 10th June 2013. The land was acquired by her father on 10th April 1995 for ₹ 40,000. The fair market value of the land on 1 st April 2001 was ₹ 60,000 and on the date of inheritance, Le. 10th June 2013 was ₹ 2,00,000. The cost of acquisition for Ms. Smita is

Ramesh received ₹ 7 lakh by way of enhanced compensation in March 2021. A further sum of ₹ 2 lakh decreed by the Court is due but not received till 31st March 2021. The amount of income chargeable to tax for the AY 2021-22 would be

Aman entered into an agreement with Brij for the sale of a building for ₹ 20 lakh in June 2020. Aman received an advance of ₹ 2 lakh. Subsequently, the agreement was canceled and Aman forfeited the advance money. The advance money is

When shares of a listed company held for more than 36 months are transferred privately for ₹ 8 lakh, with the original cost of acquisition of ₹ 1 lakh whose indexed cost of acquisition is ₹ 2 lakh, the income-tax payable including cess would be

A residential house is sold for ₹ 90 lakh and the long-term capital gains computed are ₹ 50 lakh. The assessee bought two residential houses for ₹ 30 lakh and ₹ 20 lakh respectively. The amount eligible for exemption u/s 54 would be

U/s 115E, the tax rate applicable for any income from investment or income from long-term capital gains of an asset other than a specified asset, for a non-resident as envisaged by Section 115C, is

Section 50C makes special provision for determining the full value of consideration in cases of transfer of

Long-term capital gains on zero-coupon bonds are chargeable to tax

For claiming exemption u/s 54G, an assessee has to invest the resultant capital gains within a specified period. Which of the following is not eligible .for such investment?

For claiming exemption u/s 54G, an assessee has to invest the resultant capital gains within a specified period. Which of the following is not eligible .for such investment?

In terms of Section 2(42A), unlisted securities are treated as a long-term capital asset, if they are held for a period of more than

Sarathhasreceivedasum of ₹ 3,40,000 as interest on enhanced compensation for compulsory acquisition of land by the State Government in May 2020. Of this, only ₹ 12,000 pertains to the current year and the rest pertains to earlier years. The amount chargeable to tax for the AY 2021-22 would be

In order to enjoy exemption u/s 54EC, the resultant long-term capital gains should be invested in specified

Which of the following is not a requisite for charging income tax on capital gains?

Cost of acquisition in case of bonus shares allotted before 1.4.2001 will be

On 15th November 2020, Mohan sold 1 kg of gold, the sale consideration of which was ₹ 1,19,760. He had acquired the gold on 11th December 2000 for ₹ 64,000. The fair market value of 1 kg gold on 1st April 2001 was ₹ 62,000. The number of capital gains chargeable to tax for the AY 2021-22 shall be

Capital asset excludes all except