Question 1

The charging section of the income under the head capital gains is :&#10;A)section 15&#10;B)section 17&#10;C)section 10&#10;D)section 45 (2)

Accepted Answer

Section 45 is the charging section for capital gains in the Income Tax Act, 1961. It specifies that any profits or gains arising from the transfer of a capital asset effected in the previous year shall be chargeable to income tax under the head "Capital Gains."

Question 2

Which of the following is not a requisite for charging income-tax on capital gains -&#10;A)the transfer must have been effected in the relevant assessment year&#10;B)there must be a gain arising on transfer of capital asset&#10;C)capital gains should not be exempt u/s 54&#10;D)capital gains should not be exempt u/s 54ec

Accepted Answer

The requirement for charging income tax on capital gains does not mandate that the transfer must have been effected in the relevant assessment year. Capital gains tax is determined based on when the gain is realized, which may not necessarily align with the assessment year. The other options (B, C, D) are indeed considerations for taxing capital gains, including the necessity of a gain and the potential exemptions under sections 54 and 54EC.

Question 3

The following shall not be regarded as capital asset:&#10;A)urban land&#10;B)securities held by a foreign institutional investor as per sebi act, 1992&#10;C)archaeological collections&#10;D)motor car

Accepted Answer

motor car&#10;

Question 4

The following shall be regarded as capital asset:&#10;A)gold jewellery held by jeweller as sit trade.&#10;B)securities held by fii as per sebi act, 1992, held as stock in trade.&#10;C)motor car held by motor car manufacturer as sit&#10;D)none of above

Accepted Answer

The answer of The following shall be regarded as capital...

Question 5

The following shall not be regarded as capital asset:&#10;A)jewellery&#10;B)rural agricultural land&#10;C)archaeological collections&#10;D)personal residential house

Accepted Answer

Rural agricultural land in India is not considered a capital asset, and hence, gains from its sale are not subject to capital gains tax under the Income Tax Act.

Question 6

The following shall be regarded as capital asset:&#10;A)jewellery&#10;B)sculptures&#10;C)archaeological collections&#10;D)all of the above

Accepted Answer

All of the options listed, including jewellery, sculptures, and archaeological collections, are considered capital assets. This classification typically encompasses a wide range of property types, not limited to these examples, that are held by an individual or entity for investment or personal use.

Question 7

Capital asset excludes all except&#10;A)stock-in-trade&#10;B)personal effects&#10;C)jewellery&#10;D)agricultural land in india.

Accepted Answer

Jewellery is considered a capital asset, and it does not fall under the exclusions like stock-in-trade, personal effects (excluding jewellery), or agricultural land in India, which are typically not considered capital assets for the purpose of capital gains tax.

Question 8

Which of the following are included in the jewellery -&#10;A)ornaments made of gold, silver and platinum.&#10;B)precious metals whether or not worked or sewn into any wearing apparel.&#10;C)semi-precious stones.&#10;D)all of the above.

Accepted Answer

Jewellery includes ornaments made of gold, silver, and platinum, precious metals whether or not worked or sewn into any wearing apparel, and semi-precious stones, making all of the given options correct.

Question 9

A short term capital asset means a capital asset held by the assessee for not more than:&#10;A)12 months immediately preceding the month of its transfer&#10;B)24 months immediately preceding the date of its transfer.&#10;C)36 months immediately preceding the date of its transfer.&#10;D)none of the above.

Accepted Answer

The answer of A short term capital asset means a...

Question 10

In terms of section 2(42A), listed securities are treated as long-term capital asset, if they are held for a period of more than -&#10;A)12 months&#10;B)36 months&#10;C)24 months&#10;D)48 months

Accepted Answer

Listed securities are considered long-term capital assets if they are held for more than 12 months according to section 2(42A) of the Income Tax Act.

Question 11

A Long term capital asset means a capital asset held by the assessee for more than:&#10;A)12 months immediately preceding the month of its transfer.&#10;B)24 months immediately preceding the date of its transfer.&#10;C)36 months immediately preceding the date of its transfer.&#10;D)none of the above.

Accepted Answer

The answer of A Long term capital asset means a...

Deck 4: Capital Gain