Capital Gains Taxation

1.       Cost of acquisition for shares u/s 112A will be, with the following information?

Actual cost of acquisition- Rs. 200;

FMV as on 31.01.2018- Rs. 275;

FMV as on 01.04.2018- Rs. 350

• a)      Rs. 200

• b) Rs. 275

• c) Rs. 350

• d) None of above

In case of a Joint development agreement as per section 45(5A) Cost inflation index will be taken for which year for calculation of Indexed cost of acquisition:

• the year in which agreement is entered and possession is handed over

• b) the year in which the completion certificate is issued

• c) the year in which cash consideration is paid

• the year in which the property was originally purchased

After getting shares in ESOP, if the employee sells shares at a later date, what will be the cost of acquisition for the purpose of capital gain:

• a) Exercise price

• b) FMV on the date of sale of shares by employee

• C) FMV on the date of exercise of shares

• d) Nil

The benefit of basic exemption limit is available to Non-residents in case their total income includes capital gains u/s 112A.

• a) True

• b) False

• c) Partly true

• d) Depends on DTAA with India

Deduction under chapter VI-A is not available from income arising in section 112, 112A or Section 111A

• a) True

• b) False

• c) Not true if Income exceeds Rs. 50 Lakh

• d) Not true if Income exceeds Rs. 100 Lakh

Capital gain implications will arise when an employee is entitled to receive cash on account of appreciation in stock prices of the company

• a) Yes, taxed at FMV of the shares

• b) Yes, the difference between FMV and exercise price

• c) No capital gain arises

• d) Yes, any appreciation is capital gains

An option where TDS (as per income slab) percentage of the vested shares are sold immediately, and the amount is paid to the government as tax. The remaining % of the vested shares remain in the employee’s account which can be sold later is called:

• a) cash exercise

• b) hedging sale

• c) Sell to cover

• d) None of the above.

As per general rule, a short- term capital asset means a capital asset held by the Assessee for not more than

• A. 36 months immediately preceding the month of its transfer

• B. 24 months immediately preceding the date of its transfer.

• C. 36 months immediately preceding the date of its transfer.

• D. none of the above.

As per general rule, capital gain from transfer of capital asset is taxable in which year

• (a) PY in which transfer took place

• (b) PY in which the capital asset is actually handed over

• (c) PY in which the transfer document is signed and sealed

• (d) None of the above

Listed securities are treated as LTCA, if they are held for more than months.

• 12

• 6

• 24

• 48