Income tax Law & Practice II Capital gains

Capital asset excludes all except

• (A) Stock-in-trade

• (B) Personal effects

• (C) Jewellery

• (D) Rural agricultural land in India

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

• (A) Face value on the date of allotment

• (B) Nil

• (C) Market value as on 1.4.2001

• (D) Current market value

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

• (A) The transfer must have been effected in the relevant assessment year

• (B) There must be a gain arising on transfer of capital asset

• (C) Capital gains should not be exempt u/s 54

• (D) Capital gains should not be exempt u/s 54EC

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

bonds within a period from the date of transfer.

• (A) 36 Months

• (B) 4 Months

• (C) 6 Months

• (D) 12 Months

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?

• (A) Furniture

• (B) Land

• (C) Building

• (D) Plant or machinery