Income Tax Law & Practice II - Capital gains

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

• (A) Plant and machinery

• (B) Land or building

• (C) All movable property other than plant & machinery and computers

• (D) Computers

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

• (A) To be reduced from the cost of acquisition

• (B) To be reduced from the indexed cost of acquisition

• (C) Taxable as capital gains

• (D) Taxable as income under the head’s income from other sources.

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

• (A) Section 54EC

• (B) Section 54F

• (C) Section 54GA

• (D) Section 54D

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

• (A) Average cost method

• (B) First in first out

• (C) Last in first out

• (D) Weighted average

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:

• (A) 1981-1982

• (B) 2001-2002

• (C) 1991-1992

• (D) 2011-2012