Income Tax Law & Practice-II Capital Gains

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

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

• (A) Cost incurred by the previous owner

• (B) Actual cost incurred by the assessee

• (C) Incurred cost after indexation

• (D) None of the above

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

• (A) Shifting of industrial undertaking from an urban area to a Special Economic Zone (SEZ)

• (B) Shifting of industrial undertaking from urban Area by Government

• (C) Compulsory acquisition of land and building

• (D) Transfer of certain capital assets as specified

Which of the following is not included in taxable income:

• (A) Income from smuggling activity

• (B) Casual income

• (C) Gifts of personal nature subject to a maximum of ₹ 50,000 received in cash

• (D) Income received in-kind

The amount deductible from a family pension is up to:

• (A) ₹ 15,000 or 1/3rd of family pension whichever is less

• (B) ₹ 15,000 or 1 /2 of family pension whichever is less

• (C) ₹ 10,000 or 1/3rd of family pension whichever is less

• (D) No deduction