Income Tax Law & Practice-II Unit I

Capital gain arises on:

• A.Business capital

• B.Transfer of capital assets

• C.Stock of trade

• D.All of these

Transfer of capital assets is defined under Income Tax Act 1961

• A.2(31)

• B.2(26)

• C.2(32)

• D.2(47)

Capital gain is classified into how many types?

• A.Two

• B.Three

• C.Four

• D.Five

Short term capital gain on sale of listed shares are

• A.Exempted

• B.Taxable

• C.Partly Taxable

• D.None of these

Listed shares and debentures held for less than 12 months are

• A.Long term capital asset

• B.Medium term capital asset

• C.Short term capital asset

• D.Exempted capital asset

Unlisted shares held for 27 months are

• A.Long term capital asset

• B.Medium term capital asset

• C.Short term capital asset

• D.Exempted capital asset

To be a long term capital asset, a non financial asset other than land and buildings should be held more than:

• A.48 months

• B.36 months

• C.24 months

• D.12 months

To find out Long term capital gain:

• A.Cost of acquisition

• B.Total cost

• C.Index cost

• D.Cost of sales

Cost inflation rules for the purpose of long term capital gain has been notified by central government every year starting from the financial year

• A.1971-71

• B.1981-82

• C.1991-92

• D.2001-02

What is the date on which Fair Market Value of capital assets acquired is determined?

• A.1.4.71

• B.1.4.81

• C.1.4.91

• D.1.4.2001