Quiz on Capital Gains and Taxation

What is the term for profit earned from selling a capital asset at a higher price than its cost of acquisition?

• Capital Tax

• Capital Loss

• Capital Gain

• Capital Asset

What is the tax imposed on profits earned from selling capital assets in India called?

• Property Tax

• Income Tax

• Wealth Tax

• Capital Gains Tax

Which of the following is considered a capital asset?

• Personal belongings

• Shares

• Consumables

• Agricultural land in rural area

What is the holding period for short-term capital assets?

• Less than 12 months

• Exactly 24 months

• Less than or equal to 36 months

• More than 36 months

What is the holding period for equity shares to be considered short-term capital assets?

• 12 months

• 24 months

• 36 months

• 48 months

What is the long-term capital gains tax rate for the sale of equity shares?

• 25%

• 15%

• 20%

• 10%

What is the full value of consideration?

• The profit earned from the sale

• The selling price of the asset

• The cost of acquisition

• The total expenses incurred

What is the cost of acquisition?

• The selling price of the asset

• The market value of the asset

• The price at which the asset was bought

• The total expenses incurred

What is the cost of improvement?

• The depreciation of the asset

• The selling price of the asset

• The cost incurred to enhance the asset

• The original purchase price

What is indexation of cost used for?

• To determine the market value

• To calculate the cost of improvement

• To factor in inflation over the years

• To increase the selling price