Section 51 to 57 (Income Tax Act 1961)

Interest on compensation or enhanced compensation is taxable in which year?

• The year in which the compensation is received

• The year in which the interest is accrued

• Equally over the period of litigation

• It is exempt from tax

Which of the following is not considered as “movable property” for the purposes of Section 56(2)(x)?

• Jewellery

• Paintings

• Cash

• Archaeological collections

Under Section 54G, which of the following is not a mandatory condition for claiming capital gain exemption?

• Purchase of new machinery within 3 years after transfer

• Acquisition of residential property in a non-urban area

• Physical shifting of the industrial undertaking

• Incurring eligible relocation expenses

Under Section 55, if goodwill was depreciated before AY 2021–22, how is the cost of acquisition calculated?

• Purchase price
  
  

• Nil

• FMV as on 1 April 2001

• Purchase price minus depreciation claimed

Under Section 55A, when can the Assessing Officer refer a valuation to the Valuation Officer?

• Only if FMV is below the sale price

• If asset value differs significantly from fair market value

• Only if the taxpayer consents

• In all cases of capital gain calculation

Under Section 51, advance money forfeited is deducted from the cost of acquisition unless:

• The asset was never owned by the assessee

• It was already included in income under Section 56(2)(ix)

• The transaction happened before 2000

• The money is more than ₹10 lakh

Section 54 provides exemption on capital gains arising from the sale of:

• Gold and jewelry

• Commercial property

• Residential house property

• Agricultural land

To avail exemption under Section 54, a new residential house must be purchased within how long after the sale?

• 6 months

• 1 year

• 2 years

• 4 years

What is the maximum capital gain eligible for investment in two houses under Section 54?

• ₹50 lakh

• ₹1 crore

• ₹2 crore

• No limit

Which of the following incomes is not taxable under the head "Income from Other Sources"?

• Dividend received from a foreign company

• Winnings from lotteries

• Interest on savings bank account

• Agricultural income from land situated in India