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Capital Gains Tax Quiz

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

Which of the following is NOT considered a capital asset under the Income Tax Act, 1961?

a)

House property

b)

Motor car

c)

Shares

d)

Jewellery

2.

What is the minimum holding period for immovable property to qualify as a long-term capital asset (from AY 2025-26)?

a)

12 months

b)

24 months

c)

36 months

d)

6 months

3.

Which rate applies to long-term capital gains from listed equity shares after Budget 2024?

a)

30%

b)

10%

c)

20%

d)

12.5%

4.

Which deduction section is applicable for investment in bonds after sale of land/building?

a)

Section 80C

b)

Section 54

c)

Section 54EC

d)

Section 80D

5.

Short-term capital gains on shares (where STT paid) are taxed at:

a)

5%

b)

10%

c)

15%

d)

20%

6.

Indexation refers to:

a)

Adjusting acquisition cost with inflation

b)

Reducing capital gains tax by rebate

c)

Deducting investment under ELSS

d)

Claiming depreciation on assets

7.

Exemption under Section 54 is available only when:

a)

Gains arise from the sale of commercial property

b)

Gains are reinvested in new residential property

c)

Gains are donated to charity

d)

Gains are used to buy shares

8.

Bonds eligible for Section 54EC benefit include:

a)

PPF

b)

NHAI & REC bonds

c)

FD

d)

Nifty ETFs

9.

Which of the following is NOT eligible for indexation benefit under LTCG after budget 2024?

a)

House property

b)

Gold

c)

Listed equity shares

d)

Land

10.

Maximum exemption under Section 54EC in a financial year is:

a)

Rs. 25 lakhs

b)

Rs. 30 lakhs

c)

Rs. 50 lakhs

d)

Rs. 1 crore

11.

Short-term capital gain is applicable when asset is held for:

a)

Less than 12 months

b)

Less than 24 months

c)

Less than 36 months

d)

More than 36 months

12.

Which one is a correct statement about capital gains arising from gifts/inheritance?

a)

Always taxable as short-term

b)

Not taxable at all

c)

Taxable when sold by the recipient

d)

Taxable at 30% flat

13.

To claim Section 54 exemption, new house must be purchased within:

a)

2 years after sale

b)

1 year before/2 years after sale

c)

1 year before only

d)

10 years after sale

14.

If Section 54EC bonds are sold within 5 years, the exempted LTCG will be:

a)

Taxable in year of sale

b)

Not taxable

c)

Taxable after 5 years

d)

Taxable only if bought above Rs. 50 lakhs

15.

Long-term capital gain on sale of listed shares is exempted upto?

a)

₹1,00,000

b)

₹1,50,000

c)

₹1,25,000

d)

2,00,000