Practice Test

Q1) Capital gain arises from the transfer of Show Answer

Q2) Which asset is not treated as capital asset for capital gain purposes? Show Answer

Q3) Short-term capital gain arise on transfer of shares and units held by the assessee for not more than Show Answer

Q4) Tick from the following, the capital assets, where there will be long-term capital gain, if such asset is transferred after it is held for 14 months. Show Answer

Q5) Distribution of assets at the time of partial or complete partition of HUF shall Show Answer

Q6) The assessee is allowed to opt for market value as on 1-4-81 in case of Show Answer

Q7) Cost of improvement of goodwill of a business shall be Show Answer

Q8) In case of long term capital gain, the amount to be deducted from sale consideration shall be Show Answer

Q9) Conversion of capital asset into stock in trade will result into capital gain of the previous year : Show Answer

Q10) Where capital asset is converted into stock in trade then for the purpose of computation of capital gain, the full value of consideration shall be Show Answer

Q11) In case of compulsory acquisition, the indexation of cost of acquisition or improvement shall be done till the Show Answer

Q12) Exemption under section 54, shall be available : Show Answer

Q13) The exemption under section 54, shall be available : Show Answer

Q14) For claiming exemption under Sec. 54, the assessee should purchase residential property Show Answer

Q15) If the assessee wishes to deposit money under capital gain scheme for claiming exemption under sec. 54 it should be deposited within Show Answer

Q16) ____ mean any profits or gains arising from the transfer of a capital asset. Show Answer

Q17) _____ of a Zero Coupon Bond is regarded as a transfer of capital asset. Show Answer

Q18) An asset other than a _______ capital asset is regarded as a long-term capital asset. Show Answer

Q19) Units of Unit Trust of India held for 14 months is treated as ______ capital asset. Show Answer

Q20) Capital gains are taxed on________, irrespective of the assessees method of accounting. Show Answer

Q21) Transfer of depreciable assets gives rise to _____ capital gains. Show Answer

Q22) Cost of improvement in relation to goodwill of a business is taken to be______. Show Answer

Q23) Option of substituting fair market value as on 1-4-81 as cost of acquisition is not available on _____ and ______ assets. Show Answer

Q24) Indexed cost of Acquisition = Cost of Acquisition x CII for year of _____ / CII for year of ______ Show Answer

Q25) The capital gain arising from transfer by way of conversion of a capital asset into stock-in-trade will be chargeable to tax in the year when the stock is____. Show Answer

Q26) Capital gain arises from the transfer of any asset. Show Answer

Q27) Land is treated as capital assets for capital gain purposes Show Answer

Q28) Depreciable assets are treated as capital assets for capital gain purposes. Show Answer

Q29) Jewellery held as stock in trade is treated as capital assets for capital gain purposes. Show Answer

Q30) Goodwill of a business is treated as capital assets for capital gain purposes Show Answer

Q31) Trade mark or brand name is treated as capital assets for capital gain purposes. Show Answer

Q32) Short-term capital gain is gain arising from the transfer of any asset which is held by the assessee for not more than 12 months from the date of its acquisition. . Show Answer

Q33) There will be long-term capital gain, if Plant and Machinery is transferred after it is held for more than 12 months. Show Answer

Q34) There will be long-term capital gain, if Preference Shares of an Indian Company are transferred after being held for more than 12 months. Show Answer

Q35) Securities transaction tax paid by the seller of shares shall be allowed as deduction as expenses of transfer. Show Answer

Q36) Securities transaction tax paid by the purchaser of shares shall form part of the cost of such shares. Show Answer

Q37) Where the capital asset become the property of the assessee in any manner given under section 49(1), the cost of acquisition of such assets shall be the market value of the asset as on the date of acquisition by the assessee. Show Answer

Q38) If the shares are acquired on conversion of debentures the cost of acquisition of such shares shall be cost of acquisition of the debentures. Show Answer

Q39) The cost of acquisition of the employees stock option shall be market value of the shares on the date of offer. Show Answer

Q40) The cost inflation index number of the previous year 2016-17 is 751. Show Answer

Q41) Where the entire block of the depreciable asset is transferred after 36 months, there will be short-term capital gain or loss. Show Answer

Q42) In the case of compulsory acquisition, the indexation of cost of acquisition shall be done based on the Cost Inflation Index for the previous year in which compensation is received. Show Answer