Capital Gains

The benefit of section 54 is available only to an individual or a HUF.

• True

• False

To avail the benefit of section 54, the asset transferred should be ____________, being a residential house property

• Short-term capital asset

• Long-term capital asset

• Short-term or long-term capital asset as per the choice of the assessee

• Short-term or long-term capital asset as per the choice of the Assessing Officer

To avail the benefit of section 54, within a period of ____________or________after the date of transfer of the old house,the taxpayer should purchase a new residential house in India.

• 1 year before, 3 years

• 2 years before, 2 years

• 1 year before, 2 years

• 3 years before, 1 year

Exemption under section 54 can be claimed in respect of any number of residential house properties purchased/constructed in India as well as outside India.

• True

• False

After claiming benefit under section 54, if new house is transferred within a period of _____ from the date of its acquisition/completion of construction, then the benefit granted under section 54 will be withdrawn.

• 1 year

• 3 years

• 5 years

• 7 years

If the transaction is considered as a STCG, ___ % of the money earned as profit will have to be paid in taxes. If an NRI was to sell a property for Rs 1 crore that he bought for Rs 75 lakhs within one-and-a-half-years of its purchase, he will have to pay Rs. ____ lakhs of the Rs 25-lakh profit, as STCG.

• 20 % or Rs. 5 Lakhs

• 20.60 % or Rs. 5.15 Lakhs

• 30 % or Rs. 7.5 Lakhs

• 10 % or Rs. 2.5 Lakhs

With effect from assessment year 2018-19, the period of holding in case of immovable property, being land or, building or both, is reduced from 36 months to 24 months, to qualify as long-term capital asset.

• True

• False

With effect from Assessment Year 2020-21, a taxpayer has an option to make investment in two residential house properties in India to claim section 54 exemption. This option can be exercised by the taxpayer only once in his lifetime provided the amount of long-term capital gain does not exceed Rs. __ rores.

• 1 crore

• 75 Lakhs

• 2 crores

• 3 crores

After the expiry of specified period of 2 years/3 years, the unutilized amount remained in the Capital Gains Account Scheme will be taxed as income by way of _______in the year in which the specified period of 2 years/3 years gets over.

• Short-term capital gains

• Long-term capital gains

• Profits and gains of business or profession

• Income from other sources

Using inflation index, purchase price of asset is increased notionally to reduce capital gain.

• True

• False