TAXATION 2023- Class Test 2- 25 Marks

The charging section of the income under the head capital gains is :

• Section 15

• Section 17

• Section 10

• Section 45 (2)

What are the conditions to be fulfilled for charging of income under the head capital gains:

• There must be a capital asset

• There must be a transfer of such capital asset

• The transfer of such capital asset has been affected during the previous year.

• All of the above

Which of the following is not a requisite for charging income-tax on capital gains

• The  transfer must have been effected in the relevant assessment year

• There must be a gain arising on transfer of  capital asset

• Capital gains should not be exempt u/s 54

• Capital gains should not be exempt u/s 54EC

The following shall not be regarded as capital asset:

• Urban Land

• Securities held by a Foreign Institutional Investor as per SEBI Act, 1992

• Archaeological Collections

• Motor Car

The following shall be regarded as capital asset

• Gold Jewellery held by jeweller as SIT trade

• Securities held by FII as per SEBI Act, 1992, held as stock in trade

• Motor car held by motor car manufacturer as SIT

• None of above

The following shall not be regarded as capital asset

• Jewellery

• Rural Agricultural land

• Archaeological Collections

• Personal residential house

The following shall be regarded as capital asset

• Jewellery

• Sculptures

• Archaeological Collections

• All of the above

Rural area means any area which is outside-------------Kilometers from the local limits of the jurisdiction of a municipality or a cantonment board, if the population of municipality or cantonment board is more than 10,00,000.

• 2

• 4

• 6

• 8

Rural area means any area which is outside--------------------Kilometers from the local limits of the jurisdiction of a municipality or a cantonment board, if the population of municipality or cantonment board is more than .1,00,000 but not exceeding 10,00,000

• 2

• 4

• 6

• 8

Rural area means any area which is outside----------------------Kilometers from the local limits of the jurisdiction of a municipality or a cantonment board, if the population of municipality or cantonment board is more than 10,000 but not exceeding  1,00,000.

• 2

• 4

• 6

• 8