MCQs on DIT 1

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.

The following shall not be regarded as capital asset:

• Urban Land

• Securities held by a Foreign Institutional Investor

• Archaeological Collections

• Motor Car

Transfer of which of the following assets will not be considered as capital gain

• Jewellery

• Paintings

• Gold deposit bonds

• Sculpture

A short term capital asset means a capital asset held by the assessee for not more than:

• 12 months immediately preceding the month of its transfer

• 24 months immediately preceding the month of its transfer

• 36 months immediately preceding the month of its transfer

• None of the above.

Which of the following transactions shall not be regarded as transfer as per the provisions of section 47:

• Any transfer of a capital asset, being share of a special purpose vehicle to a business trust in exchange of units allotted by that trust to the transferor.

• Compulsory acquisition thereof under any law.

• Extinguishment of rights in respect of capital

• Conversion of capital asset into stock in trade asset.

Which of the following is a long term capital asset if held for more than 12 months but less than 36 months?

• A unit of a Mutual Fund other than equity oriented fund specified under section 10(23D).

• Shares of a listed company

• Shares of an unlisted company.

• Gold Jewellery

In case of transfer of unlisted equity shares the asset will be treated as short-term capital asset if they are held for not more than immediately preceding the date of transfer.

• 12 months

• 24 months

• 36 months

• None of the above

Long-term Capital Loss can only be set off against ___________

• Long-term capital loss

• Long-term capital gain

• Short-term capital gain

• All of the above

Dividend from an Indian company is ................

• Fully taxable

• Fully exempt

• Partly taxable

• None of the above

Which of the following is a taxable gift?

• Gift of ₹ 75,000 from assessee's father

• Gift of ₹ 75,000 from a friend of the assessee

• Gift of ₹ 85,000 from a friend on the occassion of assessee's birthday

• Gift of ₹ 1,00,000 from grandmother of the assesse