Objective Questions on Basic Concepts of Capital Gain

1 Which of the following is not a capital asset ?

a Car used for household c Rural Residentail Land
purposes
b Jewellery d Patent Rights

2 Which of the the following asset shall be long term after completing the holding pe
a Shares of Public Ltd. c Non-Equity Oriented
Company Mutual Fund Units
b Share of Private Ltd. d Listed Debentures
Company

3 In computing period of holding, in which of the following case the holding period o
a Assets received under c Assets received by way of
gift from relatives will

b Assets received under d Assets received by way of

gift from non-relatives inheritance

4 Cost of the previous owner is not relevant in which of the following case:
a Assets received by way c Assets received by way of
of will Exchange
b Assets received by an d Assets received on partition
Indian amalgamated of a HUF
co.

5 Enhanced compensation on compulsory acquistion is taxable in which financial yea

a Year in which c Year in which enhanced
compulsory acquistion consideration is received
takes place
 b Year in which enhanced d Year in which first
compensation is agreed installment of enhanced
as per court ruling consideration is received

6 Taxability under the head 'capital gain' is prima-facie not dependent on:
a Captial Asset c Chargeability
b Transfer d Exemption

7 Which of the following activity is not a transfer:

a Sale of property c Family settlement
through power of
attorney
b Exchange of asset for d Redemption of Zero
asset Coupon Bond

8 Introduction of an asset by partner may be taxed as per __________ in the hands o

a Fair market value of the c Value as per the books of
asset the transferee
b Value as per the books d Historical cost of the asset
of the transferor

9 Which of the following is a taxable receipt under the head capital gains
a Redemption of Key c Receipt of compensation
Man Insurance Policy from insurance company
after theft of an asset

b Payment received for d Receipt of consideration on

not to conduct business transfer of tenancy rigths

10 Brokerage paid on acquiring an immovable property is part of

a Cost of Acquistions c Expenditure in relation to
transfer
b Cost of Improvement d None of them
pleting the holding period of more than 12 months?

e the holding period of predecessor is not included?

lowing case:

in which financial year:

endent on:

______ in the hands of the partner

pital gains