Tax Laws MCQ on Income from Capital Gains: Check the below Tax Laws MCQ on Income from Capital Gains with Answers Pdf free download. Tax Laws MCQ on Income from Capital Gains Questions for Tax Laws with Answers were prepared based on the latest exam pattern. We have provided Tax Laws MCQ on Income from Capital Gains with Answers to help students understand the concept very well. Students should practice Income from Capital Gains – CS Executive Tax Laws MCQ Questions with Answers based on the latest syllabus.

Tax Laws MCQ on Income from Capital Gains

1. In terms of Section 2(42A), unlisted securities are treated as a long-term capital asset, if they are held for a period of more than
(A) 24 Months
(B) 36 Months
(C) 12 Months
(D) 48 Months

2. Section 50C makes special provision for determining the full value of consideration in cases of transfer of
(A) Plant and machinery
(B) Land or building
(C) All movable property other than plant & machinery and computers
(D) Computers

3. For claiming exemption u/s 54G, an assessee has to invest the resultant capital gains within a specified period. Which of the following is not eligible .for such investment?
(A) Furniture
(B) Land
(C) Building
(D) Plant or machinery 

4. Capital asset excludes all except
(A) Stock-in-trade
(B) Personal effects
(C) Jewellery
(D) Rural agricultural land in India

5. Long-term capital gains on zero-coupon bonds are chargeable to tax
(A) @2096 computed after indexation of such bonds
(B) @ 1096 computed without indexation of such bonds
(C) Higher of (A) or (B)
(D) Lower of (A) or (B)

6. Cost of acquisition in case of bonus shares allotted before 1.4.2001 will be
(A) Face value on the date of allotment
(B) Nil
(C) Market value as on 1.4.2001
(D) Current market value 

7. U/s 115E, the tax rate applicable for any income from investment or income from long-term capital gains of an asset other than a specified asset, for a non-resident as envisaged by Section 115C, is
(A) 5%
(B) 20%
(C) 15%
(D) 10%

8. Which of the following is not a requisite for charging income tax on capital gains?
(A) The transfer must have been effected in the relevant assessment year
(B) There must be a gain arising on transfer of capital asset
(C) Capital gains should not be exempt u/s 54
(D) Capital gains should not be exempt u/s 54EC

9. Under which section, the assessee has to reinvest the entire net consideration to claim a full exemption for the long-term capital gains earned during a previous year
(A) Section 54EC
(B) Section 54F
(C) Section 54GA
(D) Section 54D

10. In order to enjoy exemption u/s 54EC, the resultant long-term capital gains should be invested in specified bonds within a period from the date of transfer.
(A) 36 Months
(B) 4 Months
(C) 6 Months
(D) 12 Months 

11. Aman entered into an agreement with Brij for the sale of a building for ₹ 20 lakh in June 2020. Aman received an advance of ₹ 2 lakh. Subsequently, the agreement was canceled and Aman forfeited the advance money. The advance money is
(A) To be reduced from the cost of acquisition
(B) To be reduced from the indexed cost of acquisition
(C) Taxable as capital gains
(D) Taxable as income under the head’s income from other sources

12. Short-term capital gains arising from the transfer of equity shares in a company or units of an equity-oriented fund or units of a business trust charged with security transaction tax are subject to income tax at the rate of
(A) 10%
(B) 15%
(C) 20%
(D) Normal rate 

13. Cost of acquisition of securities held with depositories is to be computed by 
(A) Average cost method
(B) First in first out
(C) Last in first out
(D) Weighted average cost method

14. A foreign institutional investor (FIT) has total income which includes the short-term capital gains on the sale of listed shares of ₹ 30 lakh. The rate of tax for charging such income to tax is
(A) 10%
(B) 30%
(C) 15%
(D) 40%

Follow on Facebook

By Team Learning Mantras