Tax Book 2023

Capital Gains Chapter- 12

Q.9. Gain from sale of shares of Private Limited companies is taxable under section_____.

(a) 37

(b) 37A

(c) Not taxable

(d) None of (a) to (c)

Q.10. Bonus shares received by an individual under income tax law is _____of income.

(a) a part

(b) not a part of income

(c) None of the above

Q.11. A deduction of loss u/s 37A on disposal of security chargeable to tax may be adjusted against the
capital gain of ____.
(a) Any other security not chargeable to tax
(b) Any other security chargeable to tax
(c) Shares of (Pvt.) Ltd. company
(d) None of the above

Q.12. A company in which at least 50% of the shares are held by a foreign government is ___.

(a) Private company

(b) Public company

(c) Foreign company

(d) All of the above

Q.13. Any incidental expenditure on disposal of capital assets shall form part of _____.

(a) Cost of assets

(b) Disposal consideration

(c) Selling cost

(d) None of a to c

Q.14. Capital loss u/s 37 is allowed as deduction for those assets the gain of which is___.

(a) Chargeable to tax

(b) Exempt from tax

(c) Both of these

(d) None of (a) to (c)

Q.15. At the time of devolution ___ would be the cost of the asset.

(a) FMV

(b) Historical cost

(c) higher of a and b

Q.16. Medallion received as gift from a relative and disposed off later, the capital loss on the same
shall____.
(a) be recognized
(b) not be recognized

Q.17. Expenditure that shall form part of the cost of the asset are __.

(a) Any expenditure to earn such income

(b) All the expenditure excluding expenditure inadmissible u/s 21 of the ITO, 2001.

(c) None of the above

Q.18. Tax on capital gain received by a company shall be charged on to tax under_____.

(a) NTR