CA INTERMEDIATE TOPIC NAME CAPITAL GAIN DAY-2 PAPER 4A

LIVE COACHING CLASSES BOARD OF STUDIES(A), ICAI

CA INTERMEDIATE

TOPIC NAME – CAPITAL GAIN DAY-2 PAPER 4A: INCOME TAX

CHAPTER-4 UNIT-4

Faculty Name: CA ANKIT SHARMA

Date: 12th August 2021

12TH AUGUST 2021 © The Institute of Chartered Accountants of India 2

12TH AUG 2021 © THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA 3

1.Conversion of capital asset into stock in trade:

(A)will liable to capital gain tax in the previous year in which

such conversion took place

(B) will liable to capital gain tax in the previous year in which

such converted asset is sold or otherwise transferred

(C)not result into capital gain

(D)none of above

MCQ QUESTIONS CHAPTER -4 UNIT-4 CAPITAL GAIN

B

12TH AUG 2021 © THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA 4

2.Where the capital asset is converted into stock in trade ,

the indexation of cost of acquisition and cost of

improvement :

(A)Shall be done till the previous year of conversion of such

capital asset

(B)Shall be done till the previous year in which such asset is

sold

(C)Shall not be done

(D)None of above


A

12H AUG 2021 © THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA 5

3.Where a capital asset , other than certain urban

agricultural land , is compulsorily acquired , then the capital

gain shall arise in the previous year.

(A)Of compulsory acquisition

(B)In which full consideration.

(C)In which part or full consideration Is received

(D)None of above


C


4.Where the entire block of the depreciable asset is

transferred after 36 months, there will be :

(A)Short-term capital gain

(B)Long term capital gain

(C)Short-term capital gain or loss

(D)Long-term capital gain or loss.


C


5 :R owns a house property which was purchased by him

on11.5.1996 for Rs.3,00,000. The said property was destroyed

by fire on 3.4.2015 and R received a sum of Rs.5,00,0000 for

the insurance company during the previous year 20-21.The

market value of above property as 1.4.01 was Rs.4,00,000.

Compute the capital gains for the assessment year 21-22.

A]3796000

B]3984000

C]No CG

D]None


B


6.Mr. Ram has made a agreement to purchase a building from

Mr. Ravan for Rs1000000 and paid Rs100000 as advance to Mr.

Ravan on 1-10-2019 ,Mr. Ram was not able to pay balance

Consideration within time as per agreement so Mr. Ravan

Forfeited advance of Rs.100000 in PY 20-21. In which head

Rs.100000 going to be taxable.

A]CG

B]IFHP

C]IFOS

D]NONE


C


7. Mr. Ravan invested Rs 1,00,000 on the purchase of gold

jewellery on 28.3.2005. On 8.2.2016, he started a business of

dealing in jewellery and converts his holding into his stock-in

trade. FMV of the gold ornaments as on the date of conversion

was Rs 4,00,000.These Jewellery were sold in the previous year

2020-21 for a sum of Rs 5,00,000. Compute the Capital gain &

Business income:

A]Rs.1,75,222, Rs 1,00,000

B]Rs.1,62,250, Rs 1,00,00

C]Rs 62,328, Rs 1,00,000

D]Rs 100,000,Rs 62,832


A


8. A firm consist of partners namely A and B. B retires from

the firm on 11.8.2020.The firm transferred its land to B in

settlement of his account . The market value as on that date

was Rs 28,00,000. The land was acquired of by the firm on

9.9.2004 for 10,00,00. Compute capital gain in the hands of the

firm .

A]Rs1,36,280

B]Rs1,36,283.

C]Rs26,63,717

D]Rs1,63,283


B


9.Mr. Ram applied for enhanced compensation for his

property which was compulsory acquired by Government &

Received EC of Rs500000 in PY 20-21 ,ICOA of that property was

Rs200000 & ICOI was Rs.40000 Calculate Capital Gain on EC for

AY 21-22.

A]Rs 2,60,000

B]Full Exempted

C]Rs.3,00,000

D]Rs.5,00,000


D


10. Mr. Ravan sold Equity shares for Rs.1,00,0000 on 1-4-20,

Actual COA was 8,00,000,date of purchase was 1-3-18,quoated

Price on RSE was1,100,000. Calculate taxable Long Term

Capital Gain/loss .

A]LTCG 200000

B]LTCG 100000

C]LTCL -100000

D] NONE


B

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CA INTERMEDIATE TOPIC NAME CAPITAL GAIN DAY-2 PAPER 4A