Case Body Question Alternative 1 Alternative 2 Alternative 3 Alternative 4

Nilankur purchased a plot of land on 1990 area 1440 What is the Market Value of
Rs. 36,00,000/- Rs. 26,00,000/- Rs. 10,00,000/- Rs. 35,00,000/-
Sft at a cost Rs. 10, 00, 000. He sanctioned Land
a plan from Municipality on 1995 and constructed a What is the new
two storied building 900 Sft each floor, year of replacement cost of the Rs. 26,00,000/- Rs. 36,00,000/- Rs. 27,00,000/- Rs. 16,00,000/-
completion 1998 and cost of construction Building
Rs. 10, 80, 000. Present market value of land in that What is the percentage of
area Rs.2500 per Sft. Plinth area rate Rs. 1600 per Depreciation by Straight 25% 24.75% 18% 31%
Sft for Ground floor and Rs. 1400 for First floor. line Method
Nilankur wants mortgaged the property to bank for What is the Depreciation
taken an advance. Assess the fair market value of the amount by Straight line Rs. 6,00,000/- Rs. 3,30,250/- Rs. 6,55,000/- Rs. 6, 68, 250/-
property on the year2020 Method
economic useful life 80 Yrs.
Depreciated Replacement
Rs. 20, 31, Rs. 20, Rs. 21, 00, Rs. 20,
Cost of Building
750/- 31, 500/- 000/- 31, 550/-
Fair Market Vale of the Rs. 55, 31, Rs. 56, Rs. 56, 31, Rs. 55,
Property 750/- 31, 750/- 550/- 31, 550/-

Rahul purchased a one story residential building in What is net sale price
1,80,00,000 1,78,10,000 1,79,00,000 20,00,000/-
June 1995 for a consideration Rs. 20,00,000/-. In
April 2008 she added another story to it at a cost of What is Indexed cost of
Rs. 15,00,000. further in July 2010 she constructed 54,00,000 54, 40, 000 95,20,000 20,00,000/-
Acquistion
one outhouse and rebuilt the boundary wall at a cost What is Indexed cost of
Rs. 10,00,000. She sold the property in December 29,78,102/- 25,72,102/- 20,00,000/- 38, 75, 000/-
improvement on 2008-09
2017 at a price Rs. 1, 80, 00, 000 incurring selling What is Indexed cost of Rs. 93,
expenses Rs. 90, 000. Fair market value of the 37, 83, 155/- 7, 56, 631/- 16, 28, 743/-
improvement on 2010-11 91,893/-
property is Rs. 35, 00, 000 on 1st April 2001. What is the liability of
CII for 2008-09 =137, 2010-11 =167, capital gains for Assessment
2017-18 = 272 37, 83, 155/- 93, 91,893/- 25,72,102/- 54, 40, 000
year 2018-2019

What is Capital gain Tax 23,40,000/- 7, 56, 631/- 37, 83, 155/- 16, 28, 743/-

Mr. Meheta purchased a Shop at a consideration Rs. What is net Sale Price
79, 20, 000/- 34, 00, 000/- 45, 20, 000/- 22, 82,828/-
30,00,000 on may 2014. he sold the unit Rs.
80,00,000 on June 2017. Transfer cost was Rs. What is Indexed cost of
80,000. in May 2018 he constructed a residential 45, 20, 000/- 34, 00, 000/- 22, 82,828/- 37, 83, 155/-
Acquistion
property at a cost of Rs. 40,00,000. Mr. das is not What is long term capital
owner of any residential house. Compute long term 22, 82,828/- 37, 83, 155/- 45, 20, 000/- 34, 00, 000/-
Gain
capital gain and taxable capital gain What is amount of
CII for 2014-2015 =240, 40,00,000/- 45, 20, 000/- 22, 37, 172/- 22, 82,828/-
Exemption
CII for 2017-2018 =272 What is taxable capital gain
22, 37, 172/- 5,00,000/- 22, 82,828/- 7, 56, 631/-

What is the value of a leasehold house held for a What is profit rent of Head
1,000/- 9,600/- 8,865/- 75, 043/-
term now having 17 years unexpired at a ground rent Lessee
of Rs 1000 per annuam but sublet for the whole term What is Profit rent of Sub
less 3 days at a clear net annual rent of Rs. 2400 per 8,865/- 9,600/- 1,000/- 75, 043/-
Lessee
annuam. The full net annual value of the rack rent is What is head Lessee's
rs. 12,000 p.a, Interest, Taken Y P for 17
9,600/- 1,000/- 8,865/- 75, 043/-
years @ 11% & 2.5% =
6.332
What is Sub Lessee's
Interest, Taken Y P for 17
1,000/- 8,865/- 9,600/- 75, 043/-
years @ 8% & 2.5% = 7.817
 A Five story office building with the different tenants Gross Annual Rent of the 9, 44, 70, 960
96,00,000/- 43, 20, 000 /- 52, 80, 000/-
on different floors. The tenancy agreement contain 5 Property /-
yearly rent review clause. Total amount of rent paid What is Yarly Outgoings
by the different tenants Rs 8,00,000 per Month. 43, 20, 000 /- 52, 80, 000/- 96,00,000/- 9, 44, 70, 960 /-
Yearly maintenance and repair charge @12%, Net Annual Income of The 9, 44, 70, 960
Management Charge @10%, Insurance @ 3%, 43, 20, 000 /- 52, 80, 000/- 96,00,000/-
Property /-
Municipal Tax @20%. A capital expenditure of Rs.20, Value of the property take
00, 000/- estimated today for the renovation of water 96,00,000/- 9, 60, 00, 960/- 9, 44, 70, 960 /- 43, 20, 000 /-
Y.P. 5.5%
supply is likely to be incurred after 5 yrs. Value of Freeholder's 9, 44, 70, 960
Taken YP 5.5% 43, 20, 000 /- 52, 80, 000/- 96,00,000/-
Interest /-
PV of Re 1 @5.5% in 5 Yrs = 0.765

A two storied building built on land area 2160 Sft. Value of Land Componant of
Rs. 28,
Ground Floor area 1400 Sft, Year of Construction Owner occupied Portion Rs. 20,00,000/- Rs. 95,00,000/- Rs. 90,00,000/-
80,000/-
2000, Height 2.9 m, First floor area 1300 Sft, Year of
Const. 2005, Height 2.9 m. Maximum Permissible Value of Building
height as per rules 6 m. Cost of construction G.F. Rs. Componant of Sold out Rs. 9,05,600/- Rs. 9,45,000/- Rs. 25,00,000/- Rs. 5,00,000/-
1500 per sft, F. F. Rs. 1400 per sft, Land rate Rs. Portion
2000 per sft. A Portion of Ground floor area 900 Sft Total Value od Sold out Rs. Rs.
is sold out to others on 2005, Owner wants to Rs. 8,20,00,000/- Rs. 23,85,000/-
Portion 7,40.00,000/- 6,80,00,000/-
mortgage the property for taken advance from Bank. What is the Fair Market
Year of Valuation 2020 Rs. 47, 78, Rs.
Value for mortgaged Rs. 6,30,00,000/- Rs. 47,78.372/-
372/- 13,30,00,000/-
purpose

Smriti purchased a residential property on What is net Sale Value of

40,00,000/- 1,20,00,000/- 30,00,000/- 1, 19, 10, 000/-
01.02.1998 at a cost of Rs 30,00,000. She sold it on consideration
01,08,2017 a full value of consideration Rs. What is indexed cost of
1,20,00,000. the cost of transfer is Rs. 90,000. In 1, 08, 80, 000/- 81, 60, 000/- 1,20,00,000/- 1, 36, 00, 000/-
Acquisition
July 2018 she purchase a residential Flat for Rs. What is Long term capital
50,00,000. the fair market value of original asset on 37, 50, 000/- 35, 50, 000/- 10, 30, 000/- 37, 50, 000/-
gain
01.04.2001is Rs. 40,00,000. What is taxable capital gain
CII for 2001-2002 = 100 10, 30, 000/- Nil 37, 50, 000/- 40,00,000/-
CII f 2017 2018 272
Nirmala purchased a residential property on What is net Sale Value of
1,49,00,000/- 1,39,48,718/- 1,20,00,000/- 1, 50, 00, 000/-
01.11.2005 cost Rs, 60,00,000, she sold it on consideration
01.11.2017 on consideration Rs 1,50,00,000. she What is indexed cost of
purchased NHAI bond (Sec 54EC) Rs. 10,00,000 on 1,20,00,000/- 37, 50, 000/- 1,49,00,000/- 1,39,48,718/-
Acquisition
01.06.2018. transfer cost Rs. 1,00,000 What is Long term capital
10, 30, 000/- 40,00,000/- 9,51,282/- 37, 50, 000/-
gain
CII for 2001-2002 :100 What is taxable capital gain
CII for 2005-2006 : 117 37, 50, 000/- 5,00,000/- 10,91,000/- 10, 30, 000/-
CII f 2017 2018 272
K K Builders real estate ltd is freeholder of a 4 storied Term Value of Freeholder
office building in a first class location in a city. 5 yrs taken YP 14% 25 yrs = 68,73,000/- 82, 47, 600 /- 2,06,19,000 22,40,200/-
back they leased out the property on a lease of 30 6.873
years at a fixed exclusive rent of Rs 10, 00, 000 per Reversion Value of
annum to M.Pharma. The M. Pharma subleased the Freeholder taken YP 4.5%
property to G. Tech India 2 yrs back on taking a 2,38,20,000/- 3,20,67,600/- 3,06,93,000/- 3,20,67,600/-
deffered 25 yrs =7.94
premium and an annual rent of Rs 12,00,000 per
annum. Current market rental value is 30,00,000 Value of Freeholder Interest
2,38,20,000/- 3,06,93,000/- 3,20,67,600/- 3,20,67,600/-
Profit rent of Head lessee
20,00,000 18,00,000/- 2,00,000 15,00,000/-
Value of Head Lessee’s
interest taken YP 25 yrs 21,21,400/- 2,12,14,000/- 1,90,92,600/- 1,59,10,500/-
6.5% & 2.5% = 10.607
Value of Sub Lessee’s
interest taken YP 23 yrs 6% 2,12,14,000/- 1,90,92,600/- 22,40,200/- 2, 01, 61, 800/-
& 2.5% =11.201

Mr . Rahaman is the lease of a residential Term Value of Head

apartments in a prime location of a city the lease Lessee’s interest,
having unexpired term of 25 years. Rent Rs. 30,000 Y. P.Duel rate Taken 4.5% 14,26,080/- 18,49,072/- 3,89,711/- 4,22,992/-
per month, land lord shouldering all outgoings. He & 2.5%for 20 Yearas =
subleased the property to Riajul Ali for 20 years a 11.884
week back at a rent of Rs 40, 000 with a five years Value of Sub Lessee’s
rent review clause. Before subleasing the property he interest. Y. P.Duel rate
made an expenditure Rs. 4, 00, 00. 3,89,711/- 3,89,711/- 14,26,080/- 18,49,072/-
Taken 4.5% & 2.5%for 20
Full market rental value Rs. 50, 000 per month Yearas = 11.884
What is Virtual Rent.
Y. P.Duel rate Taken 4.5%
14,26,080/- 3,89,711/- 18,49,072/- 4,22,992/-
& 2.5%for 25 Yearas =
13.463
Reversion Value of Head
Lessee’s interest,
Y. P.Duel rate Taken 4.5%
& 2.5%for 5 Yearas = 4.251 4,22,992/- 18,49,072/- 14,26,080/- 3,89,711/-
and Pv of re 1 @4.5%,for 20
yrs 0.416

Value of Head Lessee's

3,89,711/- 4,22,992/- 14,26,080/- 18,49,072/-
Interest
Method Used for valuation
Cost Approach Income Approach Market Approach Nil