CipitalGans

27
Income Tax Theory,Law & Practice:AY. 2024
Mr Ram purchased a house on I.I|2004 forr Rs. 2,00,000 and it was2023-mproved Advancereceved Imd forfeited during 2014-15 or
of Rs. I,00,000. What will be indexed
Mint:
InCcomefrom other sources
IS subsequent previous year
in 2012-13 at a cost cost
idur
s 331ing
|13; for.2012-13is 200and for Fromthe following. compute the taxable
2022-23ifCIlfor 2004-05is 2022-23
(Madras, B.Com.(CS)
2 income for the
2023-24 Sale price of jewellery sold on 19 2022 Rs 18,.00,000assessment year
April 2009; acquiredn 2011-12 (CI| 184) Rs 60,000
and C1l for
cost of
jewel331lery
B.Com.(CS) April 2007)
(Bharathidasan, B.Com.
2022-23s
|Madras, B.Com, old November 2010)
Nov, 2003) |Ans: Long Term Captial Gain
|Ans : Indexed Cost : Calculate taxable capital gain An asset was Rs.l6,92,065|
28. Mr. James purchases a house property for Rs. I,00,000 on June 20, 1960 Rs.1,51,340 13
(CIl for Rs
109] purchased in the vear 2003-04
3,04,500 During the previous year (Cl
3}1]t was sold
He gets the first floor
of the house constructed in 1970 by for Rs. 5,,00,000. Expenses in connection with the
60,000 James also spends Rs. 70,000 for reconstruction of the
Rs. 2005-06. The Fair market value of the property on April I, 2001 is
during
spend1ng
property
Rs.I,000 transfer of sale is

(Madras, B.Com(C.S)., April

2011|
Find out the cost of the asset,if. James intends toosell during
CIl for 2001-02, 2005-06, 2022-23 is 100, I17 and 331. it
Rs. 1,50,000.
2022-23. |Ans: Long Term Captial less
Rs.4,25,624|
Find outthe long term capital gain from the follow1ng Cost of
14 Rs
|Ans : Rs.6,94,534| 1,20,000 acquisition
1.4.2001is ignored. Year of purchase of assets 2004-05
Hiat: Improvements made prior to
Rs. 80,000 on January I5, 1975. He
29. Sn. Varadhan acquires property forduring Amount of sell1ng price Rs 35,00,000
2007--08 for making addition.incured
improvement cost of Rs. 90,000
.During Date of selling assets 101.2023
91-92the assessee enters into an agreementto
sellthe house after
receiving
advance money of Rs. 10,000. On failure of the proposed buyer to honor thean
CH for 2004-05 Is T13 and for 2022-23 is 33|
agrement Sn Varadhan forfeitsthe advance money. Find out the cost of the |Periyar, B.Com., April 2007
market value of |Bharathidesan B. Com., Nov. 2005)
asset if the property is sold during 2022-23. Fair property
on April 1, 2001is Rs. I,00,000. Clfor 2007-08, 2022-23 is 129 and 331. |Ans: Rs. LTCG: Rs31,48,4951
35. M:. YProvides the following data regard1ng his transact1on for the sale of
|Ans : Rs. 5,28,830] bis residential house for the previous year 2022-23 Compute the amount of
Hint: Advance money forfeited prior to 2014-15 is deducted from cost of . capital gain to be included the total income for the assessment year
asset or FMV. 2023-24.
30. Aland is purchased in the year 2010-11 for Rs. 80,000. During the veu. R
2022-23 it was sold for Rs. 80,00,000. Calculate long ten capital gain or Cost of Acquis1tion (2006-07) L.00,000
loss (CIl for 2010-1| = I67, 2022-23 - 331. Sold on 3112 2022 60,00,000
(Madras, B. Com, (G &A& F)April 209) Cost of improvement (2013-14) 10,000
|Aas: Long term Capital gain Rs.78,41,437] Cost of inflation index
31. Mr. Ypurchased apiee of land on 4.L1978 for Rs. 50,000. The land was sold 2006-07 122
by him durning the previous year 202-23 for Rs. 70,00,00. The fir market value 2013-14 220
s on 1.4.20I was Rs. I,20,000. Expenscs on transfer were 2% on sale price. 2022-23 331
Compute taxable capital gain for the previous year 2022-23 on I.5.2015, Y |Madras, B.Com., April 2007)
proposed to sell the property and received an advance of Rs. 50,000, he
proposed buyer did not honour his commitment hence Mr. Y, forfeied the |Ans: LTCG: Rs57,13,643)
advance money. 36. Compute the capital gain for the assessment year 2023-24
CI- 2001 -2002: 100, 2022-2023: 331. Date of purchase of house May 1977
(Medras, B.Com., April 2006) Cost of acquisition Rs. I,80,000
(As: Long Term Captlal Galn Rs64,62,10| Fair Market Value as on 14.2001 Rs 2,00,000
 CaptalGains
893
Income Tax Theory, Law &Practice::AY. 2023-2024
892 (Madras, B.Com, April 2008|
Advance money received and forfeited during 2017-18:1,20,000 |Ans: LTCG:RsJ,40,700)
Rs. 1,40,00,000 Hintl: As per Bombay high court index of year of
Sold the property in 2022-23 s available in the case ol gitt previous owner first held
Cost inflation index:
2022-23: 331 (Madras B.Com April 2016 owner became the oWner of asset)
and will (Not the year in which the current
|Madras, B. Com., Nov. 2009; B. Com.,Nov.
2008)
JAns: LTCG: Rs.1,33,38,000) Hint2: Inithe case of transfer byway of g1ft or by wall afer |4 2001
of gift being given is also taken to CIl of year
subsequent years is income from ok compute the indexed cost In such a
Hint: Advance forfeited during 2014-15 and
sources. case LTCG is ),58,606:(4,40,00-30,00, 191
37. MrYpurchased Gold in 1974 for Rs. 10,000. In 2022-23, it is giftedto his son
at the time of his marriage Whether the capital gain is taxable for the
40 Viay bought a house for Rs 55,000 on 12-10-1961 through a
AY: 2023-24. Pune. He incurred the following expenses till 25-6-2004 builder in
(Madras, B.Com., April 2009) o his son Baskar Add1tion of motor when he gofted it
(Ans.: Capital gain is not (axable for the A.Y : 2022-23 garage, Rs 10,000 In 1965 Major
renairs in 1968 Rs. 15,000, Construction of an overhead tankRs 8000 in
since the gold is not yet sold by Y's son.| 1978. The house was altered by Baskar in June 2005 at acost of Rs
May, I10,.1962. He gets the 25,000
Xpurchases
38. first a house property for Rs. 26,000 on
floor of the house constructed in 1967-68 by spending Rs. 40,000,
He then sold it for Rs. 15,00,000 on
14-1-2023.Calculate the amount of
capital gains assuming that the market value of the house on l|4-2001 was
to Mrs YA.
He dies on September 12, 1978.The property is transfered Rs. 86,000. CIlfor 2001-02=100, for 2004-05 -|13, for
2005-06-117, for
his will. Mrs. Xspends Rs. 30,000 and Rs. 26, 700 during 1979-80 and 2022-23= 331.
2007-08 respectively for alteration / reconstruction of the property. Mrs y
naid k
sells the house for Rs. 45,00,000 on March, 15, 2023 (brokerage JAns: LTCG: Rs.l1,4,613; Indexed cost of acquisition :
(Madras, BCS. 1998|
Mrs. X Is Rs. ||,500) The fair market value of the house on April Rs.2,84,660;
2001 is Rs. 1,60,000. CIl for 2001-02 = 100, for 2007-08= 129 and Cor Indered cost of improvement : Rs.70,726)
2022-23 =331. Mrs. Xreceived and forfeited Rs. 10,000 as advance money Hint 1: As per Bombay high court and Delhi h1gh court the index of year of
during 91-92. previous owner first held the asset is ava1lable in the case of gift or
(Madras B. Com (G) and A&F April 2012 will.
Madras, B. Com.(CS) April 2006; 41. Mr. Bpurchased a house in Delhi in 1970 for Rs. 1,00,000. He added
Madras, B.Com. Oct. 2001| 2 rooms and a Verandah in the house at a cost of Rs 30,000 in 1971.
|Periyar B. Com., Nov. 2007| In June 2006 g1fts the house to his son Mr C. Mr Cmade
improvements
in the house and added two more rooms al acost of Rs. 50,000 in December
(Bharathiyar, B.Com. Nov. 2004]
|Ans: Long term capital gain= Rs. 39,23,491 2008. Mr. Bdies in 1989 and Mr. Csells the house on Ist July 2022
Indexed cost of acquisition : Rs. 4,96,500 for Rs. 45,00,000. Find out the capital gain if the FMV of the house
Indexed cost of improvement Rs. 68,509) on Ist April 2001 is Rs. 2,00,000 and Mr Copts for the
Hint: I) lgnore additions before 1-4-2001 by Mr. Xand also Mrs. X. (a) Actual cost or (b) The F.M V on Ist Apr1l 2001
2) In the case of gift or transfer by will before I-4-2001, Cll of 100 is CII for 2001-02: 100, for 2006-07: 122, for 2008-09 137, for 2022-23
taken to compute indexcd cost. 331.
3) Advance money forfeited by seller prior to 2014-15isreduced from
cost of the asset or FMV.
39. In June l, 2006 Janak1 received a gift of a Necklace valued at Rs. 80,000
from her father -in - law who had purchased it in 1978 for Rs. I5,000
Fair Market value of the Necklace on 1-4-2001 was Rs.30,000 and Janaki
sold the necklace in August I, 2022 for Rs. 4,40,000.Compute the taxable
Capital gain. (Cost inflation index 2001-02: 100; 2006-07: 122; and
2022-23, 3II).
 Income Tax Theory, Law &Practice AY. CapitalGains
|Madras, B.Com. Sept. 2023-2024 44 Compute capital gains for the
followIng details.
898
(a) Rs. (b) Rs.19 21
|Ans: Long term Cap.
gain :40,48,197 37,17,197 Year of Purchase Debentures Rs
Indexed cost of Acquisition : 331,0000 6,62,000 Cost of acquisition (Rs ) 2009-10
Indexed cost of Improvement: 1,20,803
1,20,803| Year of Sale
Sale value (Rs.)
60,000
2022-23
42 Raghu Raj gets ahouse from his uncle under a w1ll on 1Sth November 2009 1,20,000
theFMV on |4-2001 being Rs 1,25,000 HIs uncle had bought the house Selling expenses (Rs )
Cost of Inflation Index S00
Rs 25,000 in the year
1962 His uncle spent Rs 10,000 in
for on the year
1972-73 and Rs. 15,000 in the year |978 Its improvement Raghu
Ray
2009-2010
also spent Rs S,000 on the improvement of the house on 1-10-201| 148
2022-2023
The said house Is sold for Rs 15,80,000 on 1sth Oct. 2022 Find out the 331
Cap1tal gains accruing from the sale of house. Cll for 2001-02=100, for
=331. [Madras, B.Com., Nov. 2007|
2009-10 -148, for 2011-12= 184, for 2022-23 |Ans: LTCG Rs. 59,509|
(Madras, B.Com. Sept. 19911 Hint: Inthe case of debentures even if they are
JAns: LTCG on sale of house : Rs. 1,57.256 45 Miss. Kavya sells the debentures in the year LTCA, CIl is not appl1cable
2022-23. The detail are &under
Cost of acquisition : Rs. 4,13,750 Sales Consideration
9,00,000
Cost of improvement : Rs. 8,94 Year of acquis1tion
1998-99
to be ignored Cost of acquis1tion
Hint: Improvement cost incurred prior to 1-4-200| is 4,50,000
43 From the follow1ng information compute the capital gains for the assessment Calculate Capital gain (Cl- 2001-02 =100, 202-23- 331)
year 2023-24 (Madras B.Com (G) and (A&F) April 2012]
House I House II (Madras, B.Com(CS), Nov. 20091
Date of purchase May 1977 Dec. 1980
|Ans: LTCG Rs.
Hint: In the case of debentures even if they are LTCA, Cll is not 4,50,000|
Rs Rs.
A6 Mr. Xsells the debentures in the year
applicable.
1,90,000 2,50,000 2022-23. The details are as under.
Cost of acquis1ton
10,000 Sale consideration
Cost of add1tional c¡nstruction in 1980 25,000 Rs. 6,00,000
Faur market value on Ist Apr1l 2001 1,75,000 3,50,000 Year of acquisition 2004-05
Cost of add1tional construction in 2006-07 48,800 73,200 Cost of acquisition Rs 3,00,000
Sale procceds of propertyin 2022-23 8,00,000 80,00,000 Calculate capital gains
Advance forfeited and reta1ned (During 2017-18) 10,000 20,000 CIl for 2004-05 : 113

Cost inflation index for 2022-23: 331

2001-02 - 100, 2006-07 122, 2022-2023 = 331 (Madras, B.Com., Nov. 2005)
(Madras B.Com April 2016] |Madras, BCS Oct. 200) |Ans: LTCG Rs. 3,00,000)
| Ans: LTCLG: House I: Rs.38,700; House Il :Rs.66,42,900) Hint: In the case of debentures even if they are LTCA, CII is not applicable
47. Mr. ASells the Unlisted shares during the P/Y 2022-23 (CI|- 331) Compute
Hint: () gnore Add1tions made before |4 2001
the capital gain.
(2) Advance money retained from 2014-15 is income from other sources
 Income Tax Theory, Law &Practice: A.Y. CapialCains
896
Sale price
Rs. 24,00,000 2023-2024 TAx on Income : Rs I,04,01,750 897
Year of acquisition 2011-12 (CIl: 184)
Rs. 2,90,000 x 20
Cost of acquisition Tax on LTCG: 97,51,750 I00
.Madras, B.Com(CS) April 2010) 19,50350
|Ans: L.I.C.G: Rs.
18,78,3151
is given by Mr. cost of acquisition of 3000
S
Tx on other Income : Rs. 6,50,000
47a The following information 30,000 shares Rs 2,50,000 to 5,00,000 @s%
(listed) in B Ltd on January 10, 2014 (STT is paid) 12,500
per share Rs 5,00,000 to 6,50,000 @20%
FMV on 31//2018, Rs. I50 15, J0,000
, 2022 at Rs. 950 per share (STT iS
Date of transfer of shares May 8,00,000
gain Rs. pard) Tax on Income
Income other than capital
Tax Liability : Rs. 89960 (86500 + 19,92,850
Find out the tax liability. 3460)
JAns: LTCG UIS 112A : Rs. 2,40,000: Add Surcharge 19,92,850
(300 ×950 - 300 x150)| I00 2,98,927

Tax on income:
10 22,91,77
(2,40, 000 - 1, 00,000)x
= 14000 Add Cess @4%
on LTCG 100 91,671
72500
Onother income : 8,00,000 Tax payable 23,83,448
Tax on income 86500
2,85,000 - 45,000 1: Mr. Yacquired 1,000 shares of listed company on 31/3/2005 He is
issued
s00 bonus shares on 124/2013, which were sold by him on
Hint: Cost of shares :Cost of acquisition of
Rs. 30,000 209/2022 at
or Rs 600 per share (STT being paid) FMV on 31/8 is Rs S0 per share
whichever is less 45,000 Mr. Y's income from other sources is Rs. 7,00,000. Find the tax labil1ty
FMV on 3L.L.2018 or sale value
|Ans: LTCG on shares US 12A : Rs. 4,40,000;
45,000
(45,000 or 2,85,000) whichever is higher Total inconme : Rs. 11,40,000
(4,40,000 +1,00,000}
(STT not
47b. Shri Praveen purchases 2,000 shares in DLtd, on January 10, 2013 share LTCG: (S00x 600 -s09 xS0)
paid) at Rs. 1,50,000 (listed shares) FMV on 31//18 is Rs. S00 per
Praven's
The shares were sold on I/9/2022 at Rs. 5,000per share (STT is paid) Tax on LTCG: Rs. 34,000
other income is Rs. 6,50,000
JAns: Since STT is not paid at the time of purchse of 100
shares capital gain is computed U/S I12)
|LTCG: 97,5I,750; Tax on Lncome: Rs. 19,92,850, Surcharge: Rs. 2,98,925, Tas on other lacome : Rs. 52,500
Tax: 23,83,48| (12,500 +40,900)
1,00,00,000 Tai payable Rs. 89,960
Sale value: 2,000x5,000
(34,004 + 52,500 +3,460)|!
331
Less:Indexed cost: 1,50,000 x200 2,48,250 48. Compute the capital gains in respect of the following assets for the assessment
year 2023-24.

Long term capilal gain 97,51,750

Income from other sources 6,50,000
1,04,01,750
 Income Tax Theory, Law &Practice:A Y Cap1lal(Gans

Particulars
Date of Dale of
purhase sale
Cost of Sale 2023Sal-0e2sA
purchase value \expenses
(2) Unl1sted shares held for more than 24
24 months or less are STCA
89
months are LTCA and held fot
No Rs. Rs Rs SI M Arun Purchased 300 equity shares of Rs
allotted bonus shares in the ratio of1 109 each n1985.86 He was
IS2007 32023 10,000 40,000 In
IShares of LGLId 2(one share for every two shares 1995.96 and aga1n nthe ratio of
held) in 2005-06 The
(Unlsted)
28) 2023
shares is Rs 5,000 per share Find
out the taxable capital current prce of
2 400 Shares ofGMLId
I82010 40,000 80 000 2023-24 in respect of the gain for the AY
2001 is Rs 50 per share
following situations If FMV of shares on
14.
(Lsted)
() He sells original hold1ng 300 shares
(FMV on 31-12018 s 15)
I10 2012 89 2022 60,000 80,000 l) He sells bonus shares received un 1995-96
3 Debenhures ofS PLid 100 () He sells all the shares
CIl for 2007-08-129, for 2010-|1-167, for 22012-13-200, for
On sale of L.G LId shares STT is paid on acquisition as well as sale 2022-23-331 Cost inflation index are as follows
2005-06: 117, 2001-02 100.
|Ans: LTCG : Unlisted shares : Rs. 2022-23: 331.
LTCG: Listed shares : Rs. 19,50: 14,141;
LTCG: Debentures of SP Ltd : Rs. 19,900 |Bharathidasan, B.Com., April 2094|
|Ans: Bonus shares of 2005-06: Rs.
Hint : Long-4en captal ganon sale of listcd shares sold are taxable (f they are subject
15,90,090
1o STT) cost of acquisition is higher of cost or FMV on 31-1-2018
Original holding: LTCG-Rs. 19,03,500
Bonus shares of 95-96: LTCG -Rs. 10,03,500
VI Capital gains on sale of Bonus shares Sales of all the shares: LTCG - Rs.
35,017,000|
49 Mr. Sachin purchascd 1,000 cquity shares (unlisted) of PLid. in 1980 a Hint : Shares taken as unlisted Number of bonus shares in 1995-96 1s 3001 1)
are
Rs 50 per share. In February 2009 he was offered 500 bonus shares
600
In January 2010 he was again offered 500 bonus shares. In March 2023. he Number of Bonus shares in 2005-06 is 300 (1 2) 1e, 300
sold the entire shareholding at Rs. 500 per share. He has paid 5% brokerage 2
Compute Capital gains taxable for the assessment year 2023-24. The FMV 52. Xbought 500 cquity shares of a l1sted company on 1-8-2008 at Rs 200 per
as on 14 2001 was Rs. 75 per share. Cll for 2008-09 is 137, for 2022-23 is shares. The company allted bonus shares in the ratio of 1: Iin the year 2011
331. 12. X sold the bonus shares on I 10.22 at 2000 per share and market value of
(Madras, B. Com.(CS) Nov. 2006) shares on 31-1-18 is 500 per share (STT is pad at the Tume of Sale of bonus
JAns :LTCG : Rs. 7,01,750 shares). What would be the capital ga1n if bonus share are alloted on |4 2022
(2,26,750 +2,37,500 +2,37,500)| |Ans: Rs. 7,50,000)
Hint: Cost of bonus shares acquired after 14 200lis ni. |STCG: 10,09,000|
Note: In the case of listed shares e1ther org1nal or bonus shares acquired before
s0. Mr Xhad purchased 500 equity shares (unl1sted) (Total face value Rs. 5,000) 12 2018, IfSTT Is paid, the Capital gain is calculated as per Section | 12A
for Rs 7,000 on 4th May 1986. He received 100 bonus shares of the value
of Rs. 10 each from the same company in May 2022. He sold 600 equity VII. Capital gains on sale of Rights shares
shares on I 62022 for Rs.1.20,000. 53. (A)Xholds 2,000 shares in MMLid which were acquired dur1ng 1980 at
a cost of Rs. 60 per share The faur market value per share or FMV as on
Compute capitl gan of Mr X.CIL 2001-02 : 100, 2022-23 : 331. 1-4-2001 was 70 per shares Xwas offered nghts shares by the company in
FMV per share on 1.4.2001 is 85. the ratio of I:4 at a cost of Rs 180 per share on 1-10-2012 Xexercised
(Madras, B. Com. April 2006| the option to buy the shares On 6-4-22 Xsold 1,000 orng1nal shares and all
|Ans : LTCL on sale of oriinal shares is Rs. 40,675 the rights at Rs. 1,900 per share Cll for 2001-02 - 100, for 2012-13 200
for 2022-23 - 331.
STCG on sale of Bonus shares : Rs. 20,000|
Hint (|) Cost of bonus shares acquired after 1.4.2001 is 'nil STCG on sale of (B) XAlso holds 3.000 shares in VG Lid which he acquired on 10 10 1988
shares is taxable. at a cost of Rs. I50 per share. The company offered Xrights shares in
2022-23 in the ratio of I : 3. Xrenounced these shares in favour of Y
at a price of Rs 50 per share
 Income Tax Theory, Law &Practice :AY. CapitalGains
&100
(C) On LI021 Xacquired 400 shares from a share holder of GH L
rights in favour of Xat a cons1deration of
023-2024 that the marketvalue of shares on 14
2009-10:148, for 2022-23: 331
&101
2001 was Rs. 108 per share CII for
whorenounced his Rs 15 For
Rs. 200to the company on
per share, and Xpaid at a price of Rs. 300 per1-10-2021 X
2007-08: 129.
these shares on
-2-2023 share. sold (Bharathidasan, B. Com., Nov. 2007]
Compute the capital gains accruing to Xduring previous ycar 2022-23 |Ans: Bonus shares :
|Ans: (A) LTCG : Originalshares Rights shares of 1.12.2009: Gain Rs. 6,90,000;
Rights shares : Rs. 8,01,050 (B) STCG : Rs. 50,000 Rs.16,68,300 Hint: Cost of bonus shares acquired after I4 2001 N
Since nothing is mentioned about STT
3,48,176|
Section l12A is not appl1cable
(C) STCG : Rs. 34,000(1,20,000- 2. Comprehensive problems
Hint: (1) Amount received by renouncing the right is
STCG %.0 0)1 56. Ram Nath sells the following capital assets during
the previous year 2022-23.
(2) Unlistedshares held for lessthan 24 months are short tem capital assets, Compute the capital gains.
are taxable.
STCG on STCA as shares sold
assumed to be unlisted Shares House
(3)Since nothing is specified shares are (unlisted) Property
54. Mr. Arun purchased 300 (Listed) equity shares @Rs. 21 per share in Rs Rs
1982-83and paid Rs. 240 as brokerage. In June 2006, the company issued Sale Cons1deration
150bonus shares to him. In July 2006, he subscribed for 150 right shares of 25,00,000 4,35,000
another co., @Rs. 12 per share. In May 2022, he sold 150 bonus sheares at year of acquisitton 2004-05 2007-08
Rs. 50 per share and 150 rigbt shares at Rs. 58 per share. Find out capital Cost of acquis1tion 2,90,000 18,000
gain for assessment year 2023-24. Market value on 31-1-18 is Rs. 20 per Cost of improvement incurred in 2010-1| 70,000
share. STT is paid.
CL for 2004-05 is l13. C.II for 2007-08 1s 129, CII for 2010-1|is 167
CII. for 2001-02 - 100 CLIfor 2022-23 is 331.
2006-07 - 122
2022-23- 331 (Madras, B. Com.(CS) April 2006]
|Thiruvalluvar, M. Com. April 2005: |Ans: Shares: Long term Capital gain: Gain: Rs. 16,50,531;
Madras, M.Com. April 1995) House Property: Gain: Rs. 2.50,072)
[Ans: LTCG: Bonus shares : Rs. 4,50: 57. Compute capital gain from the following
Written down value of office furniture as on 14 2022 Rs. 18,000 which was
LTCL:Rights shares : Rs. 5,700|
whichever is purchased on 15.9.98 for Rs. 20,000 and sold on 1.9.2022 for Rs. 26,000
Note: 1. Cost of Rights shares is cost or market value on 31-1-18, Bonds purchased on 1.11.2004 for Rs 2,60,000 were sold on 1.12023 for
higher. Rs. 4,00,000.
2 LTCG on sale of listed shares is taxable. Cost of bonus shares is márket CLlfor 2022-23 =331, 2004 -05 = |13
value on 31I-1-18.
112A. (Madras, B. Com(CS) Nov. 2007)
Hint: STT is paid on shares, Capital gain is computd as per Section
|Ans: Furniture, Short term Capital gain: Rs. 8,000;
55. Mr. G Purchased 10,000 equity shares of A Ltd. (listed) on I.L.80
@ Rs. 55 per share. On 12.12.80 he was allotted 5,000 bonus shares. Bonds,Long term Capital gain: Rs. 1,40,00)
The Market value of shares on 12. 12.80 was Rs. 75 per share. He further Hint 1: Assests subject to deprec1ation are short term short term caplial gan
received 7,500 bonus shares and subscribed for 5,000 rights shares @Rs. 10 IS Cxcess of sales value over written down value
per share on 1.1.2008 andL12.2009 respectively. On 28.3.2023 he sold Bonus 2: Long term bonds are not el1g1ble for cost inflation index LTCG Is sale
shares and Rights shares of L.1.08 and 1.12.2009 share holding @Rs. 92 per value minus cost of acquis1tion.
share. Determine the amount of capital gain for AY 2023-24 on the assumption
 Income Tax Theory, Law &| Practice:A.Y. CapitalGains
&102
2023-2024
58. Mr. Yuvaraj sold the following assets during the year ended 313.2023 LAns: STCG : On
Machinery: Rs. 15,000; On Furniture: Rs. 600;
&103
On Plant Rs. 2,000
Particulars
Sale LTCG: On Land : Rs. 4,266:

Rs I8,000
Proceeds (Rs) LTCG on House : Rs. 3,J28
Gross Total Income (including other
(0) Shop purchased in 2002-03 (CIl 105) for 10,000 Business income) :
() Machinery purchased in 2007-08 (CII 129 for
Rs. 50,000 Rs. 37,194)
Hint: It isassumed that plant &machinery are of
(WDV on I422 Rs. 35,000)
60,000 VIIl. Capital gains on sale of Self generated
different blocks.
(m) Fumiture Purchased on 1.5.22 Rs.
I,000 asets
1979-80 I300 60. Mr. Ganesh transfers the following assets on
May 15, 2022
(IN) Agricultural land purchased in coimbatore in
for Rs 10,000. (FM Von 1.4.2002 (CIl : 100) being 1$,000) 80,000 Date of purchase Cost
FMV on Sale
(v) One res1dential house purchased in 2010-1| 142001 Considerat1on
(Cll: 167) Costing Rs. 30,000 98.200 Land acquired in 1968 20,000 45,000 2,55,000
Compute taxable capitalgain (CIlfor 2022-23: 331). Good- will
Self generated 1,75,000
(Bharathidasan, B. Com., April 2006) Tenancy rights Self generated 30,000 2,00,000
(Periyar B.Com., Nov. 2006, April 2006) Compute the taxable capital gain for the A.Y. 2023-24.
JAns: STCG: Machinery: Rs. 25,000,; (CIlfor 2001-02:100; 2022-23331)
Furniture: Rs. 300; LTCG: Shop Rs. 13,257: (Madras, B.Com(CS) Nov. 2007)
Residential house: Rs. 38,139: |Ans: Land: Gain Rs.1,06,050; Goodwill: Gain Rs.
1,75,000;
Agricultural land: Rs. 30,350; Taxable Capital gain: Rs. 1,07,3461 Tenancy right: Gain Rs. 2,00,000; Taxable LTCG: Rs.4,81,0501
59. During the year ended 2022-23 Murugan sold the following assets: Hint: Cost of self generated goodw1ll and Tenancy rights is ail.
Sale 61. Compute the capital gains in respect of the following assets of afirm for the
Particulars Proceeds assessment year 2022-23.
(Rs) S Date of Date of Cost Sale value
No. Particulars Sale Rs
(a) Land purchased in 2003-04 [CIl. 109] For Rs. 20,000. acquisition Rs
65,000
(b) Machinery purchased in 2005-6 (CIl. 17]| For LGoodwill of Business Business started on 3-8-95 2-2-23 S,00,000
Rs. 70,000 [W.D.V.on 1-4-2022 Rs. 45,000) 60,000 2 (Goodw1ll of |Professionstaried 2-3-23 40,00,000
(c) Furniture purchased on |4-2022 For Rs. I,000 1,600 aprofesson on 1-12-97
(d) Plant purchased on I4-2022 for Rs. 10,000 12,000 3Brand name Business started on 2--22 3,00,000
(e) One residential house purchased in 2005-06 4&-94
[CLL. - 117] costing Rs. 30,000 88,200 CllFor 81-82=100, for 82-83=109, for 92-93-223, for 2022-23 =331
Workout the amount of Capital gains to be included in the gross total income |Ans: 1. Long term capital gain on sale of goodwill : Rs. 5,00,000.
Also compute his total income if his other business income during the year Being self generated, cost is ail;
was Rs 12,000.The CIL. for 2022-23 is 331.
|Periyar, B.Com. April 2006;
Madras, B.Com. I.C.E. May 1999)
 Income Tax Theory, Law &Practice AY CapitalGans
2. Goodwill of a professiona s taxable: 2021-2024 i) Stamp duty value Rs 80,00 000 8105

I Long tera
capital gais on sale ofself generated
Rs. 3,0,000 As the
brand 40.0aame:,0 0, Cost of acquisition of a new
Rs 6,00,000 house purchased in December 202
costis ail The cost intlation index In 2008-09 was |37 and
oa traasfer of assets to partoership 2022-2023 331
and gains
N62 Capital Yformed apartnersh1p firm during 2022-23 Soon after its formation
assets as his capital
contribution |Ans: LICG: R. 71,54,380; |Madras, B. Com., April 2008|
\ brings the following Taxable LTCG: Rs. 65,54,380|
. As per Section S0C Stamp duty value is I|4% more
Hintt:
Gold than saleconsideration,
SiRslver hence stamp duty value Is laken for
Rs
ceeds |10°% of sale value then stampcomput 1ng capital gain (lf stamp duly
duty is ful value of
5,40,000 This rule is appl1icable for sale of Land &Build1ng or consideration)
FMVon the date of
transfer
12,000 both
books
6.00,000
S0,000 65 Computethe taxable cap1ital ga1n from parliculars given below
Amount recorded in ) Net sale consideraton of aresidental
30,000 house Rs 1S,00,000 (26 2022)
Actual cost 12,000 (CIl 331| Stamp duty value 15,45,(000
2007-08
Year of acquisition 2003-04 (b) Cost of acquisition of this house Rs 3,00,000 (1 52003)
of acqu1sition 129 |CIl 109)
Cost Inflation index for the ycar
I09 ic) New house acqu1red on I9 2023 for Rs 2.00,000
331
the year 2022-23 331
Cost inflation index for |Bharathidasan B. Com, April 2017|
Rs 6.50,000 have been credited in the cap1tal account ofX in the fim Compute |Madras, B.Com., and (A &F) April 2010;
taxable capital gain of X, if any B.Com., April 2009;
(B. Com. Punjab University, April 1994 B.Com(CS) old, Nov. 2010)
|Ans: LTCG: Gold : Rs. 5,23,023 (6,00,000 - 76,977) |Ans: LTCG: Rs. 5,88,991; Exemption US 54
LTCG: Silver : Rs. 14,850 (50,000 - 35.1S0| Hunt Stamp duty value is only 103% of sale consideration as it:2,0,00|
does not
by a partncr as capital, the amount recordod
exceed | 10% Sale consideration is taken for computing cap1tal ga1n
Hint: In the case of asset brought inconsideration of the asset. 66. From the following details calculate capital gain
In the books is taken as sale
a) Sale consideration of resident1al house Rs 40,00,000 on 26 10 2022
X.Exemption of Capital Gains (CIl 331)
(A)Esemption of Captial Gains on sales of residential house being invested (b) Cost of acquisition of the house on I8 2012, Rs 8.27,500 |CII 200]
inaresidential house (Sec 54) (c) New res1dential house acqu1red on 2nd February 2022 for Rs 17,24,500
the AY 2023-24
63 Find out taxable capital gain for (ClI:331]
) House purchascd during 2005-06 (117) Rs 3,48,000. (Madras, B.Com(C.S) April 2011)
() House sold during 2022-23 (331) Rs
60,00,000. |Ans: LTCG: 26,30,487; Taxable LTCG: 9,05,987;
() New house purchased in January 2021 Rs.
3,00,000 Exemption US 54: 17,24,500)
[Madras, B.Com., April 2011| 67. year
From2023-24.
the following data, calculate the Capal gains, taxable for Assesment
(Bharathidasan, B. Com., Nov. 2006|
Rs. in Lakhs
|Ans: LTCG: Rs. 50,15,487; Taxable LTCG : Rs. 47,15,487]
64 From the following infomation compute the capital gain Site purchased in 1975 value 0.33

(a) Cost of acquisition of residential house (2008-09) Rs. 3,50,000 Fair market value of site on l42001 0.75

(b) Sale Consideration on 5.102022 Rs. 70,00,000 Ground floor-cost of construction on 1.881 L.50
First floor-cost of construction in 2006-07 2 66
Sale consideration received in 2023 (01 02 2023) 90 00

Investment in new property 10 00

 Income Tax Theory, LawV& Practice : A.Y.;
&106
sold and new property acquired are for
023-2024 CapitalGains
&107
Assume the property
purpose
2006-07 122
residential 70. Fromthe following infomation compute taxable gain of Mr.
P/Y 2023-24. Senthil for the
Cost unflalionindex Residential House, year of purchase 1977-78
2022-23 331 CMV on 1.4.2001 Rs. 40,000 cost of cost of acquisition Rs 22,000,
imptovement (1978-79) Rs 5,000, cost
[Madras, B. Com.(CS) (Non-Sem) Nov. of improvement((2002-03) Rs. 3,000, Date of Sales 1S 3.23 Sale
2006) Rs 1.20,00,000; Selling Cxpenses Rs. S,000 Consderation
|Madras, B.Com., Oct. 2002;. Madras, B. Com., Oct. 204.22. Rs. 10,00,000. Amount used in Purchase of Constructed house
JAns: LTCG :Rs. 80,30,2003)
061 Ps 30,00,000, CIl 2001-02 = 100, 2002-03 = purchase of another house
105, 2022-23 331
Exemption u/s 54:1 Rs.
Chargeable LTCG: Rs. 10,00,000 (Madras, B. Com., Nov. 2009)
JAns: LTCG: Rs.l,18,53,143; Eremption U/S 54: Rs
70,30,061|
68. Mr Raja provides the following data regarding his transaction for the sale of 40,00,000|
Hintt : IfLTCG does not exceed Rs. 2crore. Investment can be used for construction
his residential house for the AY 2023-24. Compute the amount of capital of Two residential units or two new houses
purchased with in thrce years
for AY 2023-24
gain to be included in the total income or Two years respectively from the date of transfer of the
residential house
Rs. 1 Mr. Xown a resident1al house at Bangalore from the
follow1ng information,
House purchased in 2003-04 4,36,000 compute the amount of capital gain
Sold in November 2022 95,00,000 Rs
Purchased another house in December 2022 3,00,000 Cost of construction (during 2004-05) 4,00,00
Mr. Raja acquires another house in Cost of additions and improvements (during 201|-12) 2,00,000
January 2023 4,00,000 Sale consideration (Sale made on 10 10 22) 95,00,000
The cost of inflation index for 2003-04 and 2022-23 was 109 and 331 Expenses on transfer
respectively 20,000
(Periyar B.Com April 2019) Cost of new house purchased in Hyderabad
|Periyar, B.Com., April 2006) (on 15.1.22) (Rs. 3,00,000 deposited in CGAS)
JAns: Long term capital Gain Rs. 81,76,000
(House is half finished) S,00,000
TLTG: Rs. 74.76.000| Amount Invested in acquiing anotherr house 4,00,000
Hint: If the LTCG does not exceed 2crore the assessee can acquire two houses
An amount of Rs. 3,00,000 withdrawn from capital gaun deposit scheme on
and claim exemption U/S 54.
12th May 2023 and utilised for the completion of house CIl for 2004-05
69. From the following compute capital gain for the A.Y. 2023-24. |13. 2011-12 is 184 &2022-23 is 331.
Rs.
(Madras, B.Com., (CS) Nov. 2009|
House purchased in 2006-07 (CII: 122) 5,00,000
|Ans: LTCG: Rs. 79,48,536; Exemption U/S 54 : Rs 9,,000|
Sold in November 2022 (CII - 301) 90,00,000 Note: If the LTCG does not esced 2 crore an asessee can Invest in Two
Purchased another house in September 2022 3,50,000 houses.
Purchased 2nd house
72. Mr. Kannan is the owner of a house property wh1ch he purchased in June
In January 2023 4,00,000 2006 for Rs. 90,000. He sold it for Rs 60,10,000 on 1Sth May 2022 and
Cost of living index for 2006-07 = |22, 2022-23: 331. incurred an expenditure of Rs. 10,000 for brokerage He bought ares1dential
house on l1Sth January 2022 for a sum of Rs 2.50,000 and sold this house
(Bharathidasan, B. Com., April 2007) on 15th March 2023 for a sum of Rs. 3,00,000 and paid a sum of Rs 3,000
|Ans: LTCG: Rs. 76,43,443; TLTCG: Rs. 6893443| as comm1ssion.
Hint : Construction of two residential units within three years from the date of
transfer of the residential house or purchase of Two houses is el1gibl,e if Compute the cap1tal gains chargeable o tax.
LTCG does not exceed Rs. 2 crore. Cll: 2006-07: 122; 2022-23 : 331.
|Bharathidasan, B. Com. April 2004]
 Income Tax Theory, Law &Practice:AY.
8108
|Ans : Longterm capital gain: Rs.
LTCG exempted u/s 54 : Rs.
251,0235-5,20820;4 CapialGains
investment in a house : Rs.
&109
2.51,000
Short term capital
gain on sale of residential house : Rs. 1.291,50,9000,
Hint: Ifthe ncwly acqu1red house (purchasedfor exemption)is sold within 3years,
Exemption uader section 54 for
deposit in capital gain
Chargeable CCapital gain for Assessment year Account 6,90,000
exempied cap1tal gain is reduced from cost of the asset to compute STCG
Rs.
2023-24: Rs.
received a house from her
father valued at Rs.
50,000 Chargeable Long term capital gain for A.Y. 2025-26 Rs.1,1,29,900
Kcerthana 1,10,000|
73. Ms
the year 1960 In
2004-05 she spent Rs. 30,000 on add1tions 1o
house as on 1-4-2001 | was Rs. 1,40,000. She
that dhouseun g Hint Amount not withdrawn with1n 3 years
hause ie., from the date of sale of ong1nal
between May 10, 2022 to May l0, 2025 is laxed in the
of
The market value
again spent
Rs 20,000 during2009-10 and remodelled the house. She soldthe house for relevant to end of 3years penod i e. 2025-26, Le, AY 2026-27.
year
of Rs 50,00,000 on I5-10-2022and paid Rs 20,0000as NB) Sale of urban Agricultural Land and Investment in Agricultural Land
consideration
aShe commis ion
is not having any other house. In March 2023 she bought another house
for Rs. 10,00,000and deposited Rs. 25,00,000in acapital gain account scheme
(Sec.54B)
75. Agricultural land situated in Agra purchasedin
By I5-10-25 she had
withdrawn and constructed another for Rs. 3,80,000 on 1.52022 The assessee purchased2003-04 for Rs 46,400, sold
residential
unit in the house purchasedin March 2023 for Rs. 20,00,000. What is the another piece of agricultural
land on 1.8 2022 for Rs. 70,000 and depos1ted Rs 30,000 on 24622 in cap1tal
chargeable capital gain for the ASsessment year 2023-24 and 2025-26 gain amount scheme
CII : For 2001-02 = 100; 2004-05 = ||13:: 2009-10 = 148; 2022-23=331
Find out the capital gain chargeable to tax for the AY 2023-24 The cost unflation
.Madras, B. Com. March 19951 index in 2003-04 was 109 and in 2022-23 it was 33|
sale of f house
|Ans: Long-term Capital gain on Rs. 43,83,994 (Madras, B. Com (G) and (A &F) April 2011]
Exempted under Sec. 54 for investment in a house - Rs. 10,00,000
|Ans: LTCG: Rs. 2,39,097
Exempted under Sec. 54 for deposit in Exemption US 54 B: Rs. 1,00,009|
Capitalgain account scheme = Rs. 25,00,000 %. Compute the exempted and taxable cap1tal gains of Mr Suresh for the assessment
Chargeable Capital gain during A.Y. 2023-24 = Rs. 8,83,994 vear 2023-24 and other relevant assessment years
L. Suresh sold an urban agncultural land for Rs 8,00,000 on 2-11-2022.
Chargeable Capital gain during 2025-2026 is = Rs. 5,00,000! This land was acquired on 1-10-2021at acost of Rs 5,00,000 He purchased
is sold hy hi
74 Xowns a residential house at Delh1 since 1968. The house another agricultural land on 2-6-2023 for Rs. 6,00,000
for Rs. 1,40,00,000 on May 10. 2022 |Cost of Acquisition; Rs. 4,50.000
FM.V.on April 12001 Rs. 6,10,000]. Toclaim exemption u/s 54 he
purchases 2. Suresh sold another piece of urdan agncultural land for Rs 10,00,000
2023 for Rs. 2.51 000 on 1-4-2022 This land was acquired on 1-10-2008 for Rs 10,000 Suresh
aresident1al house property at Ajmer on March 10,
on July 31, 2023 being the due date for furn1shing return of income for the deposited Rs. 8,00,000 in acaptal gain acount scheme on 1-5-2022
for the purpose of investment in agricultural land. He has withdrawn
assessment year 2023-24; he deposits Rs. 6,00,000 in bank Alc specifed for
54. Rs. 7,00,000 by |4-2024 and purchased another piece of urban agriculrural
the purpose of Section land. C.LI. for 2008-09:137, for 2022-23 331.
By withdrawing from the deposits Alc he constructs aresidential unit at Ajmer |Ans: (1)Short-term Capital gain on Sale of
house on May 2024 for Rs. 3,10,000 which is completed by May 9,
agricultural land : Rs. 3,00,009
2024. Entire cost of construction of Rs. 1,80,000 is financed by withdrawIng
from the deposit A/c. The unutilised amount in the deposit A/c is withdrawn Exempted capital gain under Section 548;
by h1m after May 10, 2025. Determine the amount of Capitalgains chargeable For investment in an agricultural land : Rs. 3,00,000.
to tax. CIl 2001-02 = 100 and for 2022-23 = 331. (2) Long-term capital gain on sale of
(Madras, B.A. Corp. Sept. 199"7 agricultural land : Rs. 9,75,339 ;
|Ans: Long term Capital gain on sale of
Exemption under Se. 54B fer depesit in
house property is Rs. 1,19,80,900 capital gain A/e :Rs. 8,00,000;
Exemption under section 54 for
Chargeable capital gain for A.Y. 2023-24- Rs. 1,75,339;
Assessment year 2025-26
 Income Tax Theory, Law &Practice : A.Y.2
from2023-sal20e24 t
&110 CapitalGains
to be withdrawn within 2 years 811|
The amouat deposited is tarable after |Ans :STCG :Rs. 2,50,00;
original land. Undrawnamount is expiry of 2 Exemption u/s 54D : Rs. 2,00,000:
ie, 2025-26 Rs. years Taxable STCG: Rs. 50,000]
is more than capital gain, fullcapitall gain is1,00,000,1 19 Compute the Capital gains separately in each of the
Hint: (1) When amountinvested follow1ng cases for the
(2) No indexing for short-tem Capital
Assets. exermpted relevant assessment years
Situation |
the
17. Thiru Mohan sold afew of his properties during year ended 31st March An assessee"'s land &build1ng being used for industrial
2023 as follows:
by government of Tamilnadu for Rs l0,00,000 on 6-5-22. purpose was acquired
Purchased in 1972, The of the
(3) Household furniture costing Rs. 8,000. sold for land and building constructed during 2005-06 was Rs S,00,000 costthe written
Rs. 20,000 in August 2022. down value of the building on 1-4-22 was Rs 3,00,000
Assessee acquired
(b) One diamond necklace costing Rs. 1,00,000. Purchased in April 2001, another land &building on 8-8-23 for Rs S,00,000
sold for Rs. l6,00,000 in May 2022. Situation Il
(c) One house in Coimbatore bought in 2006-07 for Rs. 1,50,000, sold in
XYZ company's land and building used by it for industrial purpose was
Jan 2023 for Rs 50,00,000; Expenses regarding the sale borme by hi acquired by govt. on 6-1-22 for Rs. 20,00,000. They were purchased on
Rs. 25,000. In 2008-09 he spent Rs. 50,000 for constructing the second -6-2010 for Rs. 6.00,000 and writen down value on 1-4-22 was Rs S.10,000.
floor of the house. The compensation was received on 2-|1-2022 The company depos1ted
(d) He sold his ambassador car at Rs. 40,000. purchased in 197 fr Rs. 15,00,000 lakhs on 30-6-2023 in acapital gain account scheme for investment
Rs. 20,000. in new land and burlding
(e) He sold aplot of urban agricultural land at Chidambaram in June 20)) |Ans: I : STCG chargeable to Tax : Rs. 2,00,000.
for Rs 7,50,00 and purchased another plot of agricultural land at Madura STCG on acquisition Rs. 7,0,000; Exemption u's S4D : Rs. 5,00,000.
for Rs. 60,000 on the date of sale. The land sold was purchased in
June 2003 for Rs. 30,000. Il: STCG chargeable to Tax : Nil;
Compute his taxable Capital gains. Cll for 2001-02=100, for 2006-07=122. STCG on acquisition Rs. 14,90,00;
for 2008-09-137, for 2003-04=109, for 2022-23=331. Exemption uader section 4D : R. 14,90,0.4
[Madras, B. Com. March l1986) X(D) Exemption of Capital gain on Investment in aotified bonds
(Sec. 54EC)
|Ans: (a) Household furniture is erempted
(b) LTCG: Rs. 12,69,00; 80. Miss. Saranya acquired property on 15 12 1999 for Rs 5,00,000 which was
sold on 15.5.22 for Rs 38,00,000. Expenses on transfer were Rs. 20,000
(c) On sale of House property : LTCG : Rs. 44,47,230:
She invests Rs. 6,00,000 in the bonds of NHAl of on 16 10 22 compute the
(d) Car held for personal purpose is exempted capital gain for the A.Y 2023-24.
(e) Long-term Capital gain on [CII 2001-02 100; 2022-23 331]
sale of Land : Rs. 6,58,900; |Madras, B.Com(CS) Nov. 2009)
Exempted under Se. 54B for buying agricultural Land : Rs. 60,00|
JAns: LTCG: Rs. 21,25,00
C) Exemption of Capital gain on compulsory
Land and building w's 54D. acquisition of Exemption US S4 EC : Rs. 6.0,000|
78. One building (which was purchased in 2008) ofX LId., an industrial
Is compulsorily acquired by the Govermment of Utar Pradesh.undertaking,
Its WD.V. 81. Mr. David sold a Plot on 16 2022 (CII - 331) for Rs. 22,40,000 He spent
on 1.422 was Rs. 3,50,000. The U.P. Rs 40,000 for sale. The plot was received by hum on death of hus father on
Government paid Rs. 6,00,000 on 25th
May 2022 as compensation. The company purchased another
building tor 223 2004 (CIl =109) His father had acqu1red it on | 4. 1980 or Rs 1,00,000
industrialundertaking for Rs. 2,00,000 on 20th April and its FMV on 1.4.200l was Rs 1,40,000.On I.6 22 be invested Rs 3,00,000
amount exempt under Section 54D and taxable Capital2023. Determine the
gain for in National highway authority bonds
year 2023-24. assessment (Madras, B. Com. Nov. 2005)
(Madras, B. Com.(CS) Nov. 2006)
 Inome la
021-2024
|Aas : LICG : Rs. (apital Gains
LICG eremption u's 54EC:Rs.1136,60% He has deposited Rs 4
00000 under
8113

Chargeable LICG:1 Rs. ,0 .,0 0 with aspecified bank on 30

hands for the AY20224 423
the (ap1tal gains depost Ac scheme
Ascert ain the capital gains taxable in Rao's
August14202\
.36,60 1
house n Delh1 on 24 CIH for 2004.05 and 2022-23 1s ||3 and 3l
sells hrs only residental for
cxpend1ture offRs 20,000 In connection with
respectively
8 Suray and incurs an of the house by him in 1975
Rs 15.20,000
transfer Cost of acquis1tion was Rs 18,000
| Ans : LICG: Rs. (Madras, B. Com., C.S. April 2006]
On 10th January 2023. he invests Rs $,00,000 in the bonds of Rural 3,53,540;
Electnfication Corporstion of India On I6th January 2023 he purchases a Chargeable capital gaias : Rs. 70,708;
resdentialflat in Delh1for Rs 4,50,000 and deposits Rs 1,50,000 1n the s Mr Zacquired aplot of land on Eiemption u's 54F : Rs. 2.82,832|
30-6-2006 (CIl ) for Rs 3,20,000 and
schemeComputethetaxable Captal ga1ns in
deposits hus s hand, snent Rs. I,40,000 on its reg1straton and
Fat market
capital gainsvalue of house on 1-4-2001Is Rs 50,000 CIl for 2001-02 for Rs 40 lakhs on 30-8-2022 (CIH 33)) brokerage etc The plot was sold
is 331 1s lakhs on | 122022 He had paid. Rs He had purchased a house for Rs
100and for
2022-23
hy h1m Compute the amount of S,000 fot ground rent of plot held
(Madras, B. Com,
gain on sale : Rs. March 1991) 2023-24
taxable cap1tal ga1n for the assessment ycar
|Ans: Long-term capital
Exemption u's 54 : Rs. 1334,500 |Adapled C.4. Inter, May 1992)
ws 54(2) : Rs. 4,50,090 |Ans: LTCG: Rs. 27,51,967:
u's 54 EC : Rs. 1,50,000
Chargeable LTCG:
5,00,000 Exemption US 54F : Rs. 27,51,967
15 Lakhs
Rs. -10,31,987
for Rs 42,00,000234,500)
40 Lakhs

sells a house property on 15-10-2022 (Cost of

Mr Raa on 23-12-2008 Rs I.80,000) On 14-2-2023 he invests. Rs 10,50,000
83 acquisition Chargeable LTCG :Rs. 17,19,980|
Highways Author1ty of India On
Hint: Exemption under S4F can be availed aga1nst LTCG on sale of any LI Capital
In the National
bonds aof house
purchases 16-2-2I,00,000
property for Rs 15,00,000 and he alsoinvestsSRs. 023 he asset other than house property, if ahouse was purchased with1n the previous
12 months prior or within 2 years after sale
Highway authontyof Ind1a on I6-6-2023 Can he clam
in bonds of National 54as well as under Section $4EC9 &6 From the details given below, compute taxable capital gain for the
exempion under sectionchargeable to tax for the assessment yearDetermine
the A.Y. - 2023-24
amount of capital gains
2008-09 - 137, for 2022-23 = 331.
2023-24 Particulars
CIl for Residential Jewellary
(Madras, B.Com. Sep. 19871 House
JAns : Long-term capital gain on Date of Sale 4722 16 12 22
sale of house property : Rs. 37,65,109 Date of Purchase 162012 |12 12 2004
Exempted capital gain under Sec. 54: Rs. 15,00,000 Sale proceeds Rs 55,00,000 18,05,000
Exempted under Section 54 EC : Rs. 10,50,000 Expenses on sale Rs S,000
Chargeable LTCG for AY. 2023-2024: Rs. 12,15,(091 Cost of purchase Rs. 4,00,000 3,00,000
the investment in specified bonds
Hint: To claim exemption under section 54£C On 1.9.23 he purchased ahouse for Rs. 60,00,000 Cost of inflation index
months after sale of original house property
Isto be made within 6 Therefore 2012-13 = 200, 2004-05 =||3, and 2022-23 =331
54EC Is not within 6 months.
The investment made on l6.623 for |Bharathidasan, B. Com., Nov. 2006]
investment under 54EC.
noexemption for this |Ans: LTCG: Residential House: Rs. 48,38,000;
Long term capital assets, other than house
X (E) Capitalgains from sale ofinvestment Exemption US 54: Rs 48,38,000
property and exemption on in House property (Sec. 54F)
Jewellery: Rs. 9,21,239
1.10.22 which had been acquired
84 Rao sold Urban Land for Rs. 5,00,000 onwants to utilise the said amount of
by him on Oct. 2004, for Rs. 50,000. He
of a new residential house.
sale consideration for purchase or construction
 IncomeTax Theory, LawV& Practice :AY.
8I14
11,62,000 2023-2024 CapitalGains
Mr. Xsubmits the following
8115
vear 2022-23 (CIL 33|) infornation about sale of assets during the previous
Rs. 9,21,239 - Rs. 5,94,10
Exemption U/S 54F : 18,00,000

Investment u's 54F is : 60,00,000-48,38,000 =

Particulars Plot
1 ,62,0 0 Date of acquisition
Cost of acquisition Rs.
I101970
I,00,000
Jowellery Diamonds
14 2005 L8 2009
50,000
FMV on 1.4.2001 1,50,000
the: Rs
the followingparticulars about assets sold during 2023-24 I,50,000
87. Mr. Mukesh gives
CLI.
100 I17 148
Jewellery Plot Date of Sale
Particulars Gold Sale cons1deration
18 10 22 I5223 L3.23
Rs. 4,00,000 10,00,000 3,50,000 20,00,000 8,00,000 4,00,000
Selling price Investment
Rs. 24,000 Date of Amount
Selling expenses 20,000 2,80,000 acquisition invested
Rs. Residential House
Cost of purchase 2004-05 2002-03 |2006-07
,00,000 Compute the Capital gain of Mr X
4.12.22 28,00,000
Year of Purchase
|13 105
ClI 122 |Ans : LTCG:Sale of Diamonds : Rs. 2,88,176;
He has purchased ahouse for Rs. 12,00,000on 1.3. 2022. Calculate the amount
2022-23 is 331. 4,00,000
of capital gain if CIl for Exemption u's 54F : Rs. 2,34,176 4,00,000
(Iav. in RH)
(Bharathidasan, B.Com., Nov,
) Jewellery: LTCG : Rs.
2007) Sale of jewellery : Rs. 3,75,641;
|Ans:
.JA1,A16; Exemption w's 54F :Rs. 3,75,641| ,00,000
4,00,000
1,87,820
3,41,416: 3,41,416x
4,00,000
Fully exempted from tax:Rs.
4,00,000) LTCG on sale of plot : Rs. 15,03,500;
(i) Plot:LTCG: Rs. 93,333; Exemption U/S S4 F:1 Rs. 43,03; 20,00,000
Exemption u/s S4F : Rs. 15,03,500
20,00,000 Rs. 15,03,500: |
4,50,000 Hint: Exemption w's 54F is to be computed on the basis of percentage of LTCG
93,333 x on sale of assets. Diamonds denve 729% and Jewellery 47% as
capital gain
9,76,000 on sale consideration and plot 75% Capital gain on damonds and plot is
given prnonity for exemphon us 54F and then LTCG on sale of Jewellery is
(10,00,000 - 24,000) considered for exemption u's 54F (on the basis of percentage of capital gain)
Taxable LTCG is Rs. 50,300; 89. Mr. Vignesh owns 2acres of agricutural land in an urban area of Erode which
(ii) Gold: LTCG: Rs. 78,688; he sold on 30th November 2022 (@ Rs. 50 lakhs per
acre.
(a) Cost of 2acres of land purchased in 1977 Rs 6 lakhs
3,50,000 (b) FM.V. as on 1.42001 Rs. 680 lakhs (c) Sell1ng expenses Rs. Ilakh
Fully erempted from tax : Rs. 78,688 78,688 x (d) He owns one residential house on 30.|1 2022.
3,50,000 (e) Date of fling return of income 3107.2023.
() Mr. Vignesh purchased 10 acres of agrncultural land in rural area for
Exemption U/S 54 Fis to be computed on the Rs. 10 lakhs on 10th June 2022.
basis of percentage of LTCG on sale of assests, (g) Mr. Vignesh purchased aresidential build1ng for Rs. 6lakhs at Erode
Jewellery derive 85%, Gold 22% and (0) Amount invested in bonds of national highway authority of India
plot 9.56% as capital gain on sale consideration. Rs. Slakhs on 31.3.2023.
Captial guin on Jewellery and gold is given priority and Compute the capital gain Cil 2001-02 - 10. 2022-23 - 331.
then plot is considered| |Madras, B.Com(C3), April 2009)
Note: Invesiment for plot : Rs. 4,50,000: (12,00,00 - 4,00,000 - 3,50,000)
 Income Tax Theory, Law &t Practice:A.Y.
LTCG: Rs. 2023-
76,49,2024200
&116
Exemption U/S 54F: Rs.
Exemption US S4EC :Rs. 5,00,
Exemption US S4B :| Rs.
Cap1talGains
8117
0) Suraj converts hs plot of land purchased in
1981-82 for Rs 50,000 into
4,63,588 stock in trade on 31st March 2009 The FMV
Rs. 2,00,000 The stock in trade is sold for Rs
on 31st March 20091S
,000 2.20,000 in the
January 2023. Find out the taxable income f any and, if s0, undermonth
of

X(F)Shifting of an Industrial taking Írom Urban

area (Sec $4 C 10,00,000 'head of income' and for which 'Assessment year'? The cost
In 2001-02 was 100 and in 2008-09 it was 137, In
which
inflation index
90. Mr Aowns an industrial undertaking, which is situated in the urban arca of 2022-23, it was 331
|Madras, B.CS April 2001|
chennai. Mr. Ash1ftedthis industrial undertaking to arural arca near chenna
the |Ans: Long-term Capital gain on conversion of
For sh1f1ng purposes, he had to sell following
assets of the
Plant &Machinery under-tak1ng
Furniture Land into stock in trade =Rs, 1,31,50o 2,00,000 -| 50, 000x100
137
Acquired 1996
1997
Net sale consideration (Rs.) 30,00,000 Business income Rs. 20,000 (2,20,000-2,00,000).|
15.9.2022
I,00,000 Hint: Where an asset is converted as business asset, the d1fference between
Date of Sale
22.11.2022 FMV on the date of conversion and indexed cost is the cap1tal gain, but
Cost of acquis1tion U/S 50 (2) Rs. (WDV) 10,00,000
60,000 chargeable when the converted asset is sold
Cost of New assets Purchased (Rs.) 16,00,000
Date of Purchase 3L12.2012
30,000 D1fference between sale value and faur market value is bus1ness income
28.2.2010 for the assessment year in which asset is sold
If the industrial undertaking is shifted to the rural: area on
capital gains chargeable to tax for the AY: 2023-24. 15.3.2023.Calculate Multiple Choice Questions
Choose the correct answer to each of the following:
|Madras, B.Com., Nov. 2007] I Cap1tal gains, the fourth among the five major heads of Income, Is assessable to tax
IAns: STCG : Plant &Machinery 20,00,000: under:
Exemption 16,00,000; (a) SectionS (b) Secton 25
Taxable STCG on Plant &Machinery: Rs. 4,00,000: (c) Section 45 (d) Secion 65
Furniture: Rs. 10,000| 2 No. of k1lometers beyond amunicipal1ty or contonement limits aland should be
Note: US S4 Gnew assets in the fom of plantand machinery and building acquired situated, to be called Rural Agncultural Land for exemption from capital gans tax
for industrial purpose (due to shifting) are eligible for exemption furniture (a) 2 (b) 8
is not eligible. However STCG on sale of furniture is Rs. 10,000. (c) 12 (d) 20
(XI) Conversion of Aset into stock - in -Trade and subsequent sale 3. Income from sale of house hold furm1ture is
91. Mr. XPurchased shares of Various Companies worth Rs.1,00,000 during (a) Taxable capital gain () Exempted cap1tal ga1n
2002-03 (CII - 105). On 1|1.06 (ClI| - 122) he become dealer in shares and (c) Short tem cap1tal gain (d) Long tem cap1tal ga1n
securities and converted his shares into stock in trade. The FMV on the date 4. Income from sale of rural Agricultural land 1s
of ConversSion was Rs. 3,00,000. These Shares were sold during 2022-23
(a) Taxable capital gain (b) Exempted cap1tal gain
(CII - 331)at Rs. 4,00,000 Compute bis capital gain and business profit.
(c) Taxable income (d) None of these
(Madras, B. Com(CS) Nov. 2010; B.Com., April 2010)
|Ans: TLTG on Conversion of shares into stock in trade : Rs 1,83,809 S. Which ofthe following is not an 'exemptcd aset' for the purpose ofcapital ga1ns ta ?
(a) Assets held for personal use (b) Shares of domestic companies
122 (c) Gold depos1t bonds under 1999 (d) Special Becarer Bonds issued by central
3,0,00-| 1,00, 000 105 Business income Rs. 1,00,000(4,00,000 scheme govt in 1991
6. How many months a "Non Financal Capital Asset" must be held to be called a
3,00,000)| "Shor Term Capital Asset?
Hint: Where an asset is converted as business asset, the difference between FMV (a) Not more than 36 months (or 24 months)
on the date of conversion and indexed cost is the capital gain, but chargeable (b) Not more than 24 months
when the converted asset is sold.
(c) Not more than 12 months (d) Not more than 48 months
Difference between sale value and fair market value is business income
for the assessment year in which asset is sold.