Rahim converted into stock in trade on 10th May 2007 his capital asset which was acquired by him on 15th June, 2002 for ₹70,000. Subsequently the stock in trade so converted was sold for ₹18,00,000 on 15th July 2019. Fai

CS Executive · Tax Laws and Practice · PYQS · December 2020
Rahim converted into stock in trade on 10th May 2007 his capital asset which was acquired by him on 15th June, 2002 for ₹70,000. Subsequently the stock in trade so converted was sold for ₹18,00,000 on 15th July 2019. Fair market value of the asset on 10th May 2007 was ₹4,80,000. By taking the CII for the years 2002-03 as 105, 2007-08 as 129 and of 2019-20 as 289; determine the amount of capital gain taxable in assessment year 2020-21.
(A) ₹3,23,179
(B) ₹13,20,000
(C) ₹2,87,333
(D) ₹4,10,000

Answer & Explanation:

The official key records '*'. This question is excluded from automatic grading because the source does not supply an unambiguous valid choice. Official source note: All options are Incorrect. Correct Answer is ₹ 3,94,000 (480000 - 70000*129/ 105).

Topics: Capital Gains

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