LTCG UPSC Statement-Based MCQs PDF

Statement-Based MCQs on Long-Term Capital Gains (LTCG) 1. Consider the following statements about Long-Term Capital Gains (LTCG): - LTCG arises when an asset is held for more than 36 months. - Gains from the sale of equity shares and equity mutual funds are considered LTCG if held for more than...

Statement-Based MCQs on Long-Term Capital Gains (LTCG) 1. Consider the following statements about Long-Term Capital Gains (LTCG): - LTCG arises when an asset is held for more than 36 months. - Gains from the sale of equity shares and equity mutual funds are considered LTCG if held for more than 12 months. Which of the statements given above is/are correct? A. Only 1 B. Only 2 C. Both 1 and 2 D. Neither 1 nor 2 Answer: B 2. Which of the following statements is/are correct regarding the taxation of Long-Term Capital Gains (LTCG) in India? - LTCG on the sale of listed equity shares exceeding Rs1 lakh is taxed at 10% without the benefit of indexation. - LTCG on immovable property is taxed at 20% with the benefit of indexation. Select the correct answer using the code given below: A. Only 1 B. Only 2 C. Both 1 and 2 D. Neither 1 nor 2 Answer: C 3. Consider the following statements regarding indexation in Long-Term Capital Gains (LTCG): - Indexation is applied to adjust the purchase price of assets for inflation. - Indexation benefits are available on all types of capital assets, including equity shares. Which of the statements given above is/are correct? A. Only 1 B. Only 2 C. Both 1 and 2 D. Neither 1 nor 2 Answer: A 4. Which of the following statements is/are correct about the tax exemptions on Long-Term Capital Gains (LTCG)? - LTCG on the sale of a residential property can be exempt under Section 54 if reinvested in another residential property. - LTCG on the sale of equity mutual funds is exempt from tax if reinvested in government bonds. Select the correct answer using the code given below: A. Only 1 B. Only 2 C. Both 1 and 2 D. Neither 1 nor 2 Answer: A 5. Consider the following statements regarding the calculation of Long-Term Capital Gains (LTCG): - LTCG is calculated by subtracting the indexed purchase cost from the sale price of the asset. - In the case of equity shares, the purchase price is indexed for inflation before calculating LTCG. Which of the statements given above is/are correct? A. Only 1 B. Only 2 C. Both 1 and 2 D. Neither 1 nor 2 Answer: A 6. Which of the following are types of assets for which Long-Term Capital Gains (LTCG) can be applicable? - Real estate and land - Listed equity shares - Debt mutual funds Select the correct answer using the code given below: A. 1 and 2 only B. 2 and 3 only C. 1 and 3 only D. 1, 2, and 3 Answer: D 7. Consider the following statements regarding Long-Term Capital Gains (LTCG) on equity shares: - LTCG on the sale of equity shares held for over 12 months is exempt up to Rs1 lakh. - Any gains beyond Rs1 lakh are taxed at 10% without indexation benefits. Which of the statements given above is/are correct? A. Only 1 B. Only 2 C. Both 1 and 2 D. Neither 1 nor 2 Answer: C 8. Which of the following statements is/are correct about the treatment of Long-Term Capital Gains (LTCG) in case of NRIs (Non-Resident Indians)? - NRIs are subject to the same tax rates on LTCG as residents. - NRIs are not eligible for any tax exemptions on LTCG, even if the proceeds are reinvested. Select the correct answer using the code given below: A. Only 1 B. Only 2 C. Both 1 and 2 D. Neither 1 nor 2 Answer: A 9. Consider the following statements regarding Long-Term Capital Gains (LTCG) on debt mutual funds: - LTCG on debt mutual funds is taxed at 20% with indexation benefits. - The holding period for debt mutual funds to qualify as long-term is 12 months. Which of the statements given above is/are correct? A. Only 1 B. Only 2 C. Both 1 and 2 D. Neither 1 nor 2 Answer: A 10. Which of the following statements is/are correct regarding Long-Term Capital Gains (LTCG) on unlisted shares? - The holding period for unlisted shares to qualify as long-term is 24 months. - LTCG on unlisted shares is taxed at a flat rate of 10%. Select the correct answer using the code given below: A. Only 1 B. Only 2 C. Both 1 and 2 D. Neither 1 nor 2 Answer: C