Question

Long-term capital gain is not exempted in which of the following cases?

• A. Transfer of a residential house and investment in one residential house
• B. Transfer of agricultural lands
• C. Compulsory acquisition of land and building of industrial undertakings
• D. Transfer of assets

Hint:

Carefully evaluate exemptions available under the Income Tax Act when planning asset sales.

Answer 1

The Correct Option is D

Exemptions for long-term capital gains are provided under Sections 54, 54B, and 54EC of the Income Tax Act for specific cases like reinvestment in residential property, agricultural land, or notified bonds. However, the transfer of general assets like shares or mutual funds does not qualify for exemptions unless specified under the Act