Capital Gain Ch #06

Question 1

Treatment of business Assets?

Answer 1

Plot and its gain goes to capital assets and capital gain respectively. All other business assets and their gain on disposal goes to business assets and income from business respectively

Question 2

Only two assets of business are capital assets, name them?

Answer 2

Plot & Shares

Question 3

What is break up value and how it is Calculated?

Answer 3

Breakup value is Considered as FMV of Shares of Unlisted Company and is calculated as:

( Paid up capital + retained Earning)/No of Shares

Question 4

What is Quoted Company?

Answer 4

a listed company is called Quoted Company

Question 5

What is Tax Treatment of Separate Block of Income?

Answer 5

Tax Treatment of Separate Block of Income
1- Add in the relevant heads of Income
2- Less/Deduct from total income
3- Add tax (relevant tax rates) in the taxation section
4- Deduct the relevant WHT (if given in the exam)

Question 6

Which Capital Assets Cannot have loss and if any loss is given in question , ignore it?

Answer 6

Page 103
1.5

Question 7

Property of any kind is capital asset except?

Answer 7

1-Stock in trade, consumable stores or raw materials
2-Depriciable asset or amotizable asset
3-moveable property held for personal and any dependent except antiques

Question 9

explain relative

Question 10

explain nin recognition rules in capital gain