Business

Quiz 4- Business Taxation

(PGP, ABM, FPM) I, Term II, November to December, 2008

Answer

In the questions in the quiz, Column 5,  'Unabsorbed loss (if any)', as is apparent, was to put values which could not be absorbed. Column 4, 'aggregate income' was to work intermediate values towards aggregation. Marks would be awarded so long as the answer indicates correct understanding and application of the provision.

Question 1

|S. |Particulars |Income |Aggregated Income |Unabsorbed loss (if any) |

|no | | | | |

|1 |Short term capital gain (Asset A) |250 |150 | |

|2 | Short term capital loss (Asset B) |(100) |- | |

| |Short term capital gain/loss | |150 | |

|3 |Long term capital loss (Asset C) |(125) |(50) | |

|4 |Long term capital gain (Asset D) |75 |- | |

| |Long term capital gain/loss | |(50) |(50) |

Mark: 1

Short term capital loss can be set with short term capital gain and long term capital gain.

Long term capital gain can be set off only against long term capital gain.

Question 2

|S. |Particulars |Income |Aggregated Income |Unabsorbed loss (if any) |

|no |...