AAFM CTEP Exam - Topic 1 Question 47 Discussion

Actual exam question for AAFM's CTEP exam

Question #: 47
Topic #: 1

Lokesh purchased a flat on 1-4-1996 for Rs. 10,00,000/-. He sells the same flat on 1-10-2006 for Rs. 25,00,000/-. As a CTEP calculate the Indexed Cost of Acquisition on which capital gain would be calculated. (The CII of year 1995-96 is 281, for year 1996-97 is 305, for year 2005-06 is 497 and for year 2006-07 is 519).

ARs.17,01,639

BRs.18,46,975

CRs.17,68,683

DRs.16,29,508

Show Suggested Answer

Suggested Answer: D

by Eugene at Aug 07, 2024, 06:14 AM

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Laurel

5 months ago

I calculated it too, and it matches option A!

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Hyun

5 months ago

Wait, are we sure about those CII numbers?

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Cordelia

5 months ago

Definitely going with option B!

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Bernardine

6 months ago

I think the indexed cost is around 18L.

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Ashlee

6 months ago

The flat was bought for 10L in '96.

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Nieves

6 months ago

I think I remember that we should multiply the purchase price by the CII of the year of sale divided by the CII of the year of purchase. Does that sound right?

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Hubert

6 months ago

I feel like the answer might be around Rs. 17 lakh, but I can't recall the exact calculations we did in class.

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Emmanuel

6 months ago

I think we need to apply the CII for 1996-97 to the purchase price, but I’m confused about which year’s CII to use for the sale.

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Lauran

7 months ago

I remember we practiced a similar question about calculating indexed cost of acquisition, but I’m not sure about the exact formula to use here.

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Franchesca

7 months ago

This is a tricky one. I'll need to double-check my work to make sure I don't miss any steps. The CII values are important, but I also need to be careful with the dates and the final calculation.

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Christa

7 months ago

Okay, I think I've got this. I just need to multiply the original purchase price by the CII for the year of sale, and divide by the CII for the year of purchase. That should give me the indexed cost of acquisition.

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Shakira

7 months ago

Hmm, I'm a bit unsure about how to apply the CII correctly here. I'll need to review the formula and make sure I'm doing the calculation properly.

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Quentin

7 months ago

This looks like a straightforward capital gains calculation problem. I'll need to use the Cost Inflation Index (CII) values provided to adjust the original purchase price.

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Kallie

7 months ago

This is a good question to test our understanding of the HR Guided Setup Module. I'll methodically go through each option and think about whether it's something that would be displayed in the Configuration View for a Category. That should help me identify the three correct answers.

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