Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

AAFM CWM_LEVEL_2 Exam - Topic 4 Question 70 Discussion

Section C (4 Mark)Read the senario and answer to the question.Mr. Adhikari bought agricultural land in Patna in 94-95 for 1.75 lakh. That land was vacant for last so many years. But due to establishing a ''Commercial Processing Zone'' the Bihar Government has issued a notice for compulsorily acquirement on 12/08/2003. In 2006 government has fixed compensation for Rs. 6.50 lakhs and acquired it on 09/01/2006. Rs. 2 lakh was received by Mr. Adhikari on 07/03/2006. Mr. Adhikari and others were not satisfied with the compensation and file a suit in the court.Balance compensation paid by Bihar Government on 08/10/2008. The compensation is enhanced by another 1.50 lakhs by the Bihar Government which paid by the Government on 11/12/2008.Compute Capital Gain tax in the hands of Mr. Adhikari for the assessment year 2009--10.
C) The compensation amount along with enhanced compensation of Rs. 1.50 lakhs shall be exempt as per section 10(37) because the agricultural land was acquired by the Government and as compensation is received after 31/03/2004.
A) The compensation amount is taxable @ 10 % with indexation benefit and enhanced compensation is exempt as per section 10(37)
B) The compensation amount is taxable @ 20 % without indexation benefit and enhanced compensation is exempt as per section 10(37).
D) Compensation is exempted because the agricultural land was acquired by the Bihar Government

AAFM CWM_LEVEL_2 Exam - Topic 4 Question 70 Discussion

Actual exam question for AAFM's CWM_LEVEL_2 exam
Question #: 70
Topic #: 4
[All CWM_LEVEL_2 Questions]

Section C (4 Mark)

Read the senario and answer to the question.

Mr. Adhikari bought agricultural land in Patna in 94-95 for 1.75 lakh. That land was vacant for last so many years. But due to establishing a ''Commercial Processing Zone'' the Bihar Government has issued a notice for compulsorily acquirement on 12/08/2003. In 2006 government has fixed compensation for Rs. 6.50 lakhs and acquired it on 09/01/2006. Rs. 2 lakh was received by Mr. Adhikari on 07/03/2006. Mr. Adhikari and others were not satisfied with the compensation and file a suit in the court.

Balance compensation paid by Bihar Government on 08/10/2008. The compensation is enhanced by another 1.50 lakhs by the Bihar Government which paid by the Government on 11/12/2008.Compute Capital Gain tax in the hands of Mr. Adhikari for the assessment year 2009--10.

Show Suggested Answer Hide Answer
Suggested Answer: C

by Jess at Jan 23, 2024, 08:07 PM

Limited Time Offer

25%

Off

Get Premium CWM_LEVEL_2 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

0/2000 characters
Submit Cancel
Stefany
10 months ago
Not sure about that, can we really trust the government on this?
upvoted 0 times
...
Kina
10 months ago
Definitely option C, the land was acquired after 2004!
upvoted 0 times
...
Nobuko
10 months ago
Wait, is enhanced compensation really exempt? That seems off.
upvoted 0 times
...
Alpha
10 months ago
I think it's option A, 10% with indexation benefits!
upvoted 0 times
...
Julie
10 months ago
The compensation amount is taxable @ 20% without indexation, right?
upvoted 0 times
...
Sonia
11 months ago
I feel like the compensation should be taxable, but I’m not certain if it’s at 10% or 20%. I need to double-check the indexation rules.
upvoted 0 times
...
Melodie
11 months ago
I practiced a similar question where the compensation was fully exempt, so I’m leaning towards option C, but I’m still a bit confused about the dates.
upvoted 0 times
...
Gaynell
11 months ago
I think the enhanced compensation should be exempt, but I can't recall if the original compensation is taxable or not.
upvoted 0 times
...
Shenika
11 months ago
I remember that section 10(37) deals with compensation for agricultural land, but I'm not sure about the indexation part.
upvoted 0 times
...
Loreta
11 months ago
Okay, let me break this down step-by-step. First, I need to calculate the capital gains based on the purchase price and the compensation received. Then, I'll need to determine if any part of the compensation is exempt under the relevant tax provisions. This will require careful analysis of the facts presented.
upvoted 0 times
...
Beckie
11 months ago
The key here is to identify whether the compensation received qualifies for exemption under Section 10(37). If so, then the entire amount would be exempt from tax. I'll need to double-check the conditions for this exemption.
upvoted 0 times
...
Donte
11 months ago
This looks like a straightforward capital gains tax calculation question. I'll need to carefully review the details provided to determine the correct tax treatment of the compensation received.
upvoted 0 times
...
Sarah
11 months ago
Hmm, I'm a bit unsure about how to approach this. There seem to be a lot of dates and amounts involved. I'll need to make sure I understand the timeline and the relevant tax provisions before attempting to solve this.
upvoted 0 times
...
Lindsey
11 months ago
This looks like a straightforward question about page naming conventions. I'll carefully review the options and think about best practices for page names.
upvoted 0 times
...
Sena
11 months ago
Got it, the total count is the overall number of transactions, while the other metrics are just tracking subsets of that, like distributed transactions only. I'll select option C for this one.
upvoted 0 times
...

Save Cancel