Illustration 1 Determine the amount of taxable capital gains in respect of the following transaction : M sells a residential house property

in Pune for Rs. 16.30,000 on April 20, 2011 which was purchased by him on April 20, 2009 for Rs. 2,90,000. Illustration 2 On November 2, 2011, M sells gold for Rs. 3, 02,000 (cost of acquisition on March 10, 1997: Rs. 1,04,000). Expenses on purchase and transfer are Rs. 1,100 and 2,000 respectively. Find out the amount of capital gains if any. Illustration 3 X sells the following capital asset during the previous year 2011-12 House Rs. Sale consideration 6,40,500 Year of acquisition 1999-00 Cost of acquisition 18,000 Cost of improvement incurred in 2002-03 1,05,407 Illustration 4 M owns a residential house at Mumbai since 1968 (income is taxable under section 22). The house is sold by him for Rs. 30,00,000 on June 30,2011 (cost of acquisition : Rs. 3,00,000, fair market value on April 1, 1981 5,10,000). Determine the amount of capital gains chargeable to tax. Illustration 5 G purchases a house property for Rs. 30,000 on June 20, 1964. He gets the first floor of the house constructed in 1965-66 by spending Rs. 20,000. He dies on December 22, 1980. The property is transferred to Mrs. G by his will. Mrs. G spends Rs. 25,000 and Rs. 26,700 during 1979-80 and 1984-85 respectively for reconstruction of the property. Mrs. G sells the house property for Rs. 12,50,000 on February 15, 2012. Brokerage paid by Mrs. G is Rs. 12,500. The fair market value of the house on April 1, 1981 is Rs. 1,60,000. Ascertain capital gains. Illustration 6 X purchases a property on April 1, 1965 for Rs. 50,000. Later on he gifts the property to his friend Y on June 10,1984. The following expenses are incurred by X and Y for renewals of the property. Particulars RS Addition of one room by X during 1978-79 30,000 Addition of two room by X during 1986-87 40,000 Addition of four room by Y during 1991-92 1,15,000 The fair market value of the property as 1-4-1981 is 65,000. The house property is sold for Rs 14,00,000 on 1-6-2011

Illustration 7 The Central Government acquires the property of Mr. Jayakishan on 1-6-2000. It was purchased by him on 1-1-1996 for Rs. 3,98,000. He had incurred expenses of Rs 99,500 on making capital alterations to it during May 1998. A compensation of Rs. 12,00,000 was awarded to Jaykishan, which he received on 1-6-2002. He filed a suit against the Government for increasing the amount of compensation. The High Court increased the compensation by Rs. 2, 00,000 on 1-1-2008 which was actually received by Mr. Jaykishan on 1-1-2012. He had incurred Rs. 10,000 as legal expenses in this connection. Calculate the amount of taxable capital gains Illustration 8 Mr Ketanbhai acquires shares in Global Ltd. on 1-5-1989 for Rs. 1,50,000, as an investment. He starts a share brokerage firm Gafla & Co. on 1-6-1993 and converts the above shares as stock-in-trade on this date. The fair market value of these shares on 1-61993 is Rs. 3,00,000. He sells these shares on 1-6-2011 for Rs. 10,00,000. (b) What would be the taxability, if these shares are not sold but held as stock-in-trade as on 31-3-2011? Illustration: 9 X holds 1000 equity shares in A Ltd since 1978 (cost of acquisition : Rs 10,000, fair market value of the property on April1, 1981 is Rs 14,000). A Ltd offers Bonus shares of 800 shares on April 1.1986. A Ltd offers 2000 right shares of Rs 10 each to X on May 1, 2011 at a premium of Rs 50. X subscribes right shares and renounces 1200 shares in favour of C by transferring the right entitlement for a consideration of Rs 4,800. X sells 2600 shares in A LTD on March 30, 2012 @ Rs 90 per share. Brokerage 1%. Illustration 10 M owns two machines (A) and (B) eligible for depreciation at 25%. The WDV of the block on 1-4-2011 was Rs. 65,000 . Find out the capital gains, if any, in the following alternative cases: (1) Another machine (C) rate of depreciation 25%, costing Rs. 1,30,000 was added during the year 2011-12. Machine (A) was sold for Rs. 4,75,000. (2) In case (1), assume that Machine (A) was sold for Rs. 1,90,000. (3) There were no additions during the year. Both the machines (A) and (B) were sold for Rs. 75,000. (4) In case (3), assume that both the machines were sold for Rs. 60,000 .

Illustration : 11 Compute the capital gains in the following cases: 1. M commenced business on 1-4-1981. He sold this business on 1-4-2011 and received, inter-alia (among others), Rs. 5,00,000 towards goodwill. 2. M had acquired a business from V on 1-4-1991 by paying Rs. 2,00,000 towards goodwill. He sold this business on 1-4-2011 and received Rs. 10,00,000 towards goodwill. 3. M is staying in a rented flat since July 1996. The land-lord paid Rs. 10,00,000 to M as compensation for surrender of tenancy, in June 2011. 4. M purchased tenancy rights on 1-7-1982 for Rs. 2,50,000. He transferred the tenancy rights on 1-6-2011 for Rs. 17,50,000. 5. V is a lawyer practising in Mumbai since 1985. He transfers his practice to G on 25-9-2011 and charges Rs. 7,50,000 towards goodwill. Illustration : 12 M, a non-resident Indian remits US$ 40,000 to India on September 16, 1989. The amount is partly utitised on October 3, 1989 for purchasing 10,000 shares in A Ltd., an Indian Company at the rate of Rs. 12 per share. These shares are sold for Rs. 29 per share on January 30, 2011.Expenses on transfer Rs 2 per share. You are required to compute capital gains chargeable to tax for the assessment year 201213 on the assumption that the telegraphic transfer buying and selling rate of USS adopted by the State Bank of India were as follows: Date Buying (1 US$) Selling (1 US$) 16-09-1989 18 20 03-10-1989 19 21 30-01-2011 28 30

Illustration : 13 X, Y and Z are three partners of a firm. On March 10,2012 the firm is dissolved. The following are the assets are distributed to partners : Particulars Residential house Non-Listed shares Land (taken by Z) (taken by X) (taken by Y) Rs Rs Fair market value as on 23,90,000 60,000 52,000 March 10, 212 Agreed value as per 12,70,000 66,000 52,000 dissolution deed Stamp duty value 22,40,000 ----40,000 Cost of Acquisition 50,000 15,000 8,000 Year of acquisition 1949-50 1992-93 1984-85 Fair market value as April 1, 3,20,000 N.A NA. 1981 Determine the capital gain of the firm for the assessment year 2012-13 Illustration : 14 X Ltd has insured its Machinery for Rs 7,00,000 on 1-5-2003. A fire broke out on 10-82011 causing damage to the machinery. The WDV of the machinery on 1-4-2011 was Rs 1,26,563. The insurance claim settled in the following manner on 15-3-2012: (1) The new machinery cost Rs 6,00,000 paid by insurance company on 15-032012. Similar machine had a Fair market value of Rs 5,00,000 on the date of fire. (2) The installation cost Rs 1,00,000 paid by insurance company. (b) if the new machinery is acquired in the year 2011-12 for Rs 6,00,000, what would be change in capital gain.