Question

Manohar sold his house property for Rs. 50 lakhs. This income is chargeable under the head of __________.

• A. Income from other sources
• B. Income from House Property
• C. Profits and Loss from Business or Profession
• D. Income from Capital Gains

Answer 1

The correct option is D Income from Capital Gains

Any profits or gains arising from the transfer of a capital asset effected in the previous year shall be chargeable to income-tax under the head capital gains. Examples of assets are a flat or apartments, land, shares, mutual funds, gold among many others. There are two types of capital gains:

• Short-term capital gain: capital gain arising on transfer of short term capital asset.
• Long-term capital gain: capital gain arising on transfer of long term capital asset.