n NISM Certifications
X NISM Series X
Medium

Assets such as stock-in-trade, agricultural land in rural India, and motor cars held as stock in trade do not result in capital gains upon sale, as they are excluded from the definition of capital assets.

Practice question from NISM Series XB- Investment Adviser (Level 2) Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Stock-in-trade

  2. B

    Agricultural Land in rural India

  3. C

    Motor car which is held as stock in trade

  4. All of the above

    Correct answer

Why this is the answer

These assets are not classified as capital assets and any gains from their sale are taxed as business income or are exempt.

Test yourself for real

Take a full NISM Series X mock test.

Same duration, same weighting, same difficulty distribution as the real exam — with explanations on every question.