n NISM Certifications
X NISM Series X
Medium

Which of these is classified as a Capital Asset under Indian Income Tax laws?

Practice question from NISM Series XB- Investment Adviser (Level 2) Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Rural agricultural land

  2. Shares held by an investor

    Correct answer

  3. C

    Shares held as stock-in-trade

  4. D

    Gold deposit bonds 1999

Why this is the answer

Shares held as an investment by an individual are capital assets; stock-in-trade and agricultural land in India are excluded from capital assets.

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