CAF-2 · Chapter 9 · Question 11 of 15
Which of the following immovable properties is NOT excluded from the levy of tax on deemed income under Section 7E?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) C) A vacant residential plot worth Rs. 40 million, which is the person's second property and not rented out.
Explanation
The vacant residential plot (which is a second property, not rented out, and exceeds the Rs. 25 million aggregate threshold) does not meet any of the exclusion criteria under Section 7E and will be subject to the deemed income tax.
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