CAF-2 · Chapter 9 · Question 3 of 15
Mr. Zaid sold an antique coin collection at a loss of Rs. 80,000 and his wife's jewelry at a gain of Rs. 150,000 during the tax year. What is the net capital gain chargeable to tax?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) B) Rs. 150,000
Explanation
According to Section 38(5), no loss is recognized on the disposal of specific capital assets such as a painting, jewelry, coin, medallion, or antique. Therefore, the loss of Rs. 80,000 on the coin collection cannot be deducted, and the full gain of Rs. 150,000 on the jewelry is taxable.
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