Attempt this previous-year question. The correct option stays hidden until you choose.
Under which of the following circumstances may ‘capital gains’ arise?
1. When there is an increase in the sales of a product
2. When there is a natural increase in the value of the property owned
3. When you purchase a painting and there is a growth in its value due to increase in its popularity
Select the correct answer using the codes given below:
Pick an option to check yourself.
• Correct Answer: B
• Capital gains arise from appreciation of capital assets (property, paintings) sold above cost.
• Higher product sales generate business revenue, not capital gains.
Attempt Prelims MCQs or open Mains questions by paper — then continue the same bank inside the app with visual decks.
GyanGram