CAIIB 2020 Retail Banking Mock Tests Set 8

Any profit or gain from transfer of a capital asset is chargeable to tax under the head _____


Options are :

  • Normal Gains
  • Capital Gains
  • Scheduled Gains
  • None of the above

Answer :Capital Gains

CAIIB 2020 Retail Banking Mock Tests Set 9

Which of the following assets are excluded from the definition of capital assets-

I) Stock-in-trade, stores, raw material;

II) Personal effects (excluding Jewelry, archeological collections, drawings, paintings, sculptures, etc.);

III) Agricultural land in India.

IV) Bonds/securities under certain schemes, as announced by Government.


Options are :

  • Only I,III
  • Only I,II,III
  • Only II
  • All of the above viz. I,II,III,IV

Answer :All of the above viz. I,II,III,IV

For the purpose of Income-tax Law “Transfer”, in relation to a capital asset, includes-

I) Sale, exchange or relinquishment of the asset.

II) Extinguishment of any rights in relation to a capital asset.

III) Compulsory acquisition of an asset.

IV) Conversion of capital asset into stock-in-trade.

V) Maturity or redemption of a zero coupon bond.


Options are :

  • Only I,III,V
  • Only I,II,IV,V
  • Only II,IV,V
  • All of the above viz. I,II,III,IV,V

Answer :All of the above viz. I,II,III,IV,V

_______  means a capital asset held for less than 36 months immediately prior to the data of transfer.


Options are :

  • Short term capital asset.
  • long term capital asset
  • Ultra Short term capital asset
  • Ultra long term capital asset

Answer :Short term capital asset.

CAIIB 2020 Bank Financial Management Mock Tests Set 1

In respect of which of the following assets the period of holding to be considered is 12 months instead of 36 months.

I) shares (equity or preference) which are listed in a recognised stock exchange in India.

II) units of equity oriented mutual funds.

III) listed securities like debentures and Government securities.

IV) Units of UTI and Zero Coupon Bonds.


Options are :

  • Only I,III,IV
  • Only I,II,III
  • Only II,IV
  • All of the above viz. I,II,III,IV

Answer :All of the above viz. I,II,III,IV

In case of unlisted shares in a company, the period of holding to be considered is ______ instead of 36 months.


Options are :

  • 6 months
  • 12 months
  • 24 months
  • 36 months

Answer :24 months

With effect from Assessment Year 2018-19, the period of holding of immovable property (being land or building or both), is considered to be ______  instead of 36 months.


Options are :

  • 6 months
  • 12 months
  • 24 months
  • 36 months

Answer :24 months

CAIIB 2020 Bank Financial Management Mock Tests Set 10

Short Term Capital Gain on property is considered as a gain from selling a property which was held by an assesse for not more than ______


Options are :

  • 6 months
  • 12 months
  • 24 months
  • 36 months

Answer :36 months

Long term capital asset means a capital asset held for more than _______ immediately prior to the date of transfer.


Options are :

  • 6 months
  • 12 months
  • 24 months
  • 36 months

Answer :36 months

_______ is a process by which the cost of acquisition is adjusted against the inflationary rise in the value of the asset.


Options are :

  • Data Linkage
  • Inflationary Valuation
  • Indexation
  • None of the above.

Answer :Indexation

CAIIB 2020 Bank Financial Management Mock Tests Set 11

When an individual sells a residential property and buys another residential property, he will be eligible for exemption under Section 54. Conditions to avail the benefit of exemption under Section 54 includes -

I) The taxpayer (ie. seller) needs to be an individual or HUF. Thus, firms, LLP’s and companies cannot utilize the benefits of this section.

II) Asset needs to be classified as a long-term capital asset.

III) The asset sold is a Residential House. Income from such a house should be chargeable as Income from House Property

IV) The seller should purchase a residential house either 1 year before the date of sale/transfer or 2 years after the date of sale/transfer. In case the seller is constructing a house, the seller has an extended time, ie. the seller will have to construct the residential house within 3 years from the date of sale/transfer. In case of compulsory acquisition, the period of acquisition or construction will be determined from the date of receipt of compensation (whether original or additional compensation)

V) The new residential house should be in India. The seller cannot buy or purchase a residential house abroad and claim the exemption.


Options are :

  • Only I,III,IV,V
  • Only I,II,III
  • Only II,IV,V
  • All of the above viz. I,II,III,IV,V

Answer :All of the above viz. I,II,III,IV,V

What is the amount of Exemption available under Section 54 of the Income tax act?


Options are :

  • Capital gains arising on transfer of residential house.
  • Investment made in purchase or construction of a new residential house property.
  • Both A and B
  • lower of A or B

Answer :lower of A or B

The Income-tax Department grants registration to Valuers u/s _____ of the Wealth Tax Act, 1957, on the basis of their technical background and experience.


Options are :

  • 34A
  • 34B
  • 34AB
  • None of the above.

Answer :34AB

CAIIB 2020 Bank Financial Management Mock Tests Set 12

_______ is a professional body that grants membership to practicing Valuers.


Options are :

  • The Institution of Valuers, Delhi
  • The Institution of Valuers, Mumbai
  • National Council of Valuers,Delhi
  • National Council of Valuers,Mumbai

Answer :The Institution of Valuers, Delhi

The factors that influence the return from agricultural land are-

I) Location

II) Soil quality

III) Availability of water & electricity

IV) Size of holding 

V) Clear Title of land


Options are :

  • Only I,II,III
  • Only II,III,IV
  • Only I,III,IV
  • All of the above viz. I,II,III,IV

Answer :All of the above viz. I,II,III,IV

Valuation of agricultural land is done by -


Options are :

  • Income Capitalisation Method
  • Sales Statistics Method
  • Either A or B
  • Both A and B

Answer :Both A and B

CAIIB 2020 Bank Financial Management Mock Tests Set 13

In ______, the valuation is based on the comparable sale value of similar agricultural land located in the vicinity of the land to be valued


Options are :

  • Income Capitalisation Method
  • Sales Statistics Method
  • Capital Valuation Method
  • Both A and B

Answer :Sales Statistics Method

The factors that have a bearing on value of vacant land are:

I)  Location.

II)  Size, shape and level.

III)  Soil quality, water availability.

IV)  Frontage &depth.

V)  Restrictions on development.


Options are :

  • Only I,II,III
  • Only II,III,IV
  • Only I,III,IV
  • All of the above viz. I,II,III,IV,V

Answer :All of the above viz. I,II,III,IV,V

________ refers to the ratio of total built-up area inclusive of all floors to the area of land on which the building is constructed. It is determined by local authority and varies for different areas or different building in the city.


Options are :

  • Carpet Index
  • Built-Up Index
  • Floor Space Index
  • None of the above

Answer :Floor Space Index

CAIIB 2020 Bank Financial Management Mock Tests Set 14

If a 2,000 Sq.ft. building stands on a 1,000 sq.ft. plot. The Floor Area Ratio or Floor Space Index =?


Options are :

  • 1:02
  • 2:01
  • 0.5:1
  • 01:00.5

Answer :2:01

________  is adopted for big size plots with lesser frontage and more depth. The land is divided into several belts running parallel to the frontage and progressively lower rates are taken for belts farther from the frontage.


Options are :

  • Comparative Method
  • Rent Capitalisation Method
  • Belting Method
  • None of the above

Answer :Belting Method

At the end of life of the structure i.e., when it ceases to yield desired income, a property has to be replaced or rebuilt so the income may continue for further period. The fund set aside for the purpose of recovering the original capital is called ____


Options are :

  • Sinking Fund
  • Diluted Fund
  • Lost Fund
  • Submerged Fund.

Answer :Sinking Fund

CAIIB 2020 Bank Financial Management Mock Tests Set 2

In ___ method, it is assumed that the property will lose value by a constant percentage of its value at the beginning of the year. Thus the amount of depreciation goes on reducing every year because while depreciation is charged at fixed percentage, the capital value of asset decreases by depreciation charged every year.


Options are :

  • Straight Line Method
  • Written Down Value
  • Sum of the Years Digits
  • None of the Above

Answer :Written Down Value

An asset cost ? 5,00,000/- has residual value of ? 50,000/-, and is expected to last 5 years. Calculate the total depreciation till 3rd year using Straight-line Method.


Options are :

  • ? 90,000
  • ? 1,00,000
  • ? 2,70,000
  • ? 3,00,000

Answer :? 2,70,000

The balance of furniture and fixtures as on 1st April, 2009 was ? 10,000. Furniture of ?5,000 was purchased on 1st October, 2009. Depreciation is charged @ 10% p.a. on W.D.V. method. The depreciation for the year ended 31st March, 2010 will be _____


Options are :

  • ?1,500
  • ?1,250
  • ?1,750
  • None of the above

Answer :?1,250

CAIIB 2020 Bank Financial Management Mock Tests Set 3

Which one of the following statements in respect to Reverse Mortgage Loan (RML) is appropriate?


Options are :

  • RML provides the person who owns the house to retain and release capital without effecting sale.
  • Persons beyond the age of 55 are not eligible for RML.
  • Under RML the borrower is required to service the interest when called for.
  • The borrower’s stake is low initially under RML.

Answer :RML provides the person who owns the house to retain and release capital without effecting sale.

_________ is a Scheme developed by the National Housing Bank (NHB) to help Senior Citizens (persons above the age of 60 years) to avail of periodical payments from a lender against the mortgage of his/her house while remaining the owner and occupant of the house. The borrowers are not required to service the loan during their lifetime and, therefore, do not make monthly repayments of principal and interest to the lender.


Options are :

  • Housing Loan
  • Reverse Mortgage Loan
  • Property Loan
  • Old Age Housing Loan

Answer :Reverse Mortgage Loan

Which of the following statements are correct w.r.t. eligibility criteria for availing an RML?

I) Indian Citizen above 60 years of age.

II) Married couples will be eligible as joint borrowers for joint assistance. In such cases, the age criteria for the couple would be at the discretion of the RML lender, subject to at least one of them being above 60 years of age and the other not below 55 years of age.

III) Should be the owner of a residential property (house or flat) located in India, with clear title indicating the prospective borrower's ownership of the property.

IV) The residential property should be free from any encumbrances.

V) The residual life of the property should be at least 20 years.


Options are :

  • Only I,II,III
  • Only II,III,IV
  • Only I,III,IV
  • All of the above viz. I,II,III,IV,V

Answer :All of the above viz. I,II,III,IV,V

CAIIB 2020 Bank Financial Management Mock Tests Set 4

If there is a building with 5 floors each floor containing 10,000 Sq Ft and the land lot is 3 acres. The FAR will be -


Options are :

  • 0.25:1
  • 0.38:1
  • 0.78:1
  • 0.12:1

Answer :0.38:1

Valuation of open land is done by which of the following methods –


Options are :

  • Comparative Method
  • Rent Capitalisation Method
  • Belting Method
  • All of the above

Answer :All of the above

Comment / Suggestion Section
Point our Mistakes and Post Your Suggestions