X purchased a land in the P.Y. 1997- 98 for Rs. 50,000. This land was sold by him during the P.Y. 2009-10 for Rs. 8,00,000. The fair market value of this land on 1-4-81 was Rs. 1,20,000. If the Cost Inflation Index for the A.Y. 2010-11 is 632, his capital gain for the A.Y. 2010-11 will be
A. Rs. 4,84,000
B. Rs. 7,50,000
C. Rs. 6,80,000
D. Rs. 41,600
Answer:D
X purchased a land in the P.Y. 1997- 98 for Rs. 50,000. This land was sold by him during the P.Y. 2009-10 for Rs. 8,00,000. The fair market value of this land on 1-4-81 was Rs. 1,20,000. If the Cost Inflation Index for the A.Y. 2010-11 is 632, his capital gain for the A.Y. 2010-11 will be
A. Rs. 4,84,000 B. Rs. 7,50,000 C. Rs. 6,80,000 D. Rs. 41,600