Multiple choice general knowledge

IF YOU SELL YOUR OLD MARUTI CAR FOR MORE THAN YOU PAID, THE PROFIT IS SUBJECT TO:-

  1. NO TAXATION

  2. CAPITAL GAINS TAX

  3. SELLER'S TAX

  4. NONE OF THE ABOVE
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The correct answer is B. When you sell a capital asset like a car for more than you purchased it, the profit is considered a capital gain and is subject to capital gains tax. Unlike residential property (which has exemptions), cars are taxable assets. 'Seller's tax' is not a standard tax category in most tax systems.

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