pyq/2012/prelims/76

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:

(A) 1 only

(B) 2 and 3 only

(C) 2 only

(D) 1, 2 and 3