KNOWLEDGE BANK FROM B KANAGA SABAPATHY SIR

LET KNOWLEDGE SPREAD

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PART-18 29.05.2021

CHOOSE THE RIGHT ANSWER – YES / NO

171. In case of any sale or transfer of any real estate property, the capital invested is not certain. Is it right?.….. Yes/No

172. In a court judgement Gold coast vs. Humphrey, Justice Viscount Simon has stated “Valuation is not an exact science”. Is it right?.….. Yes/No

173. International Valuation Standards committee was established in the the year 1981. Is it right?.….. Yes/No

174. A building is having a width of 30 feet and the length is 120 feet. For valuation of this building, belting method can be adopted.
Is it right?.….. Yes/No

175. There is no absolute in valuation in the entire country. For example, a T shaped plot does not enjoy a good value in a few locations whereas many buyers in a few states are willing to give a premium value for such plots. Is it right?.….. Yes/No

176. Valuation of tangible assets involves three approaches namely cost approach, market approach and income approach. Is it right?.….. Yes/No

177. In income approach, the outgoings from the property is the basis to estimate the value of the property. Is it right?.….. Yes/No

178. While estimating the value of a property by land & building method (cost approach), apart from considering the depreciation for wear and tear, the obsolescence is also to be considered. Is it right?.….. Yes/No

179. Even if revaluation is required by the banks for lending purpose, physical inspection is not a must. Is it right?.….. Yes/No

180. Valuation under rule I BBfor wealth tax valuation is existing now. Is it right?.….. Yes/No

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ANSWERS KEYS:
Part 18

171 – Yes
172 – Yes
173 – Yes
174 – No
175 – Yes
176 – Yes
177 – No
178 – Yes
179 – No
180 – No

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PART-19 30.05.2021

CHOOSE THE RIGHT ANSWER – YES / NO

181. The plinth area is to be calculated as per IS 3861-1966. Is it right?.….. Yes/No

182. While giving valuation for the purpose of cost of construction under Income Tax act, value of land is to be done based on guideline rate. Is it right?.….. Yes/No

183. Evasion of taxes by assessees in cost of construction under Income tax act is linked with the practice of getting under valuation from the registered valuers. Is it right?.….. Yes/No

184. The capital gains is literally a tax on unearned increment to the property by market forces and not by the endeavor of the investor. Is it right?.….. Yes/No

185. Each valuation case is unique. There is no absolute in valuation. Is it right?.….. Yes/No

186. The Supreme court of India in the case of Union Bank of India vs official liquidator, the high court of Calcutta and others (2000-(005) – SCC – 0274) has held that for deciding what would be the reasonable price, valuation report of an expert is a must. Is it right?.….. Yes/No

187. The construction works of a commercial building commenced in 2001 and completed in 2008. For the purpose of report on cost of construction, the plinth area rate as on 2008 is to be considered. Is it right?.….. Yes/No

188. The difference between forced sale value and orderly liquidation value is due to the urgency under which the property is sold. Is it right?.….. Yes/No

189. Even if there are no rights in the property, there is a value. Is it right?.….. Yes/No

190. Tangible assets do not include shares, stocks, debentures. Is it right?.….. Yes/No

ANSWERS KEYS:
Part 19

181 – No

182 – No

183 – Yes

184 – Yes

185 – Yes

186 – Yes

187 – No

188 – Yes

189 – No

190 – Yes

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PART-20 31.05.2021

CHOOSE THE RIGHT ANSWER – YES / NO

191. Rent and lease are the same. Is it right?.….. Yes/No

192. The two principal interests in a property are : leasehold and freehold. Is it right?.….. Yes/No

193. In a freehold property, the owner enjoys a perpetual possession in his property. Is it right?.….. Yes/No

194. Lease and license are the same. Is it right?.….. Yes/No

195. A lease is the outcome of the rightful separation of ownership and possession. Is it right?.….. Yes/No

196. In a lease, the lessee cannot sell the property whereas he can sublet if the agreement permits. Is it right?.….. Yes/No

197. If the lessee commits a breach of the terms and conditions of the lease, the lease cannot be terminated by the lessor immediately i.e. before the maturity date of lease. Is it right?.….. Yes/No

198. When a parcel of land is given on lease, the rent reserved in lease is called as Head rent. Is it right?.….. Yes/No

199. In a lease, the improved rent is Rs. 7,800/- whereas the head rent is Rs. 5,800. Therefore the profit rent is Rs. 2,000/-. Is it right?.….. Yes/No

200. Mr. ‘A’ has leased a property to lessee Mr. ‘B’ for Rs. 5,800/-. Lessee ‘B’ in turn has subleased the same property to Mr. ‘C’ for Rs. 7,800/-. The improved rent is Rs. 7,800/-. Is it right?.….. Yes/No