CHINMAY TUTORIALS (9929277130)
Professional Factory……. TAX full course test ,A SERIES
Time duration: 3 hoursMaximum marks:100
No. of Questions: 100
Q.1 Determine taxable amount of Allowances?
- Servant Allowance: 500 PM (Actual expenditure 400PM)
- Conveyance Allowance: 1000PM ( Actual expenditure 800PM)
- Children Education Allowance for Major Son 200PM
- Children Hostel Allowance 400PM for 2 children.
- Transport Allowance: 1000PM ( Actual Expenditure 900PM)
A.)12000 B.)Nil
C. )6000D).8400
Q.2 Mr. Ram has provided a House in Mumbai since 1 July 2015. Fair Rent 8000 P.M, Actual Rent paid by employer 7000 P.M. Along with House Furniture ( Owned by employer) is also provided costing 50,000 since 1 Oct. 2015. BP 20,000 P.M, DA: 10,000 P.M, Commission 5000 P.M. on 1 March, he Received advance salary for 2 Months. . Amount paid by Mr. Ram For House : 2000 P.M? Determine Value of House facility?
A.)15,750 B.)15,450
C. )18,350D.)NONE
Q.3 circulars and notifications are binding on the …………?
A) CBDT B)Assessee
C)ITAT D)Income tax authority
Q.4 If a firm total income is 1,03,00,000 the marginal relief available to the firm is :
A)3,09,000 B)3,03,000
C)99,000D)Nil
Q.5 XYZ , HUF whole affairs of business are completely controlled outside India .Determine iis Residential Status assuming Karta is ROR in India for that year :
(A) resident and ordinarily resident in India(B) resident but not ordinarily resident in India
(C) non-resident in India.(D) None
Q.6 If Anirudh has stayed in India in the P.Y. 2015-16 for 181 days, and he is resident in 9 out of 10 years immediately preceding the current previous year and he has stayed in India for 365 days in all in the 4 years immediately preceding the current previous year and 420 days in all in the 7 years immediately preceding the current previous year, has residential status for the A.Y 2016-17 would be-
A) Resident and ordinarily resident B)Resident but not ordinarily resident
C) Non – resident D) None of the above
Q.7 Determine NAV of the House property ?
- Fair Rent 90,000 P.A
- Rent Specified under Rent Control Act: 12,000 P.M
- Municipal Taxes: 20,000 @ 20%
- Rent Received : 8000 P.M.
- HP is purchased on 1 July 2015
- Tenant left the House on 1 March 2016 and after that HP Remain Vacant?
A. )67,000 B.) NIL
C. )47,000 D.) NONE
Q.8 Determine the amount of Interest Allowed u/s 24?
- Date of Loan : 1 Sept 2010
- Construction Completed : 1 Dec. 2015
- Loan Repaid: 1 Feb. 2016
- Amount of Loan: 5,00,000
- Interest Rate: 10% PA
- Nature of HP: Self-occupied
A.)15,000 B.)30,000
C.)87,500 D.NOTA
Q9. Determine Taxable income under the head Business and profession?
1. Business Receipt: 80 crore
2. Opening WDV of P&M : 85crore ( original cost 100 crore on 1 April 14)
3. New P&M purchases as on 1 Dec. 2015: 40crore
4. Nature : Company engaged in manufacturing of Articles?
A.)50croreB.)54.25 crore
C.)(11.055)crore D.45.625crore
Q.10If all the conditions specified under sec. 13A are satisfied that which of the following Income are Exempt.
A.) House property B).Capital Gains
C.) Business &ProfesionD) .Both a & B
Q.11Determine the tax liability of a Registered Charitable Trust in case if the amount of voluntary Donation( Name and Address is Not Available ) is 60,00,000?
A.)nil B.)17,61,300
C.)17,66,450 D.)None
Q12. Determine the Advance Tax Payable by Mr. Ram as on 15th Dec. 2015, assuming salary income 3,80,000 and Agriculture income 50,000.
A.)6800 B)8240.
C.)Nil D.)none
Q.13 As per section 92B of the Income-Tax Act, international transaction means a transaction between two or more associated enterprises, ……………………. Are non-residents, of specified nature.
A.) either or both of whomB.)both of whom
C.)one of whomD.)none of them
Q.14. Best Judgment Assessment is covered u/s
A.) 144B.) 143(2)
C.) 143(3)D.) 147
Q 15. An association of persons and body of individual who are subject to tax, audit in the immediately preceding financial year, making payment to resident contractor under section 194C-
A) Are not liable to deduct tax at source
B.) Shall be liable to deduct tax at source
C. )Are liable to deduct tax at source, if the turnover during the current year exceeds Rs. 100 lakhs
D.) None of the above
Q.16Mr.X , is suffering from low vision ( certified as severe disability).He has an income of Rs. 2,40,000. Mrs. X , suffering from leprosy (certified as 50% disable ) is fully dependent on Mr. X is eligible for deduction.
A.) under section 80UB.) under section 80DU
C.) under section 80U and 80DDD.) Not eligible for deduction
Q.17 Mr. Manoj an employee of A Ltd., incurred the following expenditure on medical treatment of his dependent brother suffering with physical disability(40%).
- Doctors Fees Rs. 80,000
- Medicines Rs. 20,000
- Travelling Expenses Rs. 10,000
Which of the following is the amount of deduction available to Mr. Manoj u/s 80DD of the Income-Tax Act,
A.)Rs. 50,000B.)Rs. 1,00,000
C.)Rs. 75,000D.) None of these
Q.18Which of the following income is not chargeable under income from Other Sources.
A.) Dividend incomeB.) Lottery held as stock in trade
C.) Interest on bank depositD.) None of the above
Q.19Which of the following dividend is exempt from tax
A.) Dividend income received from foreign country
B.) Dividend income referred to in sec. 10(34) and 10(35)
C.) Dividend from Co-operative society
D.) None of the above
Q.20Ratna has 100 parlty convertible debentures of X (P) Ltd. of Rs. 120 each acquired on 15/12/1999. On 17/07/2014, Company allotted 1,000 shares (Face value Rs. 10 each) against 40% of such debenture. On 8/06/2015, Ratna sold 75 debentures @ Rs. 113 each and 800 shares @ Rs 25 each. Compute capital gain.
A.) Long Term Capital Gain Rs.3,075& Short Term Capital Gain Rs. 16,160
B.) Long Term Capital Gain of Rs. 19,235
C.) Long Term Capital Gain of Rs. 18,843
D.) Long Term Capital Loss Rs. 4,560 & Short Term Capital Gain Rs. 16,160
Q.21 Mr. X. 82 Years of age non resident in India has earned Long Term capital gains on sale of building of Rs. 6,00,000 and has no other income. He has made payments of Rs. 1,00,000 in public provident fund. Determine his tax liability.
A.) NilB.)Rs. 1,23,600
C.)Rs. 1,06,000D.)Rs. 82,400
Q.22Mr.Mukul employed in private sector company, furnishes following information for the year ended 31-3-2016;
Income from salary ( computed) 5,00,000
LTCG on sale of land2,00,000
STCG on sale of shares STT paid1,50,000
Un-explained investments2,00,000
Compute the tax payable ?
A.) 1,57,080B.) 1,51,925
C.) 1,44,200D.) 1,25,660
Q.23 Any residential property that has been let-out for a minimum period of…………..in the pervious year shall not be regarded as an asset.
A. 100days B. 300days
C. 200days D. 150days
Q.24 Net wealth is to be rounded off of nearest multiple of………and wealth tax is to be rounded off to nearest multiple of………
A.) Rs. 100, Rs. 100 B.)Rs. 100, Rs. 10
C.) Rs. 100, Rs.1 D.)Rs. 10, Rs. 10
Q.25 Mr. Ram an individual paid medical insurance premium amounting to Rs.20,000 by cash during the year ending 31.3.2016 out of his taxable income , in respect of the policy on the health of farther (age 65 Years ) in accordance with the scheme framed by the GIC ? Determine the amount of deduction?
a) Rs. 20000b) 15,000
c) NIL d) NOTA
Q. 26 If an employer transfers second hand motor car to the employee, the perquisite is valued at
a)Actual cost less depreciation @ 30% for every completed year under straight line method
b)Actual cost less depreciation @20% for every completed year under WDV method
c)Actual cost less depreciation @30% for every completed year under WDV method
d)Actual cost less depreciation @20% for every completed year under SLM method.
Q. 27 Under section 41(4) of the Income-tax Act, 1961 where a bad debt allowed as a deduction under section 36(1)(vii) in an earlier year is subsequently recovered.
a)It is taxable to the extent of 50% of recovery, in the year of receipt, as business income.
b)It is taxable as business income in the year of recovery
c)It is added back to the income of the year when it was written off and taxed as business income.
d)It is taxable as income from other sources in the year of receipt
Q.28 The following is exempt income
a)Travel concession to employee;
b)Remuneration received for valuation of answer scripts;
c)Encashment of leave salary while in service;
d)Perquisites in India.
Q. 29 The following is capital receipt;
a)Dividend from investments;
b)Bonus shares;
c)Sale of technological know-how;
d)Compensation received for compulsory evacuation of place of business.
Q. 30 PREM BANSAL Ltd. makes a payment of Rs. 35,000 in cash to a transporter for plying of goods carriages in a single day. The disallowance under section 40A(3) will be
a)Rs. 35,000b)Rs. 20,000
c)Rs. 15,000d)Nil
Q.31 MAT credit under section 115JAA is allowed to be carry forward and set-off for ______years.
a)10b)8
c)7d)Infinitely
Q.32 In case of conflict between the provisions of Income Tax Act and the provisions of Double Taxation Avoidance Agreement (DTAA), the following shall prevail
a)The Income tax act, 1961
b)DTAA
c)Whichever is beneficial to the assessee
d)Whichever is beneficial to the Income Tax authorities
Q.33Where the Assessing Officer is aggrieved by an order of Commissioner of Income –tax (Appeals), further appeal in respect of same lies to:
a)Income-tax Appellate Tribunalb)Dispute resolution panel
c)Central board of Direct Taxesd)Income-tax Settlement Commission
Q.34An Assessee who has taxable income of 1,84,000 , paid house rent of Rs 4800 PM in respect of the residential house occupied at Mumbai ? Determine the amount of deduction?
a) Rs. 24000b) 46000
c) 39200 d) NOTA
Q.35 Mr. Xavier received Rs. 2,00,000 from the prospective employer before joining duty in order to resign from the present employer, subsequently, he joining duty new employer. The amount received is
ATaxable as income from business
BTaxable as salary income
CExempt from tax u/s 10
DExempt being capital receipt
Q.36A & Co., a partnership firm, contributed Rs. 1,00,000 towards family planning programme among the employees. The amount eligible for deduction would be
A1,00,000b20,000
C1,50,000dNil not eligible for deduction
Q.37Gross Total Income of A aged 31 years as computed under Income-tax Act for the AY 2016-17 is Rs. 3,50,000. He deposits Rs. 20,000 in a PPF account. Compute the tax payable by A assuming that he has agricultural income of Rs. 3,50,000.
a) Rs. 14,420b) Rs. 16,480
c) Rs. 8240d) NOTA
Q.38Deduction under section 80E is allowed for payment by way of interest on loan to the extent of:
a)Rs. 25,000b)Rs. 40,000
c)any amountd) 10% of adjusted total income of the assessee
Q.39In case of a closely held company, if the person beneficially holding
______of the voting power as on the last day (i.e. 31st March) of the year in which the loss was incurred and on the last day (i.e. 31st March) of the year in which the company wants to set off the brought forward loss are different, then the company cannot setoff such brought forward loss.
(a) 20% (b) 25% (c) 50% (d) 51%
Q.40X Ltd. has failed to remit the tax deducted at source from annual rent of Rs. 6,60,000 paid to Mr. A for its office building. Said rent is
a)fully allowable as a business expenditure;
b)Not allowable in view of Section 40(a)(i);
c)allowable to the extent of 70%
d)None of the above
Q.41In respect of listed shares held for 10 months sold on 12.08.2015, the rate of tax in respect of capital gains is:
a)10%
b)20%
c)15%
d)Not determinable, as the capital gains will form part of the total income whose other components are not known.
Q.42Validity period of stay of recovery granted by ITAT is:
a)180 daysb)One year
c)till final order is passed by Tribunald)Three years
Q.43If any expenditure is incurred by an Indian company wholly and exclusively for the purpose of amalgamation or demerger, the said expenditure is:
a)Not allowable as a deduction in computing profits and gains of business or profession
b)Fully deductible as revenue expenditure in the year in which it is incurred
c)Not deductible but is eligible to be treated as an intangible asset in respect of which depreciation can be claimed.
d)Allowed as a deduction spread over five successive previous years beginning with the previous year in which the amalgamation or demerger takes place.
Q.44Gift received from one or more unrelated person(s) during the previous year shall from part of an individual’s income, if the aggregate of gifts exceeds
a)Rs. 50,000b)Rs. 1,10,000
c)Rs. 1,35,000d)Rs. 1,65,000
Q.45Long-term capital gain arising to an assessee on the sale of a capital asset is exempt under section 54 EC of the Income-tax Act, 1961,
a)To the extent of investment in specified bonds upto a limit of Rs. 100 lakhs
b)To the extent of 50% of investment in certain bonds upto a limit of 50 lakhs
c)To the extent of investment of capital gain in specified bonds not exceeding Rs.
50 Lakhs
d)Proportionate to the extent of investment of net sale proceeds in specified bonds, not exceeding Rs. 50 Lakhs.
Q.46Mrs. Ram receives salary of Rs. 5,00,000 from a firm in which her husband hold 25% profit share. She does not possess any professional or technical or technical qualification nor any experience. Apart from this she has income from house property (acquired by herself) of Rs. 2,00,000. Taxability will be:
a)Mrs. Ram 2,00,000, Mr. Ram 5,00,000
b)Mr. Ram 7,00,000
c)Mrs. Ram 7,00,000
d)Mrs. Ram 5,00,000, Mr. Ram 2,00,000
Q.47Mr. A has three minor children deriving interest from bank deposits ofRs. 2,000, Rs. 1,300 and Rs. 1,600 respectively. Exemption available under section 10(32) of the Income tax Act, 1961 is
a)Rs. 4,900b)Rs. 4,300
c)Rs. 4,500d)None of the above
Q.48Following Form Number is to be used for filling the return of income by an individual having business income
a)Form No 1b)Form No.2
c)Form No 4d)Form No 4A.
Q.49Xamas Charities received anonymous donation of Rs. 5 lakhs. The said sum is
a)Exempt from taxb)Partly exempt and partly taxable
c)Taxable @30%d)None of the above
Q.50 RAJASTHALI Ltd. a company engaged, in the manufacture of automotive parts, the rate of depreciation on acquiring machinery from UK on 1st January, 2016 to be used in India for the first time for AY 2016-17 will be:
a)15%b)25%
c)7.5%d)none of the above
Q.51Mr. X gift Rs. 1 lakh to his wife Mrs. X on April, 1, 2015 which she invests in a firm on interest rate of 14% per annum. On January 1,2016, Mrs. X withdraws the money and gifts it to her son’s wife. The She claims that the interest which has accrued to the daughter-in-law, from January, 1,2016 to March 31,2016 on investment made by her is not assessable in hands but in the hands, Mr. X . Is claim of Mrs. X is main table?
a)Validb)Void
c)Voidabled)NOTA
Q.52The charging section of the Income Tax Act is
ASection 1bSection 2
CSection 3dSection 4
Q.53Mr. RakeshBehari is a trader and deals in purchase and sales of cloth. He is required to get his account audited under section 44AB if his total sales/turnover exceeds
A40,00,000b10,00,000
C15,00,000d100,00,000
Q.54 A Company is required to pay 75% of its advance tax liability by which date
A15 March of the previous year
B15 December of the previous year
C15 September of the previous year
D15 June of the previous year
Q,55When a person retires from a profession and receives any amount towards self-generated goodwill, it is
ATaxable as income from profession
BExempt income under section 10
CNot taxable since there is no cost of acquisition
DTaxable as capital gain
Q.56Jain introduced his motor car costing Rs. 3,00,000 acquired in April, 2012 into the business newly commenced by him from 01.04.2015. The actual cost of car for the purpose of deprecation would be
A3,00,000b2,16,750
C1,50,000dNil not eligible for depreciation
Q.57The basic exemption limit for a non-resident super senior citizen above the age of 80 years for the assessment years 2016-17 is
A2,00,000b2,50,000
C5,00,000d1,60,000
Q.58Azhar, being employee in a transport company, received Rs. 10,000 per month by way of allowance to meet his personal expenses in the course of running such transport system from one place to another. The amount chargeable to tax is
ANilbRs. 3,000 p.m.
CFully taxabledFully exempt
Q. 59 Sita received family pension of Rs. 10,000 per month in the capacity of widow of the deceased spouse who died in the course of operational duties in Indian army. The amount of family pension chargeable to tax is
A1,20,000b1,05,000
CNild30,000
Q.60 Government’s contribution to the new pension scheme referred to in section 80CCD is
AA exempt income;
Bincome chargeable to tax as “salaries in full;
C50% thereof is income chargeable to tax as “salaries”
Dincome chargeable to tax as “Income from other sources” in full.
Q.61In case of an investor in shares, in respect of shares sold, securities transactions tax paid (at the time of purchase of the said shares earlier), is
a)to be added to the cost of acquisition
b)to be deducted as an expenditure connected with transfer
c)not deductible at all while computing capital gains,
d)none of the above
Q.62Mr. Siddharth was a partner in a firm, representing his HUF, holding 25% of the share in the firm. His wife Nidhi is, house lady was admitted in her individual capacity in the firm for 25% share. She was paid remuneration which has been proposed by the Assessing officer to be clubbed in the hands of Siddharth HUF by invoking section 64 of the Act. Is action of Assessing officer is valid ?
a)Validb) Void
c)Voidabled) NOTA
Q.63Interest under section 234B is payable by an assessee due to the following reason
a)Default furnishing return of income
b)Default in payable of advance tax
c)Default in installments of advance tax
d)Default due to non-deduction of tax at source
Q.64Where assessment has not been completed, belated income –tax return for assessment year 2016-17 can be filed upto
a)31.03.2015b)31.12.2016
c)31.03.2018d)31.12.2018
Q.65Where the karta is not available, the return of wealth of HUF can be signed by
a)Any adult member of the family
b)Any adult coparcener of the family;
c)The male member who is next in seniority to the karta
d)None of the above
Q.66 Mr. X gifts Rs. 60,000 to the HUF of which he is member; said amount will be treated as income of
a)Mr. Xb)The HUF;
c)None, as it is exemptd)None of the above
Q.67Miss Padmaja received Rs. 50,000 on 13.10.2015 being the unrealized rent pertaining to an earlier year, consequent to court decree. The property to which the unrealized rent relates was sold in the year 2010-11. The unrealized rent amount received now is
a)Fully taxable as income from other sources
b)50% taxable as income from other sources
c)Fully taxable as income form house property
d)70% taxable as income form house property
Q.68The following information is given by an assessee for the preparation of his income tax return of A.Y. 2016-17.
Loss under the head business1,00,000
Capital gain on sale of house property-long term2,00,000
Capital loss on sale of shares-short terms 50,000
Loss in respect of property used of the purpose of residence10,000
Loss in respect of property let out25,000
Share of loss from partnership firm brought forward from A/Y 2014-1560,000
Determine taxable income?
a)25000b)15000
c)Nild)NOTA
Q.69Deduction of profit and gains derived from export under section 10AA available to SEZ units is for ………. Years
A10b5
C8dNone of these
Q.70 Xing Ltd. is incorporated is USA, it declared of Rs. 1,00,000 to its Indian shareholder on 30th September, 2014. The rate at which Xing Ltd. is liable to pay Dividend Distribution Tax (DDT) under section 115-0 is equal to
A15%b16.995%
C16.61%dNot liable to pay DDT
Q.71. Under VAT the general rates are-
A.) 0%,1%,2%,3% + Surcharge
B.) 0%, 1%, 4%, 12.5% with no additional tax or surcharge
C.) 0%, 1%, 2%, 12.5% with no additional tax or surcharge
D.)0%,1%,4%,12.5% + Surcharge
Q 72 Choose the correct difference between sales tax system and VAT system.
A.) Sales tax is levied on the full sale price but VAT is levied on half sale price.
B.) Sales tax is multi- point tax but VAT is a single point tax.
C.) Goods subjected to sales tax are not taxed again on subsequent sale but Goods subjected to VAT are taxed again on each and every sale.
D.) All of the above.
Q 73 XYZ Mfg. Co Ltd. have balance in the input tax credit a/c Rs. 10,900. The selling price of the goods is Rs.4,08,000 and cost to purchaser is Rs. 4,24,320. What is the amount of VAT payable in cash by the XYZ mfg.Co.Ltd-
A.) Rs. 10,900 B.)Rs. 16,320
C.) Rs. 5,420 D.) Nil
Q.74 Choose the correct answer in respect of Income Variant of VAT-
A.) VAT credit helps in modernization and up gradation of plants & machinery
B.) VAT credit reduce the working capital requirements
C.) There is uncertainty in computation of VAT credit on Plant & Machinery