CS Executive Tax Law and Practice Online Test, CS Mock Test 2020

A person includes

Describe the status of the following person (i.e. individual, HUF, Firm, Company etc.)
X and Y are legal heirs of Z. Z died in 2014 and X and Y carry on his business without
entering into a partnership

Every assessee is a person, and

Assessment year can be a period of:

Year in which income is taxable is known as…………………. and year in which income is
earned is known as…………………….

All assessees are required to follow:

First previous year in case of a business/profession newly set up on 31.3.2014 would:

A person follows Calendar year for accounting. For taxation, he has to follow:

In which of the following cases, income of previous year is assessable in the previous
year itself:

In which of the following cases, Assessing Officer has the discretion to assess the
income of previous year in previous year itself or in the subsequent assessment year:

In case of a female individual, who is of 59 years of age, what is the maximum
exemption limit for AY 2014-15:

Calculate Income-tax payable by an Individual (aged 30 years) for AY 2014-15 if his
total income is Rs. 1,01,20,000:

Calculate the amount of rebate under section 87A in case of a resident individual
having total income of Rs. 3,00,000.

Out of the following, which of the capital receipt is not taxable:

Total income is to be rounded off to nearest multiple of……. and tax is to be rounded
off to nearest multiple of ………

Income accrued outside India and received outside India is taxable in case of

An Indian company would:

Determine the residential status of a HUF if HUF’s control and management is wholly
situated in India and Karta of HUF is a Non-resident in India for that previous year.

Profits of Rs. 1,00,000 for the year 2012-13 of a business in Germany remitted to India
during the previous year 2013-14 (not taxed earlier) would be:

Profits of Rs. 2,00,000 is earned from a business in USA which is controlled in India,
half of the profits being received in India. How much amount is taxable in India for a Nonresident
individual?

Dividend from British Co. of Rs. 2,00,000 received in London will be taxable in case
of:

Which out of the following income is exempt from tax?

Which income out of the following is an exempt income for political party?

Dividend received by a shareholder from an Indian company is exempt. Interest or any
other expenditure incurred for earning such dividend income shall:

Gross Total Income is arrived after:

Salary of S (Rs. 40,000 per month) becomes due on the last day of the month but is
paid on 7th of next month. Also, salary of April, 2014 and May, 2014 is received in advance
in March, 2014. What will be his gross income for Assessment Year 2014-15?

Calculate the exempt HRA from the following details:
X is entitled to a basic salary of Rs. 50,000 p.m. and dearness allowance of Rs. 10,000 p.m.,
40% of which forms part of retirement benefits. He is also entitled to HRA of Rs. 20,000 pm.
He actually lives with his parents in Mumbai and does not pay any rent. Market rent of that
house is Rs. 20,000 pm in Mumbai.

Y received children education allowance of Rs. 500 pm for 10 of his children.
Calculate taxable amount of children education allowance for the assessment year 2014-15 if
entire Rs. 500 is spent by Y.

A Ltd. has advanced an interest free loan of Rs. 5,00,000 to B for purchase of car on
1.5.2013. B has been repaying the loan in instalments of Rs. 20,000 p.m. on the 1st of next
month. Compute the value of perquisite on account of interest assuming the interest charged
by SBI is 10% p.a.

Employer provides a car (below 1.6 Ltr. capacity) alongwith a driver to X partly for
official and partly for personal purpose. The expenses incurred by the company are:
running and maintenance expenses – Rs. 32,000
driver’s salary – Rs. 36,000
Taxable value of perquisite is:

X retired on 15.4.2013 from a company. He was entitled to a pension of Rs. 4,000 p.m.
At the time of retirement, he got 75% of the pension commuted and received Rs. 1,20,000 as
commuted pension. Compute the taxable portion of the commuted pension if he is entitled to
gratuity.

Mr. A (65 years) submits the following information for the Assessment year 2014-15:
Gross salary – Rs. 8,80,000
Income from other sources – Rs. 60,000
Contribution to PPF- Rs. 70,000
Compute the tax liability of A.

Calculate the Gross Annual value from the following details:
Municipal Value – Rs. 45,000
Fair rental value – Rs. 50,000
Standard rent – Rs. 48,000
Actual Rent – Rs. 42,000

M took a loan of Rs. 6,00,000 on 1.4.2011 from a bank for construction of a house.
The loan carries an interest @ 10% p.a. The construction is completed on 15.6.2013. The
entire loan is still outstanding. Compute the interest allowable for the assessment year 2014-
15.

A had one self occupied house property in Mumbai for residence. Fair rent of that
property is Rs. 56,000 per annum. Municipal valuation is Rs. 28,000. Municipal taxes paid
are Rs. 5,000 including Rs. 1,000 for an earlier year. The house was constructed in
December, 2005 with a loan of Rs. 12,00,000 from a bank taken in November, 2004. During
the previous year 2013-14, the assessee refunded Rs. 2,30,000 which includes Rs. 1,68,000 as
current year interest. Compute the income from house property for assessment year 2014-15?

Which out of the following is not a case of deemed ownership of house property?

Which of the following income is not chargeable as income of business or profession?

Income is chargeable as profits of the business, only if the business is carried on by the
assessee at any time during the previous year. However, there are certain exceptions to the
above rule. Which out of the following is not an exception:

If a new machinery is purchased on 15.4.2013 and put to use for the purpose of the
business on 28.12.2013, depreciation would be allowable at the rate of:

Which of the following expenditure on scientific research is not allowed as deduction?

Which out of the following is not a condition to be fulfilled for claiming expenditure
under section 37(1)?

Financial statement of A on 31.3.2014 reveals that the following expenses were due
during year ended 31.3.2014 but have been paid after 31.3.2014:
Employer’s contribution to provident fund: Rs. 55,000 (Rs. 25,000 paid on 15.7.2014, Rs.
10,000 paid on 31.7.2014 and Rs. 20,000 paid on 15.1.2015)
The due date of filing return is 31.7.2014. What would be the deduction for AY 2014-15?

M owns the following commercial vehicles:
(i) 2 light commercial vehicles: one for 9 months and two days and the other for 12 months
(ii) 2 heavy good vehicle – one for 6 months and 25 days and the other for 11 months and 12
days.
(iii) 2 medium goods vehicles – one for 6 months and the other for 8 months and 15 days
Compute the income from business of M if he opts for the scheme under section 44AE.

Cost of Acquisition in case of bonus shares allotted before 1.4.1981 will be:

Indexation benefit on Cost of acquisition is available on the long term capital asset.
However, in certain cases, indexation benefit is not available. In which of the following
cases, indexation benefit is allowed?

A owns a house property which was purchased by him on 1.5.1979 for Rs. 3,00,000.
The said property was destroyed by fire on 3.4.2013 and A received a sum of Rs. 38,00,000
from the insurance company during the year. The market value of the above property as on
1.4.1981 was Rs. 4,00,000.
Compute the capital gain for the assessment year 2014-15. (Cost inflation index for F.Y.
1980-81= 100, and 2013-14 = 939)

M owns two machineries eligible for depreciation at the rate of 15%. The WDV of
these machines as on 1.4.2013 was Rs. 25,000 and Rs. 40,000 respectively. No other asset
was acquired in this block during the year. One of these machines were sold during the
previous year for Rs. 75,000. Compute the capital gain.

For availing exemption under section 54, which amount is eligible for availing
exemption?

Which of the following is not an income taxable as income from other sources?

ABC Private Limited gives a loan of Rs. 5,00,000 to X, who is not a shareholder. X
gives the amount as loan to A who is shareholder in ABC Private Limited holding 15%
shares. In this case, amount taxable as deemed dividends in the hands of X will be……….and
that in hands of A will be………….