Cs Executive Taxation Solution Dec 2015 Exams

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CS Executive Taxation solutions for MCQ based paper
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  324 Nafe,. All references to soctions me&tianed in Part-A af the q*eslion paper relate ta the Incowe-tr*r Act, 1961 atd relevant Assessment Year 2015 - 16 unless stated otherwise PART-A l. Rajiv (aged 28 years) received cash gift of 5. {2 lakh on the occasion of his marriage. It includes gifi fir:m non-relative of {80,000. His income by way of lottery winnings is ?3 lakh His net incomc tax liability (ignoring TDS) would be - {A}' q9?i?00 (B) <22.660 -(c) T12,360 (D) (25,75i). 2. Pawan reports net income ol t5 laktr tioni 6'the activity of growing and manufacturingrubber. How much of such income is to be treated as non-agricultural income - {Ai ,:;{1';75i0SS (B) {2,00,000 - (ci { ,25,000 (D) Nil,- , 3. Covt. of India paid salary of {5 lakh and allowances/perquisites valued at t2.20 lakh ts a person who is citizen of India fcr the services rendered by him outside India for 5 months during the previous year. His totai incon, charyeable to tax would be * 7' tA) ?7,20,000 {8i ..{5,00iooo -, (c) T6,10,000 (D) Nir. 4. Sunil acquired a building for t15 lakh in June, 2012 in addition to sost of landbeneath the building of t3 lakh. It was rsed for personal purpCIscs until he commenced business in June, 2014 and since then it was used for business purposes. s The amount of depreciation eligible in .his case for the assessrnelt year 201.5-16 would be - (A) T1,50,000 {B) {75,000 (c) {37,500 (D) {1Jt,500.- .4. .o. X Ltd. paid T l0 lakh to an approvpd college to be used for scientific rssearch unrelated to its business. The smount eligible for deduction under section 35(1i(ii) is - (A) t5 lakh (B) <10 lakh (C)'r {irY'SS'1la}*1 (D) Nil.., Saraswath Ltd. rnade provision of T1? lakh for bonus payable for the year ended 3l't March, 2015. It paid t7 lakh on 3l't July, 2015: T3 lakh on 30e September, ?015; and {2lakh on l5e December, 2015 The amount eligible for deduction under section 438 would be * (A) Tl0 lakh (B) {12 laktr (C) ?7 lakh * (D) t3 akh. Laxmi & Co. paid (6,10,000 as corffact payments to Monu Ltd. during the financial year 2014-15. It did not deduct tax at source under section 194C The.amount liable for disallowance is - (A) <6,10,000 (B) {3,05.000' (c) T12,200 r (D) <1,83,000. The maximum penalty leviirble for failure to get accounts audited or to furnish report under section 44AB is * (A) t75,000 (B) {1,00,000 -' (c) {1,50,000 (Di {3,00,000. zl,Jal,stTL? P.N). 2a1 12\ Disclaimer: This solution is provided by CA Vivek Goel. We have taken care to make this suggested answers as the Most Authenticated Answers. Still neither CAknowledge.in nor CA Vivek Goel shall be responsible for the result of any action taken on the basis of information provided in this  I 324 9. When an LLP has book profit of {6 lakh, the maxirnum amount allowable towards the salary of working partners would be * {A}, ,,t4;$0;$*S (B) T6,00,0CI0 (c) ?3,00,000 , (D) Nil. 10. When a cash payment of (30,000 is made on IOe May, 2014 towards purchase of rawmaterial effected in the earlier year, i.e., on 5th June, 2A12, the amount liable fordisallorvance under sec{io* 40A(3A) u'ould be - (A) Nil *r' (B) 100% of payment {C) 209* of such payment (D) 30Vo of such payment. 11. An order passed by the Commissioner (Appeals) should be communicated to - (A) Assessee (B) C.I.T who has jurisdiction over the CASC (C) Both the assessee and C.I.T. * (D) The assessee through C.I.T. t2. When a partnership firm has total sales of ?90 l.kh, the maximum amount deductibleas salary of working partners on the basis of presurnptive income deterrnined undersection 44AD is - (Ai {4,92,000 - (B) {3,60,000 (c) T3,3o,0oo (D) {5,22,000. :4: 13. When a person carries on the buliness of carrying goods for hirs for the whole ydar with 5 self-owned and 3 leasehold heavy goods vehicles, the presumptive income chargeable to tax under section 44AE would be. * (A) {4,80,000 - 91,:r,*?;?Sf0il$, {(c) (3,96,00CI (D) {3,36,000. xl4. The tax on the income of non-resident can be/may be recovered : (l) By deduction of tax at source (2) From his associates (3) .From his agents Select lhe correct answer from the options given below - A) (l) r:nly - (B) (l)&(2)ory (c) (r), (2) & (3) iD) None of the above. f5. When shares of a listed company held for more than 36 months are transferredprivately far {8 lakh, with srcinal cost of acquisition of ?l lakh whose indexeti cost of acquisition is ?2 lakh, the income-tax payable would be - A) <t,44,200 -', (B) t72,100 (c) {1,23,600 (D) {61,800. 16. Aman entered into an agrsement with Brij for sale of a building for {20 lakh in June, ?014. Aman received advance of {2 lakh.Subsequently. the agreement was cancelled and Amur forfeitsd the aelvance money. The. advance money is - (4) To be reduced from the cost of acquisition (B) To be reduced from indexed cost of ' acquisition (C) .Taxable as capital gains tV,l:t,':,::,,,;fr679e,., x,.'.llli;;**t.under,theheadliixconre from',,t*'fui ssai'ic*'. 21201'|TLP Contd..  :5: .tt17. Ramesh received ?7 lakh by way of enhanced compensation in March, 2015. A further sum of t2 lakh decreed by the court is due but not received till 31't Malch, 2015. The amount of income chargeable to tax for the assessment yrar 2015-16 wouid be ._ (A) {3,50,000 (B) T7,00,000 (9) t9,oo,ooo (D) {4,50,000 lf a person is eligible to claim : (1) unabsorbed depreciation (Z) currsnt scientific research expenditure (3) current depreciation (4) brought forward business loss The order of priority to set-off would be - (A) (4), (3), (2) & (l) i8}t:.ill,(ii;,:(3);'{4) & (1 ) (g) (3), (4), (r) & (2) (D) (1), (2), (3) & (4). A legal entity that exists in one jurisdiction but is owned or controlled primarily by taxpeyers of different jurisdiction iscalled - (A) Collaborative foreign corporation q) Conrotled foreign corporation (C) Customised future company (D) Co-operative control society. Monetary limit for deduction in respect of royalty on patents received by a resident individual is - (A) (1,00,000 (B) (3,oo,ooo (c) {5,00,000 p) Nil' 324 A partnership firm with 4 equal partners brought forward depreciation of T3 lakh and business loss of {3 lakh relating to assessment year 2Al4-15. On lst April,2014, two partners retired. The amount that assessee-firm can set-off against its income for the assessment year 2015-16 would be -(4) Unabsorbed depreciation of t3 lakh p/us brought forward business loss of (3 lakh (B) Unabsorbed depreciation 'nil' p/ns brought forward business loss T3 lakh (C) Unabsorbed depreciation t3 lakh p/us brought forward business loss 'nil', (D) Unabsorbed depreciation T3 lakh plus brought forward business lbss of (1.50 laktLDouble taxation relief for incomes taxed in the countries with which no agredment exists is govemed by - {$)_.,Secti$$St' (F) Sedion 89 (C) Section 93 (D) None of the above. A limited company declared (20 lakh as dividend on its paid-up capital of tl00lakh. The dividend distribution tax payable by itwould be * (A) {3 lakh (B) (:.3: tattr (C) t4.09 lakh (D) t6.18 lakh. 124, Steam (P) Ltd. reports total income of (20 Iakh for the year ended 3lst March, 2015, The total tax liability payable beforei.Sq $*Wemb,er, 2014 by way of advance tax is - iA). ,{9ii7s0 (8) {2,78,100 (c) {1,85,400 (D) T3,09,600. It. 19.11 23.24. u2a15fiLP I P.T.O.  324 :6: 25. 26. aFl 28. ,o Interest for deferment in payment of advance tax under section 234C is calculated on the tax liability computed on- (A) Assessed income t6l Returnsd irrcorne tC) Disputed incame (D) Appealed income. The 'due date' specified under section 139( l) for filing the return of ineome in case ofcompanies engaged in iilternational transactions and who have to furnish a report under section 92E is -- (A) 3l'r Juty (B) 3lst August (C) 30* September (D) 306 November. Authority fcr Advance Rulings shall not allow an application where the questionraised - (A) Is already pending before the Supreme Court tB) Involves determination of fair market value of any prCIpe ty (C) Relates to 3 transaction designed prima facie tar the avoidance of income tax (P) AII of the above. A return of income when notified as defective, has to be lectified within * (S) 30 Days (B) The financial year 'W, 15 t?,aYx (D) 60 Days. Fenalry for failure to file return of income before the end of the relevant assesslnent year is - (A) {1,000 (E) {10,000 $r'ii,,,,{$;$& {D) <2,000. X, Manager of XYZ Ltd. since 2001 rvas term-inated by rhe company on lst August; 2Al4 b,y paying a GompensatiPn of T200 lakh. Such compensation is - (A) Chargeable under the Wealth-tax Act, 1957 (B) Not chargeable under the lrcome-tax Act, 1961 (C) Chargeable under section l7(3Xi) {D) Chargeable under section Z8(iiXa). HSK, an LLP had taken keyman insurance pclicy ern the life of its rnanaging partner. The policy got matured on 13d' September, 2014 and an arnount of t75 lakh was paid by the insurers to the managing partner. The amount so received on maturity of the policy by the managing partner is - (A) Fully exempt under seclion l0{l0D) (B) 507o of t?5 lakh exempt {Q Y75,,,,lAkh,tt*xabte (D) (?5 lakh exempt and T50 lakh taxable. Ramji Charilabls Tru.st had sold a capitalasset costing T70,000 on l3e June, 2014' for (1,50,000. It purchased new assets on lst July, 2014 for {1,20,000. The amounttaxable as capital gains for Ramji Charitable Trust in assessrnent year 2015-16 is - (A) (80.000 (B) Nil, because of charitable trusl (c) ?30,00t) (D) t40.000. Pankaj joins service on lsrApril, 2010 in the grade of 15,000-( 1,000)' I 8,000-(2,000)- 26,Q00. He shall be paying tax for theycar ended on 31sr March, 2015 on rhe total salary of - (41 {2,l6,ooo q31i'r':',t?$;S*0 (c) {2.28,000 tD) {1,80,00s. 130. 31. t, 11 92015/TLPContd....
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