Taxmann's MCQs on Tax Laws

Contents E G A P

PART I : DIRECT TAXES (50 MARKS) Chapter 1 u

1.3

INTRODUCTION

Chapter 2 u

2.1

BASIC CONCEPT OF INCOME TAX

Chapter 3 u

INCOMES WHICH DO NOT FORM PART OF TOTAL INCOME

3.1

Chapter 4 u

COMPUTATION OF INCOME UNDER VARIOUS HEADS

4.1

Chapter 5 u

CLUBBING PROVISIONS AND SET OFF AND/OR CARRY FORWARD OF LOSSES 5.1

Chapter 6 u

DEDUCTIONS FROM GROSS TOTAL INCOME, REBATE AND RELIEF

6.1

Chapter 7 u

COMPUTATION OF TOTAL INCOME AND TAX LIABILITY OF VARIOUS ENTITIES 7.1

Chapter 8 u

CLASSIFICATION AND TAX INCIDENCE ON COMPANIES

8.1

Chapter 9 u

9.1

PROCEDURAL COMPLIANCE

Chapter 10 u

ASSESSMENT, APPEALS & REVISION I-5

10.1

ntents o C

I-6

E G A P

PART II : INDIRECT TAXES (50 MARKS) Chapter 11 u

CONCEPT OF INDIRECT TAXES AT A GLANCE

11.3

Chapter 12 u

BASICS OF GOODS AND SERVICES TAX

12.1

Chapter 13 u

CONCEPT OF TIME, VALUE & PLACE OF TAXABLE SUPPLY

13.1

Chapter 14 u

INPUT TAX CREDIT, COMPUTATION OF GST LIABILITY & JOB WORK

14.1

Chapter 15 u

PROCEDURAL COMPLIANCES UNDER GST

15.1

Chapter 16 u

BASIC OVERVIEW ON IGST, UTGST AND GST COMPENSATION CESS

16.1

Chapter 17 u

OVERVIEW OF CUSTOMS ACT

Solved Paper : December 2021 (New Syllabus)

17.1 P.1

6

C H A P T E R

DEDUCTIONS FROM GROSS TOTAL INCOME, REBATE AND RELIEF l i N ) (

DEDUCTIONS

0 0 0 , 0 3 ) ( 5. Deduction under section 80C is allowed to (i) Individual (ii) HUF (iii) Firm (iv) Company a i ii b i ii iii c i iv d ii iii y l n o ) ( ) (

y l n o ) ( & ) ( ) (

) ( & ) ( & ) ( ) (

) ( & ) ( , ) ( ) (

t ee xh s et nde anb ca o t n,d oee m i t ow c ucl o dnl i a el da s i t fo , o g t n esi t s s a or i gr a eg r s eu g ghh att d ee sf . s he f oo Tc l ) ( -

0 0 0 , 0 2 ) (

l a t o t m o r f d. ee e ms is a e l s c s ea r e a h st nf oo i t e c um o dc en Di ) (

2. Choose the correct option from the following a

0 0 0 , 0 5 , 1 ) (

A I A I I V V V V ) ) ) ) ( ( ( (

1. Deduction are given under chapter ……………… of the income tax. a b c d

b

a b c d

,d s ne ow i 1 o6 t l c l9 ua dy1 el , t dl c a mcA i it x a aa l c t mooe t tm su a o hac etn eoI n s e s h e e t r s a s r a e yd ee hh n Tt u ) (

7. An individual has made investments in the schemes approved u/ss 80C and 80CCD of ` 2,50,000 and ` 1,00,000 respectively during the year ended 31st March, 2022.

s e p y t l l a n o d e w o l l a e r a . ss ne om i t o c c un di ef Do ) (

0 0 4 , 6 0 , 2

s n i a g l a t i p a c m r e t g n o L ) (

0 0 0 , 9 3 , 3

A 1 1 1 s / u s n i a g l a t i p a c m r e t t r o h S ) (

0 0 0 , 0 8 , 2

. c t e , s e c a r , s e i r e t t o l m o r f s g n i n n i W ) (

e v o b a e h t f o l l A ) (

6.1

0 0 4 , 6 9 , 1

4. Mr. Ram has GTI of ` 1,20,000 for F.Y. 2021-22 and has deduction under Chapter VI-A of ` 1,50,000. Loss to be carried forward by Mr. Ram for F.Y. 2021-22 is -

d

) ) ) ) ( ( ( (

3. The deductions are available from the following incomes except: a b c d

6. For the year ended 31st March, 2022 Paresh receives annual salary of ` 2,80,000.

Paresh’s contribution to employees recognised provident fund account is ` 59,000 and matching contribution has been made by employer. Taxable income of Paresh will be a ` b ` c ` d ` [CS. Executive Dec. 2014]

c

S E X A T T C E R I D : I T R A P

6.2

0 0 0 , 0 1 0 0 0 , 0 5

P 0 8 ) (

0 0 0 , 0 0 , 1

B Q Q 0 8 ) (

0 0 0 , 0 5 , 1

0 0 0 , 0 8 ) ( 0 0 0 , 0 9 ) (

14. Mr. X has invested ` 1,00,000 in NSC during the year 2021-22. He has invested in NSC earlier also which will mature in two years’ time. The interest accrued on the previous investments during the year was ` 12,000. Assuming, no other investment, his deduction u/s 80C will be: a ` b ` c ` d 0 0 0 0 0 0 0 0 , , 0 2 0 , 0 , 1 8 , l 1 1 8 i N ) ) ) ) ( ( ( (

0 0 0 , 0 5 , 1 ) (

15. The PPF A/c can be opened in a b c a b d k n a B ) (

0 0 0 , 0 8 , 1 ) (

e c i f f o t s o P ) (

) ( d n a ) ( h t o B ) (

e v o b a e h t f o e n o N ) (

11. Deduction under section 80C is allowed to an employee of the Central Government for contribution to additional account under NPS for a fixed period of not less than 3 years. This Account is

13. Mr. Anand engaged in business wants to deposit in pension fund of Life Insurance Corporation of India. The maximum amount of contribution eligible for deduction from Gross total income is: a ` b ` c ` d ` [CS. Executive Dec. 2017] ) ) ) ) ( ( ( (

A J J 0 8 ) ( d

0 0 0 , 0 4 , 1

C 0 8 ) ( c

0 0 0 , 0 0 , 1

s r a e Y 2 1 ) ( b

0 0 0 , 0 6

s r a e Y 0 1 ) (

10. Manasavi has to pay ` 80,000 to the cooperative society annually against the house allotted to her by the society. She initially paid a sum of ` 1,00,000 to become a member of the housing cooperative society during the previous year 2020-21.

The term of the payment was for 10 years.

The amount allowed to be deducted under section 80C for the previous year 2021-22 will be ` : a

0 0 0 , 0 8

s r a e Y 8 ) (

9. Which of the following deductions can still be claimed even if the return of income is filed after the due date? a b c d

12. Mr. Mithun acquired a house property for, ` 8 lakhs and paid stamp duty and registration fee of ` 80,000. He borrowed housing loan and repaid principal of ` 60,000 and interest of ` 20,000. The amount eligible for deduction under Section 80C would be: a ` b ` c ` d ` [CS. Executive Dec. 2017] ) ) ) ) ( ( ( (

s r a e Y 5 ) (

8. Deduction under section 80C can be claimed for fixed deposit made in any scheduled bank, if the minimum period of deposit is a b c d

e v o b a e h t f o y n A ) (

[CS. Executive Dec. 2015]

t n u o c c A I I I r e i T ) (

`

a b c d

t n u o c c A I I r e i T ) (

s / u 0 0 0 , 0 5

d n a C 0 8 s / u) B 01 0( 0D , 0 C 5C , 1 0 8

e v o b a e h t 0 0 f 0 o , 0 e 5 n , o 1 N ) ) ( ( c d

t n u o c c A I r e i T ) (

0 0 0 , 0 5 , 3

f o % 0 5

) ) ( (

Amount that can be claimed by him as deduction out of income in AY 2022-23 is: a ` ` b ` `

16. In order to claim deduction u/s 80C the Public Provident Fund A/c can be opened in the name of the following, except:

e s u o p S ) ( y n a f o e m a n e h t n i F ,U F UH Hf fo o r e eb s a m ce nm I ) ( n o s t n e d n e p e d n i e n O ) (

r e t h g u a d d e i r r a m r e h t o n A ) (

e v o b a e h t f o e n o N ) (

n o i t a c u d e e m i t e l o h w r o f d e w o l l . a y sn l i t o I ) (

e v o b a e h t f o l l A ) ( d

e m o c n i l a t o t f o % 0 1 ) (

e m o c n i l a t o t f o % 0 2 ) (

24. If a person who has contributed to NPS, closes his account or opts out of NPS, the exempt amount will be: a

s i h o t g n i d n a t s t n ut i od me r ac en hi t e fc o n a %l 0a 3b ) (

l i N ) (

t i d e r c n i e c n a l a b e h t f o % 0 4 ) (

0 0 5 , 3 1 ) (

. t i d e r c n i e c n a l a b e h t f o % 0 6 ) (

F U H & l a u d i v i d n i n A ) (

b c d

t i d e r c n i e c n a l a b e h t f o % 0 5 ) (

l a u d i v i d n i n A ) (

y n a p m o c o t y l n O ) (

25. Withdrawal or pension from NPS is always exempt, except: a

g n i d . en eo i ct xu eb tr i o t nn , lo a c i t s r ’ a e pe y s o il l p a wm ae r df ho t % i 5 W2 ) (

s e e s s e s s a l l A ) (

n o e e n i m o ne e as s ye bs ds ea vn i a e cf eo r h ta t n ue od e mh At ) (

21. Employer pays ` 8,00,000 as salary to the employee and also contributes ` 1,10,000 to National Pension Scheme

e m o c n i l a t o t s s o r g f o % 0 2 ) (

0 0 0 , 0 4 ) (

20. The deduction u/s 80CCC is available to a b c d

23. A self-employed person shall not be allowed deduction of more than …………………. on his contribution to NPS u/s 80CCD(1). a b c d e m o c n i l a t o t s s o r g f o % 0 1 ) (

0 0 0 , 5 4 ) (

19. Vasudhara has taken a life insurance policy of ` 4,00,000 on the life of married son on 9.1.2018. The annual premium of ` 45,000 was due on 28.3.2020. She paid the premium on 4th April 2020, through an account payee cheque. The amount of deduction u/s 80C for the P.Y. 2021-22 shall be: a b c d

0 0 0 , 2 5 , 1 ) (

-

0 0 0 , 0 1 , 1 ) (

lm i h u cm ei hx t a fm o na oo i t t p a cu ue de s es n re e os r s f d a de l i eh h wt c of l oo l w a nt se i rf t do I ) ( c

0 0 0 , 0 8 ) (

-

22. Mr. X is an employee of central government. The employer pays ` 8,00,000 as salary and also contributes ` 1,10,000 to National Pension scheme (NPS) for the benefit of employee. The employee however contributes ` 72,000. The amount deductible under section 80CCD(2) of the Act, for the Previous Year 2021-22 will be: a b c d 0 0 0 , 2 1 , 1 ) (

, e u gi t et l l s o n ci l aa nn i o ni oa t i t c a cu ud de e r re oh f ti a dod ern wo I oln l oi l a on sho i ci t s I t ) ( b

(NPS) for the benefit of employee. The employee himself makes a contribution of ` 80,000 towards NPS. The employee’s contribution to PPF and NSC are ` 90,000 & ` 40,000. The amount deduction available to the employee will be: a ` b ` c ` d D C ) C B 0 ) 1 2 8 ( ( , D D C C C 0 C C 8 e 0 0 s v 8 8 / s o s / s u b / a u u 0 e 0 0 0 h 0 0 0 t , 0 0 0 f , , o 5 0 0 , l 8 5 1 l A ) ) ) ) ( ( ( (

r e t h g u a d t n e d n e p e D ) (

18. Deduction u/s 80C in respect of tuition fees is allowed subject to: a

elief R

r e h t o r B ) ( 17. Sukhdev has taken a life policy in the name of following members of his family.

The premium does not exceed 10% of capital sum assured. Mr. Sukhdev can claim deduction in respect of all except: a b c d

ebate and R , e m o nc I

tal o T

ss o r G m o r F

ns o

cti u

ed D : 6 .

H C

f l e S ) ( a b c d

6.3

b

S E X A T T C E R I D : I T R A P

6.4

b

i h d d i r m a S a y n a k u S n i d e t i s ot pn eu do nc uc SA ) ( c

n a r e p u s d e v o r p p a o t nd on i u t f u bn i o r i t t n a ou Cn ) (

e v o b a e h 0 t 0 f 0 0 0 o 0 0 , 5 , 0 5 e , 2 n 2 0 , o 7 5 1 N ) ) ) ) ( ( ( (

-

d

0 0 0 , 4 2 0 0 0 , 6 4

0 0 0 , 0 1

) ) ) ( ( (

0 0 0 , 5 2

32. Sahil works in a technology company.

On 1st January, 2021, he took a loan of ` 2,40,000 from his company for the higher education of his daughter. During the year 2021-2022, he paid an interest of ` 46,000 towards the said loan and repaid principal component of ` 10,000. The deduction that he can claim u/s 80E would bea b ` c ` d ` [CS. Executive June 2015] l i N ) (

0 0 0 , 5 1 0 0 0 , 0 5

0 0 0 , 5 7

) ) ) ) ( ( ( (

0 0 0 , 0 5 0 0 0 , 2 5 0 0 0 , 6 5

33. Raghunath repaid during previous year 2021-2022 education loan of ` 60,000 and interest on education loan of ` 18,000 taken from Punjab National Bank for his son to pursue MS in Germany. The loan was taken in the financial year 2022-2023 and the payment commenced from financial year 2024-2025. The amount eligible for deduction under section 80E for the assessment year 2022-2023 is: a ` b ` c ` d

[CS. Executive June 2017] 0 0 0 0 0 0 0 , 0 , 0 , 0 8 8 l 6 7 1 i N ) ) ) ) ( ( ( (

0 0 0 , 0 3

) ) ) ) ( ( ( (

30. The payment for Insurance premium under section 80D should be paid:

s a k i V n a h s i K ( P V K o t n o i t p i r ) c a s r bt ua SP ) (

0 0 0 , 0 6 ) (

29. Mr. X aged 78 years, Resident in India paid medical insurance premium of ` 52,000 by cheque and ` 4,000 by cash during May, 2021 under a medical Insurance Scheme of the General Insurance Corporation. The above sum was paid for insurance of his own health. He would be entitled to a deduction under section 80D of a sum of a ` b ` c ` d `

31. Which of the following is not eligible for section 80C deduction -? a

g n i v a s l a n o i t a n ( C S N o t n o) i e t t p a i r c i c f s i t br ue Sc ) (

0 0 0 , 0 0 , 1 ) (

28. Ravi paid ` 25,000 to LIC of India for the maintenance of his disabled son and incurred ` 15,000 for the treatment of his handicapped wife who is working in State Bank of India. The deduction allowable to him under Section 80DD isa ` b ` c ` d ` [CS. Executive June 2016]

/ e u q e h c t ef ea yr ad pk tn n a ub oe ce cy aa p ht gn uu oo rc hc Ta ) (

0 0 0 , 5 2 , 1 ) (

27. Raghu’s father is dependent on him and suffering with 90% disability. Raghu has incurred an amount of ` 72,500 in maintaining and medical treatment of his father. The deduction he can claim in his income-tax return for AY 2022-2023 isa ` b ` c ` d [CS. Executive Dec. 2015]

e u q e h c y B ) (

0 0 0 , 5 7 ) (

26. The maximum possible amount of deduction u/s 80DDB for senior citizen is ` a b c d [CS. Executive Dec. 2014]

a b c d

h s a c n a h t r e h t o e d o m y n a y B ) (

S P N f o t u o d e v i e c e r n o i s n e P ) ( d

h s a c n I ) (

rn oi f n da el z p i l i y t t i u u s inr . t na n uae ry oe s mh u ato o i nn v wa e r agp r ne di hs t am i a whs c er e hu h Tpt ) ( c

34. Mr. Rath borrowed loan of ` 10 lakhs for higher education in India in the year 2009-2010. He completed the course study in 2012-2013. He started repayment of the

r u p

38. Which of the following cannot claim deduction for the loan taken to purchase a house property? a b

r u p y t r e p o r p f o tm c er i pf se e h r t ny i ,b r d e e ns t a r a h Pc ) ( -

c

te c eh pt s y . b e e r y s l u nt i n o i ,o p l s a j r ude de h i s v / a i s h d i ch nr i d nun apa fyl t a r o e u ep d s ov i ur i op d pfn So i ) ( d

[CS. Executive June 2015]

39. Deduction u/s 80EEB is allowed to an individual upto ` 1,50,000 in respect of interest on Loan taken from any Financial institution for purchase of : a b c d d n a l l a r u t l u c i r g A l a r u R ) (

n o i g e R n r e t s a e h t r o N n i y r t s u d n I ) ( y t r e p o r P e s u o H l a i t n e d i s e R ) (

. e l c i h e V c i n o r t c e l E ) (

E E 0 8 s / u 0 0 0 , 0 5

0 0 0 , 0 5 , 1

d n a ) ( 4 2 s / u 0A 0E 0E , 0 0 08 , s 2 / u

40. Anupam took a loan from a deposit taking NBFC for purchase of electric vehicle for personal use, sanctioned and disbursed on 1.9.2021. The loan was for ` 30 lakhs @ 15% p.a. The amount of deduction that can be claimed by Anupam is: a ` b ` c ` d B B A E E E E E E 0 0 0 8 8 8 s / s / s / u u u 0 0 0 0 0 0 5 0 0 , , , 2 0 0 6 , 5 , 5 , l 2 1 1 i N ) ) ) ) ( ( ( (

A E E 0 8 s / u 0 0 0 , 0 5 1

s / u 0 0 0 , 0 5

41. Deduction in respect of donations to National Defence Fund is allowed u/s a b c d [CS. Executive June 2015] G 0 8 ) (

d n a ) ( 4 2 s / u 0 0 0 , 0 E 0E , 2 0 8

) (

G C C 0 8 ) ( C 0 8 ) (

e v o b a e h t f o e n o N ) ( e e s s e s s a y n A ) (

d i a p t s e r e t n i y l n O ) (

42. Deduction under Section 80G on account of donation is allowed to: a b y l n o e e s s e s s a s s e n i s u b A ) (

A R H y l n O ) (

37. Raman purchased a residential house property in Ahmedabad on loan for which he paid an interest of ` 50,000 during the previous year. He is working in Delhi and getting an HRA of ` 4,000 per month. He can claim exemption/deduction fora b

t o n t u b A R elief H r R o d i a p t s e r

) ) ) ( ( (

`

[CS. Executive June 2015]

y t r e p o r p f o t c e p s e m r i nh i , y l a b ud de i v s i a d h nc i r nu Ap ) (

) t i m i l y r a t e n o m ( 0 0 0 , 0 0 , 1

0 0 0 , 0 0 , 2 ) (

b

d

y t r e p o r p f o t c e pF sU e H r y nb i d ,e a t s r a a h Kc ) (

0 0 0 , 1 4

0 0 0 , 0 5 , 1 ) ( d `

c

. d i a p t s e r e t n i d n a A R H h t o B ) (

0 0 0 , 1 6 , 1

0 0 0 , 0 0 , 1 ) (

36. Mr. Srinivasan has taken a loan from a Financial institution for the purchase of house during the Previous year 2021-22.

The loan was sanctioned in the month of April 2021 but was disbursed on 1.7.2021.

The stamp duty valuation of the house was ` 42 lakhs. The amount of loan was ` 40 lakhs. What will be the amount of deduction relating to the interest on loan in the P.Y. 2021-22 if the rate of interest is 12% p.a.? The total interest will be ` 3,60,000 (` 40,00,000 × 12% for 9 months) for the P.Y. 2021-22 a ` b ` c ` b `

(

0 0 0 , 0 2 , 1

0 0 0 , 0 5 ) (

35. Deduction in respect of interest on loan taken for residential house property during the period beginning from 1.4.2021 and ending on 31.3.2022 from any Financial Institution is allowed u/s 80EEA up to ` ______________. a b c d

e ebate and t R n i , e r e m h ht o t o i nc E b I )

tal o T

ss o r G m o r F

ns o

cti u

ed D : 6 .

H C

) ) ) ) ( ( ( (

loan from April 2014. He paid interest of ` 41,000 and principal of ` 1,20,000 during the financial year 2021-2022. The amount eligible for deduction under section 80E would be: a ` b ` c ` d ` [CS. Executive Dec. 2017]

6.5

S E X A T T C E R I D : I T R A P

6.6 y l n o F U H r o l a u d i v i d n I ) ( e e s s e s s a t n e d i s e r y n A ) (

c d

[CS. Executive June 2017]

0 0 0 , 5 8

d `

0 0 0 , 4 2

c `

0 0 0 , 0 6

a `

b `

0 0 0 , 6 8

0 0 0 , 5

0 0 0 , 0 4

[CS. Executive June 2017]

48. Donation to university for research in Social Science is eligible for deduction at: % 0 0 1 ) (

0 0 0 , 0 2

a

% 5 2 ) (

b

% 0 5 1 ) ( c

% 5 7 1 ) (

0 0 0 , 0 6

d

[CS. Executive Dec. 2017]

49. Under the Income-tax Act, 1961, which of the following can claim deduction for any sum contributed during the previous year to a political party or electoral trust y t i r o h t u a l a c o L ) (

0 0 0 , 6 8

l a u d i v i d n I ) (

0 0 0 , 5 8

n o s r e p l a c i d i r u j l a i c i f i t r A ) (

a

0 0 0 , 0 2 , 1

)))) ((((

44. Bharat, engaged in business, claimed that he paid ` 10,000 per month by cheque as rent for his residence. He does not own any residential building. His total income computed before deduction under section 80GG is ` 3,40,000, The amount he can claim as deduction under section 80GG is a ` b ` c ` d ` [CS. Executive June 2016]

) ) ) ) ( ( ( (

0 0 0 , 5 4

)))) ((((

43. Mr. Ganesh gave donation by way of cheque of ` 40,000 and by cash ` 5,000 to an approved charitable trust having recognition under section 80G. His gross total income for the assessment year 2022-2023 is ` 5 lakhs. The quantum of deduction under section 80G would be: a ` b ` c ` d ` [CS. Executive Dec. 2017]

47. Shravan engaged in business paid monthly rent of ` 10,000 by cheque for his residence during the previous year 2021-2022. His adjusted total income is ` 3,40,000. The amount eligible for deduction under section 80GG is:

c

e v o b a e h t f o e n o N ) (

d

[CS. Executive June 2015]

50. For computing adjusted total income for the purpose of section 80G, what should be reduced from GTI A 1 1 1 s / u G C T S ) (

s di eh i f p uo e cs co op er bu dp l e u h ot hr so nf oe i t e a s ds oee s ms c a n me e ohi d cts cye Abr ) (

45. Which of the conditions is required to be fulfilled u/s 80GG for getting deduction of rent paida

b

y n a g n i v i e c e r e b t o n d l u o h s e e s s A e s R s AH ) (

A 2 1 1 d n a 2 1 1 s s / u G C T L ) (

r l y ooi nma r i mmi n od sc i r co h rae oyh ne ea s u r one pwh sow ste i c oa h rnl osp eet eoas d s ne s o d d e i l i s t i s s a h e Ac dr ) (

a c

-

e v o b a e h t f o l l A ) ( d

0 0 0 , 0 5 , 2 ) (

46. Mr. A proprietor, gave an asset of ` 2,50,000 to an institution established for charitable purpose deduction u/s 80G admissible will be a b c d

e v o b a e h t f o l l A ) (

c

b

t p e c x e A I V r e t p a h c r e d n u n o i G t c 0 u8 dc ee Ds ) (

b

d

0 0 0 , 5 2 , 1 ) ( l i N ) (

0 0 0 , 0 0 , 1 ) (

51. Pankaj, fulfilling all the prescribed conditions for claiming deduction under section 80GG having adjusted total income of ` 1,84,000 before providing such deduction and was paying rent in respect of residential accommodation occupied by him at Delhi @ ` 4,800 p.m. He is entitled to claim the deduction for the house rent so paid in assessment year 2022-23 while computing his taxable income of an amount of ------

dden eehi o ertt croc xut e c en rs oi s ti i o r h t no pt r re sna elief e R osed dayn su rhu n e o e vdoi oni tm vc nae i ut rsr pdt ue

(

s tryer ebate and l o d i n R r a f afe c t , o e o nm h t 0i m t e0s sa ir o h1o lo lcf nc T I )

tal o T

ss o r G m o r F

ns o

0 0 2 , 9 3

b

0 0 0 , 6 4

`

0 0 0 , 0 6 0 0 6 , 7 5

` ` ` `

cti u

ed D : 6 .

H C

)))) (((( a b c d

[CS Executive Dec.2020]

e m o c n i l a t o t d e t s u j d a f o % 0 1 ) (

e m o c n i l a t o t d e t s u j d a f o % 5 ) (

g n i y f i l a u q o t t c e j b u s , n o i t a n o d f o t i %m 0i 5l ) (

y f i l a u q o t t c e j b u s , n o i t a n o dt fi o m i %l 0g 0n 1i ) ( -

b

n a

k r a p l a i r t s u d n i f o g n i p o l e v e D ) ( s r a e y 7 ) (

55. The deduction under the said section 80-IAC shall be available to an eligible start-up for a period of three consecutive assessment years out of --------- beginning from the year in which it is incorporated. a b c d s r a e y 8 ) (

s r a e y 0 1 ) (

s r a e y 2 1 ) (

s h k a l 0 5 .

7

59. Sudhan Ltd. incorporated in April 2019 commenced commercial production from 1.6.2020. It deployed 100 employees who were employed for 260 days during the year and recruited 50 casual workmen who were employed for 100 days during the financial year 2019-2020. The salary paid to 100 employees was ` 25 lakhs and salary paid to casual workmen was ` 6 lakhs. The quantum of deduction under section 80JJAA is: a ` b ` s h k a l 0 3 .

9

) ) ( (

r e t f a d 1 e2 t a 0 r 2 op4 ro1 ce nr i o f ye nb at pu mb o6 c1 0 a2 s4 i t1 I ) (

56. Which of the following condition is not applicable for allowance of deduction for start-ups under section 80-IAC of the Act ? a

1 2 0 2 , r e b m e c e D t s 1 3 ) (

[CS. Executive Dec.2019]

58. The deduction of an amount equal to one hundred per cent of the profits and gains derived from the business of developing and building affordable housing projects is allowed u/s 80-IBA. The conditions contained in the section, inter alia, prescribe that the project is approved by the competent authority during the period from 1st June, 2016 to -----------. a b c d 0 2 0 0 1 2 2 2 , r 0 0 e 2 2 b , , m h h c c e r r c a a e D t M t M t s s s 1 1 1 3 3 3 ) ) ) ( ( (

f o g n i n i a t n i a m d n a g nt i r t a o rp e pr i OA ) ( d

57. The deduction under the section 80-IAC shall be available to an eligible start-up, if the total turnover of its business does not exceed ` -------------crores, in any of the previous years beginning from the year in which it is incorporated. a b c d 0 0 1 ) (

f o g n i n i a t n i a m t dc ne j ao r gP ny ia t aw rh eg pi OH ) ( c

[CS Executive June 2021]

0 5 ) (

d a o R l l o T f o g n i p o l e v e D ) (

54. ABC Limited fulfilling all the conditions of operating different infrastructure facilities for claiming deduction u/s 80-IA. Find which are being not covered under infrastructure facility out of the following: a b

-

5 2 ) (

g n i y f i l a u q t u o h t i w , n o i t a n o d f o t i %m 0i 5l ) ( d

d

0 2 ) (

g n i y f i l a u q t u o h t i w , n o i t a n o d f o %i t 0m 0i 1l ) ( c

-

c

ehs hcs t ue s fss o %ma o e 0r v 5f i t du @e c ve ni rs oe i n t do c usc dn ei3 a dg r o s rdf r on a f se s eae y s l t b nn t i i i f g s o i l rue E pbm ) (

I T G d e t s u j d a f o % 0 1 ) (

53. Contribution given by LLP for renovation of temple u/s 80G eligible for deduction will be: a

f io s ud br a eo l B b i l g a i i lr e e t fs o i n ei t M a cr i f e i t t n n r o I e i c t m a aoc i sri f dft s l r s o e e Hn C ) (

I T G f o % 5 ) (

52. Maximum permissible deduction for donation u/s 80G which is subject to qualifying limit is restricted to a b c d

6.7

S E X A T T C E R I D : I T R A P

6.8 s h k a l 5 2

s t i f o r p e h t f o % 5 7 ) (

s h k a l 6

s t i f o r p e h t f o % 0 0 1 ) (

) ) ( (

[CS. Executive Dec. 2017]

0 0 0 , 0 0 , 3 0 0 0 , 0 0 , 3

`

[CS. Executive Dec. 2014]

65. Monetary limit for deduction in respect of royalty on patents received by a resident individual is a ` b ` c ` d [CS. Executive Dec. 2015]

0 0 0 , 0 0 , 1 0 0 0 , 0 5 , 1 0 0 0 , 0 5 , 2

0 0 0 , 0 0 , 3

K 0 8 ) (

66. Under Section 80QQB, the maximum deduction in respect of royalty is allowed up to a ` b ` c ` d ` [CS. Executive Dec. 2016] ) ) ) ) ( ( ( (

P 0 8 ) (

y t e i c o s e v i t a r e p o o c s r e m u s n o C ) (

d n a n o i t c e l l o c n i r du eo gb aa gl nf eo l a ys t e o i p c s oi Sd ) ( g n i h s i f n i d e g a g n e y t e i c o S ) (

s h k a l 5

67. Mr. Uday is a resident individual having patent registered on 1.7.2017 under the Patents Act, 1970. He received ` 5 lakhs by way of royalty from ABC Ltd. during the financial year 2021-2022. The quantum of royalty eligible for deduction would be: a ` b ` c ` d ` [CS. Executive Dec. 2017] s h k a l 3 h k a l 1

s h k a l 2

) ) ) ) ( ( ( (

fd o i a ge nh i t s t s u e o ch ot ri pw e nc i u dd eo gr ap gl a nr eu r te yl t uw e c i io p c r og f Sao

) (

0 0 0 , 0 5

68. When a person suffers from severe disability, quantum of deduction allowable under section 80U is a ` b ` 0 0 0 , 5 7

) ) ( (

63. The profits of a Co-operative Society engaged in (i) Carrying out the business of banking, (ii) A cottage industry and (iii) Collective disposal of labour of its members are exempt from tax as per section 80P up-to:

d

0 0 0 0 0 0 0 0 0 , , , 0 0 0 0 , 0 , 0 , l 1 3 5 i N ) ) ) ) ( ( ( (

M 0 8 ) (

[CS. Executive June 2016]

r o e m e or co nm i hi s cr ue sv fe o h c %i 0h 5w ) (

L 0 8 ) ( c d

r o e m o cs ns i e l hs ci ur se v fe o h %c 0i 0h 1w ) (

.

Y .

A t n a v e l e r e h t f o r e b m e c e D f o t s 1 3 ) ( 62. In case of which of the following co-operative society the deduction under Section 80P is restricted to ` 1,00,000 a b

64. An Indian resident patentee is entitled to a deduction u/s 80RRB to the extent ofa b c ` e m o c n i h c u s f o % 0 5 ) (

n r u t e r f o g n i l i f f o e t a d e u d ) ( 61. Where the gross total income of a domestic company in any previous year includes any income by way of dividends from any other domestic company or a foreign company or a business trust, there shall, in accordance with and subject to the provisions of this section, be allowed in computing the total income of such domestic company, a deduction of an amount equal to so much of the amount of income by way of dividends received from such other domestic company or foreign company or business trust as does not exceed the amount of dividend distributed by it on or before the due date u/s: a b c d

[CS. Executive Dec.2019] e m o c n i h c u s f o % 0 0 1 ) (

t r o p e r t i d u a x a T f o g n i l i f f o B eA t a 4 d4 es u/ du ) ( c d

s t i f o r p e h t f o % 0 4 ) (

r a e y s u o i v e r p e h t f o d n e ) (

60. For claiming the deduction u/s 80JJAA, the assessee must obtain the Form 10DA from a practicing chartered accountant on or before the: a b

a b c d

s t i f o r p e h t f o % 0 5 ) (

c ` d `

k n a b h t i w s t i s o p e d e m0 i0 t 0 n, o0 t1 s e o r t e t p n u I ) (

0 0 0 , 0 5

0 0 0 , 5 2 , 1

e e . vh0 i t0 t a 0 n, r o0 e p 1 g on io o y t cr ha rp t u i wcg sni n i t i k s dn o e a pg ea b dg f nno oes t s y s e t e n e r i i e s c t ou n sb I ) (

0 0 0 , 0 6

0 c0 a0 , s0 g n1 i v o at s p au ne i c s i tf f i s o ot ps eo dp nh t oi tw s e t r n e u t o n c I ) (

0 0 0 , 0 4

` [CS. Executive Dec. 2014]

y t e i c o s e v i t a r e p o o C ) ( e c i f f o t s o P ) (

e v o b a e h t f o l l A

) (

0 0 0 , 9 2 , 4

74. Deduction in respect of interest on savings accounts under section 80TTA shall be allowed with respect to savings account with a b c d [CS. Executive June 2016] k n a B ) (

0 0 0 , 9 7 , 3 0 0 0 , 4 0 , 5

0 0 0 , 0 2 , 7

75. Contribution made or given other than by way of cash by an Indian company in the previous year to any political party or to an electoral trust shall be allowed as deduction while computing its total income under section 80GGB of Income-tax Act, 1961 of an amount maximum or upto : a ` b ` c d t i m i l g n e i l v i e o c b y a r e a h t 0 e t 0 0 n f 0 0 o o , 0 0 e m n , 5 0 , o o 5 1 N N ) ) ) ) ( ( ( (

) d e r ) u % s 0 s 1 a d m e d u e s e f c o x % e 0 t i 1 ( e 0 0 c 0 0 n 0 0 i s , , ( 0 0 l 4 5 i N ) ) ) ( ( ( e v o b a e h t f o e n o N ) ( y l n o l a u d i v i d n I ) (

y l n o l a u d i v i d n I d n a F U H ) ( y l n o y n a p m o C ) (

s h k a l 0 3 s h k a l 5 1

e e s s e s s a l l A

) (

76. SJG Ltd., a manufacturer of leather goods in a factory located at Noida having an annual turnover of ` 50 crores. The company, during the year, employed 200 new regular workers in the factory, which was 5% of the existing work-force employed on the last day of the preceding year. It paid ` 30 lakhs to the new workers during the year as additional wages. All workmen were employed from 1st May, 2020. The eligible amount of deduction which the company can claim under section 80JJAA of Income-tax Act, 1961 is : a ` b ` ) ) ( (

72. An amount up to a maximum of ` 10,000 is deductible under section 80TTA from the gross total income of a b c d [CS. Executive Dec. 2016]

elief R

) ) ) ) ( ( ( (

71. Mr. Bhaskar a person with disability referred to in Section 80U is employed in a bank. He paid ` 50,000 as premium on life insurance policy taken on himself and whose sum assured is ` 4 1akhs. The amount of premium eligible for deduction under section 80C would be: a ` b ` c d [CS. Executive Dec. 2017]

73. The following is not allowed as deduction u/s 80TTA a ` b ` c ` d

s g n0 i 0 v 0 a, s0 a1 o nt i p su t i s ok pn ea db h nt i ow t tn s e u r o e c t c n a I ) (

0 0 0 , 0 0 , 1

) ) ) ) ( ( ( (

70. Mr. Veer earns monthly rental income of ` 60,000 from a house property. He suffers from severe disability and has obtained certificate from the prescribed medical authority. He has not incurred any expenditure towards treatment of severe disability. His total income chargeable to tax after deduction under section 80U would be: a ` b ` c ` d ` [CS. Executive Dec. 2017]

ebate and R , e m o nc I

0 0 0 , 5 2 , 1 [CS. Executive June 2016]

69. The maximum amount of deduction u/s 80U allowed to a person with 80% or more of one or more disabilities is a ` b ` c ` d ` [CS. Executive Dec. 2014]

tal o T

ss o r G m o r F

ns o

cti u

ed D : 6 .

H C

) ) ( (

c ` d `

6.9

S E X A T T C E R I D : I T R A P

6.10

0 0 0 , 0 9

0 0 0 , 0 2 ) (

y t r e p o r p e s u o h m o r f e m o c n I ) (

e v i t a r e p o o C r e h t o m o r f de s ni ee t di i c v o i DS ) (

0 0 0 , 0 7 , 1 0 0 0 , 0 8

0 0 0 , 0 2 , 1

0 0 0 , 0 0 , 2

s h k a l 0 2

s h k a l 3 1 .

1 1

83. Babu Lal authored a book which is covered as per provision of section 80QQB and received an amount of royalty of ` 2,00,000 @ 20% during the year ended 31-3-2022. He had incurred an expenditure of ` 30,000 for earning the amount of royalty of ` 2,00,000. The entire royalty was received by him from abroad and amount of ` 1,10,000 out of the royalty amount shall be remitted to India till 30-9-2022.

He can claim deduction out of such royalty income in assessment year 2022-23 for an amount of --------a ` b ` c ` d ` [CS Executive Dec. 2020] ) ) ) ) ( ( ( (

s h k a l 0 1

s h k a l 6 0 .

2 2

)))) ((((

84. Additional employee u/s 80JJAA excludes which of the following from its definition a ` b

s t n e m u l . o m m. ep 0 l0 a t 0 o , 5 t e2 s on ha wh et ee yr oo l m p e mr Ea ) (

r 0gra 4nee h i 2r t y nu a s at eu hcl o a t rv i f su oe s e n r l arp r a ome g f n dfwi t r eoo u yeo os d f l ar s p y mcoa en d i l e esr ) s ey t ac ya pu od l pd p 0ao m5fr 1op E( ) ( e t d a pn i u c F i t t r n a pe d ti o v no r sp e od de z oi n hg wo ec ee yR oe l p h mt n Ei ) ( c

0 0 0 , 5 6 , 1

, G 0 8 ) (

e v o b a e h t f o l l A ) (

0 0 0 , 0 8 , 1 , G G 0 8 ) (

80. Nargis during the previous year had donated the amount of ` 50,000 each in Africa Fund, National Children Fund, National Illness Assistance Fund and further amount of ` 30,000 in Rajiv Gandhi Foundation.

The amount of deduction eligible to be claimed by her as per section................ shall be of ................. a ` b `

0 0 0 , 5 1 ) (

n w o d o g f o g n i t t e l m o r f e m o c n I ) (

[CS. Executive Dec. 2018]

79. Royalty of ` 105 lakhs received by a foreign company from an Indian concern in pursuance of an agreement approved by the Central Government in the previous year 2021-22. The amount of tax payable on such royalty Income for Asst. Year 2022-23 is : a ` b ` c ` d ` [CS. Executive Dec. 2018]

0 0 0 , 0 1 ) (

s s e n i s u b y c n e g A ) (

78. Which of the under mentioned incomes of a Co-operative Society is not eligible for deduction under section 80P of the Income-tax Act, 1961 when the gross total income of the society exceeds ` 20,000 ? a b c d

82. Quantum of deduction with respect to section 80TTA i.e. deduction with respect to interest on deposits in saving accounts is: a b c d 0 0 0 , 5 ) (

b [CS. Executive Dec. 2018]

81. Deduction with respect to interest on deposits in savings accounts u/s 80TTA is applicable to a b c d y l n o l a u d i v i d n I ) (

) ( d n a ) ( h t o b ) ( a

[CS. Executive Dec. 2018]

y n a p m o c t p e c x e s e e s s e s s a l l A ) (

s r a e y n e t t x e n r o f e m o c n i h c u s f o % 5 2 ) ( c d

`

e e s s e s s A l l A ) (

e v i f t x e n r o f e m os r ca ne i hy ce uv i t su fc o e s %n 0o 5c ) ( b

`

F U H / l a u d i v i d n i ) (

e ngh n oi tt ca h l ee c i vr i h f , w s rr d oa ne f ei n eyri a mtat oneb ceyo nmss i s ua s ow he i cs usvn saeo r i eps fv o s e i i t hm %u t 0c r e 0e op 1s t ) (

77. The quantum of deduction available to offshore Banking Units under section 80LA of Income-tax Act, 1961 located in Special Economic Zone (SEZ) and satisfying all conditions from the Gross Total Income is : a -

c d

, G 0 8 ) (

s h k a l 8 1

[CS. Executive Dec. 2018]

0 0 0 , 0 5 , 1 , B G G 0 8 ) (

s h k a l 9

)) ((

c ` d `

d

MCQs on Tax Laws AUTHOR PUBLISHER DATE OF PUBLICATION EDITION ISBN NO PAGE NO. BINDING TYPE

: : : : : : :

K.M. BANSAL, ANJALI AGARWAL TAXMANN MARCH 2022 5TH EDITION 9789393880338 478 PAPERBACK

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Description This book is prepared exclusively for the Executive Level of Company Secretary Examination requirement. It covers the entire revised, new syllabus as per ICSI. The Present Publication is the 5th Edition for CS-Executive | New Syllabus | June/ Dec. 2022 Exams, authored by CA (Dr.) K.M. Bansal & CA Anjali Agarwal, with the following noteworthy features: u

Strictly as per the New Syllabus of ICSI

u

[OMR Based Examination]

u

[Coverage] of this book includes n

n u

[Past Year Examination Questions & Answers] l

CS Executive June 2021 | New Syllabus

l

CS Executive December 2021 | New Syllabus

[Theory & Practical Based MCQs] with Hints for Practical Questions

[Most Updated & Amended] Solutions in this book are provided as per the following: n

[Income Tax Solutions] as per Assessment Year 2022-23

n

[GST/Customs Solutions] as per the Latest Applicable Law

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