1. The tax liability of Mr. Saral, a resident, who attained the age of 60 years on 01.04.2022 and does not opt for the provisions of section 115BAC for the P.Y. 2021-22, on the total income of 5,60,000, comprising of salary income and interest on fixed deposits would be -
A. 9,880
B. 22,880
C. 25,480
D. Nil
Answer: B. 22,880
2. The tax liability of Nirlep Co-operative Society (does not opt to pay tax under section 115BAD) on the total income of 90,000 for P.Y. 2021-22 is –
A. 24,000
B. 28,080
C. Nil
D. 24,960
Answer: D. 24,960
3. What is the amount of marginal relief available to Sadvichar Ltd., adomestic company, on the total income of 10,03,50,000 for P.Y. 2021-22 (comprising only of business income) whose turnover in P.Y. 2019-20 is 450 crore, paying tax as per regular provisions of Income-tax Act? Assume that the company does not exercise option under section 115BAA.
A. 9,98,000 12,67,600
B.
C. 3,50,000 13,32,304
D.
Answer: B. 12,67,600
4. The tax payable by Dharma LLP on total income of 1,01,00,000 for P.Y. 2021-22 is –
A. 35,29,340 32,24,000
B.
C. 33,21,500 31,51,200
D.
Answer: B. 32,24,000
5. Mr. Raman, aged 64 years, was not able to provide satisfactory explanation to the Assessing Officer for the investments of 7 lakhs not recorded in the books of accounts. What shall be the tax payable by him on the value of such investments considered to be deemed income as per section 69?
A. 2,18,400 55,000
B.
C. 5,46,000 54,600
D.
Answer: C. 5,46,000
6. If Anirudh, a citizen of India, has stayed in India in the P.Y. 2021-22 for 181 days, and he is non-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, his residential status for the A.Y. 2022-23 would be -
A. Resident and ordinarily resident
B. Resident but not ordinarily resident
C. Non-resident
D. Deemed resident but not ordinarily resident
Answer: B. Resident but not ordinarily resident
7. Mr. Mahesh is found to be the owner of two gold chains of 50 gms each (value of which is 1,45,000 each) during the financial year ending 31.3.2022 which are not recorded in his books of account and he could not offer satisfactory explanation for the amount spent on acquiring these gold chains. As per section 115BBE, Mr. Mahesh would be liable to pay tax of –
A. 1,80,960 2,26,200
B.
C. 90,480 1,23,958
D.
Answer: B. 2,26,200
8. Mr. Ajay is a recently qualified doctor. He joined a reputed hospital in Delhi on 01.01.2022. He earned total income of 3,40,000 till 31.03.2022. His employer advised him to claim rebate u/s 87A while filing return of income for A.Y. 2022-23. He approached his father, a tax professional, to enquire regarding what is rebate u/s 87A of the Act. What would have his father told him?
(i) An individual who is resident in India and whose total income does not exceed 5,00,000 is entitled to claim rebate under section 87A.
(ii) An individual who is resident in India and whose total income does not exceed 3,50,000 is entitled to claim rebate under section 87A.
(iii) Maximum rebate allowable under section 87A is 5,000.
(iv) Rebate under section 87A is available in the form of exemption from total income.
(v) Maximum rebate allowable under section 87A is 12,500.
(vi) Rebate under section 87A is available in the form of deduction from basic tax liability.
Choose the correct option from the following:
A. (ii), (iii), (vi)
B. (i), (v), (vi)
C. (ii), (iii), (iv)
D. (i), (iv), (v)
Answer: B. (i), (v), (vi)
9. Raman, a citizen of India, was employed in Hindustan Lever Ltd. He resigned on 27.09.2021. He received a salary of 40,000 p.m. from 1.4.2021 to 27.9.2021 from Hindustan Lever Ltd. Thereafter he left for Dubai for the first time on 1.10.2021 and got salary of rupee equivalent of 80,000 p.m. from 1.10.2021 to 31.3.2022 in Dubai. His salary for October to December 2021 was credited in his Dubai bank account and the salary for January to March 2022 was credited in his Mumbai account directly. He is liable to tax in respect of –
A. income received in India from Hindustan Lever Ltd.
B. income received in India and in Dubai.
C. income received in India from Hindustan Lever Ltd. and income directly credited in India.
D. income received in Dubai.
Answer: B. income received in India and in Dubai.
10. Mr. Suhaan (aged 35 years), a non-resident, earned dividend income of 12,50,000 from an Indian company which was declared on 30.09.2021 and credited directly to his bank account on 05.10.2021 in France and 15,000 as interest in saving A/c from State Bank of India for the previous year 2021-22. Assuming that he has no other income, what will be amount of income chargeable to tax in his hands in India for A.Y. 2022-23?
A. 2,55,000 12,65,000
B.
C. 12,50,000 12,55,000
D.
Answer: D. 12,55,000
11. Aashish earns the following income during the P.Y. 2021-22:
• Interest on U.K. Development Bonds (1/4th being received in India): 4,00,000
• Capital gain on sale of a building located in India but received in Holland: 6,00,000
If Aashish is a resident but not ordinarily resident in India, then what will be amount of income chargeable to tax in India for A.Y. 2022-23?
A. 7,00,000
B. 10,00,000 6,00,000
C.
D. 1,00,000
Answer: A. 7,00,000
12. Mr. Sumit is an Indian citizen and a member of the crew of an America bound Indian ship engaged in carriage of freight in international traffic departing from Chennai on 25th April, 2021. From the following details for the P.Y. 2021-22, what would be the residential status of Mr. Sumit for A.Y. 2022-23, assuming that his stay in India in the last 4 previous years preceding P.Y. 2021-22 is 365 days and last seven previous years preceding P.Y. 2021-22 is 730 days?
• Date entered in the Continuous Discharge Certificate in respect of joining the ship by Mr. Sumit: 25th April, 2021
• Date entered in the Continuous Discharge Certificate in respect of signing off the ship by Mr. Sumit: 24th October, 2021
Mr. Sumit has been filing his income tax return in India as a resident
for the preceding 2 previous years.
A. Resident and ordinarily resident
B. Resident but not-ordinarily resident
C. Non-resident
D. Deemed resident but not-ordinarily resident
Answer: A. Resident and ordinarily resident
13. Mr. Square, an Indian citizen, currently resides in Dubai. He came toIndia on a visit and his total stay in India during the F.Y. 2021-22 was 135 days. He is not liable to pay any tax in Dubai. Following is his details of stay in India in the preceding previous years:
| Financial Year | Days of Stay in India |
| 2020-21 | 100 |
| 2019-20 | 125 |
| 2018-19 | 106 |
| 2017-18 | 83 |
| 2016-17 | 78 |
| 2015-16 | 37 |
| 2014-15 | 40 |
What shall be his residential status for the P.Y. 2021-22 if his total income (other than income from foreign sources) is 10 lakhs?
A. Resident but not ordinary resident
b) Resident and ordinary resident
C. Non-resident
D. Deemed resident but not ordinarily resident
Answer: C. Non-resident
14. Dividend income from Australian company received in Australia in the year 2020, brought to India during the P.Y. 2021-22 is taxable in the A.Y.2022-23 in the case of –
A. resident and ordinarily resident only
B. both resident and ordinarily resident and resident but not ordinarily resident
C. non-resident
D. None of the above
Answer: D. None of the above
15. Mr. Ramesh, a citizen of India, is employed in the Indian embassy in Australia. He is a non-resident for A.Y. 2022-23. He received salary and allowances in Australia from the Government of India for the year ended 31.03.2022 for services rendered by him in Australia. In addition, he was allowed perquisites by the Government. Which of the following statements are correct?
A. Salary, allowances and perquisites received outside India are not taxable in the hands of Mr. Ramesh, since he is non-resident.
B. Salary, allowances and perquisites received outside India by Mr. Ramesh are taxable in India since they are deemed to accrue or arise in India.
C. Salary received by Mr. Ramesh is taxable in India but allowances and perquisites are exempt.
D. Salary received by Mr. Ramesh is exempt in India but allowances and perquisites are taxable.
Answer: C. Salary received by Mr. Ramesh is taxable in India but allowances and perquisites are exempt.
16. Mr. Nishant, a resident but not ordinarily resident for the previous year 2020-21 and resident and ordinarily resident for the previous year 2021-22, has received rent from property in Canada amounting to 1,00,000 during the P.Y. 2020-21 in a bank in Canada. During the financial year 2021-22, he remitted this amount to India through approved banking channels. Is such rent taxable in India, and if so, how much and in which year?
A. Yes; 70,000 was taxable in India during the previous year 2020-21.
B. Yes; 1,00,000 was taxable in India during the previous year 2020-21.
C. Yes; 70,000 was taxable in India during the previous year 2021-22.
D. No; such rent is not taxable in India either during the previous year 2020-21 or during the previous year 2021-22.
Answer: D. No; such rent is not taxable in India either during the previous year 2020-21 or during the previous year 2021-22.
17. Who among the following will qualify as non-resident for the previous year 2021-22?
– Mr. Joey, an Italian designer, came on visit to India to explore Indian handloom on 03.09.2021 and left on 15.12.2021. For past four years, he visited India for fashion shows and stayed in India for 100 days each year.
– Mr. Sanjay born and settled in Canada, visits India each year for three months to meet his parents and grandparents, born in India in 1946, living in Mumbai. His Indian income is 15,20,000.
– Mr. Chang, a Korean scientist, left India to his home country for fixed employment there. He stayed in India for study and research in medicines from 01.01.2017 till 01.07.2021. Choose the correct answer:
A. Mr. Joey and Mr. Chang
B. Mr. Sanjay
C. Mr. Sanjay and Mr. Chang
D. Mr. Chang
Answer: B. Mr. Sanjay
18. Which of the following income would be exempt in the hands of a Sikkimese Individual?
A. only income from any source in the State of Sikkim
B. only income by way of dividend
C. only income from interest on securities
D. All the above
Answer: D. All the above
19. Which of the following statements is/are true in respect of taxability of agricultural income under the Income-tax Act, 1961?
(i) Any income derived from saplings or seedlings grown in a nursery is agricultural income exempt from tax u/s 10(1).
(ii) 60% of dividend received from shares held in a tea company is agricultural income exempt from tax u/s 10(1).
(iii) While computing income tax liability of an assessee aged 50 years, agricultural income is required to be added to total income only if net agricultural income for the P.Y. exceeds 5,000 and the total income (including net agricultural income) exceeds 2,50,000.
(iv) While computing income tax liability of an assessee aged 50 years, agricultural income is required to be added to total income only if net agricultural income for the P.Y. exceeds 5,000 and the total income (excluding net agricultural income) exceeds 2,50,000.
Choose the correct answer:
A. (i) and (iii)
B. (ii) and (iii)
C. (i) and (iv)
D. (i), (ii) and (iv)
Answer: C. (i) and (iv)
20. XYZ Ltd. has two units, one unit at Special Economic Zone (SEZ) and other unit at Domestic Tariff Area (DTA). The unit in SEZ was set up and started manufacturing from 12.3.2013 and unit in DTA from 15.6.2016. Total turnover of XYZ Ltd. and Unit in DTA is 8,50,00,000 and 3,25,00,000, respectively. Export sales of unit in SEZ and DTA is 2,50,00,000 and 1,25,00,000, respectively and net profit of Unit in SEZ and DTA is 80,00,000 and 45,00,000, respectively. XYZ Ltd. would be eligible for deduction under section 10AA for P.Y. 2021-22 for-
A. 38,09,524 19,04,762
B.
C. 23,52,941 11,76,471
D.
Answer: B. 19,04,762
21. Income derived from farm building situated in the immediate vicinity of an agricultural land (not assessed to land revenue) would be treated as agricultural income if such land is situated in –
A. an area at a distance of 3 kms from the local limits of a municipality and has a population of 80,000 as per last census
B. an area within 1.5 kms from the local limits of a municipality and has a population of 12,000 as per last census
C. an area within 2 kms from the local limits of a municipality and has a population of 11,00,000 as per last census
D. an area within 8 kms from the local limits of a municipality and has a population of 10,50,000 as per last census
Answer: A. an area at a distance of 3 kms from the local limits of a municipality and has a population of 80,000 as per last census
22. Anirudh stays in New Delhi. His basic salary is 10,000 p.m., D.A. (60% of which forms part of pay) is 6,000 p.m., HRA is 5,000 p.m. and he is entitled to a commission of 1% on the turnover achieved by him. Anirudh pays a rent of 5,500 p.m. The turnover achieved by him during the current year is 12 lakhs. The amount of HRA exempt under section 10(13A) is –
A. 48,480 45,600
B.
C. 49,680 46,800
D.
Answer: A. 48,480
23. Mr. Dutta received voluntary retirement compensation of 7,00,000 after 30 years 4 months of service. He still has 6 years of service left. At the time of voluntary retirement, he was drawing basic salary 20,000 p.m.; Dearness allowance (which forms part of pay) 5,000 p.m. Compute his taxable voluntary retirement compensation, assuming that he does not claim any relief under section 89 -
A. 7,00,000
B. 5,00,000 2,00,000
C.
D. Nil
Answer: C. 2,00,000
24. Anand is provided with furniture to the value of 70,000 along with house from February, 2021. The actual hire charges paid by his employer for hire of furniture is 5,000 p.a. The value of furniture to be included along with value of unfurnished house for A.Y.2022-23 is-
A. 5,000
B. 7,000 10,500
C.
D. 14,000
Answer: A. 5,000
25. Mr. Kashyap received basic salary of 20,000 p.m. from his employer. He also received children education allowance of 3,000 for three children and transport allowance of 1,800 p.m. Assume he is not opting to pay tax under section 115BAC. The amount of salary chargeable to tax for P.Y. 2021-22 is -
A. 2,62,600
B. 2,12,600 2,11,600
C.
D. 2,12,200
Answer: B. 2,12,600
26. Mr. Jagat is an employee in accounts department of Bharat Ltd., a cellular company operating in the regions of eastern India. It is engaged in manufacturing of cellular devices. During F.Y. 2021-22, following transactions were undertaken by Mr. Jagat:
(i) He attended a seminar on “Perquisite Valuation”. Seminar fees of 12,500 was paid by Bharat Ltd.
(ii) Tuition fees of Mr. Himanshu (son of Mr. Jagat) paid to private coaching classes (not having any tie-up with Bharat Ltd.) was reimbursed by Bharat Ltd. Amount of fees was 25,000.
(iii) Ms. Sapna (daughter of Mr. Jagat) studies in DPS Public School (owned and maintained by Bharat Ltd.). Tuition fees paid for Ms. Sapna was 750 per month by Mr. Jagat. Cost of education in similar institution is 5,250 per month.
What shall be the amount which is chargeable to tax under the head “Salaries” in hands of Mr. Jagat for A.Y. 2022-23?
A. 25,000 37,500
B.
C. 66,500 79,000
D.
Answer: D. 79,000
27. Vidya received 90,000 in May, 2021 towards recovery of unrealised rent, which was deducted from actual rent during the P.Y. 2019-20 for determining annual value. Legal expense incurred in relation to unrealized rent is 20,000. The amount taxable under section 25A for A.Y. 2022-23 would be -
A. 70,000
B. 63,000 90,000
C.
D. 49,000
Answer: B. 63,000
28. Ganesh and Rajesh are co-owners of a self-occupied property. They own 50% share each. The interest paid by each co-owner during the previous year 2021-2 on loan (taken for acquisition of property during the year 2004) is 2,05,000. The amount of allowable deduction in respect of each co-owner is –
A. 2,05,000
B. 1,02,500 2,00,000
C.
D. 1,00,000
Answer: C. 2,00,000
29. Mr. Raghav has three houses for self-occupation. What would be the tax treatment for A.Y.2022-23 in respect of income from house property?
A. One house, at the option of Mr. Raghav, would be treated as self occupied. The other two houses would be deemed to be let out.
B. Two houses, at the option of Mr. Raghav, would be treated as self-occupied. The other house would be deemed to be let out.
C. One house, at the option of Assessing Officer, would be treated as self-occupied. The other two houses would be deemed to be let out.
D. Two houses, at the option of Assessing Officer, would be treated as self-occupied. The other house would be deemed to be let out.
Answer: B. Two houses, at the option of Mr. Raghav, would be treated as self-occupied. The other house would be deemed to be let out.
30. An electricity company charging depreciation on straight line method on each asset separately, sells one of its machinery in April, 2021 at 1,20,000. The WDV of the machinery at the beginning of the year i.e., on 1st April, 2021 is 1,35,000. No new machinery was purchased during the year. The shortfall of 15,000 is treated as –
A. Terminal depreciation
B. Short-term capital loss
C. Normal depreciation
D. Any of the above, at the option of the assessee
Answer: A. Terminal depreciation
31. Mr. X acquires an asset in the year 2015-16 for the use for scientific research for 2,75,000. He claimed deduction under section 35(1)(iv) in the previous year 2015-16. The asset was brought into use for the business of Mr. X in the P.Y.2021-22, after the research was completed. The actual cost of the asset to be included in the block of assets is -
A. Nil
B. Market value of the asset on the date of transfer to business
C. 2,75,000 less notional depreciation under section 32 upto the date of transfer.
D. Actual cost of the asset i.e., 2,75,000
Answer: A. Nil
32. Mr. X, a retailer, acquired furniture on 10th May 2021 for 10,000 in cash and on 15th May 2021, for 15,000 and 20,000 by a bearer cheque and account payee cheque, respectively. Depreciation allowable for A.Y. 2022-23 would be –
A. 2,000 3,000
B.
C. 3,500 4,500
D.
Answer: B. 3,000
33. The W.D.V. of a block (Plant and Machinery, rate of depreciation 15%) as on 1.4.2021 is 3,20,000. A second hand machinery costing 50,000 was acquired on 1.9.2021 through account payee cheque but put to use on 1.11.2021. During January 2022, part of this block was sold for 2,00,000. The depreciation for A.Y.2022-23 would be –
A. 21,750 25,500
B.
C. 21,125 12,750
D.
Answer: A. 21,750
34. M/s ABC, an eligible assessee, following mercantile system of accounting, carrying on eligible business under section 44AD provides the following details:
♦ Total turnover for the financial year 2021-22 is 130 lakh
♦ Out of the above:
– 25 lakh received by A/c payee cheque during the financial year 2021-22;
– 50 lakh received by cash during the financial year 2021-22;
– 25 lakh received by A/c payee bank draft before the due date of filing of return;
– 30 lakh not received till due date of filing of return.
What shall be the amount of deemed profits of M/s ABC under section
44AD(1) for A.Y. 2022-23?
A. 10.4 lakh 7.0 lakh
B.
C. 5.5 lakh 9.4 lakh
D.
Answer: D. 9.4 lakh
35. Mr. Shahid, a wholesale supplier of dyes, provides you with the details of the following cash payments made throughout the year –
• 12.06.2021: loan repayment of 27,000 taken for business purpose from his friend Kunal. The repayment also includes interest of 5,000.
• 19.08.2021: Portable dye machinery purchased for 15,000. The payment was made in cash in three weekly instalments.
• 26.01.2022: Payment of 10,000 made to electrician due to unforeseen electric circuit at shop.
• 28.02.2022: Purchases made from unregistered dealer for 13,500
What will be disallowance under 40A(3), if any, if Mr. Shahid opts to declare his income as per the provisions of section 44AD?
A. 18,500
B. 28,500 13,500
C.
D. Nil
Answer: D. Nil
36. For an assessee, who is a salaried employee who invests in equity shares, what is the benefit available in respect of securities transaction tax paid by him on sale and acquisition of 100 listed shares of X Ltd. which has been held by him for 14 months before sale?
A. Rebate under section 88E is allowable in respect of securities transaction tax paid
B. Securities transaction tax paid is treated as expenses of transfer and deducted from sale consideration.
C. Capital gains without deducting STT paid is taxable at a concessional rate of 10% on such capital gains exceeding 1 lakh
D. Capital gains without deducting STT paid is taxable at concessional rate of 15%.
Answer: C. Capital gains without deducting STT paid is taxable at a concessional rate of 10% on such capital gains exceeding 1 lakh
37. Under section 54EC, capital gains on transfer of land or building or both are exempted if invested in the bonds issued by NHAI & RECL or other notified bond –
A. within a period of 6 months after the date of such transfer
B. within a period of 6 months from the end of the relevant previous year
C. within a period of 6 months from the end of the previous year or the due date for filing the return of income under section 139(1), whichever is earlier
D. At any time before the end of the relevant previous year.
Answer: A. within a period of 6 months after the date of such transfer
38. Mr. A (aged 45 years) sold an agricultural land for 52 lakhs on 04.10.2021 acquired at a cost of 49.25 lakhs on 13.09.2020 situated at 7 kms from the jurisdiction of municipality having population of 4,00,000 and also sold another agricultural land for 53 lakhs on 12.12.2021 acquired at a cost of 46 lakhs on 15.02.2020 situated at 1.5 kms from the jurisdiction of municipality having population of 12,000. What would be the amount of capital gain chargeable to tax in the hands of Mr. A for the assessment year 2022-23? Cost inflation index for F.Y. 2019-20:289; 2020-21: 301; 2021-22: 317.
A. Short-term capital gain of 9.75 lakhs 7 lakhs
B. Short-term capital gain of
C. Long-term capital gain of 2,54,325 2,67,531
D. Long-term capital gain of
Answer: B. Short-term capital gain of 7 lakhs
39. Mr. Kashyap has acquired a building from his friend on 10.10.2021 for 15,00,000. The stamp duty value of the building on the date of purchase is 16,20,000. Income chargeable to tax in the hands of Mr. Kashyap is
A. 70,000
B. 50,000
C. Nil
D. 1, 20,000
Answer: C. Nil
40. Mr. X, aged 61 years, earned dividend of 12,00,000 from ABC Ltd. in P.Y. 2021-22. Interest on loan taken for the purpose of investment in ABC Ltd., is 3,00,000. Income included in the hands of Mr. X for P.Y. 2021-22 would be –
A. 12,00,000
B. 9,60,000
C. 9,00,000
D. 2,00,000
Answer: B. 9,60,000
41. Mr. Mayank has received a sum of 75,000 on 24.10.2021 from his friend on the occasion of his marriage anniversary. What would be the taxability of the said sum in the hands of Mr. Mayank?
A. Entire 75,000 is chargeable to tax
B. Entire 75,000 is exempt from tax 25,000 is chargeable to tax
C. Only
D. Only 50% i.e., 37,500 is chargeable to tax
Answer: A. Entire 75,000 is chargeable to tax
42. If the converted property is subsequently partitioned among the members of the family, the income derived from such converted property as is received by the spouse of the transferor will be taxable –
A. as the income of the karta of the HUF
B. as the income of the spouse of the transferor
C. as the income of the HUF.
D. as the income of the transferor-member
Answer: D. as the income of the transferor-member
43. Mr. Aarav gifted a house property valued at 50 lakhs to his wife, Geetha, who in turn has gifted the same to her daughter-in-law Deepa. The house was let out at 25,000 per month throughout the P.Y.2021-22. Compute income from house property for A.Y.2022-23. In whose hands is the income from house property chargeable to tax?
A. 3,00,000 in the hands of Mr. Aarav
B. 2,10,000 in the hands of Mr. Aarav
C. 2,10,000 in the hands of Geetha
D. 2,10,000 in the hands of Deepa
Answer: B. 2,10,000 in the hands of Mr. Aarav
44. Ram owns 500, 15% debentures of Reliance Industries Ltd. of 500 each. Annual interest of 37,500 was declared on these debentures for P.Y. 2021-22. He transfers interest income to his friend Shyam, without transferring the ownership of these debentures. While filing return of income for A.Y. 2022-23, Shyam showed 37,500 as his income from debentures. As tax advisor of Shyam, do you agree with the tax treatment done by Shyam in his return of income?
A. Yes, since interest income was transferred to Shyam therefore, after transfer it becomes his income.
B. No, since Ram has not transferred debentures to Shyam, interest income on the debentures is not taxable income of Shyam.
C. Yes, if debentures are not transferred, interest income on debentures can be declared by anyone, Ram or Shyam, as taxable income depending upon their discretion.
D. No, since Shyam should have shown the income as interest income received from Mr. Ram and not as interest income earned on debentures.
Answer: B. No, since Ram has not transferred debentures to Shyam, interest income on the debentures is not taxable income of Shyam.
45. Mrs. Shivani, wife of Mr. Anurag, is a partner in a firm. Her capital contribution is 5 lakhs to the firm as on 1.4.2021 which includes 3.5 lakhs contributed out of gift received from Anurag. The firm paid interest on capital of 50,000 and share of profit of 60,000 during the F.Y.2021-22. The entire interest has been allowed as deduction in the hands of the firm. Which of the following statements is correct?
A. Share of profit is exempt but interest on capital is taxable in the hands of Mrs. Shivani.
B. Share of profit is exempt but interest of 39,286 is includible in the income of Mr. Anurag and interest of 10,714 is includible in the income of Mrs. Shivani.
C. Share of profit is exempt but interest of 35,000 is includible in the income of Mr. Anurag and interest of 15,000 is includible in the income of Mrs. Shivani.
D. Share of profit to the extent of 42,000 and interest on capital to the extent of 35,000 is includible in the hands of Mr. Anurag
Answer: C. Share of profit is exempt but interest of 35,000 is includible in the income of Mr. Anurag and interest of 15,000 is includible in the income of Mrs. Shivani.
46. Mr. Arvind gifted a house property to his wife, Ms. Meena and a flat to his daughter-in law, Ms. Seetha. Both the properties were let out. Which of the following statements is correct?
A. Income from both properties is to be included in the hands of Mr. Arvind by virtue of section 64.
B. Income from property gifted to wife alone is to be included in Mr. Arvind’s hands by virtue of section 64.
C. Mr. Arvind is the deemed owner of house property gifted to Ms. Meena and Ms. Seetha.
D. Mr. Arvind is the deemed owner of property gifted to Ms. Meena. Income from property gifted to Ms. Seetha would be included in his hands by virtue of section 64.
Answer: D. Mr. Arvind is the deemed owner of property gifted to Ms. Meena. Income from property gifted to Ms. Seetha would be included in his hands by virtue of section 64.
47. On 20.10.2021, Pihu (minor child) gets a gift of 20,00,000 from her father’s friend. On the same day, the amount is deposited as fixed deposit in Pihu’s bank account. On the said deposit, interest of 13,000 was earned during the P.Y. 2021-22. In whose hands the income of Pihu shall be taxable? Also, compute the amount of income that shall be taxable.
A. Income of 20,11,500 shall be taxable in the hands of Pihu’s father.
B. Income of 20,13,000 shall be taxable in the hands of Pihu’s father.
C. Income of 20,11,500 shall be taxable in the hands of Pihu’s father or mother, whose income before this clubbing is higher.
D. Income of 20,13,000 shall be taxable in the hands of Pihu’s father or mother, whose income before this clubbing is higher.
Answer: C. Income of 20,11,500 shall be taxable in the hands of Pihu’s father or mother, whose income before this clubbing is higher.
48. Mr. A incurred short-term capital loss of 10,000 on sale of shares through the National Stock Exchange. Such loss –
A. can be set-off only against short-term capital gains
B. can be set-off against both short-term capital gains and long-term capital gains.
C. can be set-off against any head of income.
D. not allowed to be set-off.
Answer: B. can be set-off against both short-term capital gains and long-term capital gains.
49. According to section 80, no loss which has not been determined in pursuance of a return filed in accordance with the provisions of section 139(3), shall be carried forward. The exceptions to this are –
A. Loss from specified business under section 73A
B. Loss under the head “Capital Gains” and unabsorbed depreciation carried forward under section 32(2)
C. Loss from house property and unabsorbed depreciation carried forward under section 32(2)
D. Loss from speculation business under section 73
Answer: C. Loss from house property and unabsorbed depreciation carried forward under section 32(2)
50. Brought forward loss from house property of 3,10,000 of A.Y. 2021- 22 is allowed to be set-off against income from house property of A.Y. 2022-23 of 5,00,000 to the extent of –
A. 2,00,000 3,10,000
B.
C. 2,50,000 1,00,000
D.
Answer: B. 3,10,000
51. Mr. Rohan incurred loss of 3 lakh in the P.Y. 2021-22 in retail trade business. Against which of the following income during the same year, can he set-off such loss?
A. profit of 1 lakh from wholesale cloth business
B. long-term capital gains of 1.50 lakhs on sale of land
C. speculative business income of 40,000
D. All of the above
Answer: D. All of the above
52. Virat runs a business of manufacturing of shoes since the P.Y. 2019- 20. During the P.Y. 2019-20 and P.Y. 2020-21, Virat had incurred business losses. For P.Y. 2021-22, he earned business profit (computed) of 3 lakhs. Considering he may/may not have sufficient business income to set off his earlier losses, which of the following order of set off shall be considered: (He does not have income from any other source)
A. First adjustment for loss of P.Y. 2019-20, then loss for P.Y. 2020-21 and then unabsorbed depreciation, if any.
B. First adjustment for loss of P.Y. 2020-21, then loss for P.Y. 2019-20 and then unabsorbed depreciation, if any.
C. First adjustment for unabsorbed depreciation, then loss of P.Y. 2020-21 and then loss for P.Y. 2019-20, if any.
D. First adjustment for unabsorbed depreciation, then loss of P.Y. 2019-20 and then loss for P.Y. 2020-21, if any.
Answer: A. First adjustment for loss of P.Y. 2019-20, then loss for P.Y. 2020-21 and then unabsorbed depreciation, if any.
53. Mr. Ravi incurred loss of 4 lakh in the P.Y.2021-22 in leather business. Against which of the following incomes earned during the same year, can he set-off such loss?
(i) Profit of 1 lakh from apparel business
(ii) Long-term capital gains of 2 lakhs on sale of jewellery
(iii) Salary income of 1 lakh
Choose the correct answer:
A. First from (ii) and thereafter from (i); the remaining loss has to be carried forward.
B. First from (i) and thereafter from (ii) and (iii)
C. First from (i) and thereafter from (iii); the remaining loss has to be carried forward
D. First from (i) and thereafter from (ii); the remaining loss has to be carried forward
Answer: D. First from (i) and thereafter from (ii); the remaining loss has to be carried forward
54. During the A.Y.2021-22, Mr. A has a loss of 8 lakhs under the head “Income from house property” which could not be set off against any other head of income as per the provisions of section 71. The due date for filing return of income u/s 139(1) in case of Mr. A has already expired and Mr. A forgot to file his return of income within the said due date. However, Mr. A filed his belated return of income for A.Y.2021-22. Now, while filing return of income for A.Y.2022-23, Mr. A wishes to set off the said loss against income from house property for the P.Y. 2021-22. Determine whether Mr. A can claim the said set off.
A. No, Mr. A cannot claim set off of loss of 8 lakhs during A.Y. 2022-23 as he failed to file his return of income u/s 139(1) for A.Y. 2021-22.
B. Yes, Mr. A can claim set off of loss of 2 lakhs, out of 8 lakhs, from his income from house property during A.Y. 2022- 23, if any, and the balance has to be carried forward to A.Y.2023-24.
C. Yes, Mr. A can claim set off of loss of 2 lakhs, out of 8 lakhs, from his income from any head during A.Y. 2022-23 and the balance has to be carried forward to A.Y.2023-24.
D. Yes, Mr. A can claim set off of loss of 8 lakhs during A.Y. 2022-23 from his income from house property, if any, and the balance has to be carried forward to A.Y.2023-24.
Answer: D. Yes, Mr. A can claim set off of loss of 8 lakhs during A.Y. 2022-23 from his income from house property, if any, and the balance has to be carried forward to A.Y.2023-24.
55. The details of income/loss of Mr. Kumar for A.Y. 2022-23 are as follows:
| Particulars | Rs in lakhs |
| Income from Salary (computed) | 5,20,000 |
| Loss from self-occupied house property | 95,000 |
| Loss from let-out house property | 2,25,000 |
| Loss from specified business u/s 35AD | 2,80,000 |
| Loss from medical business | 1,20,000 |
| Long term capital gain | 1,60,000 |
| Income from other sources | 80,000 |
What shall be the gross total income of Mr. Kumar for A.Y. 2022-23?
(a) 4,40,000 3,20,000
(b)
(c) 1,60,000 4,80,000
(d)
Answer: (a) 4,40,000
56. Mr. Srivastav, aged 72 years, paid medical insurance premium of52,000 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. 30,000 50,000
B.
C. 52,000 56,000
D.
Answer: B. 50,000
57. Mr. Ramesh pays a rent of 5,000 per month. His total income is 2,80,000 (i.e., Gross Total Income as reduced by deductions under Chapter VI-A except section 80GG). He is also in receipt of HRA. He would be eligible for a deduction under section 80GG of an amount of-
A. 60,000 32,000
B.
C. 70,000
D. Nil
Answer: D. Nil
58. An individual has paid life insurance premium of 25,000 during the previous year for a policy of 1,00,000 taken on 1.4.2018. He shall -
A. not be allowed deduction u/s 80C
B. be allowed deduction of 20,000 u/s 80C
C. be allowed deduction of 25,000 u/s 80C 10,000 u/s 80C
D. be allowed deduction of
Answer: D. be allowed deduction of 10,000 u/s 80C
59. In respect of loan of 40 lakhs sanctioned by SBI in April, 2021 for purchase of residential house intended for self-occupation, compute the interest deduction allowable under the provisions of the Act for A.Y.2022-23, assuming that the disbursement was made on 1st June, 2021, the rate of interest is 8% p.a. and the loan sanctioned was 80% of the stamp duty value of the property.
A. 2,00,000 u/s 24 and 1,20,000 u/s 80EEA
B. 1,50,000 u/s 80EEA and 1,70,000 u/s 24
C. 2,00,000 u/s 24 and 50,000 u/s 80EEA
D. 2,00,000 u/s 24
Answer: D. 2,00,000 u/s 24
60. The maximum amount which can be donated in cash for claiming deduction under section 80G for the P.Y. 2021-22 is –
A. 5,000 10,000
B.
C. 1,000 2,000
D.
Answer: D. 2,000
61. Rajan, a resident Indian, has incurred 15,000 for medical treatmentof his dependent brother, who is a person with severe disability and has deposited 20,000 with LIC for his maintenance. For A.Y.2022-23, Rajan would be eligible for deduction under section 80DD of an amount equal to –
A. 15,000
B. 35,000 75,000
C.
D. 1,25,000
Answer: D. 1,25,000
62. Mr. Shiva made a donation of 50,000 to PM Cares Fund and 20,000 to Rajiv Gandhi Foundation by cheque. He made a cash donation of 10,000 to a public charitable trust registered under section 80G. The deduction allowable to him under section 80G for A.Y.2022-23 is –
A. 80,000 70,000
B.
C. 60,000 35,000
D.
Answer: C. 60,000
63. Mr. Ritvik has purchased his first house in Gwalior for self-occupation on 5.4.2020 for 45 lakhs (stamp duty value being the same) with bank loan sanctioned on 30.3.2020 and disbursed on 3.4.2020. He paid interest of 3.8 lakhs during the P.Y.2021-22. What is the tax treatment of interest paid by him?
A. Interest of 2 lakhs allowable u/s 24
B. Interest of 2 lakhs allowable u/s 24 and 1.8 lakhs allowable u/s 80EEA
C. Interest of 2 lakhs allowable u/s 24 and 1.5 lakhs allowable u/s 80EEA
D. Interest of 1.5 lakhs allowable u/s 24 and 1.5 lakhs allowable u/s 80EEA
Answer: C. Interest of 2 lakhs allowable u/s 24 and 1.5 lakhs allowable u/s 80EEA
64. Mr. Anuj is a businessman whose total income (after allowing deduction under Chapter VI-A except under section 80GG) for A.Y. 2022-23 is 5,95,000. He does not own any house property and is staying in a rented accommodation in Patna for a monthly rent of 9,000. Deduction under section 80GG for A.Y. 2022-23 is –
A. 48,500
B. 1,48,750 60,000
C.
D. 1,08,000
Answer: A. 48,500
65. If Mr. Y’s total income for A.Y. 2022-23 is 52 Lakhs, surcharge is payable at the rate of –
A. 15%
B. 12%
C. 10%
D. 2%
Answer: C. 10%
66. Unexhausted basic exemption limit of a resident individual can be adjusted against –
A. only LTCG taxable @20% u/s 112
B. only STCG taxable @15% u/s 111A
C. both A. and B.
D. casual income taxable @30% u/s 115BB
Answer: C. both A. and B.
67. Unexhausted basic exemption limit of a non-resident individual can be adjusted against –
A. only LTCG taxable @20% u/s 112
B. only STCG taxable @15% u/s 111A
C. both A. and B.
D. neither A. nor B.
Answer: D. neither A. nor B.
68. During the P.Y.2021-22, Mr. Ranjit has short-term capital gains of 95 lakhs taxable under section 111A, long-term capital gains of 110 lakhs taxable under section 112A and business income of 90 lakhs. Which of the following statements is correct?
A. Surcharge @25% is leviable on income-tax computed on total income of 2.95 crore, since total income exceeds 2 crore.
B. Surcharge @15% is leviable on income-tax computed on total income of 2.95 crore.
C. Surcharge @15% is leviable in respect of income-tax computed on capital gains of 2.05 crore; in respect of business income, surcharge is leviable @25% on income-tax, since total income exceeds 2 crore.
D. Surcharge @15% is leviable in respect of income-tax computed on capital gains of 2.05 crore; surcharge @10% is leviable on income-tax computed on business income, since the same exceeds 50 lakhs but is less than 1 crore.
Answer: B. Surcharge @15% is leviable on income-tax computed on total income of 2.95 crore.
69. Which of the following statements is not true with respect to A.Y. 2022-23?
A. No exemption under section 80TTA would be available to resident senior citizens
B. Share of profit will not be exempt in the hands of partner, if firm claims exemption of income under section 10AA
Answer: B. Share of profit will not be exempt in the hands of partner, if firm claims exemption of income under section 10AA
70. Gross total income of Arpita for P.Y. 2021-22 is 6,00,000. She had taken a loan of 7,20,000 in the financial year 2018-19 from a bank for her husband who is pursuing MBA course from IIM, Kolkata. On 02.04.2021, she paid the first instalment of loan of 45,000 and interest of 65,000. Compute her total income for A.Y. 2022-23.
A. 6,00,000
B. 5,35,000 4,90,000
C.
D. 5,55,000
Answer: B. 5,35,000
71. Mr. Uttam presents you the following data related to his tax liability for A.Y. 2022-23:
| Particulars | Rs in lakhs |
| Tax Liability as per regular provisions of Income-tax Act, 1961 | 15 |
| Tax Liability as per section 115JC | 12 |
| AMT credit brought forward from A.Y. 2021-22 | 5 |
What shall be the tax liability of Mr. Uttam for A.Y. 2022-23?
(a) 12 lakhs 15 lakhs
(b)
(c) 10 lakhs 7 lakhs
(d)
Answer: (a) 12 lakhs
72. Mr. Nekinsaan, aged 43 years, provides the following income details for P.Y. 2021-22 as follows:
| Particulars | Rs in lakhs |
| Capital Gains under section 112A | 120 |
| Capital Gains under section 111A | 110 |
| Other Income | 520 |
What shall be the tax liability of Mr. Nekinsaan as per regular provisions of the Income-tax Act, 1961 for A.Y. 2022-23?
(a) 260.06 lakhs
(b) 253.68 lakhs 256.52 lakhs
(c)
(d) 253.56 lakhs
Answer: (d) 253.56 lakhs
73. Continuing Q. 72, what shall be tax liability of Mr. Nekinsaan as per regular provisions of the Income-tax Act, 1961 for A.Y. 2022-23, if the Other Income is 480 lakhs?
A. 218.20 lakhs
B. 221.03 lakhs 218.73 lakhs
C.
D. 242.25 lakhs
Answer: C. 218.73 lakhs
74. Mr. Bandu, aged 37 years, provides the following details for P.Y. 2021- 22 as follows:
| Particulars | Rs in lakhs |
| Textile business income | 22 |
| Speculative business loss | -4 |
| Textile business loss b/f from P.Y. 2019-20 | -5 |
| Business income of spouse included in the income of Mr. Bandu as per section 64(1)(iv) | 2 |
| Deductions available under Chapter VI-A | 3 |
| TDS | 1 |
| TCS | 0.5 |
| TCS | 1.3 |
What shall be the net tax payable/(refundable) as per regular provisions of the Income-tax Act, 1961 for A.Y. 2022-23 for Mr. Bandu?
(a) 24,200 1,00,600)
(b) (
(c) 2,11,400 12,500
(d)
Answer: (a) 24,200
75. Mr. Raj, aged 32 years, presents you the following data for A.Y. 2022-23:
| Particulars | Rs in lakhs |
| Gross receipts from business conducted entirely through banking channels (opted for section 44AD) | 70 |
| Capital gains under section 112A | 5 |
| Capital gains under section 111A | 3 |
| Winnings from horse races | 1 |
What would be the tax liability as per the regular provisions of the Income-tax Act, 1961 of Mr. Raj for the A.Y.2022-23?
(a) 1,28,440
(b) 1,05,560 1,38,840
(c)
(d) 1,45,080
Answer: (a) 1,28,440
76. Mr. A, whose total sales is 201 lakhs, declares profit of 10 lakhs for the F.Y. 2021-22. He is liable to pay advance tax –
A. in one instalment
B. in two instalments
C. in three instalments
D. in four instalments
Answer: D. in four instalments
77. Mr. Raj (a non-resident and aged 65 years) is a retired person, earning rental income of 40,000 per month from a property located in Delhi. He is residing in Canada. Apart from rental income, he does not have any other source of income. Is he liable to pay advance tax in India?
A. Yes, he is liable to pay advance tax in India as he is a non-resident and his tax liability in India exceeds 10,000.
B. No, he is not liable to pay advance tax in India as his tax liability in India is less than 10,000.
C. No, he is not liable to pay advance tax in India as he has no income chargeable under the head “Profits and gains of business or profession” and he is of the age of 65 years.
D. Both B. and C.
Answer: B. No, he is not liable to pay advance tax in India as his tax liability in India is less than 10,000.
78. Mr. X, a resident, is due to receive 4.50 lakhs on 31.3.2022, towards maturity proceeds of LIC policy taken on 1.4.2019, for which the sum assured is 4 lakhs and the annual premium is 1,25,000. Mr. Z, a resident, is due to receive 95,000 on 1.10.2021 towards maturity proceeds of LIC policy taken on 1.10.2013 for which the sum assured is 90,000 and the annual premium is 10,000.
A. Tax is required to be deducted on income comprised in maturity proceeds payable to Mr. X and Mr. Z
B. Tax is required to be deducted on income comprised in maturity proceeds payable to Mr. X
C. Tax is required to be deducted on income comprised in maturity proceeds payable to Mr. Z
D. No tax is required to be deducted on income comprised in maturity proceeds payable to either Mr. X or Mr. Z
Answer: B. Tax is required to be deducted on income comprised in maturity proceeds payable to Mr. X
79. An amount of 40,000 was paid to Mr. X on 1.7.2021 towards fees for professional services without deduction of tax at source. Subsequently, another payment of 50,000 was due to Mr. X on 28.02.2022, from which tax @10% (amounting to 9,000) on the entire amount of 90,000 was deducted and the net amount was paid on the same day to Mr. X. However, this tax of 9,000 was deposited only on 22.6.2022. The interest chargeable under section 201(1A) would be:
A. 320 860
B.
C. 1,620 540
D.
Answer: B. 860
80. The benefit of payment of advance tax in one installment on or before March is available to assessees computing profits on presumptive basis –
A. only under section 44AD
B. under section 44AD and 44ADA
C. under section 44AD and 44AE
D. under section 44AD, 44ADA and 44AE
Answer: B. under section 44AD and 44ADA
81. Mr. Ramesh, Mr. Mahesh and Mr. Suresh, jointly owned a flat in Mathura, which was let out to Dr. Rajesh from 01.04.2021. The annual rent paid by Dr. Rajesh for the flat was 5,40,000, credited equally to each of their account. Mr. Rajesh approached his tax consultant to seek clarity in relation to deduction of tax on payment of the rent. He informed his consultant that he occupied such flat for his personal accommodation and his receipts from his profession during the previous year 2020-21 was 58 lakhs. As tax consultant, choose the correct answer –
A. No tax at source is required to be deducted since the rental payments are towards flat occupied for personal purpose
B. Tax is required to be deducted at source since the rent payment exceeds 2,40,000 and Dr. Rajesh is an individual having gross receipts from profession exceeding 50 lakh in the preceding financial year.
C. No tax is required to be deducted at source since the rent credited to each co-owner is less than 2,40,000
D. No tax is required to be deducted at source since Dr. Rajesh’s gross receipts during the preceding financial year were less than 1 crore
Answer: C. No tax is required to be deducted at source since the rent credited to each co-owner is less than 2,40,000
82. Mr. Nihar maintains a savings A/c and a current A/c in Mera Bank Ltd. The details of withdrawals on various dates during the previous year 2021-22 are as follows:
| Date of Cash withdrawal | Saving Account | Current Account |
| 05.04.2021 | 15,00,000 | – |
| 10.05.2021 | – | 22,00,000 |
| 25.06.2021 | 20,00,000 | – |
| 17.07.2021 | – | 5,00,000 |
| 28.10.2021 | 35,00,000 | – |
| 10.11.2021 | – | 38,00,000 |
| 12.12.2021 | 25,00,000 | – |
Mr. Nihar regularly files his return of income. Is Mera Bank Limited required to deduct tax at source on the withdrawals made by Mr. Nihar during the previous year 2021-22? If yes, what would the amount of tax deducted at source?
(a) TDS of 3,20,000 is required to be deducted
(b) No, TDS is not required to be deducted as the cash withdrawal does not exceed 1 crore neither in saving account nor in current account
(c) TDS of 3,00,000 is required to be deducted.
(d) TDS of 1,20,000 is required to be deducted.
Answer: (d) TDS of 1,20,000 is required to be deducted.
83. Mr. Jha, an employee of FX Ltd, attained 60 years of age on 15.05.2021. He is resident in India during F.Y. 2021-22 and earnedsalary income of 5 lakhs (computed). During the year, he earned 7 lakhs from winning of lotteries. What shall be his advance tax liability for A.Y. 2022-23 if all tax deductible at source has been duly deducted and remitted to the credit of Central Government on time? Assume he does not opt to pay tax under section 115BAC.
A. 2,20,000 + Cess 8,800 = 2,28,800, being the tax payable on total income of 12 lakhs
B. 2,10,000 + Cess 8,400 = 2,18,400, being the tax payable on lottery income of 7 lakhs
c) 10,000 + Cess 8,800 = 18,800, being the net tax payable on salary income, since tax would have been deducted at source from lottery income.
D. Nil
Answer: D. Nil
84. Mr. P is a professional who is responsible for paying a sum of 2,00,000 as rent for use of building to Mr. Harshit, a resident, for the month of February, 2022. The gross receipts of Mr. P are as under:
From 01.04.2020 to 31.03.2021: 55,00,000
From 01.04.2021 to 28.02.2022: 45,00,000
Whether Mr. P is responsible for deducting any tax at source from the rent of 2,00,000 payable to Mr. Harshit?
A. Tax at source is required to be deducted u/s 194-I at the rate of 10%.
B. Tax at source is required to be deducted u/s 194-IB at the rate of 5%.
C. Tax at source is required to be deducted u/s 194-IB at the rate of 10%.
D. No tax is required to be deducted at source.
Answer: D. No tax is required to be deducted at source.
85. Mr. A has two bank accounts maintained with ICICI Bank and HDFC Bank. From 01.04.2021 till 31.03.2022, Mr. A withdrew the following amounts as cash from both the said accounts;
HDFC Bank: 50 Lakh
ICICI Bank: 120 Lakh
What shall be the amount of tax to be deducted at source u/s 194N by HDFC Bank and ICICI Bank, respectively, while making payment in cash to Mr. A assuming Mr. A has filed his return of income for P.Y. 2018-19, P.Y. 2019-20 and P.Y. 2020-21 respectively?
A. 1,00,000 and 2,40,000
B. Nil and 40,000 60,000 and
C. 1,00,000 50,000 and
D. 1,20,000
Answer: B. Nil and 40,000
86. Mr. Ram acquired a house property at Chennai from Mr. Satyam, a resident, for a consideration of 85 lakhs, on 23.8.2021. On the same day, Mr. Ram made two separate transactions, thereby acquiring an urban plot in Gwalior from Mr. Vipun, a resident, for a sum of 50 lakhs and rural agricultural land from Mr. Danish, a resident, for a consideration of 75 lakhs. Which of the following statements are correct assuming that in the consideration amounts as aforementioned all the charges incidental to transfer of the immovable property are included?
A. No tax deduction at source is required in respect of any of the three payments.
B. TDS@1% is attracted on all the three payments.
C. TDS@1% on 85 lakhs and 50 lakhs are attracted. No TDS on payment of 75 lakhs for acquisition of rural agricultural land.
D. TDS@1% on 85 lakhs is attracted. No TDS on payments of 50 lakhs and 75 lakhs.
Answer: C. TDS@1% on 85 lakhs and 50 lakhs are attracted. No TDS on payment of 75 lakhs for acquisition of rural agricultural land.
87. Which of the following details/evidences are required to be furnished by an employee to his/her employer in respect of deduction of interest under the head "Income from house property", when the employer is estimating the total income of the employee for the purpose of tax deduction at source u/s 192?
(i) Amount of Interest payable or paid
(ii) Rate of interest payable or paid
(iii) Name of the lender
(iv) Address of the lender
(v) PAN or Aadhaar number as the case may be, of the lender
(vi) TAN of the lender
Choose the correct answer:
A. (i), (iii), (v)
B. (i), (iii), (iv), (v)
C. (ii), (iv), (v), (vi)
D. (i), (ii)
Answer: B. (i), (iii), (iv), (v)
88. Mr. X paid fees for professional services of 40,000 to Mr. Y, who is engaged only in the business of operation of call centre, on 15.7.2021. Tax is to be deducted by Mr. X at the rate of –
A. 0.75%
B. 1%
C. 1.5%
D. 2%
Answer: D. 2%
89. An interior decorator has opted for presumptive taxation scheme under section 44ADA for A.Y. 2022-23. –
A. He is liable to pay advance tax on or before 15.3.2022
B. He is not liable to advance tax
C. He is liable to pay advance tax in three instalments i.e., on or before 15.9.2021, 15.12.2021 and 15.3.2022
D. He is liable to pay advance tax in four instalments i.e., on or before 15.6.2021, 15.9.2021, 15.12.2021 and 15.3.2022
Answer: A. He is liable to pay advance tax on or before 15.3.2022
90. A firm pays salary and interest on capital to its resident partners. The salary and interest paid fall within the limits specified in section 40B.. Which of the following statements is true?
A. Tax has to be deducted u/s 192 on salary and u/s 194A on interest
B. Tax has to be deducted u/s 192 on salary but no tax needs to be deducted on interest
C. No tax has to be deducted on salary but tax has to be deducted u/s 194A on interest
D. No tax has to be deducted at source on either salary or interest
Answer: D. No tax has to be deducted at source on either salary or interest
91. Mr. X, a resident Indian, wins 10,000 in a lottery. Which of the statement is true?
A. Tax is deductible u/s 194B@30%
B. Tax is deductible u/s 194B@30.9%
C. No tax is deductible at source
D. None of the above
Answer: C. No tax is deductible at source
92. In which of the following transactions, quoting of PAN is mandatory by the person entering into the said transaction?
I Opening a Basic savings bank deposit account with a bank
II Applying to a bank for issue of a credit card.
III Payment of 40,000 to mutual fund for purchase of its units
IV Cash deposit with a post office of 1,00,000 during a day.
V A fixed deposit of 30,000 with a NBFC registered with RBI aggregating the total deposits to 3,50,000 for the F.Y upto to the date of this deposit made.
VI Sale of shares of an unlisted company for an amount of 60,000
Choose the correct answer:
A. II, IV
B. II, III, IV
C. I, II, III, V, VI
D. II, IV, VI
Answer: A. II, IV
93. An individual client has consulted you on the matter of PAN. He is carrying on the business of sale & purchase of electronic appliances. His turnover is 3,00,000 and the profit is 75,000 for the P.Y. 2021-22. He has asked you to provide him threshold of turnover, if any, exceeding which he has to apply for PAN.
A. More than 2,00,000 2,50,000
B. More than
C. More than 3,00,000 5,00,000
D. More than
Answer: D. More than 5,00,000
94. Mr. Z, a salaried individual, has a total income of 8 lakhs for A.Y. 2022-23. He furnishes his return of income for A.Y. 2022-23 on 28th August, 2022. He is liable to pay fee of –
A. up to 1,000 under section 234F 5,000 under section 234F
B.
C. 10,000 under section 234F
D. Not liable to pay any fee
Answer: B. 5,000 under section 234F
95. Arun’s gross total income of P.Y. 2021-22 is 2,45,000. He deposits 45,000 in PPF. He pays electricity bills aggregating to 1.20 lakhs in the P.Y.2021-22. Which of the statements is correct?
A. Arun is not required to file his return of income u/s 139(1) for P.Y. 2021-22, since his total income before giving effect to deduction under section 80C does not exceed the basic exemption limit.
B. Arun is not required to file his return of income u/s 139(1) for P.Y. 2021-22, since his electricity bills do not exceed 2,00,000 for the P.Y.2021-22.
C. Arun is not required to file his return of income u/s 139(1) for P.Y. 2021-22, since neither his total income before giving effect to deduction under section 80C exceeds the basic exemption limit nor his electricity bills exceed 2 lakh for the P.Y. 2021-22.
D. Arun is required to file his return of income u/s 139(1) for P.Y. 2021-22, since his electricity bills exceed 1 lakh for the P.Y.2021-22.
Answer:
96. Which of the following returns can be revised under section 139(5)?
(i) A return of income filed u/s 139(1)
(ii) A belated return of income filed u/s 139(4)
(iii) A return of loss filed u/s 139(3)
Choose the correct answer:
A. Only (i)
B. Only (i) and (ii)
C. Only (i) and (iii)
D. (i), (ii) and (iii)
Answer: D. (i), (ii) and (iii)
97. Iskon Inc., a foreign company and non-resident in India for A.Y. 2022-23, engaged in the business of trading of tube-lights outside India. The principal officer of the company has approached you to enlighten him regarding the provisions of the Income-tax Act, 1961 pertaining to the person who is required to verify the return of income in case of Iskon Inc. Advise him as to which of the following statements are correct, assuming that the company has a managing director.
I.The return of income in case of Iskon Inc. can be verified by the managing director.
II .The return of income in case of Iskon Inc. can be verified byany director, irrespective of the availability or otherwise of themanaging director.
III .The return of income in case of Iskon Inc. may be verified by a person who holds a valid power of attorney from such company to do so, irrespective of the availability or otherwise of the managing director.
Choose the correct answer:
A. I or II or III
B. Only I
C. I or III
D. Only III
Answer: C. I or III
98. Mr. Pawan is engaged in the business of roasting and grinding coffee beans. During F.Y. 2021-22, his total income is 4.5 lakhs. Mr. Pawan filed his return of income for A.Y. 2022-23 on 3rd December, 2022. What shall be the fee payable for default in furnishing in return of income for A.Y. 2022-23?
A. 5,000
B. Not exceeding 1,000 10,000
C.
D. No fees payable as total income is below 5,00,000
Answer: B. Not exceeding 1,000
99. Which of the following benefits are not allowable to Ms. Sakshi, a non-resident, while computing her total income and tax liability for A.Y. 2022-23 under the Income-tax Act, 1961?
A. Deduction of 30% of gross annual value while computing her income from house property in Bangalore
B. Tax rebate of 9,500 from tax payable on her total income of 4,40,000
C. Deduction for donation made by her to Prime Minister’s National Relief Fund
D. Deduction for interest earned by her on NRO savings account permitted to be maintained by RBI.
Answer: B. Tax rebate of 9,500 from tax payable on her total income of 4,40,000
100. Mr. Dinesh, a resident in India, has gross total income of 2,30,000 comprising of interest on saving A/c and rental income during the previous year 2021-22. He incurred expenditure of 2,00,000 for his son for a study tour to Europe. Whether he is required to file return of income for the assessment year 2022-23? If yes, what is the due date?
A. Yes, 31st July of A.Y
B. Yes, 30th September of A.Y
C. Yes, 31st October of A.Y
D. No, he is not required to file return of income
Answer: D. No, he is not required to file return of income
101. Mr. Tejas, an Indian Citizen, left India permanently with his wife and two children, for extending his retail trade business of toys in Canada in the year 2016. From Canada, he is managing his retail business of toys in India. For the purpose of his Indian business, he visits India every year from 1st September to 31st January. His business income is 23.50 lakhs and 18 lakhs from retail trade business in Canada and in India, respectively for the F.Y. 2021-22. He has no other income during the P.Y. 2021-22. Determine his residential status and income taxable in his hands for the A.Y. 2022-23.
A. Resident and ordinarily resident in India and income of 18 lakhs and 23.50 lakhs would be taxable.
B. Non-Resident and 18 lakhs from Indian retail trade business would only be taxable.
C. Resident but not ordinarily Resident and 18 lakhs from Indian retail trade business would only be taxable.
D. Deemed resident and 18 lakhs from Indian retail trade business would only be taxable.
Answer: C. Resident but not ordinarily Resident and 18 lakhs from Indian retail trade business would only be taxable.
102. Dr. Sargun maintained two bank A/cs, one current A/c with Canara Bank for her profession and a saving bank A/c with State Bank of India. The following are the details of her withdrawals from these A/cs during the previous year 2021-22:
| Date of withdrawals | Canara Bank | State Bank of India |
| 25.04.2021 | 25,00, 000 | - |
| 27.04.2021 | - | 15,50,000 |
| 31.08.2021 | 29,00,000 | - |
| 01.09.2021 | 14,20,000 | - |
| 05.09.2021 | 14,00,000 | |
| 07.10.2021 | 18,21,000 | - |
| 11.12.2021 | 26,23,000 | - |
| 12.02.2022 | 7,56,000 | |
| 25.03.2022 | 16,13,000 |
She furnished her return of income for the A.Y. 2021-22 and A.Y. 2020-21 on or before the time limit prescribed u/s 139(1).However, for the A.Y. 2019-20 and A.Y. 2018-19, she has furnished her return of income belatedly. Is any tax deductible at source u/s 194N on the withdrawals made by Dr. Sargun from Canara Bank and SBI Bank? If yes, at what rate and what amount?
(a) TDS is deductible at source on 1,00,20,000 @ 5% by Canara Bank and tax is deductible at source @2% on 25,63,000 by SBI.
(b) TDS is deductible at source on 20,20,000 @ 5% by Canara Bank and no tax is deductible by SBI.
(c) TDS is deductible at source on 20,20,000 @ 2% by Canara Bank and no tax is deductible by SBI.
(d) TDS is deductible at source on 1,00,20,000 @ 5% by Canara Bank and tax is deductible at source @5% on 25,63,000 by SBI.
Answer: (c) TDS is deductible at source on 20,20,000 @ 2% by Canara Bank and no tax is deductible by SBI
103. Ms. Rimjhim (aged 32 years), an interior decorator, has professional receipts of 25,60,000 for the previous year 2021-22. She also earned 1,25,000 as dividend and 4,65,000 as interest income on fixed deposits. She incurred expenses of 13,00,000 for her profession and 30,000 as interest on loan for making investment in shares on which she received dividend. What would be her total income for the A.Y. 2022-23, assuming that she wishes to make maximum tax savings without getting her books of account audited?
A. 18,45,000
B. 18,70,000 18,40,000
C.
D. 18,25,000
Answer: A. 18,45,000
104. Mr. Arpan (aged 35 years) submits the following particulars for thepurpose of computing his total income:
| Particulars | Rs in lakhs |
| Income from salary (computed) | 4,00,000 |
| Loss from let-out house property | (-) 2,20,000 |
| Brought forward loss from let-out house property for the A.Y. 2021-22 | (-)2,30,000 |
| Business loss | (-)1,00,000 |
| Bank interest (FD) received | 80,000 |
Compute the total income of Mr. Arpan for the A.Y.2022-23 and the amount of loss that can be carried forward for the subsequent assessment year?
(a) Total income 2,00,000 and loss from house property of 2,50,000 and business loss of 20,000 to be carried forward to subsequent assessment year.
(b) Total income 1,60,000 and loss from house property of 2,30,000 to be carried forward to subsequent assessment year.
(c) Total income 1,80,000 and loss from house property of 2,30,000 and business loss of 20,000 to be carried forward to subsequent assessment year.
(d) Total income is Nil and loss from house property of 70,000 to be carried forward to subsequent assessment year.
Answer: (a) Total income 2,00,000 and loss from house property of 2,50,000 and business loss of 20,000 to be carried forward to subsequent assessment year.
105. Mr. Vikas transferred 600 unlisted shares of XYZ (P) Ltd. to ABC (P) Ltd. on 15.12.2021 for 3,50,000 when the market price was 5,15,000. The indexed cost of acquisition of shares for Mr. Vikas was computed at 4,25,000. Determine the income chargeable to tax in the hands of Mr. Vikas and ABC (P) Ltd. in respect of the above transaction.
A. 90,000 chargeable to tax in the hands of Mr. Vikas as long-term capital gains and nothing is taxable in the hands of ABC (P) Ltd.
B. 75,000 chargeable to tax in the hands of Mr. Vikas as long-term capital gains and nothing is taxable in the hands of ABC (P) Ltd.
C. 90,000 chargeable to tax in the hands of Mr. Vikas as long-term capital gains and 1,65,000 is taxable under the head “Income from other sources” in the hands of ABC (P) Ltd.
D. 75,000 chargeable to tax in the hands of Mr. Vikas as long-term capital gains and 1,65,000 is taxable under the head “Income from other sources” in the hands of ABC (P) Ltd.
Answer: C. 90,000 chargeable to tax in the hands of Mr. Vikas as long-term capital gains and 1,65,000 is taxable under the head “Income from other sources” in the hands of ABC (P) Ltd.
106. Mr. T, an Indian Citizen and resident of India, earned dividend income of 4,500 from an Indian company, which was declared on 1.10.2021 and paid in cash to Mr. T. What are the tax implications with respect to the dividend in the hands of Mr. T and Indian Company?
A. Such dividend is taxable in the hands of Mr. T and Indian company is required to deduct tax at source @7.5%.
B. Such dividend is taxable in the hands of Mr. T and Indian company is required to deduct tax at source @10%.
C. Such dividend is taxable in the hands of Mr. T. However, Indian company is not required to deduct tax at source since it does not exceed 5,000.
D. Such dividend is exempt in the hands of Mr. T. Hence, Indian company is not required to deduct tax at source.
Answer: B. Such dividend is taxable in the hands of Mr. T and Indian company is required to deduct tax at source @10%.
107. Mr. X is a working partner and Mr. Y is a non-working partner of XYZ partnership firm. XYZ Partnership firm subjected to tax audit under section 44AB for the P.Y. 2021-22. What is the due date for filing return of income for Mr. X and Mr. Y for the A.Y. 2022-23?
A. 31st July, 2022 for both Mr. X and Mr. Y
B. 31st October, 2022 for both Mr. X and Mr. Y
C. 31st July, 2022 for Mr. X and 31st October, 2022 for Mr. Y
D. 31st July, 2022 for Mr. Y and 31st October, 2022 for Mr. X
Answer: B. 31st October, 2022 for both Mr. X and Mr. Y
108. Mr. Arpit, an employee of MNO Ltd. has contributed 1,61,280 towards NPS and similar amount is contributed by his employer. His basic salary is 80,000 p.m. and dearness allowance is 40% of basic salary which forms part of retirement benefits. He also paid 55,000 towards LIC premium for himself and his wife and medical insurance premium of 35,000 by crossed cheque for his mother, being a senior citizen during the previous year 2021-22. How much deduction is available under Chapter VI-A while computing total income of Mr. Arpit for the A.Y. 2022-23?
A. 3,46,280 3,69,400
B.
C. 3,19,400 3,96,280
D.
Answer: B. 3,69,400
109. A building was acquired on 1.4.1995 for 20,00,000 and sold for 80,00,000 on 01.06.2021. The stamp duty value on the date of transfer was 85,00,000. The fair market value of the building on 1.4.2001 was 25,00,000. Its stamp duty value on the same date was 22,00,000. Determine the capital gains on sale of such building for the A.Y. 2022-23?
Cost Inflation Index for F.Y. 2001-02: 100; F.Y. 2021-22: 317
A. 10,26,000 15,26,000
B.
C. 5,75,000 75,000
D.
Answer: A. 10,26,000
110. Mr. Vikas received a gold ring worth 60,000 on the occasion of his daughter’s wedding from his best friend Mr. Vishnu. Mr. Vishnu also gifted a gold chain to Kavya, daughter of Mr. Vikas, worth 80,000 on the said occasion. Would such gifts be taxable in the hands of Mr. Vikas and Ms. Kavya?
A. Yes, the gift of gold ring and gold chain is taxable in the hands of Mr. Vikas and Ms. Kavya, respectively
B. Such gifts are not taxable in the hands of Mr. Vikas nor in the hands of Ms. Kavya
C. Value of gold ring is taxable in the hands of Mr. Vikas but value of gold chain is not taxable in the hands of Ms. Kavya
D. Value of gold chain is taxable in the hands of Ms. Kavya but value of gold ring is not taxable in the hands of Mr. Vikas
Answer: C. Value of gold ring is taxable in the hands of Mr. Vikas but value of gold chain is not taxable in the hands of Ms. Kavya
111. TPR & Co., a partnership firm selling its product X through the digital facility provided by MKY Limited (an E-commerce operator). MKY Limited has credited in its books of account, the account of TPR & Co. on 31st January, 2022 by sum of 4,80,000 for the sale of product X made during the month of January 2022. Out of 4,80,000, it made payment for 4,00,300 on 3rd February, 2022. Further, Mr. Pawan, who purchased the product X through the facility provided by MKY Limited, has made the payment of sum of 40,000 directly to TPR & Co. on 15th January, 2022. Which statement is correct regarding requirement of deduction of tax at source by MKY Limited?
A. No tax is required to be deducted at source.
B. MKY Limited is required to deduct tax at source 4,800 under section 194C.
C. MKY Limited is required to deduct tax at source 3,900 under section 194-O.
D. MKY Limited is required to deduct tax at source 5,200 under section 194-O.
Answer: D. MKY Limited is required to deduct tax at source 5,200 under section 194-O.
112. Mr. Harry, an Indian citizen, is a marketing consultant who provides consultancy to various countries around the globe. Due to his profession, he is required to travel across various countries throughout the year. His marketing project does not last for more than 40 days and therefore his stay in any country including India usually never exceeds 40 days during a year. His income is 80 lakhs across the globe which is not liable to tax in any country. During the P.Y. 2021- 22, an Indian company provides him a marketing project in India. His stay in India for the project is expected to be only 25 days and his income from that project would be 30 lakhs. Being a highly qualified
professional, he consults you about the tax regime on his income and his residential status in India.
A. He shall be treated as resident but not ordinarily resident andshall be liable to pay tax on 30 lakhs.
B. He shall be treated as resident and ordinarily resident and shall be liable to pay tax on 80 lakhs.
C. He shall be treated as non-resident and shall not be liable to any tax.
D. He shall be treated as resident but not ordinarily resident and shall be liable to pay tax on his entire income of 80 lakhs earned across the globe.
Answer: A. He shall be treated as resident but not ordinarily resident andshall be liable to pay tax on 30 lakhs.
113. Mr. Vyas, aged 80, is a retired government employee. On 1St April 2021, he received the maturity amount of his LIC policy amounting to 3,50,000. This policy was taken by Mr. Vyas on 1st April 2014 on which the sum assured was 3,00,000 and the annual premium was 40,000. His other income comprised of pension amounting to 85,000. Mr. Vyas furnishes a declaration in Form 15H for non deduction of tax at source to the insurance company stating that his net tax liability for the year is NIL.
Choose the correct statement from below:
A. The declaration made by Mr. Vyas is wrong and the insurance company has to deduct tax of 3,500 under section 194DA.
B. The claim by Vyas is right and insurance company is not required to deduct tax at source.
C. The insurance company has to deduct tax under section 194DA since declaration in Form 15H cannot be made for tax deduction under section 194DA.
D. The declaration made by Mr. Vyas is wrong and the insurance company has to deduct tax of 1,000 under section 194DA.
Answer: B. The claim by Vyas is right and insurance company is not required to deduct tax at source.
114. During the A.Y. 2022-23, Mr. Kabir has a loss of 6 lakhs under the head “Income from house property”, loss of 5 lakhs from business of profession and income of 3 lakhs from long term capital gains. He filed his return of income for the A.Y. 2022-23 on 31.12.2022. Determine the total income of Mr. Kabir for A.Y. 2022-23 and the amount of loss which can be carried forward in a manner most beneficial to him?
A. Total income Nil; loss of 4,00,000 from house property and loss of 4,00,000 from business or profession.
B. Total income 1,00,000; loss of 4,00,000 from house property.
C. Total income Nil; No loss is allowed to be carried forward.
D. Total income Nil; loss of 6,00,000 from house property.
Answer: D. Total income Nil; loss of 6,00,000 from house property.
115. Pankaj gifted an amount of 3,00,000 to his wife, Pinky and 2,00,000 to his daughter, Rinky aged 20 years, on 1st April 2018. Both Pinky and Rinky invested the amounts on the same date in Government of India 11% Taxable Bonds. The interest accrues yearly and is reinvested in the same bonds. Determine what will be the amount taxable in hands on Pinky for A.Y. 2022-23?
A. 4,473 12,132
B.
C. 33,000
D. Nil
Answer: B. 12,132
116. Mr. Mango, an Indian citizen, lives in New York, USA since the last 10 years. He has a penthouse in Mumbai, given on rent @2,00,000 per month. During the year 2021-22, he came to India for 152 days in aggregate. His total stay in India in the immediately preceding 4 previous years is 366 days. You are, being the tax consultant of Mr. Mango, advise him about his residential status for the A.Y. 2022-23.
A. Non Resident
B. Resident but not ordinary resident
C. Resident and ordinary resident
D. Deemed resident
Answer: B. Resident but not ordinary resident
117. Mr. C, aged 35 years, is a working partner in M/s BCD, a partnership firm, with equal profit sharing ratio. During the P.Y. 2021-22, the firm has paid remuneration to Mr. B, Mr. C and Mr. D, being the working partners of the firm, of 2,00,000 each. The firm has paid interest on capital of 1,20,000 in toto to all the three partners and the same is within the prescribed limit of 12%. The firm had a loss of 1,12,000 after debiting remuneration and interest on capital.
Note – Remuneration and interest on capital is authorized by the partnership deed You, being the CA of Mr. C, are in the process of computing his total income. What would be his taxable remuneration from the firm?
A. 2,00,000
B. 1,51,600 1,27,600
C.
D. 1,50,000
Answer: C. 1,27,600
118. Lister Internationals Inc., a non resident, engaged in business of selling “Good Z” appoints Mr. Risky as an agent in India for selling such product. Mr. Risky works as an agent for several other persons also including non residents aiding them in selling their products. The appointment of Mr. Risky will –
A. lead to business connection in India as he is not independent agent
B. lead to business connection in India as he is an independent agent
C. not lead to business connection in India as he is not independent agent
D. not lead to business connection in India as he is an independent agent
Answer: D. not lead to business connection in India as he is an independent agent
119. Mr. Krishna, a resident Indian aged 61 years, maintains a saving account with a co-operative land development bank and he earns 20,000 as interest on saving account for the Financial Year 2021-22. Mr. Krishna also maintains a fixed deposit and recurring deposit account with Mani Finance (A Non-Banking Finance Company) and earns 25,000 and 10,000 as interest on fixed deposit and recurring deposit, respectively. What would be the deduction allowable to Mr. Krishna under Chapter VI-A if he does not opt for the section 115BAC for the A.Y. 2022-23?
A. 55,000
B. 10,000 20,000
C.
D. 50,000
Answer: C. 20,000
120. Mr. Alex is a resident but not ordinarily resident in India for P.Y. 2021-22. He is doing job in M/s Kothari Chemicals as Accountant & earns 25,000 per month. He had no other income in India but having a vacant land in Canada which he had got from his father after his demise. He had no income from Canada also. Mr. Alex come to you for consulting whether he is required to file his return of income for A.Y. 2022-23?
A. Alex is not required to file his return of income as his total income does not exceed the basic exemption limit
B. Alex is required to file his return of income as he is beneficiary of the assets located outside India
C. Alex is not required to file his return of income as his total income does not exceed the basic exemption limit and he is resident but not ordinarily resident during the P.Y. 2021-22
D. Alex is required to file his return of income as his total income exceeds the basic exemption limit
Answer: C. Alex is not required to file his return of income as his total income does not exceed the basic exemption limit and he is resident but not ordinarily resident during the P.Y. 2021-22
121. Mr. Ashutosh, aged 65 years and a resident in India, has a total income of 3,20,00,000, comprising long term capital gain taxable under section 112 of 57,00,000, long term capital gain taxable under section 112A of 65,00,000 and other income of 1,98,00,000. What would be his tax liability for A.Y. 2022-23. Assume that Mr. Ashutosh has not opted for the provisions of section 115BAC.
A. 90,05,880 97,25,690
B.
C. 97,34,400 97,22,440
D.
Answer: D. 97,22,440
122. Mr. Kumar, aged 62 years resident and ordinarily resident, is a retired employee with a monthly pension of 22,000. He has no other source of income. He has a house property in Bhatinda and his only son is living in London and has a house over there. He met with an accident and died and thereby leaving the house at London in the name of his father, Mr. Kumar. Mr. Kumar seeks your advice, as to whether he is required to file his income-tax return u/s 139?
A. Yes, he is mandatorily required to file his income-tax return as he is a resident and ordinarily resident in India and has asset located outside India
B. No, he is not required to file return of income as his income is below basic exemption limit
C. Yes, he is required to file his return of income as his income exceeds the basic exemption limit
D. No, he is not required to file his return of income as he is a senior citizen and retired employee
Answer: A. Yes, he is mandatorily required to file his income-tax return as he is a resident and ordinarily resident in India and has asset located outside India
123. While deciding liability of an individual to deduct tax on payment of fees for professional services, which of the following is immaterial –
A. Amount paid to professional
B. Turnover of financial year immediately preceding financial year in which payment made
C. Turnover of financial year in which payment is made
D. Amount of fees for professional services
Answer: C. Turnover of financial year in which payment is made
124. Mr. Ashutosh purchased his first dream home in Bangalore on 16.8.2021. He applied for home loan of 40 lakhs from IDFC bank on 15.7.2021, the same was sanctioned by bank on 20.7.2021. The stamp duty value of the said house was 44 lakhs. The interest due on the said home loan is 3,75,000 for the financial year 2021-22. Due to liquidity issues, Mr. Ashutosh could only pay 3,26,000. Compute the total interest deduction Mr. Ashutosh can claim for the A.Y. 2022-23,
assuming Mr. Ashutosh doesn’t opt for the tax rates under the new scheme.
A. 3,26,000 2,00,000
B.
C. 3,75,000 3,50,000
D.
Answer: D. 3,50,000
125. Mr. Vishal started a proprietary business on 01.04.2020 with a capital of 5,00,000. He incurred a loss of 1,00,000 during the year 2020-21. To overcome the financial position, his wife Mrs. Kamini, a Chartered Accountant, gave a gift of 4,00,000 on 01.04.2021, which was immediately invested in the business by Mr. Vishal. He earned a profit of 2,00,000 during the year 2021-22. What is the amount to be clubbed in the hands of Mrs. Kamini for the Assessment Year 2022-23?
A. 88,888
B. 1,00,000 2,00,000
C.
D. Nil
Answer: B. 1,00,000
126. Miss Nisha (68 years) is a resident individual. For the Assessment Year 2022-23, she has following income: Long-term capital gain on transfer of equity shares 1,80,000 (Securities Transaction Tax has been paid on acquisition and transfer of the said shares) Other income 2,75,000 Calculate the tax liability of Miss Nisha for Assessment Year 2022-23.
A. Nil
B. 5,670
C. 5,720 8,320
D.
Answer: C. 5,720
127. K is a working partner in a firm on behalf of his HUF and the HUF has contributed 3,00,000 as its capital contribution. Apart from this, K has given a loan of 50,000 to the firm in his individual capacity. The firm pays interest as per market rate of 15% per annum on capital as well as loan. Compute the amount of interest that shall be allowed to the firm while calculating its business income assuming that the interest is authorized by the partnership deed.
A. 42,000
B. 51,000 52,500
C.
D. 43,500
Answer: D. 43,500
128. Mr. Prakash is employed with XYZ Ltd. from 05.11.2017. He resigned on 31.03.2022 and wants to withdraw the accumulated balance of employer’s contribution in his EPF Account i.e., 55,000. The tax deducted on such withdrawal would be -
A. 500 u/s 192
B. 5,500 u/s 192 4,125 u/s 192A
C.
D. 5,500 u/s 192A
Answer: D. 5,500 u/s 192A
129. Determine residential status of Sundaram (HUF) which carries out its transactions in Malaysia. Its affairs are partly controlled from India. The Karta of HUF, Mr. Sundaram who is from Chennai visits India on 01.06.2020 and leaves to Malaysia on 10.02.2021. He has not visited India for the past 11 years.
A. Non-resident
B. Resident but not ordinarily resident
C. Deemed resident
D. Resident and ordinarily resident
Answer: B. Resident but not ordinarily resident
130. Ms. Shalini received interest on enhanced compensation of 5,00,000. Out of this interest, 1,50,000 relates to the previous year 2019-20, 1,90,000 relates to previous year 2020-21 and 1,60,000 relates to previous year 2021-22. She paid 1 lakh to her advocate for his efforts in the matter. What amount would be taxable in P.Y. 2021-22 and taxable, if any, under which head of income.
A. 2,50,000 under the head “income from other sources 4,00,000 under the head “income from other sources”
B.
C. 1,60,000 under the head “income from other sources” 1,60,000 under the head “Capital gains”
D.
Answer: A. ` 2,50,000 under the head “income from other sources
