Tax Laws and Practice June 2017 for Mock Test

Following Question appear in June 2017 Tax Law Exam of CS Executive. Students who want to practice previous year exam for June 2017 can attempt online test series or they can also read the following questions.

Mr. Ram received cash gift of Rs. 51,000 from his friends on the occasion of his 50th birthday. None of the friends are relative. The amount liable to tax in the hands of Mr. Ram would be
Agni (P) Ltd issued equity shares of Rs. 10 each at Rs. 40 per share. The fair market value of the share on the date of issue was ascertained as Rs. 25 per share. The company issued 1,00,000 equity shares. The amount liable to tax in the hands of the company would be
Mr. Robert aged 52 years received monthly pension of Rs. 30,000 during the financial year 2016-17. His agricultural income in India is Rs. 50,000. His net income-tax liability is
Mr. Rajiv, born and brought up in India left for employment in Belgium on 15-10-2016. He has never gone out of India, previously. What is his residential status for the assess ment year 2017-18
Mr. Ramji (age 55) is Karta of HUF doing textile business at Nagur. Mr. Ramji is residing in Dubai for the past 10 years and visited India for 20 days every year for filing the income tax return of HUF. His two major sons take care of the day to day affairs of the business in India. The residential status of HUF for the assessment year 2017-18 is
When a capital asset located in India is sold by a non-resident to another non-resident at a place outside India, the capital gain is taxable
Thomas Inc. of Australia borrowed money from various companies in Australia for doing business in India by name ANS Co. Ltd., Mumbai. Thomas Inc. paid interest of Rs. 500 lakhs (converted) to various lenders. The amount of interest paid
Mr. Vinayak derived income from sale of tea manufactured and grown in Coorg, Karnataka. His income for the previous year 2016-17 from the said activity is Rs. 20 lakhs. The amount exempt from tax by way of agricultural income is
Mr. Vijay is partner in Tools & Co., a partnership firm in Mumbai. He received Rs. 30,000 as share income from the firm for the year ended 31-3-2017. He also received interest at 12% per annum on the capital invested in the firm and the amount being Rs. 24,000. His income from the firm includible in individual assessment is :
Mr. Ashwin retired on 31-10-2016 after rendering 35 years of service in PLN & Co. Ltd. He received gratuity of Rs. 18 lakhs. He is governed by Payment of Gratuity Act, 1972. The monetary limit eligible for exemption is
Mr. A is employed in ABS Transports as cabin driver. He is paid Rs. 15,000 every month in the whole of previous year 201617 as allowance for meeting his personal expenditure in the course of running the goods vehicle. Mr. A does not receive any other amount by way of daily allowance. The amount of allowance eligible for exemption is
Mr. Sankar received Rs. 50,000 as educational scholarship from Nehru Memorial Trust (a charitable trust). The scholarship is to assist Mr. Sankar for pursuing M.A. (History) at Jawaharlal Nehru University, New Delhi. The amount of scholarship liable to tax is :
Mr. Ramesh engaged in the business of growing and manufacturing tea in India received Rs. 2 lakhs from Tea Board towards replacement of tea bushes destroyed by forest fire. The amount received from Tea Board by Mr. Ramesh is
Mr. Chandan (age 70) received Rs. 30,000 every month during the financial year 201617 on reverse mortgage of his property with State Bank of India. The amount of receipt liable to tax in the hands of Mr. Chandan is
Ray Charitable Trust (registered under section 12AA) has total income of Rs. 20 lakhs. It applied Rs. 10 lakhs towards its objects. How much is chargeable to tax in case the trust does not opt for accumulation of income under section 11(2) of the Act
Mr. Arjun employed in KL (P) Ltd. at Mumbai was provided rent-free accommodation by the employer who owned such accommodation. The salary income of Mr. Arjun for the purpose of computing the perquisite value is Rs. 8 lakhs. The perquisite value of rent-free accommodation in the hands of Mr. Arjun is
Mr. Gupta is given a motor car with chauffeur by the employer which is used for both official and personal purpose. The entire running expenses of the car amounting to Rs. 64,800 was met by the employer in the previous year 2016-17. The cubic capacity of the engine of the motor car exceeds 1.6 litres. The perquisite value of motor car taxable in the hands of Mr. Gupta is
Ashwin Co. Ltd contributed 15% of the salary of the employee Virat towards recognized provident fund. The amount liable to tax as perquisite in the hands of Virat would be ....................... of contribution.
During the previous year, the employee was reimbursed Rs. 24,000 as medical expenses incurred by him which includes Rs. 7,000 spent in Government hospital. The taxable perquisite in this case shall be
The employee is provided with furniture costing Rs. 1,50,000 along with house w.e.f. 1-7-2016. The value of the furniture to be included in the valuation of unfurnished house shall be :
Interest credited to statutory provident fund shall be :
Mr. Ahmed acquired a property in April, 2016 for self-residential use. The loan interest payable to State Bank of India for the financial year 2016-17 amounts to Rs. 2,10,000. The amount eligible for deduction under section 24 is
Mr. Shahu has loss from house property of Rs. 1,10,000 (computed) for the assessment year 2017-18. He can carry forward such loss for subsequent ............... assessment years.
R has taken a house on rent and sublets the same to G. Income from such house property shall be taxable under the head :
A borrowed Rs. 5,00,000 @ 12% p.a. on 1-4-2012 for construction of house property which was completed on 15-3-2016. The amount is still unpaid. The deduction of interest for previous year 2016-17 shall be :
Dr. Sen has surgical equipments whose WDV as on 1-4-2016 was Rs. 4,10,000. He acquired some more equipments in December 2016 for Rs. 3,50,000. He sold equipment in March 2017 for Rs. 2,00,000 whose original cost was Rs. 1,70,000. The written down value of the block for the purpose of computing depreciation for the assessment year 2017-18 is
Rosy Ltd. engaged in manufacture of biomedicines in August, 2016 converted one equipment which was used for scientific research purposes previously, for regular business use. The original cost of the plant is Rs. 15 lakhs which was acquired in April, 2015. The company had claimed deduction at 200% under section 35(2AB) in the assessment year 2016-17. The plant used for scientific research would be included in the block of assets now at a value of
Which of the following is a ‘specified business’ eligible for deduction under section 35AD
Malick & Co. engaged in trading activity could not recover Rs. 5 lakhs from a customer. It claimed the entire amount as bad debt by writing off in the books of account. The aggregate sale made during the year to the party amounts to Rs. 30 lakhs. The amount eligible for deduction by way of bad debt is
Andhra Traders a partnership firm paid Rs. 80,000 as contract charges to AKP & Co. (firm). No tax was deducted at source for the above said payment. The amount liable for disallowance under section 40a(ia) for the assessemnt year 2017-18 is :
Surabi Textiles (firm) incurred business loss of Rs. 4,40,000 for the assessment year 2017-18 before allowance of working partner salary. The firm paid working partner salary of Rs. 1,20,000 each to three partners. The business income of the firm for the assessment year 2017-18 after deduction of working partner salary is
Ravi & Co. paid Rs. 40,000 by cash to Mr. Balu a supplier on 5-9-2016. The cash payment was made on the day on which the bank was on strike. The amount of expenditure liable for disallowance under section 40A(3) is
Where the payment of an expenditure claimed as deduction by any assessee carrying on business or profession other than who is in transport business exceeds Rs. 20,000, it should be paid by :
Raju succeeded to the business of his father Ramu consequent to demise of Ramu on 1-2-2017. Raju recovered Rs. 30,000 due from a customer which was writen off by late Ramu as bad debt and allowed in the assessment year 2013-14. The amount recovered is :
Mr. Siraj engaged in retail trade reports a turnover of Rs. 43 lakhs for the previous year 2016-17. He deposited Rs. 30,000 in his PPF account held with SBI. His total income for the assessment year 2017-18 by applying section 44AD provision is
Mrs. Lakshmi purchased shares of ABB Ltd.for Rs. 5 lakhs on 3rd April, 2015. The shares were sold on 5th June, 2016 for Rs. 7 lakhs. She paid STT of Rs. 700 and brokerage of Rs. 500. The amount chargeable to tax is
Ms. Netra acquired 1000 equity shares of MMC Ltd. for Rs. 4 lakhs in April, 1996. She received bonus shares on 1 : 1 basis in April, 2016 from the company. She sold all the shares in January, 2017 through a recognized stock exchange for Rs. 8 lakhs. The capital gain chargeable to tax in the hands of Ms. Netra for the assessment year 2017-18 is
Mr. Madan sold a vacant land for Rs. 120 lakhs on 10-10-2016. The indexed cost of acquisition amounts to Rs. 18 lakhs. He deposited Rs. 50 lakhs in REC bonds in January 2017 and another Rs. 50 lakhs in March, 2017. The amount of capital gain liable to tax after deduction under section 54EC is
Ms. Mala received family pension of Rs. 15,000 per month during the previous year 2016-17. Also, she was employed in a private firm where she got a monthly consolidated salary of Rs. 20,000 per month. Her total income chargeable to tax is
Libra P. Ltd. engaged in trading activity had accumulated profits of Rs. 15,00,000 as on 1-4-2016, Mr. Gautam having 30% of the equity shares and voting rights in the company received Rs. 5 lakhs as loan on 1-6-2016 from the company. The loan was repaid by him on 30-11-2016. The amount liable to tax in the hands of Mr. Gautam as deemed dividend i
Rakesh acquired a motor car for Rs. 3,00,000 from his friend (non-relative) when the fair market value of the motor car was Rs. 5,00,000. The amount liable to tax in the hands of Rakesh from the transaction is :
Where a firm or closely held company received from any person any property being shares of closely held company without consideration
Mr. Shiva gifted a let-out building which fetches rental income of Rs. 10,500 per month to his son’s wife on 1-11-2016. The municipal tax of Rs. 6,000 on the property was paid on 10-1-2017. The total income from all other sources (computed) amounts to Rs. 2,60,000 except income from above said property. His total income chargeable to tax is :
Mr. Hussey for the previous year has (i) business loss of Rs. 1,30,000; (ii) income from salary Rs. 2,40,000; and (iii) speculation gain of Rs. 1,10,000. His total income for income tax assessment is
Mathur Storage (P) Ltd. engaged in chain cold storage has brought forward business loss of Rs. 12 lakhs relating to assessment year 2016-17. During the pervious year 2016-17, its income from the said business is Rs. 9 lakhs. It also has profit from trade in food grains of Rs. 6 lakhs. The total income of the company for the assessment year 2017-18 is
Raghunath repaid during previous year 2016 17 education loan of Rs. 60,000 and interest on education loan of Rs. 18,000 taken from Punjab National Bank for his son to pursue MS in Germany. The loan was taken in the financial year 2008-09 and the payment commenced from financial year 2009-10. The amount eligible for deduction under section 80 E for the assessment year 2017-18 is :
Shravan engaged in business paid monthly rent of Rs. 5,000 by cheque for his residence during the previous year 2016-17. His adjusted total income is Rs. 3,40,000. The amount eligible for deduction under section 80GG is
Deduction under section 80G on account of donation is allowed to
The provisions of alternate minimum tax under section 115JC are applicable for limited liability partnership when the adjusted total income exceeds
Maruti & Co. is an AOP consisting of 4 members with equal share. None of the member has income exceeding the taxable limit. The total income of the AOP is Rs. 5 lakhs. The income-tax liability of the AOP would be :
Radha Ltd. received dividend of Rs.100 lakhs from King P. Ltd. of Singapore in December 2016. The company declared interim dividend of Rs. 200 lakhs in January 2017. The dividend distribution tax payable by Radha Ltd. would be .............. Radha Ltd. received dividend of Rs.100 lakhs from King P. Ltd. of Singapore in December 2016. The company declared interim dividend of Rs. 200 lakhs in January 2017. The dividend distribution tax payable by Radha Ltd. would be ..............
Mr. Nitin after serving Lion Ltd. for 4 years resigned his job to commence a business of his own. His provident fund account consisted of his own contribution Rs. 50,000; employer’s contribution Rs. 50,000 and interest of Rs. 20,000 being attributable equally to the said contributions. How much would be the amount deductible at source under section 192A
Mr. Ravi solved a crossword puzzle and received Rs. 84,000 after deduction of tax at source. His income from crossword puzzle chargeable to tax would be :
For computing the Book Profit under section 115 JB, which of the following is not added back to the profits ?
Zeet & Co. is a partnership firm whose turnover for the previous year 2016-17 was Rs. 220 lakhs. The ‘due date’ for filing the return of income of the firm is :
Chatterjee filed his return of income for the assessment year 2017-18 on 10-6-2017. He is eligible to revise his return :
A fixed deposit of Rs. 90,000 made by Mr. P on 5-11-2011 was detected on 7-9-2016. The time limit for issue of notice u/s 148 is
An apparent error in the assessment order passed u/s 143(3) dated 15-11-2016 was noticed by the assessee in February, 2017. The time limit for seeking rectification of mistake is available up to
Mr. Balwant recieved assessment order passed under section 143(3) on 10-1-2017. He wants to prefer an appeal before CIT (Appeals) against the assessment order. The time limit for preferring appeal is .......... days from the date of receipt of assessment order
An assessment order under section 143(3) dated 15-9-2016 was served on the assessee on 25-9-2016. The Commissioner wants to make a revision of the order passed under section 143(3) by invoking section 263. The time limit for passing revision order under section 263 is
Mr. Rajan did not appear before the Assessing Officer in response to a notice issued under section 143(2). He repeatedly absented from appearing before the Assessing Officer. How much could be the quantum of penalty the Assessing Officer could levy on Mr. Rajan for the failure
A Co. Ltd. has business loss and unabsorbed depreciation of Rs. 10 crores. B Co.Ltd. is profit making company. B Co. Ltd. wanted to acquire A Co. Ltd. with the benefit of set off of brought forward loss and unabsorbed depreciation. The legally permissible method is
Tax heaven does not have the following feature
Mr. Anuj (Age 65) resident of India has total income in India of Rs. 6 lakhs. His income from a foreign country with which there is no DTAA between India and that country, was Rs. 2 lakhs (converted). He paid incometax at 20% on the foreign income in that country. His net tax liability for the assessment year 2017-18 after relief under section 91 is :
Which of the following is not a requirement for amalgamation of two companies
Which of the following powers is not vested with the Transfer Pricing Officer ?
The monetary limit for international transaction for getting exemption from documentations prescribed in Section 92D is
Penalty for failure to furnish report under Section 92E is :
Which of the following persons is not eligible to seek advance ruling
General Anti Avoidance Rules (GAAR) is applicable from the assessment year
Which of the following is not a feature of service
Which of the following is not a declared service
Which of the following is not in the negative list of services
ABC Transport gave its buses on hire. It is exempt from service tax where it is given on hire to
A resident welfare association received Rs. 12,40,000 towards electricity and water bill to be paid for the consumption of its members. It is not a small service provider. Assuming the service tax rate as 14.5%, how much has to be paid towards service tax
Mr. Ashish an architect in Jammu rendered his service to Mr. Brijesh a resident of Kashmir for construction of a commercial complex in Delhi. Is the service liable for service tax
Vinod Contractors (Service Provider) agreed to provide service by way of works contract to Ahuja & Co. Ltd. (Service Receiver) for consideration of Rs. 60 lakhs. The service tax liability is to be paid by
A service provided by Abdul & Co. became a taxable service consequent to its removal from the negative list of service. Within how many days from date of commencement of service tax levy, Abdul & Co. must apply for registration ?
When the date of completion of service is 10th November and the date of invoice is 20th November and 50% of the payment is received on 30th November and the balance on 10th December, the point of taxation is
When there is change in rate of service tax and the invoice is issued before the change in rate and payment is also received before the change but the service is provided after the date of change of rate, the point of taxation is
India Mobiles Ltd. is engaged in telecommunication service. It raised the invoice on the 10th of every month for the service rendered for the previous month. For the month of December, 2016 because of software failure the invoice for the month of November was raised in the month of January i.e. after 30 days. The point of taxation would be
A mega exemption notification which covered a service was removed and thus became taxable from 1-3-2016. One service provider rendered the service on 20-2-2016 and received the payment on 27-2-2016. The invoice however was raised on 18-03-2016. The value of service is Rs. 1,00,000 and the service tax rate is 14.5%. The service tax liability is :
Bhalla & Co. is not a small service provider who is engaged in providing a taxable service in the State of Rajasthan. It raised invoice for Rs. 15 lakhs showing separately service tax at 14.5%. It omitted to show service tax separately in certain invoices aggregating to Rs. 10 lakhs. What is the service tax component on the bills in which service tax is not separately charged
Ghanshyamji engaged in providing taxable service from April 2015 wants to know the ‘due date’ for filing service tax return. The due date is
Srinivas Catering Services delayed filing of service tax return by 27 days. The penalty for the delayed filing would be
Dwivedi commenced business on 1-1-2016. He must obtain VAT registration
Murali Medical Stores is a retail trader who opted for composition scheme of VAT payment. Its turnover was Rs. 40 lakhs and no VAT was collected. It purchased medicines for Rs. 30 lakhs and paid VAT (input) of Rs. 2,40,000. The VAT liability would be
By nature the Value Added Tax (VAT) is a
Mr. Richard Mega Mall a dealer in electrical and electronic goods, gave gifts on the eve of new year sale. It gave 100 pieces of mixers which cost Rs. 1,000 each with VAT paid on purchases of Rs. 125 per piece. For the month of December its input tax credit (including gifts) on purchases amounts to Rs. 3 lakhs and output tax collected on sale amount to Rs. 4 lakhs. The net VAT liability of the dealer for the month is :
Purohit Traders purchased raw materials from outside the State and paid CST of Rs. 40,000. Its output credit on VAT due to sales within state amounts to Rs. 2,40,000. Its input VAT credit on intra-state purchases amounts to Rs. 1,60,000. The net VAT liability is
SKT Exports purchased raw materials on which it paid VAT of Rs. 1,60,000. The entire goods were exported to a country in Africa. It has another unit were is output VAT credit is Rs. 3,45,000 and inpu credit of Rs. 1,80,000. The net VAT liability of the dealer is
The term ‘sale’ under the Central Sales Tax does not include
The term ‘sale price’ under the CST Act does not include
Laxman Traders paid Rs. 70,000 as VAT at 5% on raw materials purchased within the State. It manufactured finished goods and transferred 50% of the finished goods to its branch located outside the State. The balance goods were sold within the State with VAT collection of Rs. 50,000. The VAT liability after input credit would be
In which of the following States can a practicing company secretary conduct VAT audit ?

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