Post Details

Que.1: An assessee has income under the following heads:

Income under the head Salaries; Income from one house property; against which brought forward loss from house property for an earlier previous year can be set-off; and Interest income taxable under “Income from other sources”

Considering the above heads of income, which Income-tax return should he file for A.Y. 2019-20.

A.) ITR 1 - Sahaj

B.) ITR 2

C.) ITR 3

D.) ITR 4 Sugam

Que.2: Determine the due date of filing of return of income of public limited company whose accounts are not required to be audited under the Income-tax Act, 1961 for P.Y. 2019-20;

A.) 31.07.2020

B.) 30.09.2020

C.) 30.11.2020

D.) None of above

Que.3: Mr A is a resident and ordinarily resident assessee for P.Y. 2019-20 as per the provisions of Section 6 of the Income-tax Act, 1961. He has only pension income which is below the basic exemption limit. However, Mr A owns few equity shares of a company incorporated and listed in USA. Is Mr A under obligation to file the return of income under section 139 of the Income-tax Act, 1961 and if yes, what is the due date of filing of return of income for Mr A;

A.) No obligation to file return of income

B.) He has to file return of income and the due date is 31.07.2020

C.) He has to file return of income and the due date is 30.09.2020

D.) He has to file return of income and the due date is 30.11.2020

Que.4: Mr R has obligation to file the return of income and his due date of filing the return of income of was 31.07.2020. Total income of Mr. R is Rs.12,00,000. However, the actual date of filing is 01.08.2020. What is the relevant section for levying interest which shall be applicable for delay in filing of return of income;

A.) Section 234B

B.) Section 234A

C.) Section 234C

D.) Section 234D

Que.5: In continuation of the above facts given in Que.4, what is the interest liability for delay in filing of return of income;

A.) 1.5% for 1 day

B.) 1% for 1 day

C.) 1% for a month

D.) 1.5% for a month

Que.6: In continuation of the above facts given in Que.4, whether any additional fee would also be applicable. If yes, under what section and what is the amount;

A.) No additional fee other than interest

B.) Under section 234F & Rs.5,000

C.) Under section 234E & Rs.1,000

D.) Under section 234D & Rs.10,000

Que.7: Mr A has filed the return of his income for A.Y. 2019-20 on 25.09.2019 and the due date of filing the return of income was 31.08.2019. In June, 2020, Mr A found some error in computation of tax and wants to rectify the error by filing the revised return under section 139(5) of the Income-tax Act, 1961. Can he do so? If he can, then what will be the due date of filing the revised return;

A.) No revised return can be filed since the original return was filed belatedly

B.) No; Revised return can be filed on or before 31.03.2020

C.) Yes; Revised return can be filed on or before 31.03.2021

D.) None of the above.

Que.8: In the P.Y.2019-20, a HUF has paid salary of Rs. 50,000 per month to its Marketing Manager. The HUF was not liable for tax audit in the A.Y. 2019-20. Determine whether there was any liability to deduct any TDS in the P.Y.2019-20 and if yes, what is appropriate section;

A.) Not liable to deduct TDS, as it was not subject to tax audit in immediately preceding A.Y.

B.) liable to deduct TDS u/s 194H

C.) liable to deduct TDS u/s 194J

D.) liable to deduct TDS u/s 192

Que.9: Mr. V has taken housing loan for purchase of residential house which he has given on rent and has paid interest on such housing loan of Rs.15,25,000 in P.Y. 2019-20 relevant to A.Y. 2020-21. He has computed net loss of Rs.6,50,000 from income under head house property. He has salary income of Rs.50,00,000 and wants to set off the loss from house property against the salary income. Determine whether set off is possible and if yes, to what extent;

A.) Not eligible for set off

B.) Set off is possible to extent of Rs.6,50,000

C.) Set off is possible to extent of Rs.2,00,000

D.) Set off is possible to extent of Rs.15,25,000

Que.10: You have filed the Income-tax return (ITR 1) of Mr A for A.Y. 2019-20 on 20.05.2019. The return filed was neither e verified nor filed under digital signature. The same is required to be sent to CPC Bangalore under the signature of assessee for further processing. What is the time period by which the return should have been reached at CPC Bangalore?

A.) 90 days

B.) 150 days

C.) 120 days

D.) 100 days

Que.11: While conducting the tax audit of the assessee, M/s PQR Private Limited, you have observed that a payment is made towards installation of machinery by a company in its factory to a vendor, Mr. Raj amounting to Rs.45,000 and the company has not deducted any withholding tax on such payment. Determine the applicable section and the rate of TDS.

A.) U/s 194J @10%

B.) U/s 194C @2%

C.) U/s 194C @1%

D.) No TDS is applicable on said payment

Que.12: The mode by which the signed ITR V can be sent to CPC Bangalore:

A.) Only Speed Post

B.) Only Ordinary Post

C.) Speed Post or Ordinary Post

D.) Speed post, ordinary post, Registered post or courier.

Que.13: While filing the return of income of Mr. A, a non-resident, you have found that he has claimed deduction for the following payments:

Payment towards LIC for Rs.25,000; Repayment of housing loan to SBI for purchase of self-occupied residential house property for Rs.1,75,000; Payment towards interest on such housing loan for Rs.50,000; Investment in PPF for Rs.10,000

Calculate the amount of eligible deduction u/s 80C to Mr. A

A.) Nil, because he is a non-resident.

B.) Rs.1,50,000

C.) Rs.2,10,000

D.) Rs.2,60,000

Que.14: Ms Q, a non-resident in India and aged 60 years, has income from house property in India. Such income is received by her in her country of residence i.e., in USA. Determine whether such income is taxable and if yes, the maximum amount of income not chargeable to tax in case of Ms Q.

A.) Not chargeable to tax as income is not received in India

B.) Chargeable to tax and basic exemption limit is not available to non-resident

C.) Chargeable to tax and the maximum amount not chargeable to tax is Rs.2,50,000

D.) Chargeable to tax and the maximum amount not chargeable to tax is Rs.3,00,000

Que.15: Mr. Ram, a resident individual aged 85 years, has total income of Rs.7,50,000 for P.Y. 2019-20 which includes pension income from his employer as well as interest income. Determine tax payable for A.Y. 2020-21.

A.) Rs.51,500

B.) Rs.52,000

C.) Rs.61,800

D.) Rs.62,400

Que.16: Mr. Shyam, a non-resident individual aged 85 years, has total income of Rs.7,50,000 for P.Y. 2019-20 which includes pension income from his employer as well as interest income. Determine tax payable for A.Y. 2020-21.

A.) Rs.51,500

B.) Rs.52,000

C.) Rs.64,380

D.) Rs.65,000

Que.17: Circular issued by CBDT clarifying doubt regarding the scope and meaning of the provisions of the Act, is binding on;

A.) Assessee as well as Department

B.) Department only

C.) Assessee only

D.) Neither assessee nor department

Que.18: Mr. A, aged 40 years, is an individual resident in India. His gross total income for the P.Y. 2019-20 is Rs.5,50,000 and he has also paid an amount of Rs.1,50,000 towards life insurance premium during the said previous year. What will be the tax liability of Mr. A for Assessment Year 2020-21?

A.) Rs.7,500

B.) Nil

C.) Rs.5,200

D.) Rs.7,800

Que.19: Gross Total Income of Mr. X (61 years), a resident individual, for the Assessment Year 2020- 21 is Rs.1,04,00,000 (salary Rs.10,00,000, lottery winnings Rs.70,00,000 and long term capital gain under section 112 Rs. 24,00,000). Mr. X is entitled to deduction under Section 80C of Rs.1,00,000. Determine the tax liability of X for A.Y. 2020-21.

A.) Rs.26,70,000 (Plus applicable surcharge and cess)

B.) Rs.26,72,500 (Plus applicable surcharge and cess)

C.) Rs.26,90,000 (Plus applicable surcharge and cess)

D.) Rs.28,70,000 (Plus applicable surcharge and cess)

Que.20: Ms. Ayushi is an Indian Citizen who left India for the purpose of employment on 02.08.2019. She was in India for a total period of 730 days during the Previous Years from 2015-16 to 2018-19. She was in India for 240 days in Previous Year 2013-14 and 310 days in Previous Year 2014-15. Determine her residential status for the A.Y. 2020-21.

A.) Resident and ordinarily resident

B.) Non-resident

C.) Resident but not ordinarily resident

D.) Resident but data is not sufficient to determine whether she is ROR or RNOR

Que.21: Mr. Aashish is working partner in a partnership Firm named “Aashish Group”. The turnover of the firm for P.Y. 2019-20 is Rs.5 Crores. What is the due date of filing return of income for Mr. Aashish for A.Y. 2020-21?

A.) 31.07.2020

B.) 30.09.2020

C.) 30.11.2020

D.) 31.03.2021

Que.22: X Pvt. Ltd. is engaged in the business of manufacture of cement. For A.Y. 2019-20, due to some technical issues, the return of income of X Pvt. Ltd. was delayed by 1 day and was filed on 01.10.2019. In May, 2020, the Accounts Officer of the company discovers some omission in the said return of income and wants to revise the same. The assessment proceedings of the company are ongoing and will be completed on 31.12.2020. The Accounts Officer has contacted you to advise him regarding revision of return of income. Please advice.

A.) Yes, it can be revised and the due date is 31.03.2021

B.) Yes, it can be revised and the due date is 31.12.2020

C.) No, the return cannot be revised as the due date for filing revise return was 31.03.2020

D.) No, the return cannot be revised as it is a belated return of income

Que.23: ABC Co-operative society is engaged in the business of banking and is paying interest on Fixed Deposit of Rs. 35,000 to Ms. Neha. Whether ABC is liable to deduct TDS? If yes, then at what rate?

A.) Not liable to deduct TDS

B.) Yes, under Section 194A at the rate of 10%

C.) Yes, under Section 194A at the rate of 20%

D.) Yes, under Section 193 at the rate of 10%

Que.24: Mr. Piyush purchased a land on 01.07.2017. He sold the said land during the P.Y. 2019-20 on 31.10.2019. He has appointed you as a consultant and enquired regarding nature of resultant capital gain i.e., Short term capital gain or Long term capital gain. The resultant gain is

A.) Short-term, since the holding period is less than 36 months

B.) Short-term, since the holding period is less than 30 months

C.) Long-term, since the holding period is more than 12 months

D.) Long-term, since the holding period is more than 24 months

Que.25: X Cement Ltd. is in the process of determining the salary structure of its employees for A.Y. 2020-21. As per the CFO of the company, transport allowance granted to deaf and dumb employees to meet the expenditure for commuting between office and residence by the employees is wholly exempt from tax. The company has approached you to advise him accordingly. What will be your advice as per the provisions of the Act?

A.) CFO’s view is incorrect. Transport allowance for commuting between place of residence to place of office is exempt from tax to the extent of Rs.1,600 per month in the hands of deaf and dumb employees

B.) CFO’s view is correct. Transport allowance for commuting between place of residence to place of office is wholly exempt from tax in the hands of deaf and dumb employees

C.) CFO’s view is incorrect. Transport allowance for commuting between place of residence to place of office is exempt from tax to the extent of Rs.3,200 per month in the hands of deaf and dumb employees.

D.) CFO’s view is incorrect. Transport allowance for commuting between place of residence to place of office is chargeable to tax in the hands of deaf and dumb employees.

Que.26: Miss Nitika (68 years) is a resident individual. For the Assessment Year 2020-21, she has following income:

Long-term capital gain on transfer of equity shares Rs.1,80,000 (Securities Transaction Tax has been paid on acquisition and transfer of the said shares), Other income Rs.2,75,000.

Calculate the tax liability of Miss Nikita for Assessment Year 2020-21.

A.) Nil

B.) Rs.5,670

C.) Rs.5,720

D.) Rs.8,320

Que.27: Texcos Ltd. is an Indian Company. It has 20 shareholders who are foreign citizens and non- resident in India. The business of the company is wholly carried out outside India. Determine the residential status of Texcos Ltd. for the Assessment Year 2020-21.

A.) Resident

B.) Non-resident, since the control and management of the company during the year is outside India

C.) Non-resident, since the place of effective management of the company during the year is outside India

D.) Either resident or non-resident, depending on the place of effective management, which is not possible to determine in this case since the information given in the question is insufficient

Que.28: Neha is an individual aged 65 years whose income as computed under the Income-tax Act, 1961 is Rs.5,00,000 for assessment year 2020-21. She deposits Rs.20,000 in a PPF account. Calculate the tax payable by Neha assuming that she has an agricultural income of Rs.5,000.

A.) Nil

B.) Rs.9,360

C.) Rs.6,760

D.) Rs.9,270

Que.29: XYZ is a partnership firm which purchased equity shares of Rs.20 Lakhs of Neelkanth Pvt. Ltd on 25.03.2020 and does not have any other business activity. Which of the following statements is correct with respect to XYZ?

A.) XYZ is not required to obtain PAN and also not required to file Income-tax Return.

B.) XYZ is not required to obtain PAN but is required to file Income-tax Return.

C.) XYZ is required to obtain PAN but is not required to file Income-tax Return.

D.) XYZ is required to obtain PAN and also required to file Income-tax Return.

Que.30: Mr. A set up his new business on 01.06.2019 after completing his higher studies in Management in April 2019. Determine the relevant previous year for Mr. A for the purpose of computing his business income.

A.) 01.04.2019 to 31.03.2020

B.) 01.05.2019 to 31.03.2020

C.) 01.06.2019 to 31.03.2020

D.) 01.04.2020 to 31.03.2021

Que.31: In continuation of the above facts given in Q. 31, determine the relevant Assessment Year for Mr. A.

A.) 01.04.2019 to 31.03.2020

B.) 01.06.2019 to 31.03.2020

C.) 01.04.2020 to 31.03.2021

D.) 01.06.2020 to 31.03.2021

Que.32: Mrs. Alia, a non-resident aged 62 years, has an immovable property in India from which she gets rental income of Rs.3,00,000 per annum. She has appointed you as a consultant to advise her regarding the maximum amount not chargeable to tax in her case for A.Y. 2020- 21.

A.) Maximum amount not chargeable to tax would be Rs.2,50,000

B.) Maximum amount not chargeable to tax would be Rs.3,00,000

C.) Maximum amount not chargeable to tax would be Rs.5,00,000

D.) She is not allowed to avail basic exemption as she is non-resident for A.Y. 2019-20

Que.33: Mr. P, a resident individual, has total income of Rs.75,00,000 for P.Y. 2019-20. What is the rate of surcharge, if any, applicable to him for A.Y. 2020-21?

A.) No surcharge as the income does not exceed Rs.1 crore

B.) 5%

C.) 10%

D.) 15%

Que.34: Mrs. Priyanka Chopra who is a non-resident, has total income of Rs.3,20,000 for P.Y. 2019-20.

Determine the amount of rebate u/s 87A, if any, available to her for A.Y. 2020-21

A.) NIL

B.) Rs.2,500

C.) Rs.3,500

D.) Rs.5,000

Que.35: Mr. Mukesh, aged 58 years, has total income of Rs.3,25,000 during P.Y. 2019-20 which includes income from salary and bank interest. Compute his tax liability for A.Y. 2020-21;

A.) NIL

B.) Rs.1,290

C.) Rs.1,300

D.) Rs.3,900

Que.36: A proviso is inserted in any section, so as to provide the;

A.) Clarification on the provisions contained in that section

B.) Explanation regarding the provisions contained in that section

C.) Exception to the provisions contained in that section

D.) None of the above

Que.37: Mr. A has taken a Life Insurance Policy on 01.04.2016, the sum assured of which is Rs.25,00,000. Mr. A has paid the annual premium of Rs.5,10,000 on 01.04.2019. Compute the amount of eligible deduction available to Mr. A u/s 80C for A.Y. 2020-21;

A.) Rs.1,50,000

B.) Rs.5,00,000

C.) Rs.5,10,000

D.) Nil

Que.38: In continuation of the above facts given in Q.37, if the policy was taken by Mr. A on 31.03.2012 and the sum assured is Rs.40 lakhs, then what would be the amount of eligible deduction u/s 80C in respect of premium paid towards LIC;

A.) Rs.1,50,000

B.) Rs.4,00,000

C.) Rs.5,10,000

D.) Rs.8,00,000

Que.39: In continuation of the above facts given in Q.37, Mr. A has consulted you to provide him your opinion regarding taxability of sum to be received under LIP including bonus at the time of maturity;

A.) The entire amount receivable including sum by way of bonus would be exempt of from tax.

B.) The entire amount receivable (less deduction claimed under section 80C) would be exempt

C.) The entire amount receivable including sum by way of bonus would be taxable.

D.) Only sum receivable by way of bonus would be taxable

Que.40: Ms. Suman, a resident individual, has gross total income of Rs.5,00,000 for A.Y. 2020-21. Her daughter is studying in a school in Nepal. She has paid annual school fee of Rs.2,00,000 out of which Rs.75,000 was towards tuition fee. Determine the amount eligible for deduction to her u/s 80C, if any;

A.) Nil

B.) Rs.75,000

C.) Rs.1,25,000

D.) Rs.2,00,000

Que.41: Mrs. Usha has gross total income of Rs.5,00,000 for P.Y. 2019-20. She has done some renovation and repairs work in her residential house property after taking loan from Bank. During the P.Y. 2019-20, she has repaid a sum of Rs. 45,000 towards principal repayment and Rs. 15,000 towards interest on loan. Compute the amount of deduction eligible u/s 80C to her for A.Y. 2020-21;

A.) Rs.60,000

B.) Rs.45,000

C.) Rs.15,000

D.) Nil

Que.42: Mr. A has total income under the following heads during P.Y. 2019-20;

Income under the head Salary - Rs.4,50,000; Income under the head House Property - Rs.4,00,000.

Brought forward loss from house property of Rs.9,00,000 of A.Y. 2019-20. Determine the total income of Mr. A for A.Y. 2020-21 and the amount of loss eligible for carry forward, if any

A.) Nil; loss eligible for carry forward Rs.50,000

B.) Rs.4,50,000; No loss eligible for carry forward

C.) Rs.4,50,000; loss eligible for carry forward Rs.5,00,000

D.) Rs.8,50,000; loss eligible for carry forward Rs.9,00,000

Que.43: Mr. B has total income under the following heads during P.Y. 2019-20;

Income under the Salary - Rs.50,00,000; Business loss - Rs.20,00,000; Income from other sources - Rs.15,00,000.

Determine the total income of Mr. B for A.Y. 2020-21 and the amount of loss eligible for carry forward, if any

A.) Rs.65,00,000; loss to be carried forward Rs.20,00,000

B.) Rs.50,00,000; loss to be carried forward Rs.5,00,000

C.) Rs.45,00,000; No loss eligible for carry forward

D.) None of above

Que.44: Mr. Raj Kumar, aged 25 years, has paid the premium of Rs.28,000 towards health insurance and Rs.5,000 on account of preventive health check up for self and his spouse. Determine the amount of deduction available to him u/s 80D for A.Y. 2020-21;

A.) Rs.33,000

B.) Rs.30,000

C.) Rs.25,000

D.) Rs.28,000

Que.45: Mr. Sanjay Kumar, a resident, has paid premium of Rs.20,000 towards health insurance for self and his spouse. Further, he has paid a sum of Rs.35,000 on account of medical expenditure of his mother, aged 65 years and resident in India. No insurance scheme had been taken on the health of his mother. Determine the total amount of deduction available to Mr. Sanjay Kumar in A.Y. 2020-21 u/s 80D

A.) Rs.20,000

B.) Rs.45,000

C.) Rs.50,000

D.) Rs.55,000

Que.46: In continuation of the above facts given in Q.45, what would be your answer if mother of Mr. Sanjay Kumar is non-resident during the P.Y. 2019-20;

A.) Rs.20,000

B.) Rs.45,000

C.) Rs.50,000

D.) Rs.55,000

Que.47: In continuation of the above facts given in Q.45, what would be your answer, if the payment was paid through cash;

A.) NIL

B.) Rs.45,000

C.) Rs.50,000

D.) Rs.55,000

Que.48: Mr. Shyam, a resident individual aged 61 years, has gross total income of Rs. 9,50,000 for P.Y. 2019-20 which includes interest from Fixed deposits amounting to Rs. 20,000. Determine the tax liability of Mr. Shyam for A.Y. 2020-21

A.) Rs.98,880

B.) Rs.99,840

C.) Rs.1,03,000

D.) Rs.1,04,000

Que.49: Mr. Kashyap, aged 59 years, has gross total income of Rs.12,50,000 for P.Y. 2019-20 which includes interest from Fixed deposits amounting to Rs.40,000 and interest from saving bank account of Rs.12,500. Determine the amount of deduction available to Mr. Kashyap under Chapter VI-A for A.Y. 2020-21

A.) Rs.52,500

B.) Rs.50,000

C.) Rs.12,500

D.) Rs.10,000

Que.50: What is the due date of filing the return of income for A.Y. 2020-21 in case of a working partner of a firm whose accounts are required to be audited under the Income-tax Act, 1961 and the firm is required to furnish a report u/s 92E of the Income-tax Act, 1961;

A.) 31.07.2020

B.) 30.09.2020

C.) 30.11.2020

D.) None of above

Que.51: What is the due date of filing of return of income for A.Y. 2020-21 of a dormant partner of a firm whose accounts are required to be audited under the Income-tax Act, 1961? The dormant partner’s total income for A.Y. 2020-21 is Rs.25 lakhs;

A.) 31.07.2020

B.) 30.09.2020

C.) 30.11.2020

D.) None of above

Que.52: What is the due date of filing of return of income for A.Y. 2020-20 of managing director of a company whose accounts are required to be audited under the Income-tax Act, 1961, assuming that his total income for that year is Rs.15 lakhs;

A.) 31.07.2020

B.) 30.09.2020

C.) 30.10.2020

D.) None of above

Que.53: Mr. A has stayed in India for a period of 82 days during the P.Y. 2019-20 and his stay in India for immediate preceding 4 years is 364 days, calculate his residential status for the P.Y. 2019- 20;

A.) Resident

B.) Non Resident

C.) Resident but not ordinarily resident

D.) Cannot determine with the above facts

Que.54: A HUF whose control & management is in India and the residential status of its Karta is resident but not ordinarily resident, determine the status of residential of HUF;

A.) Resident but data is not sufficient to determine whether HUF is ROR or RNOR

B.) Resident but not ordinarily resident

C.) Non resident

D.) Resident and ordinarily resident

Que.55: A company is incorporated outside India. Its place of effective management in the P.Y. 2019- 20 is in India. Determine its residential status in India for A.Y. 2020-21;

A.) Resident

B.) Non Resident

C.) Cannot determine with above facts

D.) Resident but not ordinarily resident

Que.56: Mr. A, aged 32 years, is resident and ordinarily resident in India and is deputed to USA under employment. He has received salary equivalent to Rs.40 lakhs in USA. The income earned by him in India comprises only of interest on fixed deposits, which is below the maximum amount not chargeable to tax. Determine the taxability of Mr. A in respect of the abovementioned incomes;

A.) Only interest income is taxable in India

B.) Only salary income is taxable in India

C.) Both interest income and salary income are taxable in India

D.) He has no taxable income in India

Que.57: During P.Y. 2019-20, Mr. P has salary income of Rs.3,40,000 and interest income  of Rs.10,000. Mr. P has made investment in PPF of Rs.1,00,000.

From the above information, determine whether Mr. P is under an obligation to file the return of income and if yes, then what is the due date of filing of return of income?

A.) No obligation to file return of income

B.) Obligation to file and the due date is 31.07.2020

C.) Obligation to file and the due date is 30.09.2020

D.) Obligation to file and the due date is 30.11.2020

Que.58: Mr. A is a working partner in a Firm and has earned the following incomes during the P.Y. 2018-19;

Partner’s Salary, Interest on capital contribution from partnership firm in which he is a partner, Income from one house property and Interest income from FDRs.

Considering the above incomes, which income-tax return should be filed for A.Y. 2019-20;

A.) ITR 1

B.) ITR 2

C.) ITR 3

D.) ITR 4

Que.59: Section ___ provides for levy of interest for default in payment of instalment(s) of advance tax.

A.) 234D

B.) 234A

C.) 234C

D.) 234B

Que.60: While computing income chargeable to tax under the head “Income from house property” for A.Y. 2020-21 in the case of a let-out property, the municipal taxes due for P.Y. 2019-20 is Rs.45,000 and the taxes paid in P.Y. 2019-20 for P.Y. 2017-18 and P.Y. 2018-19 are Rs.40,000 and Rs.42,500, respectively. Determine the amount of deduction available to the assessee;

A.) Rs.45,000

B.) Rs.82,500

C.) Rs.1,27,500

D.) Nil

Que.61: As per section 194J, tax is to be deducted @ X% from the payments made to any person who is engaged only in the business of call centre. What is that X%;

A.) 5%

B.) 10%

C.) 2%

D.) 1%

Que.62: Interest under section ___ is levied from the first day of the assessment year, i.e., from 1st   April till the date of determination of income under section 143(1) or when a regular assessment is made, then till the date of such a regular assessment.

A.) 234A

B.) 234B

C.) 234C

D.) 234D

Que.63: Deduction under section 24(b) is available on account of;

A.) Municipal taxes paid by the owner

B.) Capital repairs incurred by the owner

C.) Revenue repairs incurred by the owner

D.) None of above

Que.64: Mr. X receives gift of jewellery from Mr. A, Mr. B and Mr. C, respectively, having fair market value of Rs.45,000, Rs.50,000 and Rs.75,000, respectively. Determine whether any income is chargeable to tax in the hands of Mr. X on account of the said gift of jewellery.

A.) No income is chargeable to tax in the hands of Mr. X

B.) Income of Rs.75,000 is chargeable to tax in the hands of Mr. X

C.) Income of Rs.1,25,000 is chargeable to tax in the hands of Mr. X

D.) Income of Rs.1,70,000 is chargeable to tax in the hands of Mr. X

Que.65: ITR 1 cannot be filed by Mr. A for A.Y. 2019-20 if:

A.) his total income includes Agricultural income more than Rs.5,000

B.) he is a Director in a company

C.) his total income includes income from one house properties

D.) Both (a) or (b) i.e., his total income includes Agricultural income more than Rs.5,000 or he is a Director in a company

Que.66: Mr. A has purchased a property worth Rs.80 Lakhs situated at Denmark from co-owners Mr. B and Mr. C, who are also residents of India. Mr. A has approached you to guide him regarding the deduction of tax at source from the amount of Rs.20 Lakhs and Rs.60 Lakhs payable to Mr. B and Mr. C, respectively. Advise him.

A.) Tax at source shall be deducted u/s 195 from the amount of Rs.80 Lakhs

B.) Tax at source shall be deducted u/s 194-IA from the amount of Rs.80 Lakhs

C.) No tax is required to be deducted at source

D.) Tax at source shall be deducted u/s 194-IA from the amount of Rs.60 Lakhs payable to Mr. C

Que.67: Ms. Y is a dealer in shares. She purchases 500 equity shares of ABC Ltd. as inventory on 05.01.2019. These shares are listed on National Stock Exchange on 10.03.2019. These shares are converted into capital asset on 15.08.2019. The capital asset is transferred on 21.09.2021. Determine the period of holding of shares in the instant case for the purpose of computing capital gains.

A.) 15.08.2019 to 21.09.2021

B.) 05.01.2019 to 15.08.2019

C.) 05.01.2019 to 21.09.2021

D.) 10.03.2019 to 21.09.2021

Que.68: Mr. Ram, resident individual, earned following incomes during the F.Y. 2019-20.

(i) Agriculture income in Indonesia of Rs.25,000.

(ii) Income from business in Bangladesh of Rs.35,000.

What would be total income of Mr. Ram from A.Y. 2020-21?

A.) Nil

B.) Rs.25,000

C.) Rs.35,000

D.) Rs.60,000

Que.69: Mrs. Sharma is your client. You are filing her return of income for A.Y. 2019-20. Her total tax liability is Rs.1,25,000. Which of the following challans will you use for making online payment of her tax liability amount?

A.) Challan No. ITNS 280

B.) Challan No. ITNS 282

C.) Challan No. ITNS 281

D.) Challan No. ITNS 283

Que.70: Mr. A has paid self-assessment tax for the A.Y. 2019-20 by depositing challan in the bank on 15.07.2019. While filing return of income of Mr. A, you want to check whether Government has received the amount deposited by your friend as taxes. How will you do the same?

(i) By checking ‘Challan Status Enquiry’ on the NSDL website [http://www.tin-nsdl.com]

(ii) By examining Form 26AS of Mr. A by logging into the e-filing account at www.incometaxindiaefiling.gov.in 

(iii) There is no way to check the status of tax challan deposited in the bank.

Choose the correct answer

A.) (i) only

B.) (ii) only

C.) (i), (ii) and (iii)

D.) (i) and (ii)

Que.71: The amendments made in the Income-tax Act, 1961 by the Finance Act, 2019, unless otherwise provided in the Act, is applicable from –

A.) First day of financial year 2019-20

B.) First day of financial year 2018-19

C.) From the day when the Finance Bill, 2019 receives the assent of President

D.) From 1st February, 2019

Que.72: Five Star Associates is a partnership firm. The firm received Rs.10,00,000 from an insurance company under keyman insurance policy consequent to the demise of its partner, Mr. Star. The amount of Rs.2,00,000 was paid as premium by the partnership firm and the same was claimed as a deduction u/s 37 of the Income-tax Act, 1961. The accountant of the firm is of the view that the amount received from the insurance company is not taxable. As a tax consultant of the firm, what would be your advice?

A.) The amount of Rs.10,00,000 is exempt from tax u/s 10(10D) of the Income-tax Act, 1961

B.) Rs.2,00,000 is taxable in the hands of the firm as only this amount was claimed as a deduction by the firm

C.) Rs.10,00,000 is fully taxable as income in the hands of the firm

D.) Rs.10,00,000 is not taxable as it is received on the demise of a partner

Que.73: Mr. Madan owns house properties in Nagaland, Itanagar and Assam. He needs to evaluate

‘deemed let out’ provisions for declaring the same in his return of income.

Which of the following factors need not to be taken into account while selecting deemed let out property?

A.) Municipal Taxes paid during the previous year

B.) Principal loan repayment of loan taken for the house property during the previous year

C.) Interest on the loan taken for the house property

D.) Rent of the similar house property in same location

Answers:

(Also read: Accounting and Auditing (including Corporate Laws) MCQs with Answers for Practical Training Assessment Level-1)