8/29/2019 Tax and Estate Planning Mock Paper 1

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Question 68 Municipal value of a house isRs.210000; Fair Rent is Rs.255000, Standard

Not answered Rent Rs.220000. This property has been let for Rs.18500 pm and was
Marked out of vacant for one month during the previous year 2016-17. Municipal Taxes
4.00 due and paid during the year was Rs.1400 and Rs.900 respectively.
Compute the net annual value of the property for the AY 2017-18.

Select one:
a. Rs.202600

b. Rs.237500

c. Rs.220000

d. Rs.222500

Your answer is incorrect.

Question 69 Mr. Milan sells the following long term capital assets on 17th March
Not answered 2017.  Figures are in INR. 
Marked out of
Residential house Gold Diamonds
4.00
Sales Consideration 600000 1000000 800000
Indexed Cost of Acquisition 125000 180000 350000
Expenses on Transfer 25000 20000 50000

The due date of filing return for income for AY 2016-17 is July 31, 2017,
For claiming exemptions u/s 54 EC, Milan purchases the following assets:

Land (For Construction of a Residential House)     25th March 2017   

Rs.200000
Bank Deposits (For Constructing House)                5th July 2017         
Rs.100000

Bonds of NHAI (Redeemable on 10-07-2020)         10th July 2017     

 Rs.1000000
Rural Electrification Corporation                             10th July 2017       
Rs.350000

Find out the capital gain chargeable to Tax.

Select one:
a. Rs.1650000

b. Rs.150000

c. Rs.1200000

d. nil

Your answer is incorrect.

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8/29/2019 Tax and Estate Planning Mock Paper 1

Question 70 Mr. Vinod acquired a property in 1977-78  for Rs.225000 and gifted to his
Not answered major Gautam on 1-8-1979, when the market value of the land was
Marked out of Rs.275000. The fair market value of the land as on 1-4-1981 was
4.00 Rs.350000. Gautam sold the land on 15-1-2017 for Rs.4500000. Compute
the capital gain, assuming that the expenses on transfer were 1% of sales
consideration.

Select one:
a. Rs.2243000

b. Rs.2425500

c. Rs.2424500

d. Rs.2727500

Your answer is incorrect.

Question 71 Naveen has a house property in Mumbai. From the following details
Not answered compute the income from the house property for the AY 2017-18.
Marked out of
Municipal Value: Rs.110000
4.00
Fair Rent: Rs.130000

Standard Rent: Rs.120000

The house property was let out w.e.f. 1-4-2016 for Rs.10800 pm which
was vacated by the tenant on 30th August 2016. After this it was
remained vacant for 2 months. W.e.f. 1-11-2016 it was again let out for
Rs.11000 pm.

Municipal Taxes Paid: Rs.5000

Interest on money borrowed for repair of house: Rs.45000

Select one:
a. Rs.45000

b. Rs.42800

c. Rs.14500

d. Rs.35000

Your answer is incorrect.

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8/29/2019 Tax and Estate Planning Mock Paper 1

Question 72 Mr. Alok is a manager in Rolland & Co in Delhi since 1987. He has
Not answered submitted the following particulars of his income for the AY 2017-18.
Marked out of
Basic Salary: Rs.45000
4.00
DA: Rs.15000 (40% of DA forms part of retirement benefits)

Education Allowances for 2 children: Rs.200 pm per child

Commission on Sales: 2% of turnover of Rs.500000

Entertainment Allowance: Rs.800 pm

Travelling Allowance: Rs.35000 (Entire Amount spent on official tours)

A company owned bungalow has been provided to him. The rent of the
bungalow is Rs.5000 pm.
Employer’s contribution to RPF: Rs.9000

Rent of house recovered from Mr. Alok: Rs.4000 p.m. 

Calculate the amount of income taxable under the head Income from
Salary

Select one:
a. Rs.810300

b. Rs.801630

c. Rs.850630

d. Rs.805300

Your answer is incorrect.

Question 73 XYZ Ltd. has advanced an interest free loan of Rs.600000 to Ramesh for
Not answered the purpose of car on 1st May 2016. Ramesh has been regularly repaying
Marked out of the principal amount of loan in installments of Rs.20000 pm at the end of
4.00 each month. Compute the value of perquisite on account of interest
assuming the interest charged by SBI is 15% pa.

Select one:
a. Rs.132000

b. Rs.792000

c. Nil

d. Rs. 440000 

Your answer is incorrect.

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8/29/2019 Tax and Estate Planning Mock Paper 1

Question 74 Sambit, an employee of Greenwich Power Ltd. is paid as follows:

Not answered
Basic Salary: Rs.18000 pm
Marked out of
4.00 Dearness Allowance: Rs.5000 pm

Lunch Allowance: Rs.500 pm

Medical Allowance: Rs.1000 pm

City Compensation Allowance: Rs.300 pm

Children education Allowance: Rs.500 pm (per child for 2 children)

During the PY 2016-17, he has been allotted a flat at Mumbai taken on

rent by the company at Rs.4500 pm. The cost of the furniture provided is
Rs.200000 and an air conditioner which has been taken on hire by the
company is also provided with the accommodation. The hire charge of
the air conditioner is Rs.3000 pa. Determine the value of the perquisite
for the AY 2017-18 if he pays Rs.1000 pm as rent to the company.

Select one:
a. Rs.60000

b. Rs. 55280

c. Rs.50870

d. Rs.50780

Your answer is incorrect.

Question 75 Mr. Ravinder is employed with Exim Ltd. at Delhi on a Basic Salary of
Not answered Rs.14000 pm and Dearness Allowance @ 20% of the Basic Salary of which
Marked out of only 60% forms part of the retirement benefits. He is also receiving HRA
4.00 of Rs.10000 pm. His Basic Salary was increased to Rs.1800 pm on 1-1-
2017. He was paying rent of Rs.8000 pm till 31-12-2016; later the rent
paid was increased to Rs.12000 from 1-1-2017. Compute his taxable HRA
for the AY 2017-18.

Select one:
a. Rs.32160

b. Rs.48

c. Rs.31112

d. Rs.87840

Your answer is incorrect.

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8/29/2019 Tax and Estate Planning Mock Paper 1

Question 76 Krishna, 23 submitted the following information regarding his income for
Not answered the AY 2017-18.
Marked out of ½ Share of profit of a firm: Rs.550000 (is this half the share or profit of
4.00
the firm)
Income from house property (Computed): Rs.210000

Winnings from Lottery (Gross): Rs.200000

Long Term Capital Gain on Equity shares sold through a recognized Stock
Exchange with an STT paid Rs.250: Rs.125000

Short Term Capital Gain on Equity Shares sold through a recognized

stock exchange with an STT paid Rs.250: Rs.60000
Investment in ELSS: Rs.50000

Deposit in PPF: Rs.25000

Calculate the tax liability of Krishna for the AY 2017-18.

Select one:
a. Rs.31660

b. Rs. 57641

c. Rs.71070

d. Rs.70660

Your answer is incorrect.

Question 77 Mrs. Rekha is 45 years old and plans to retire at 50. Her life expectancy is
Not answered 70 years. Ms. Sushma her Financial Planner, estimates that her client will
Marked out of require Rs.45000 in the first month after retirement. Inflation rate is 4%
4.00 p.a. and the rate of return is 6% p.a.What will be the savings per year
required in order to meet this? 

Select one:
a. 1589420 

b.  1245879 

c. 1689745  

d. 1478951 

Your answer is incorrect.

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