8/29/2019 Tax and Estate Planning Mock Paper 3

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Question 1 After determining the goals of your client, what is the next step in the
Not answered financial planning process?
Marked out of
1.00 Select one:
a. Review and revision of plan

b. Establishing the client planner relationship.

c. Gathering Data

d. Analyzing Information

Question 2 Which of the following is not qualitative information?

Not answered

Marked out of Select one:

1.00
a. All of the above

b. Liquidity Preference

c. Personal Details

d. Assets and Liabilities

Question 3 As per which Code of Ethics, complete disclosure related to

Not answered professionalism relationship with product suppliers should be made to
Marked out of the client and if at a future date there is any change in Financial Planners’
1.00 relation with any of the product suppliers, then that  should also be
disclosed to the client at the earliest time? 

Select one:
a. Code of Ethic of Integrity

b. Code of Ethic of Fairness

c. Code of Ethic of Confidentiality

d. None of the above

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8/29/2019 Tax and Estate Planning Mock Paper 3

Question 4 Harsh is planning to invest Rs. 250000 in to his own motor company. But
Not answered he is unsure about the returns he will on this investment. He produces
Marked out of estimated cash flows for the following year:
1.00 Year 1:Rs. 100000

Year 2:Rs. 125000

Year 3:Rs. 150000
How do you find his internal rate of return for the investment? Option B

Select one:

a.

b.

c.

d.

Question 5 Assume you bought an 8% coupon bearing bond with 4 years to

Not answered maturity at par and then sold it at a premium before maturity. If you were
Marked out of able to reinvest the cupons at the YTM, then:
1.00
Select one:
a. HPR=YTM

b. Data insufficient

c. HPR is greater than YTM

d. HPR is less than YTM

Question 6 In which type of business entity is the entire ownership interest most
Not answered freely tansferable?
Marked out of
1.00 Select one:
a. Sole ownership

b. General partnership

c. Corporation

d. Limited partnership

Question 7 Given a 9% p.a. interest rate, an asset that generates cash flows of Rs.
Not answered 10000 in year I, Rs.20000 in year 2, and Rs.I0000 in year 3, and then sold
Marked out of for Rs.150000 at the end of year 4 has a present value of:
1.00

Select one:
a. Rs. 8337.55

b. Rs. 10036.22

c. Rs. 9354.25

d. Rs. 139993.25

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8/29/2019 Tax and Estate Planning Mock Paper 3

Question 8 If the annual growth rates of an investment in 4 years are 5.4%, 6.8%,
Not answered 7.3% and 6.5% respectively, then the compounded growth of output per
Marked out of annum for the given period is
1.00

Select one:
a. 4.62%

b. 3.55%

c. 1.98%

d. 6.50 %

Question 9 The responsibility of collecting the service tax lies with

Not answered

Marked out of Select one:

1.00
a. Central Board of Exercise and Customs

b. Income Tax Department

c. Ministry of corporate affairs

d. Central Board of Direct Taxes

Question 10 The finance bill becomes a finance act when

Not answered

Marked out of Select one:

1.00
a. Presented by the finance minister

b. Approved by Lok Sabha

c. Signed by the president

d. Presented in the parliament

Question 11 When does the liability to deduct tax at source arise?

Not answered

Marked out of Select one:

1.00
a. When the payment is due

b. At the time of payment

c. At the time of credit or payment whichever is earlier

d. None of the above

Question 12 If a domestic company pays dividends on equity shares to any resident

Not answered shareholder, what is the amount of tax to be deducted by the company?
Marked out of
1.00 Select one:
a. 15% + Surcharge + Cess

b. 12.5% + Surchnge + Cess

c. Nil

d. 10% + Surcharge + Cess

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Question 13 For the purpose of leave travel allowance, the term family means
Not answered

Marked out of Select one:

1.00
a. Spouse and children

b. spouse and more than two children

c. spouse, two children, parents, brothers and sisters mainly

dependent on individual

d. spouse and two children only

Question 14 Ms Aditi holds unlisted equity shares with her and she transfers it to her
Not answered husband in an off market transaction, what is the time period of holding
Marked out of of unlisted equity shares for the purpose of calculating long term capital
1.00 gains

Select one:
a. 12 months

b. Unlisted equity shares always have short term capital gains

irrespective of the holding period.

c. Unlisted equity shares will not have any capital gains as there will
not be any valuation of shares

d. 36 months

Question 15 Which regulatory authority has the power to approve settlement or

Not answered transfer of assets created abroad in case of an Offshore trust?
Marked out of
1.00 Select one:
a. Reserve Bank of India

b. Securities and Exchange Board of India

c. Income Tax Authorities

d. Ministry of External Affairs

Question 16 Ms.Rakshina received a sum of Rs 65,000 in cash from her friend

Not answered Abhishek Joshi as a gift on account of friendship day. What will be the
Marked out of taxability of the same?
1.00

Select one:
a. Rs 65,000 will be taxable

b. The entire amount is exempt

c. Rs 50,000 is taxable

d. Rs 15,000 will be taxable

Question 17 Deduction under section 80C to 80U is allowed from:

Not answered

Marked out of Select one:

1.00
a. Gross total income exclusive of long-term capital gain arising from
transfer of any capital asset and short-term capital arising from the
transfer of shares and units through a recognised stock exchange and
chargeable to STT.

b. Gross total income exclusive of long-term capital gain as well as

short-term capital gain

c. Gross total income

d. Gross total income exclusive of long-term capital gain

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8/29/2019 Tax and Estate Planning Mock Paper 3

Question 18 What is a covenant?

Not answered

Marked out of Select one:

1.00
a. The agreement itself.

b. Condition to a promise which is made in the agreement.

c. A promise made in deed.

d. A restriction imposed while making an agreement.

Question 19 X enters into a written agreement to purchase a property from Y for Rs.
Not answered 25 lakh. He has paid the consideration and taken possession of the
Marked out of property. The sale is yet to be registered. For the purpose of paying tax
1.00 on rental income, who is liable?

Select one:
a. Data insufficient.

b. Y

c. X

d. Has to be both or neither.

Question 20 Mr. Parmar is an NRI and 70 years of age. In his case, the maximum
Not answered income not chargeable to tax in india for AY 2017-18would
Marked out of be............................
1.00

Select one:
a. Rs.500000

b. Rs. 1,00,000

c. Rs. 50,000

d. None of the above.

Question 21 Nihal, a salaried employee, recieves medical allowance of Rs. 25,000 from
Not answered his employer which is fully spent by Nihal in meetimg medical expenses
Marked out of for himself . Determine the taxable account of medical
1.00

Select one:
a. Rs.15,000

b. Rs. 10,000.

c. Nil

d. Rs.25,000

Question 22 What is the proper order for the process of estate planning?
Not answered 1. Establish priorities for estate objectives.
Marked out of 2. Prepare a written plan.
1.00
3. Define problem areas including liquidity, taxes etc.

4. Gather client information and eatablish objectives.

Select one:
a. 4,1,3,2

b. 2,1,3,4

c. 3,2,1,4

d. 4,3,1,2

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Question 23 Deduction u/s 80U in case of permanent physical disability (including

Not answered blindness) allowed to:
Marked out of
1.00 Select one:
a. an individual who is citizen of India

b. an individual who is resident in India

c. any individual assessee

d. None of the above

Question 24 Jayant is engaged in retail trade of goods and merchandise. The income
Not answered to be presumed u/s 44AD shall be:
Marked out of
1.00 Select one:
a. 8% of total turnover

b. None of the above

c. 10% of total turnover

d. 5% of total turnover

Question 25 If an employer has made contribution in excess of 12% of salary to an

Not answered unrecognized provident fund of the employee, then the contribution
Marked out of
1.00 Select one:
a. In excess of 12% is treated as income.

b. Is treated as income in the hands of the employee.

c. Is not treated as income of the year in which contribution is made.

d. None of the above

Question 26 Income accruing or arising or deemed to accrue or arise in India is

Not answered taxable in the hands of
Marked out of
1.00 Select one:
a. Resident and Ordinary resident

b. Resident but not ordinary resident

c. Non Resident

d. All of the above

Question 27 H Singh HUF has wealth worth Rs 1 Crore. What will be the wealth tax
Not answered charges in this case is
Marked out of
1.00 Select one:
a. No wealth tax is charge able as the assessee is a “Sikh” HUF

b. There will not be any wealth tax on HUF

c. Rs 7,000

d. Rs 10,000

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Question 28 What will be the perquisite value if the accommodation (taken on lease
Not answered by the employer) is provided in a city having population of 3, 00,000 as
Marked out of per 2001 census?
1.00

Select one:
a. 10% of salary

b. 15% of salary

c. 15% of salary or actual hire charges. Whichever is lower

d. 20% of salary plus excess of FRV over 50% of salary

Question 29 Mr. Ankush, a British National comes to India for the first time during
Not answered 2012-2013. During the financial years 2012-2013,2013-2014,2014-
Marked out of 2015,2015-2016 and 2016-2017 he is in India for 55,60,80,160 and 70
1.00 days respectively. His residential status for the assessment year 2017-18
will be

Select one:
a. Resident of India

b. Non Resident

c. Need more information

d. Resident but Not Ordinary resident

Question 30 For claiming deduction u/s 80C of IT Act, the investment in an eligible
Not answered instrument has to be out of the assessee's income chargeable to tax.
Marked out of
1.00 Select one:
a. Need not be true always , as one can borrow and also invest in
section 80 C

b. Yes one can borrow but only to the extent of Rs. 25,000

c. True always

d. False always

Question 31 A private trust is created to benefit future daughter-in-law in order to

Not answered avoid the clubbing provisions of section 64(1). In the trust, her future
Marked out of husband is one of the trustees, who could be the settlor/donor of such
1.00 trust?

Select one:
a. Father in law

b. Husband

c. Both of them

d. None of the above

Question 32 Gita sold her equity of X Ltd. on 1st of July, 2016. The total sale value of
Not answered the shares was Rs. 75,000/-. The securities Transaction Tax that Gita is
Marked out of liable to pay would mandatorily be collected by....................................
1.00

Select one:
a. Stock Exchange

b. Gita's Broker.

c. Gita’s Intermediary where she has her demat account

d. Income Tax Authority

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8/29/2019 Tax and Estate Planning Mock Paper 3

Question 33 As per the Hindu Succession Act, 1956, the following person is not
Not answered considered as a Class-I heir of the person who dies intestate?
Marked out of
1.00 Select one:
a. Mother

b. Son of a pre-deceased son

c. Widow of a pre-deceased son

d. Father

Question 34 Donations to a notified temple attract a deduction of ......................., u/s 80

Not answered G of IT Act.
Marked out of
1.00 Select one:
a. NIL

b. 50% of Adjusted GTI

c. 50% of Gross Income.

d. 100% of Donation given in cash

Question 35 X is a property dealer who buys and sells housing property. He recieved
Not answered some rent from a house property held as stock-in-trade in the
Marked out of assessment year 2017-18. This rental income would come under the
1.00 head:

Select one:
a. Income under the head capital gains

b. Business Income.

c. Income from other sources.

d. Income from house property.

Question 36 Rahul had submitted return of his income to the extent of Rs. 11.50 lakh
Not answered for the AY 2017-18 . The Assessing Officer has found concealment of
Marked out of income of Rs. 1.50 lakh in the return submitted. What is the approximate
1.00 amount of minimum & maximum penalty applicable u/s 271(1)(c) of the
Income Tax Act, if he fails to convince the Assessing Officer? (Ignore
surcharge and Cess in calculations)

Select one:
a. Minimum penalty Rs.,22,500 and maximum penalty Rs.90,000

b. Minimum penalty Rs.1,50,000 and maximum penalty Rs.3,00,000

c. Minimum penalty Rs.45,000 and maximum penalty Rs.1,35,000

d. Minimum penalty Rs.45,000and maximum penalty Rs.90,000

Question 37 Mr. K S A Krishnan Director of a company, by profession (aged 62), is

Not answered expecting an income of Rs 18 lacs this year as income from salary. What
Marked out of is the the advance tax payable by him by 15th June?
1.00

Select one:
a. None

b. 45% of the advance tax liability as reduced by the amount if any

paid earlier.

c. 45% of the advance tax liability

d. 15% of the advance tax liability

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8/29/2019 Tax and Estate Planning Mock Paper 3

Question 38 State which of the following statements is true.

Not answered Statement 1: A guardian appointed by a testator can use his power to
Marked out of make a fresh will statement.
1.00
Statement 2: A will can be made to be executed during the life time of
the testator.

Select one:
a. Only statement 1 is true.

b. Only statement 2 is true.

c. Both the statements are true.

d. Both the statements are false.

Question 39 The estimated salary of Ms Aditi Chaudhury for the year 2016-2017 is Rs
Not answered 10,20,000/-. What is the amount of tax to be deducted at source every
Marked out of month by the employer?
2.00

Select one:
a. Rs. 11,333

b. Rs. 11,244

c. No tax to be deducted

d. Rs 11,673

Question 40 You win a horse race at the Mumbai Derby and are a winner of Rs 11,000.
Not answered What will be the amount of deduction you can claim?
Marked out of
2.00 Select one:
a. Rs 5,000

b. Rs 2,500

c. No deduction

d. None of these

Question 41 Ms. Rama , not being covered by the Payment of gratuity Act retires
Not answered during the year from a private limited company and receives Rs 4,40,000
Marked out of as gratuity after a service of 40 years and 11 months. Her average
2.00 monthly salary during the last 10 months of service was Rs 22,000.
Determine the taxable gratuity in her case.

Select one:
a. Rs 4,40,000

b. Gratuity will be fully exempt

c. Rs 4,50,000

d. Rs 10,000

Question 42 Which of the following will not qualify as agriculture income

Not answered

Marked out of Select one:

2.00
a. Income received from renting of farm for storage of crop

b. Income received from renting of farm for shooting for a movie

c. Income received from renting of farm as dwelling for cultivators

d. Income received from farm house for processing of food crop

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Question 43 Anil and Radhika (husband and wife) want to donate Rs. 2,00,000 per
Not answered annum for the education of poor children of their area but for this
Marked out of purpose they don't want to hand over this amount to any person or
2.00 organization. Anil wants to have your opinion regarding setup of a
proper entity for this arrangement. Your advice would be............................

Select one:
a. Anil should make an amendment in the partnership deed of his
firm and create a provision for the same in new deed.

b. Anil should set an irrevocable private charitable trust and devolve

the necessary assets in the trust.

c. Anil should hold these funds in his personal account only and
manage the same in his personal capacity.

d. Anil should create his personal HUF and devolve the necessary
assets in the trust.

Question 44 Possesion of the property is transferred to the Mortgagee in

Not answered .............................
Marked out of
2.00 Select one:
a. simple mortgage

b. English mortgage

c. mortgage by conditional sale

d. Usufructuary mortgage

Question 45 Gita sold her equity of X Ltd. on 1st of July, 2006. The total sale value of
Not answered the shares was Rs. 75,000/-. The securities Transaction Tax that Gita is
Marked out of liable to pay would mandatorily be collected by....................................
2.00

Select one:
a. Gita's Broker.

b. Stock Exchange

c. Mutual Fund

d. Income Tax Authority

Question 46 A father purchased a residential house for Rs. 5 lakh on 6th September
Not answered 1985. He expired in 21st March 2005 and his son inherited the property.
Marked out of On this date, the fair market value of the property was Rs.20 lakh. The
2.00 son sold the inherited property on 25thjune, 2008 for a net consideration
of Rs.28 lakh. Determine the year from which the son gets the benefit of
indexation, if at all, for calculation of capital gains.

Select one:
a. 1985-86

b. Indexation will not be applicable

c. 2005-06

d. 2004-05

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Question 47 What is Stridhan?

Not answered

Marked out of Select one:

2.00
a. It is property received by a woman in partition of a parental
property.

b. It is the assets and property owned by the woman which was

received by her in form of gifts or earned by her during her life time.

c. Both the above

d. None of the above

Question 48 Which of the following is not a charitable purpose?

Not answered

Marked out of Select one:

2.00
a. All the above

b. Raising artistic taste

c. Support to the unemployed

d. Development of physical education

Question 49 Salary of the partners which was allowed as deduction to the firm will be
Not answered treated in the hands of the partners in their individual assessment under
Marked out of which income head?
2.00

Select one:
a. Income from other sources

b. Profits & Gains from Business or Profession

c. Income from Salaries

Question 50 Mr. Leuke, a young businessman in Bhubaneshwar is earning Rs.5, 00,

Not answered 000. He received a bank interest of Rs.50, 000/- on his deposits. He also
Marked out of paid a rent of Rs.60, 000/- during the PY 2016-17. What is the deduction
2.00 available under Sec.80 GG?

Select one:
a. Rs.24, 000

b. Rs.1, 37, 500

c. Rs.5, 000

d. None of the above

Question 51 What is the effective annual rate if the stated nominal rate is 12% pa.
Not answered compounded monthly?
Marked out of
2.00 Select one:
a. 12.68%

b. 12.55%

c. 12.49%

d. 2.3%

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Question 52 Suppose you except to receive Rs.15000 annually for 5 years, each receipt
Not answered occurring at the end of the year. What is the present value of this stream
Marked out of of benefits if the discount rate is 10%?
2.00

Select one:
a. -55000

b. -56861.80

c. -57463.75

d. -75000

Question 53 Mukesh wishes to purchase a house with the help of loan. He approaches
Not answered a HDFC & explains to them that his paying capacity is Rs.3540/-per
Marked out of month. Rate of interest to be charged by company is 8.5%pa & Mukesh
2.00 wishes to pay back the amount in 21 years. Compute the amount of loan
which can be availed by him?

Select one:
a. 415376

b. 415672

c. 442356

d. 450000

Question 54 An amount becomes Rs.562778 in 5years when for the first 4 years rate
Not answered of interest is 6% pa. Compounded quarterly & in the 5th year
Marked out of compounding is done annually. Find the amount invested?
3.00

Select one:
a. -415000

b. -416000

c. -420000

d. -418383

Question 55 You wish to save for your son’s education the present cost of which is Rs.
Not answered 320000 & is expected to increase by 6% every year. If your son is 12 years
Marked out of old & will require money in 8 year time, what is the amount of
3.00 investment to be made if it is likely to earn 12% rate of return? 

Select one:
a. -210000

b. -209553

c. -205670

d. -205993

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Question 56 Brijesh, age 48 plans to retire at 65 and wants to be debt free at

Not answered retirement . the balance sheet mortgage is Rs. 114042 at the end of the
Marked out of 10th year of a 30 year loan. The monthly payment was Rs. 953.89. what
3.00 was the original balance of the loan if the interest rate was 8%? (Select
closest answer)

Select one:
a. Rs. 130000

b. Rs. 140000

c. Rs. 120000

d. Rs. 125000

Question 57 Mr. X had invested Rs 1,00,000 in purchase of gold ornaments on 4th Jan
Not answered 1989,. He was holding the gold as investments. On 12Th Jan 2015, he
Marked out of started a business of dealing in jewelry and converts his holdings into
3.00 stock in trade, the market value of investments on that day was Rs
7,00,000 therefore X credits his capital account by Rs 7,00,000 and debits
his stock account by Rs 7,00,000, the Gold ornaments are sold by X in
previous year 2016-17 for a sum of Rs8,00,000.compute the capital gains
for X if CII for years 88-89 is 161,89-90 is 172, 14-15 is 1024 and 2016- 17
is 1125.

Select one:
a. LTCG of Rs 63,975

b. LTCG of Rs 81,988

c. LTCG of Rs 32,558

d. None of the above

Question 58 Mr. Ram informs you that the particulars of the salary for the previous
Not answered year ending 31st March 2017, Basic Pay – Rs 3,60,000, DA (not forming a
Marked out of part of salary) Rs 48,000, Bonus Rs 60,000, Commission Rs 40,000, City
3.00 Compensatory Allowance Rs 36,000. Calculate the value of perquisite for
Mr. Ram if he stays in Ahmedabad where the population is more than 25
Lac and the cost of furniture is Rs. 1,60,000(WDV 1,20,000) .

Select one:
a. Rs 1,26,400

b. Rs 81,600

c. Rs 74,400

d. None of these

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Question 59 Rajat purchased 200 shares on 1st April 1978 for Rs 80 each. He was
Not answered allotted 200 right shares on 1st May 1979 for Rs 100 each. He was also
Marked out of allotted 400 bonus shares on 1st May 1980. On 4th May 1990 he was
3.00 allotted further 800 right shares at Rs 160 each. Again on 7th August
1996 he was allotted 800 bonus shares, the fair market value of these
shares on 1st April 1981 was Rs 120 each. He sold all the shares on 16th
October 2016  for Rs 1200 per share, what is the total capital gains to
him(rounded off to nearest 100) if all the shares are sold not through a
recognized stock exchange and CII of 1981-82 is 100 and that of 90-91 is
182 and that of 2016 – 17 is 1125 .

Select one:
a. Rs 14,65,000

b. Rs9,93,791

c. Rs 11,76,800

d. None of these

Question 60 An individual has recently purchased a house worth Rs. 40 lakh for self-
Not answered occupation by availing housing loan of Rs. 28 lakh at 9.25% p.a. rate of
Marked out of interest. The tenure of loan is 18 years. He has Rs. 12 lakh financial assets
3.00 at present. He is expected to save annually Rs. 2 lakh which he invests on
a quarterly basis beginning a quarter from now in an instrument which is
expected to provide return of 9% p.a. What would be his net worth five
years from now? The value of the house which is for consumption
purposes is not considered in the net worth so arrived.

Select one:
a. Rs.18.82 Lacs

b. Rs.6.68 Lacs

c. Rs.24.59 lakhs

d. Rs.2.83 Lacs

Question 61 Mrs. A whose date of birth is 30th March 1953 has a total salary income
Not answered of Rs. 9,78,000 for the previous year 2016 – 17 . She has income from
Marked out of other sources of Rs. 18,142 from her savings bank account. Her only
3.00 investments are contributions to EPF account which are 12% of her basic
salary of 40,000 per month. Find his tax liability for AY2017–18 

Select one:
a. Rs 1,19,180

b. Rs 1,16,090

c. Rs 1,12,350

d. Rs 1,14,030

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Question 62 A trust is created by a son, the Settler, for the survival expenses of his
Not answered retired parents each having equal beneficial interest. Both husband and
Marked out of wife have separate fixed pension of Rs. 35,000 per month and Rs. 20,000
3.00 per month, respectively. The trust property has generated a net annual
value of Rs. 5.12 lakh in the previous year 2014-15. The trustee as well as
the Settler is in the 30% tax bracket. Find the tax payable by the trustee
as representative assessee.

Select one:
a. Rs 1,58,210

b. Rs 33,370

c. Rs 64,684

d. Rs 79,100

Question 63 Your client had inherited a property of market value of Rs. 50 lakh from
Not answered his grandfather on 28th December 2006. His grandfather had acquired
Marked out of this property on 1st September 1998 for Rs. 12 lakh. He sold this
3.00 property for Rs. 70 lakh in January 2017. Compute the capital gains/loss
for AY2017 – 18 . Cost inflation index for FY 1998-99:351, 2006-07:519,
2016-17 : 1125 .

Select one:
a. Capital Loss of Rs 51,36,752

b. Capital gains of Rs31,53,846

c. Capital Loss of Rs 12,08,902

d. Capital gains of Rs 50,30,058

Question 64 Ms. Rohini Pandey acquired 2000 shares listed on NSE for Rs 5 Lac during
Not answered 1996–97, the company further allotted her equal bonus share during
Marked out of 2002-3, a second bonus issue was made in March 2014 where she
3.00 received one bonus share for every two shares held. All the shares were
sold by her on 8th August 2017  for Rs 1100 per share. What is the total
capital gains tax payable (ignore cess) for Rohini. If CII for 2014-15 is
1024 and that of 1996-97 is 305

Select one:
a. No Capital Gains

b. Rs 4,90,655

c. Rs 3,30,000

d. None of these

Question 65 Mahesh is employed in a company on a basic salary of Rs.20000 pm and

Not answered is allowed a dearness allowance of 30% of which 50% is included in salary
Marked out of for retirement benefits. His company pays him HRA of Rs.5000 pm.
3.00 Compute his exemption on HRA for FY 20016 -17 . Mahesh is staying in
Meerut and pays a house rent of Rs. 5000 pm.

Select one:
a. Rs.32,400

b. Rs.24,840

c. Rs.60,000

d. Rs.35,160

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8/29/2019 Tax and Estate Planning Mock Paper 3

Question 66 Mr. Sagar has won a car worth Rs.350000 in a draw organized by a
Not answered company. Calculate the TDS payable to the Govt.
Marked out of
3.00 Select one:
a. Rs.108150

b. Rs.105000

c. Nil

d. None of the above

Question 67 Dipanand acquired one kg of gold in 1977-78 for Rs.25000 and gifted to
Not answered his son, Arivind on 1st February 1979 when the market value of gold was
Marked out of Rs.24500. The fair market value as on 1st April 1081 was Rs.22000. Arvind
3.00 sold the gold on 30th March 2017  for Rs.425000. Compute the capital
gain chargeable to tax. (CII for 2016 – 17 : 1125 and for 1981-82:100)

Select one:
a. Rs.278250

b. Rs.303780

c. Rs.267000

d. Rs.117500

Question 68 Compute the total taxable income of Mr. Nalini Nayak for the assessment
Not answered year 2017-18 from the information given below:
Marked out of (i)Salary: Rs.15000 pm
4.00
(ii)Interest received from Bank FD: Rs.8000
(iii)Dividend received from Unit Trust of India: Rs.17000

(iv)Interest received on Govt. Securities: Rs.15000

(v)Income from Business of Garments: Rs.225000

(vi)Dividend received from PunjLyold Ltd. (an Indian Co.): Rs.500

(vii)Long Term Capital Gain of Rs.150000 on equity shares sold through
recognized stock exchange on 5th July 2016 and STT of Rs.500 was paid
by him

(viii)He sold a land for Rs.450000 on 31stDecember 2016; the land was
bought by him on 1se April 2015 for Rs.350000
(ix)Amount deposited in PPF account: Rs.70000

Select one:
a. Rs.485000

b. Rs.3,58,000

c. Rs.458000

d. Rs.528000

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8/29/2019 Tax and Estate Planning Mock Paper 3

Question 69 Find out the set offs from the given information below:
Not answered

Marked out of
4.00

Select one:
a. In situation 1, the short term capital loss of Rs 5,00,000 can be set
off against Long term capital gains of Rs 7,00,000 and in situation 2, it
is not possible to set off Long Term capital Loss, it needs to be carried
forward

b. In situation 1, the short term capital loss of Rs 5,00,000 can be set

off against Long term capital gains of Rs 7,00,000 and in situation 2, it
is possible to set off Long Term capital Loss against Short Term
capital gain

c. In situation 1, the short term capital loss of Rs 5,00,000 can be set

off against Long term capital gains of Rs 7,00,000 and in situation 2, it
is possible to set off Long Term capital Loss against Short Term
capital gain

d. None of the above

Question 70 A businessman sold Rs. 85 lakh value of unlisted securities on 20th

Not answered December 2016 . These shares were acquired in April 2008 for Rs. 20 lakh.
Marked out of He invested Rs. 40 lakh from these proceeds in February 2017  in his first
4.00 residential house to avail benefit under Section 54F of the Income-tax
Act, 1961. What approximate amount of bonds specified under Section
54EC should he purchase and by what date so as to make his capital
gains liability almost „Nil? towards these transactions? Cost inflation
index for FY 2008-09: 582, 2016-17: 1125 

Select one:
a. Rs 26.37 Lacs, 19th June 2015

b. Rs24.54 Lacs, 19th June 2017

c. Rs 15.73 Lacs, 30th July 2015

d. Rs 27.01 Lacs, 30th July 2015

Question 71 An investor purchased 2,000 shares of a listed company at Rs. 125 per
Not answered share on 28th August 2015.The Company declared a dividend of Rs. 8 per
Marked out of share, the record date was 26th November 2015. He sold 900 shares on
4.00 12th February, 2014 at a price of Rs. 113 per share and the balance on
27th June 2016  at a price of Rs. 135 per share. He had no other
transactions during FY2015 – 16 4-15. What is the disposition of his sell
transactions for AY2017 -18 ?

Select one:
a. Rs 16,200 STCG

b. Rs 7400 STCG, provided he carried forward his Short Term capital

loss for AY 2016-17 in his IT return

c. Rs 11,000 STCG

d. Rs3800 STCG, provided he carried forward his Short Term capital

loss for AY 2016-17 in his IT return

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8/29/2019 Tax and Estate Planning Mock Paper 3

Question 72 Mr. A purchased a flat worth Rs. 50 lakh in January 2009 by availing a
Not answered housing loan of Rs. 35 lakh for tenure 15 years at the rate of 9% p.a. The
Marked out of value of his flat as in January 2017 has appreciated to Rs. 90 lakh. What
4.00 approximate value of home equity can he consider in his flat towards his
unencumbered interest after also setting aside 15% of the appreciation
value towards taxes and other costs to be discharged on selling the unit?

Select one:
a. Rs 57.79 Lacs

b. Rs 49 Lacs

c. Rs 74.56 Lacs

d. Rs 63.79 Lacs

Question 73 Your client, a businessman has a house worth Rs. 2.1 crore and a farm
Not answered house worth Rs. 85 lakh. His business is worth Rs. 10 crore as per last
Marked out of balance sheet. He has two other partners in the business having stakes of
4.00 24% each. He has two cars purchased at Rs. 40 lakh and Rs. 20 lakh, the
latter being in personal account. The cars have depreciated/market value
at Rs. 30 lakh and Rs. 8 lakh, respectively. His joint Demat account, wife
being primary holder, has stocks worth Rs. 1.65 Crore. The business has
taken Keyman?s insurance on his life of value Rs. 1.5 Crore. He has
himself insured his life for an assured sum of Rs. 1.5 crore. You evaluate
your client's estate in case of any exigency with his life as _____.

Select one:
a. Rs 8.20 Crores

b. Rs 5.73 Crores

c. Rs 12.16 Crores

d. Rs 9.01 Crores

Question 74 Within two years of purchase of his flat, Vaibhav entered into an
Not answered agreement to sell the same to Mihir for Rs.8 lakh. Vaibhav had bought
Marked out of the flat for Rs. 5.5 lakh. Mihir pays Vaibhav earnest money of Rs. 50000 in
4.00 respect of the transaction with the balance money payable within a
month. However, for some unavoidable reason, Mihir could not make the
rest of the payment and in terms of the agreement between the two,
Vaibhav forfeited the earnest money paid. Subsequently, within a month
Vaibhav sold the flat to another buyer for Rs.9 lakh . Compute Vaibhav's
taxable income under capital gains.

Select one:
a. Short term capital gains of Rs. 3.5 lakhs

b. Short term capital gains of Rs. 4 lakh

c. Short term capital gains of Rs. 5 lakh

d. Long term capital gains of Rs. 4 lakh

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8/29/2019 Tax and Estate Planning Mock Paper 3

Question 75 Mrs. Shah retired from Ace Manufacturing Co.Ltd. Mumbai on

Not answered 31/12/2017 . Ace is covered under the Payment of Gratuity Act, 1972. She
Marked out of served for 30 years and 9 months. Ace paid her a Gratuity of Rs.400000.
4.00 Her monthly basic salary at the time of retirement was Rs.9000 p.m.and
Dearness Allowance was Rs.4000 p.m. House Rent Allowance was Rs.1500
p.m. Mrs.Shah lives in an ownership flat. Compute:Taxable amount of
Gratuity

Select one:
a. Gratuity:Rs.157500

b. Gratuity:Rs.167500

c. Gratuity:Rs.160000

d. Gratuity:Rs.170000

Question 76 Shashi wants to purchase a car which is costing Rs. 8,50,000. Reviewing
Not answered her budget she determines she can afford to pay Rs.15000 per month for
Marked out of three years towards the car. The going rate of interest is 1% per month
4.00 for 3 years. How much can she afford to borrow (approximately)?

Select one:
a. Rs.4,51,000

b. Rs.4,56,000

c. Rs.8,50,000

d. None of the above

Question 77 Dr. Vijay Dinanath Chauhan’s Mutual Fund Investments consist of four
Not answered different funds. Performances of these funds are as follows. 
Marked out of
4.00

What would be the return on portfolio of Vijay Dinanath Chauhan

Select one:
a. 13%

b. 17%

c. 21%

d. 15%

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