Direct Tax Mcq's

CS EXECUTIVE - DIRECT TAX
MOST LIKELY
MCQ's
For Dec 2022
CMA VIPUL SHAH
YES ACADEMY FOR CS +91 8888 235 235

YES ACADEMY FOR CS
MMMMM CS EXECUTIVE DIRECT TAX MCQ MARATHON FOR DEC - 22
INDEX
CHAPTER NO. CHAPTER NAME No. of MCQ PAGE NO.

1 BASIC CONCEPT 18 2
2 RESIDENTIAL STATUS 17 5
3 INCOME EXEMPT FROM TAX 26 8
4 SALARIES 15 12
5 INCOME FROM HOUSE PROPERTY 11 15
6 PGBP 18 17
7 CAPITAL GAIN 12 20
8 INCOME FROM OTHER SOURCES 16 23
9 CLUBBING OF INCOME 11 26
10 SET OF AND CARRY FORWARD 11 28
11 PERMISSIBLE DEDUCTION 12 31
12 TDS & TCS 14 33
13 ADVANCE TAX 2 35
14 ASSESSMENT OF TOTAL INCOME 6 36
15 COMPUTATION OF TOTAL INCOME 23 38
16 APPEAL, REVISION, PENALTY & PROSECUTION 9 42
CMA VIPUL SHAH 8888 235 235 1

YES ACADEMY FOR CS
CHAPTER 1 BASIC CONCEPTS
MULTIPLE CHOICE QUESTIONS
1. High Court's precedents are not binding on 2. Who amongst the following confers on the
__________. power to issue circulars and clarifications?
a Tribunal a ITAT
b Income Tax Authorities b Central Government
c Assessee c CBDT
d None of the above d State Government
3. __________ must be one in which two or more 4. A new business was set-up on 1st July, 2021
persons join in for a common purpose or common and trading activity was commenced from 1st
action with the object of earning income or September, 2021, the previous year would be
profits or gains. the period commencing from - (Dec 2015)
a Partnership a 1st April, 2021 to 31st March, 2022
b Co-ownership b 1st July, 2021 to 31st March, 2022
c Body of Individuals c 1st September, 2021 to 31st March, 2022
d Association of Persons d 1st October, 2021 to 31st March, 2022
5. In which of the following cases, income of 6. As per Income-tax Act, 1961 surcharge @ 12%
previous year is assessable in the previous year is payable by a domestic company if the total
itself: income exceeds: (June 2019)
a Assessment of persons leaving India a Rs. 10 lakhs
b A person in employment in India b Rs. 1 crore
c A person who is into illegal business c Rs. 10 crores
d A person who is running a charitable institution d Rs. 100 crores
7. AB & Co. received Rs. 2,00,000 as 8. Method of Accounting is not relevant for –
compensation from CD & Co. for premature
termination of contract of agency. Amount so
received is - (Dec. 2014)
a Capital receipt and taxable a Salaries
b Capital receipt and not taxable b Income from House Property
c Revenue receipt and taxable c Capital Gains
d Revenue receipt and not taxable d All of the above
9. In case of Partnership firm or company and 10. The MMR of 42.744% for Assessment Year
foreign company marginal relief is provided if 2022-23 is relevant in case of which of the
total income exceeds Rs. following person –
a Rs. 1 crore a Individual
b Rs. 10 lakhs b Association of Persons
c Rs. 50 lakhs c None of (a) and (b)
d None of these d Both of (a) and (b)

YES ACADEMY FOR CS
11. The income-tax payable by a Mrs. Swati Non- 12. Arun, a non-resident of India celebrated his
Resident Individual (aged 65 years) for A.Y. 80th birthday on 10th October 2021. If his
2022-23 if her total income is Rs. 2,75,000 total income for the previous year is Rs.
will be: 6,00,000, his income-tax liability for the
previous year 2021-22 is - (June 2016)
a Nil a Rs. 33,800
b Rs. 1250 b Rs. 41,600
c Rs. 1,300 c Rs. 20,800
d Rs. 2600 d Nil
13. An assessee, being an individual resident in 14. RAJA Ltd. has earned income of Rs. 150 lakhs
India, is entitled to a deduction, from the inclusive of income of Rs. 50 lakhs from the
amount of income-tax on his total income which transfer of Carbon Credit during the year
is chargeable for an assessment year, of an 2021-22. The company had incurred an amount
amount equal to 100% of such income-tax or a of Rs. 5 lakhs as transfer expenses on transfer
lesser amount. The maximum amount of total of Carbon Credit. The income received from
income qualifying for such deduction and the transfer of Carbon Credit in the A.Y. 2022-23
maximum amount of deduction so available is — shall be taxed as per section 115BBG of the
(Dec. 2014) Act and the amount of tax on such income
payable shall be: (Dec.2019)
a Rs. 5 lakhs and Rs. 2,000 respectively a Rs. 5,82,400
b Rs. 3.5 lakh and Rs. 2,500 respectively b Rs. 5,98,000
c Rs. 5 lakh and Rs. 12,500 respectively c Rs. 13,00,000
d Rs. 3 lakh and Rs. 5,000 respectively d Rs. 5,00,000
15. For the previous year 2021-22, taxable income 16. For the previous year 2021-22, taxable income
of A Ltd., a domestic company (Turnover in of A Ltd., a domestic company (Turnover in FY
2019-20 was Rs. 399 crores) is Rs. 10,86,920. 2019-20 was Rs. 451 crores) is Rs. 10,86,920.
Its tax liability would be — (June, 2015) Its tax liability would be - ' (June, 2015)
a Rs. 2,71,730 a Rs. 2,82,600
b Rs. 27,17,300 b Rs. 4,47,811
c Rs. 2,82,600 c Rs. 3,32,770
d Rs. 3,35,860 d Rs. 3,39,120
17. Calculate Income-tax payable by an Individual 18. Sahil is an association of two individuals Sahil
(aged 30 years) for AY 2022-23 if his total and Anil. The Association was formed on 2 nd
income is Rs. 1,01,20,000: April 2020 for the purpose of taking up a
foreign project likely to be completed within 15
months. They agreed to dissolve the association
on 10th July 2021. They filed their return for
Assessment year 2021-2022. The Assessing
officer demanded that they should also file the
return for Previous year 2021-2022. Cheeso
the correct option.

YES ACADEMY FOR CS
a Rs. 33,42,300 a The income for the period 2/4/2020 – 31/3/2021

should be filed for regular assessment and from
1/4/2021 to 10/7/2021 shall be filed separately
in the A.Y. 2021/22 itself.
b Rs. 32,75,775 b The income for 15 months should be clubbed and
a single return must be filed.
c Rs. 34,06,810 c The income for the P.Y. 2020-21 shall be taxed as
per the rates applicable for the A.Y. 2021-22 and
the income for 1.4.2021 to 10.7.2021 shall be
taxed as per part III of the first schedule to
Finance Act, 2021 i.e. rates applicable for A.Y.
2022-23.
d Rs. 32,58,680 d Bothe (a) and (c).

YES ACADEMY FOR CS
CHAPTER 2 RESIDENTIAL STATUS
1. Determine the residential status of Mr. X a 2. Find the residential status of HUF whose
foreign citizen who came to India for the first control and management are partly in India and
time on 15 April, 2021 for a period of just 200 the Karta stays in India for 360 days during
days – the period of 7 years.
a Resident a Resident
b Non-Resident b Non-Resident
c Not ordinarily Resident c Not Ordinarily Resident
d Any of these d Any of these
3. Mr. Ramji (age 55) is Karta of HUF doing 4. Thomas, an Indian citizen is living in Kerala
textile business at Nagar. Mr. Ramji is residing since birth in 1955 and left for UAE on 13 th
in Dubai for the past 10 years and visited India June 2017 for a salaried employment contract
for 20 days every year for filing the income for 4 years and came back on 7th July, 2021
tax return of HUF. His two major sons take to India and settled at Kerala. His residential
care of the day to day affairs of the business status for the Assessment Year 2022-23 shall
in India. The residential status of HUF for the be: (Dec.2019)
assessment year 2022-23 is: (June, 2017)
a Non-resident a Resident
b Resident b Non-resident
c Not ordinarily resident c Resident & Not Ordinary Resident
d None of the above d Resident & Ordinary Resident
5. Somesh was born in New Jersey in 1977 and 6. X, an Indian citizen, who is living in Delhi since
his father was born in China in 1949 whereas 1981, left for Japan on 1st July, 2019 for
Somesh's grandfather was born in India in employment. He came back to India on 1 st
1933. Somesh visited India for 180 days during January, 2021 on a visit and stayed for 4
the previous year. His residential status is – months. His residential status for the
assessment year 2022-23 would be - (Dec.
2014)
a Resident a Resident and ordinarily resident
b Not Ordinarily Resident b Not ordinarily resident
c Not Resident c Non-resident
d Any of these d Resident
7. XYZ LLP will be __________ in India if control 8. An Indian company would:

and management of its affairs is wholly situated
outside India during the previous year.
a Resident a be resident in India if its control and management
is in India
b Non-Resident b be resident in India if its place of effective
management, is in India
c Not Ordinarily Resident c be resident in India if its place of effective

YES ACADEMY FOR CS
management, is outside India

d Any of these d be always resident in India irrespective of its
place of effective management.
9. Agriculture income from agriculture land 10. Income which accrues outside India but is
located in a foreign country is taxable in the received in India is taxable if the person is –
case of: (June 2019)
a Non-resident a Resident
b Not ordinarily resident b Not Ordinarily Resident
c Resident c Non Resident
d In all cases stated in A, B & C d Any of these
11. John is a foreign citizen born in USA. His 12. Business activity carried on with which of the
father was born in Delhi in 1960 and his grand- following agent is not a business connection?
father was born in Lahore in 1935 but his
mother was born in UK in 1963. John came to
India for the first time on 1st June, 2021 and
stayed in India for 183 days and then left for
U.S.A. his residential status for the A.Y.
2022-23 shall be:
a Resident a Concluding agent
b Resident but not ordinary resident b Stocking agent
c Non-resident c Indenting agent
d Foreign national d None of these
13. The following income of Ms. Nargis who is a 14. Central Board of Direct Taxes (CBDT) vide
non-resident shall be included in her total Circular No. 8 of 2017 dated 23 rd February,
income. 2017 has clarified that the Place of Effective
(i) Salary for 2 moths received in Delhi Management (POEM) provisions shall not apply
₹40,000. to a company having turnover or gross receipts
(ii) Interest on Savings Bank Account in Mumbai in a financial year of __________. (Dec. 2019)
₹ 2,100.
(iii) Agricultural income in Bangladesh and
Invested in shares in Bangladesh.
(iv) Amount brought into India out of past
non-taxed profits earned in USA.
If Adarsh is NOR what is his total income?
a (i), (iii) and (iv) a Rs. 30 crore or less
b (i) And (ii) b Rs. 10 crore or less
c (i), (ii) and (iv) c Rs. 50 crore or less
d All the four above d Rs. 5 crore or less
15. Mr. R, an Indian citizen being a non-resident 16. From the following particulars of Income
has furnished the following particulars of his furnished by Ms. Usha pertaining to the year
Income for year ended 31-03-2022. You are ended 31-03-2022, -

YES ACADEMY FOR CS
required to compute his Total Income – Particulars Amount

Particulars Amount (Rs) (Rs.)
i. Gift by NEFT transfer 5,00,000 1 Dividend received from 55,000
from X's (R's friend who shares of Indian Company
is resident in India) bank
2 Business Income carried in 37,000
account (PNB, Mumbai) to
Singapore controlled from
R's bank account outside
India. India, received there, and
ii. Monalisa painting (given 3,50,000 subsequently remitted to
as gift outside India from India
friend X locker in a If Usha is Resident what is her total income?
foreign bank)
a Rs. 8,50,000 a Rs. 55,000
b Rs. 5,00,000 b Rs. 37,000
c Rs. 3,50,000 c Rs. 92,000
d Nil d Nil
17. From the following particulars of Income

furnished by Mr. Kamlesh pertaining to the
year ended 31-03-2022, -
Particulars Amount (Rs.)
1 Interest received from 15,000
Indian Government bonds
outside India
2 Royalty received outside 20,000
India from non-resident
who used the rights for
business outside India
3 Agricultural income from 37,000
lands in Japan (20% is
received in India)
If Kamlesh is Non- Resident what is his total
income?
a Rs. 15,000
b Rs. 20,000
c Rs. 7,400
d Rs. 22,400

YES ACADEMY FOR CS
CHAPTER 3 INCOME EXEMPT FROM TAX
1. Which of the following income is an agricultural 2. Agriculture income includes which of the
income - (June, 2011)? following income –
a Income from brick making a Rent derived from land.
b Income from agriculture land situated in Pakistan b Income derived from agricultural land by
agricultural operations.
c Prize from government on account of higher crop c Income from farm building.
yield
d Compensation received from insurance d All of the above.
company on account of loss of crop.
3. Green Wood Plantation Ltd. is engaged in 4. Balu paid Rs. 1,00,000 to Raj for purchase of
cultivation and processing of Tea. Their net standing crop (paddy). He harvested the
income during A.Y. 2022-23 is to the tune of produce, i.e., by incurring expenditure of Rs.
Rs.20 lakhs. What proportion out of the income 25,000. He sold the said paddy for Rs.
of Rs. 20 lakh would be treated as agriculture 1,80,000 to a trader. His other income for the
income? (June 2019) year ended 31st March, 2022 was Rs.
4,60,000. The total income of Balu is - (June
2016)
a 10% a Rs. 6,40,000
b 25% b Rs. 5,15,000
c 40% c Rs. 4,85,000
d 60% d Rs. 5,60,000
5. Mrs. Rose derives Rs. 5,40,000 by way of 6. As per Rule 8 income derived from the sale of
income from sale of coffee grown and Tea grown & manufactured by seller in India
manufactured in India. The income chargeable will be disintegrated between business and
to income-tax would be - (Dec. 2016) agricultural income in the ratio of:
a 50%, i.e., Rs. 2,70,000 a 35: 65
b 25%, i.e., Rs. 1,35,000 b 30:60
c 40%, i.e., Rs. 2,16,000 c 40: 60
d 60%, i.e., Rs. 3,24,000 d 25: 75
7. Partial integration is applicable when the 8. Dividend from shares of an Indian company is
taxpayer is: taxable under head:
a HUF a Income from business & profession
b An Individual b Income from other sources
c BOI or an AOP or artificial juridical person c Exempt from tax
d Any of the above d Income from salary
9. Mr. Suresh has non-agricultural income of Rs. 10. Income of an assessee engaged in the business
6,50,000. Agricultural income earned of Rs. of growing and manufacturing tea in India is
taxable to the extent of - (Dec. 2014)

YES ACADEMY FOR CS
50,000. Compute the income tax payable by

him.
a Rs. 67,600 a 40% of such income
b Rs. 52,000 b 60% of such ‘income
c Rs. 5,200 c 70% of such income
d Rs. 72,800 d 30% of such income.
11. Mr. I was a shareholder of XYZ Pvt. Ltd. 12. If non-agricultural income is Rs. 2,52,000 and
company. He earned an income of Rs. 18,000 net agricultural income is Rs. 40,000, the tax
on account of buy back of shares by the liability of an individual assessee will be - (Dec.
company as referred to in section 115QA. 2014)
Calculate the amount of taxable income.
a Rs. 18,000 a Nil
b Rs. 20,000 b Rs. 200
c Rs. 19,000 c Rs. 208
d Nil d Rs. 4,368
13. Raghu traced a missing girl by spending Rs. 14. Pawan reports net income of Rs. 5 lakhs from
20,000. For this, he was awarded with a sum the activity of growing and manufacturing
of Rs. 1,20,000. In this case the award is rubber. How much of such income is to be
taxable to the extent of - (June 2016) treated as non-agricultural income - (Dec.
2015)
a Rs. 1,00,000 a Rs. 1,75,000
b Rs. 1,20,000 b Rs. 2,00,000
c Rs. 1,15,000 c Rs. 1,25,000
d Nil. d Nil
15. ABC institution was existing solely for 16. RSR hospital was existing solely for
educational purposes and not for purposes of philanthropic purposes and not for purposes of
profit. The institution was wholly or profit. The hospital was wholly or substantially
substantially financed by the Government. The financed by the Government. The annual
annual receipts of the institution was Rs. receipts of the institution was Rs. 1,10,00,000.
85,00,000. It earned income of Rs. 2,25,000 It earned income of Rs. 3,00,000 during the
during the previous year 2022-23. Calculate previous year 2022-22. Calculate the amount of
the amount of income taxable. income taxable.
a Rs. 2,25,000 a Rs. 3,00,000
b Rs. 25,000 b Rs. 1,00,000
c Rs. 2,00,000 c Rs. 2,00,000
d Nil d Nil
17. In case of a unit established by an 18. Hans Ltd. is a unit located in SEZ. It has
entrepreneur in SEZ, which begins to Export turnover of Rs. 500 lakhs; Total
manufacture or produce articles or things or turnover of Rs. 900 lakhs; Business profits of
provide any services on or after 1-4-2006, Rs. 80 lakhs. The said export turnover includes
deduction for next 5 years will be allowed as sales tax amounting to Rs. 20 lakhs and excise

YES ACADEMY FOR CS
follows – duty amounting to Rs. 30 lakhs. Further, the

assessee incurred freight amounting to Rs. 50
lakhs outside India. Compute the deduction
available under section 10AA.
a 50% of profits and gains from export business a Rs. 40 lakhs
b 75% of profits and gains from export business b Rs. 32 lakhs
c 100% for first two years and 80% for remaining c Rs. 44.44 lakhs
three years
d No deduction d Nil
19. X Ltd. is located in SEZ. From the following 20. Tax holiday under section 10AA in respect of
information furnished by it, compute its total newly established units in SEZ is allowed for a
income: Total turnover for the year = Rs. 500 total period of - (Dec. 2016)
lakhs, Export turnover = Rs. 400 lakhs,
Business profits = Rs. 50 lakhs. Here, export
turnover represents export of computers @ Rs.
80,000 per computer?
a Rs. 50 lakhs a 5 Years
b Rs. 10 lakhs b 10 Years
c Rs. 100 lakhs c 15 Years
d Nil d 20 Years
21. A registered political party have income during 22. The advancement of any other object of
the year 2021-22 of banks interest Rs. general public utility shall be regarded as
5,00,000, rent from letting of building Rs. charitable purpose even if it involves carrying
3,00,000 and voluntary contribution by cheque on of trade/ commerce/business for a cess or
Rs. 8,00,000. Total income chargeable to tax fee or any other consideration, if the gross
under section 13A of the Income Tax Act, receipts thereof does not exceed __________
1961 for the A.Y. 2022-23 of the political of total receipts of such charitable institution.
party shall be: (June 2019)
a Rs. 5,00,000 a 15%
b Rs. 8,00,000 b 20%
c Rs. 16,00,000 c Rs. 20 lakhs
d NIL d Rs. 25 lakhs
23. Ray Charitable Trust (registered under section 24. Ramji Charitable Trust had sold a capital asset
12AA) has total income of Rs. 20 lakhs. It costing Rs. 70,000 on 13th June, 2021 for Rs.
applied Rs. 10 lakhs towards its objects. How 1,50,000. It purchased new asset on 1 st July
much is chargeable to tax in case the trust 2020 for Rs. 1,20,000. The amount taxable as
does not opt for accumulation of income under capital gains for Ramji Charitable Trust in A.Y.
section 11(2) of the Act? (June, 2017) 2022-23 is - (Dec. 2015)
a Rs. 10 lakhs a Rs. 80,000
b Rs. 7 lakhs b Nil, because of charitable trust
c Rs. 5 lakhs c Rs. 30,000
d Rs. 3 lakhs d Rs. 40,000

YES ACADEMY FOR CS
25. HSK, an LLP had taken keyman insurance policy 26. A charitable trust acquired two air-
th
on the life of its managing partner. The policy conditioners for Rs. 1,40,000 on 10 June,
th
got matured on 13 September, 2021 and an 2021. It claimed the acquisition as application
amount of ₹ 75 lakh’s was paid by the insurers of income. The amount it can claim by way of
to the managing partner. The amount so depreciation for the said air-conditioners for
received on maturity of the policy by the the AY 2022-23 is- (Dec. 2015)
managing partner is……
a Is exempt in full u/s 10(10D) a Rs. 21,000
b 50% of ₹ 75 lakh’s is exempt b Rs. 1,40,000
c ₹ 75 lakh’s is taxable c Rs. 35,000
d ₹ 25 lakh’s is exempt and balance is taxable d Nil.

YES ACADEMY FOR CS
CHAPTER 4 SALARIES
1 Mr. A joins a job on 1-7-2020 at monthly 2. Mr. X is employed in HCL Ltd. Since 1.7.2010
. salary of Rs. 20,000 in A Ltd. He got an in the pay scale of 10,000-500-14,000-1000-
increment of Rs. 1,000 in the month of July 19000. THE EMPLOYER PAID HIM Dearness
2021. His salary becomes due on first day of Allowance (D.A.) @ 10% of Basic salary up-to-
next month. His gross salary for AY 2022-23 31.8.2020 and thereafter @ 2-% of basic
will be — salary. His gross salary for the P.Y. 2020-21
is:
a Rs. 2,49,000 a Rs. 2,19,100
b Rs. 2,48,000 b Rs. 2,22,300
c Rs. 2,40,000 c Rs. 2,05,000
d Rs. 2,52,000 d Rs. 2,07,900
3. Kavya receives Rs. 25,000 p.m. as basic salary 4. Arun, a resident of Meerut, receives Rs.
from ABC Ltd. She is also provided dearness 38,000 per annum as basic salary. In addition,
allowance of Rs. 15,000 p.m. forming part of he gets Rs. 12,000 p.a. as dearness allowance,
retirement benefit. She has been provided which does not form part of basic salary, 5%
accommodation owned by employer with effect commission on turnover achieved by him
st
from 1 October 2021 in Delhi (population (turnover achieved by him during the relevant
exceeds 25 lakhs). The market rent of such previous year is Rs. 6,00,000) and Rs. 7,000
accommodation is Rs. 2,000 p.m. The taxable per annum as house rent allowance. He,
value of rent-free accommodation for AY however, pays Rs. 8,000 per annum as house
2022-23 will be — rent. The quantum of house rent allowance
exempt from tax is - (June 2007)
a Rs. 36,000 a Nil
b Rs. 12,000 b Rs. 8,000
c Rs. 72,000 c Rs. 7,000
d Rs. 48,000 d Rs. 1,200
5. A Central Government Officer received during 6. Ramavtar, an employee of GG Carriers provides

the year 2021-22 salary excluding all the following details of his income received
allowances of Rs. 9,00,000 and amount of from the employer for the year ended on 31-
entertainment allowance of Rs. 12,000 @ Rs. 3-2022:
1,000 p.m. The maximum amount of Particulars Amount (₹)
entertainment allowance so received by him Salary 1,20,000
being exempt under section 16fii) of the Act DA 24,000
is. (Dec.2019) Leave Salary 5,000
Bonus 6,000
Professional tax paid by employer 1,000
Free Lunch 3,000
He has contributed ₹ 9,000 in statutory PF and
had also paid ₹ 1,000 towards LIP premium.
His total income for Assessment Year 2022-23
shall be-

YES ACADEMY FOR CS
a 1/5th of salary a Rs. 95,000

b Rs. 1,000 p.m. b Rs. 1,08,000
c Rs. 5,000 c Rs. 1,05,000
d Rs. 10,000 d Rs. 98,000
7. The amount or the aggregate of amounts of any 8. Mr. A (65 years) submits the following
contribution made to the account of the information for the Assessment year 2022-23:
assessee by the employer- Gross salary - Rs. 9,20,000; Income from
(a) in a recognised provident fund; other sources - Rs. 60,000; Contribution to
(b) in the scheme referred to in Section 80CCD PPF - Rs. 70,000; Compute the tax liability of
(1); and A.
(c) in an approved superannuation fund, to the
extent it exceeds __________ in a previous
year is chargeable to tax under the head
Salaries.
a Rs. 7,50,000 a Rs. 84,000
b Rs. 10,00,000 b Rs. 87,360
c Rs. 5,00,000 c Rs. 85,280
d Rs. 1,50,000 d Rs. 89,970
9. John, who recently retired from service of a 10. Aakash obtained interest-free loan of Rs.
st
company on 31 March, 2022 is eligible for a 2,00,000 from his employer company for
monthly pension of Rs. 20,000. He has received purchasing a four-wheeler on 1-10-2021. The
gratuity on his retirement also. He wants to market rate of interest on such loan is 20% per
commute 50% of his pension for Rs. 6.00 lakh. annum. The lending rate of State Bank of India
How much amount of this commuted pension is 12.5% and that of the private sector banks
shall be subject to tax in A.Y. 2022-23? is 16%. The entire loan is outstanding as on
(June. 2019) 31-03-2022. The taxable amount of this
perquisite for AY 2022-23 will be –
a Rs. 6,00,000 a Rs. 12,500
b Rs. 2,00,000 b Rs. 25,000
c Rs. 3,00,000 c Rs. 20,000
d Rs. 3,50,000 d Rs. 16,000
11. Mr. Sunil is a private sector employee. He 12. Suresh is pilot of Jet airways. He receives Rs.
received Rs. 12,00,000 as gratuity. He retired 30,000 p.m. as basic salary. He is also
th
on 16 February 2022 after rendering 25 years provided dearness allowance of Rs. 15,000 p.m.
and 7 months of service. His basic salary was forming part of retirement benefit. He has
Rs. 30,000 p.m. His dearness allowance was been provided transport facility in the
Rs. 15,000 p.m. (40% forms part of retirement conveyance owned by the company. The amount
benefit). He is not covered under Payment of charged to general public on account of such
Gratuity Act, 1972. The amount of gratuity facility is Rs. 25,000. The employer has
exempt will be – recovered Rs. 5,000 from Suresh. The cost to
employer is Rs. 18,500. The taxable value of
transport facility will be —
a Rs. 5,40,000 a Rs. 25,000

YES ACADEMY FOR CS
b Rs. 10,00,000 b Rs. 20,000

c Rs. 4,50,000 c Rs. 18,500
d Rs. 12,00,000 d Nil
13. Mr. Amit avails the benefit of LTC and went 14. Mrs. Meena retired from service with Sky Ltd.
by air (economy class) on a holiday in India on on 315t January, 2022. She received the
25-01-2022 along with his wife and three following amounts from unrecognised provident
children consisting of son aged 2 years and twin fund:
daughters of 6 years’ age. Total cost of tickets (i) Own contribution Rs. 1,50,000;
reimbursed by his employer was Rs.1,00,000 (ii) Interest on own contribution Rs. 21,000;
(Rs. 55,000 for 2 adults and Rs. 45,000 for (iii) Employer's contribution Rs. 1,10,000; and
the three children). The amount taxable in (iv) interest on employer's contribution Rs.
hands of Amit will be – 15,000. How much of the receipt from
provident fund is chargeable to tax as
income from salary - (June 2016)
a Rs. 15,000 a Rs. 21,000
b Rs.1,00,000 b Rs. 1,25,000
c Rs. 45,000 c Rs. 15,000
d Rs. 55,000 d Rs. 1,71,000
15. Reshma receives Rs. 50,000 p.m. as basic

salary from ABC Ltd. She is also provided
dearness allowance of Rs. 25,000 p.m. forming
part of retirement benefit. She has been
provided motor car (engine capacity exceeds
1.6 Its) owned by employer for her personal
use. The original cost of car is Rs. 6,00,000
(WDV Rs. 5,10,000). Expenditure incurred by
the employer on running and maintenance of the
motor car during the relevant previous year
amounted Rs. 75,000. The salary of driver paid
by the employer - Rs. 96,000. The taxable
value of car facility for AY 2022-23 will be —
a Rs. 2,31,000
b Rs. 39,600
c Rs. 2,22,000
d Rs. 1,71,000

YES ACADEMY FOR CS
CHAPTER 5 INCOME FROM HOUSE PROPERTY
1. Find the Gross Annual Value of house property 2. During the previous year 2020-21 municipal
of A if the following information is given: taxes levied were ₹ 10,000 but the assessee
Municipal value = Rs. 1,40,000; Fair Rent = Rs. has paid ₹ 5,000. In this case, amount allowed
1,50,000; Standard Rent = Rs. 1,44,000; to be deducted is ₹ 5,000. In the next year,
Actual Rent = Rs. 15,000; Vacancy = 11 municipality has levied taxes of ₹ 25,000 but
months. the assessee has paid ₹ 40,000 which includes
₹ 5,000 for the earlier year and ₹ 10,000 for
the subsequent year. In this case, amount
allowed to be deducted in previous year 2021-
22 shall be:
a Rs. 1,40,000 a Rs. 25,000
b Rs. 1,50,000 b Rs. 40,000
c Rs. 15,000 c Rs. 30,000
d Rs. 1,44,000 d Rs. 10,000
3. K took a loan of Rs. 8,00,000 on 1^-2019 from 4. K took a loan of Rs. 8,00,000 on 1-4-2019
a bank for construction of a house. The loan from a bank for construction of a house. The
carries an interest @ 12% p,a. The loan carries an interest @ 12% p.a. The
construction is completed on 31-03-2021. The construction is completed on 31-03-2021. The
entire loan is still outstanding on 31-03-2022. entire loan is still outstanding on 31-03-2022.
The pre-construction period interest allowable The total interest allowable in Assessment Year
in Assessment Year 2022-23 will be 2022-23 will be
a Rs. 19,200 a Rs. 1,15,200
b Rs. 38,400 b Rs. 1,34,400
c Rs. 96,000 c Rs. 96,000
d Rs. 1,92,000 d Rs. 1,92,000
5. T is owner of house which has been let out at 6. T is owner of house which has been let out at
a monthly rent of Rs. 30,000. The fair rent of a monthly rent of Rs. 20,000. The fair rent of
the house is Rs. 2,90,000 and standard rent is the house is Rs. 2,90,000 and standard rent is
Rs. 2,60,000. The municipal value of house is Rs. 2,60,000. The municipal value of house is
Rs. 2,80,000 and municipal taxes are levied @ Rs. 2,80,000 and municipal taxes are levied @
10% of municipal value. The entire amount of 10% of municipal value. The entire amount of
municipal taxes for the year ended 31-03- municipal taxes for the year ended 31-03-
2022 are paid by the owner. Interest on 2022 are paid by the owner. Interest on
borrowed capital is Rs. 2,10,000 (outstanding). borrowed capital is Rs. 60,000 (outstanding).
The income from house property will be The income from house property will be –
a Rs. 2,32,400 a Rs. 1,02,400
b Rs. 22,400 b Rs. 1,62,400
c Rs. 1,62,400 c Rs. 88,400
d Rs. 32,400 d Rs. 1,48,400

YES ACADEMY FOR CS
7. Z is owner of house which has been let out at 8. Suresh owns two house properties. First
a monthly rent of Rs. 25,000. The fair rent of property was used half for running his business
the house is Rs. 2,90,000 and standard rent is and the other half was let-out at Rs. 4,000
Rs. 2,60,000. The municipal value of house is per month. The second property was wholly
Rs. 2,80,000 and municipal taxes are levied used as a residence by Suresh. Municipal value
@10% of municipal value. The entire amount of of the two properties were the same at Rs.
municipal taxes for the year ended 31-03- 72,000 each per annum and local taxes @ 10%.
2022 are paid by the owner on 31-03-2022. Suresh's income from house property for the
The amount of municipal taxes to be allowed as previous year 2021-22 will be - (Dec 2014)
deduction for computing the annual value will
be:
a Rs. 30,000 a Rs. 33,600
b Rs. 29,000 b Rs. 31,080
c Rs. 28,000 c Rs. 28,560
d Nil d Rs. 62,160.
9. XYZ Ltd. is engaged in construction of 10. Santhnam purchased in October, 2020 with the
residential flats. One building consisting of 25 financial assistance by way of housing loan
residential apartments was constructed and provided by PNB Housing Finance Ltd. a flat in
completion certificate was obtained on 15-07- Chennai to be used exclusively for his own
2019. Out of 25 residential apartments 5 residential purposes. Interest on the housing
apartments remained unsold upto 31-03-2022. loan till March, 2022 paid by him was of Rs.
The expected rent of each apartment is Rs. 2,18,780. He wants to know the amount of
30,000 per month. You are required to deduction to be available to him in respect of
determine Income from House property for interest so paid on the housing loan while
Assessment Year 2022-23. computing his income for A.Y. 2022-23.
(Dec.2019)
a NIL a Rs. 30,000.
b Rs. 3,60,000 b Rs. 2,18,780
c Rs. 18,00,000 c Rs. 1,50,000
d Rs. 12,60,000 d Rs. 2,00,000
11. House owned by Suresh was sold on T' January,

2021 and till the date of sale, the house was
on rent of Rs. 7,000 p.m. The other relevant
details of this house are
(i) Municipal value Rs. 72,000 p.a.
(ii) Fair rent Rs. 66,000 p.a. And standard rent
Rs. 60,000 p.a. The income chargeable
under the head House Property in A.Y.
2022-23 of this house shall be: (Dec.2019)
a Rs. 63,000
b Rs. 50,400
c Rs. 46,200
d Rs. 44,100

YES ACADEMY FOR CS
CHAPTER 6 PGBP
1. Appu Ltd. contributed Rs. 8,70,000 towards 2. Mr. X has purchased a machinery invoice value
provident fund account of its employees. It Rs. 12,00,000. He has made payment of Rs.
st
actually remitted Rs. 5,00,000 upto 31 March 10,00,000 by account payee cheque, Rs.
and Rs. 2,50,000 upto the due date for filing 1,50,000 through RTGS and Rs. 50,000 in cash
the return specified in section 139(1). The to the supplier of machine on 15th July 2021.
amount liable to tax in its assessment would be The actual cost of machine will be:
- (June 2016)
a Rs. 3,70,000 a Rs. 12,00,000
b Rs. 1,20,000 b Rs. 10,00,000
c Nil c Rs. 11,50,000
d Rs. 8,70,000 d Rs. 10,50,000
3. Sunil acquired a building for Rs. 15 lakhs in 4. XYZ Ltd is engaged in production of textile
June, 2019 in addition to cost of land beneath articles. Opening WDV of the block of assets
the building of Rs. 3 lakhs. It was used for was Rs. 15,00,000. During the year, plant was
personal purposes until he commenced business acquired under this block on 15 th June 2021
in June, 2021 and since then it was used for amounting to Rs. 10,00,000. One of the asset
business purposes. The amount of depreciation falling within the block was sold for Rs.
eligible in his case for the assessment year 5,50,000 on 14-01-2022. Rate of depreciation
2022-23 would be - (Dec. 2015) of the block is 15%. Calculate the total amount
of depreciation including additional depreciation
available during the previous year for tire
block.
a Rs. 1,50,000 a Rs. 2,92,500
b Rs. 75,000 b Rs. 4,92,500
c Rs. 37,500 c Rs. 3,92,500
d Rs. 1,21,500 d Rs. 3,52,500
5. Brawny Processors (P). Ltd. Paid ₹ 4,50,000 as 6. 'A' Transport company engaged in the business
contract charges to Martin. It deducted tax at of plying goods carriage with 4 heavy vehicles
source @ 1% for the expenditure incurred upto and 3 non-heavy vehicles. All the non-heavy
th
30 April, 2021 of ₹ 1,50,000 and did not vehicles were sold on 10th May, 2021 and 2
deduct tax on the subsequent payments of ₹ heavy vehicles were acquired on the same date.
3,00,000 made during the previous year 2021- Transporter wants to declare its income for
22. How much of the expenditure would be assessment year 2022-23 as per provisions of
added toits income while computing the income section 44AE and the same would be: (June
of Browny Processors (P). Ltd. Of the 2019)
assessment yea 2022-23?
a ₹ 4,50,000 a Rs. 5,70,000
b ₹ 3,00,000 b Rs. 5,47,500
c ₹ 1,50,000 c Rs. 5,55,000
d ₹ 90,000 d Rs. 3,60,000

YES ACADEMY FOR CS
7. In the case of any new machinery or plant 8. XYZ Ltd. has derived a profit of Rs. 100 lakhs
amounting Rs. 25,00,000 is acquired by an from the business of growing and manufacturing
assessee on 10-12-2021 engaged in the tea in India. It has deposited a sum of Rs. 38
business of manufacture or production of any lakhs in Tea deposit account. What is the
article or thing, the additional depreciation amount of deduction in relation to Tea, Coffee
admissible in FY 2021-22 and FY 2022-23 will and Rubber Development A/c, u/s 33AB?
be __________ and __________ respectively.
a Rs.5,00,000, NIL a Rs. 20 lakhs
b Nil, Rs.5,00,000 b Rs. 38 lakhs
c Rs. 2,50,000, Rs. 2,50,000 c Rs. 40 lakhs
d Rs. 3,75,000, Nil d Rs. 60 lakhs
9. Anirudh had made payment of 10. Zed Ltd. a domestic company engaged in
(i) Rs. 30,000 to IIT, Kanpur for an approved manufacturing activity at Mumbai acquired a
scientific research programme plant for Rs. 5 lakhs on 7th January, 2022
(ii) Rs. 45,000 revenue expenditure on in house which is eligible for depreciation @ 15%. It
R&D facility as approved by prescribed paid Rs. 4 lakhs through ECS system from bank
authority and Rs. 1,00,000 to Indian and balance Rs. 1 lakh in cash on 23rd February,
Institute of Science, Bengaluru for 2022. The plant was put to use on 12-03-
scientific research, wants to know about 2022. The amount of depreciation (normal and
the deduction available while computing the additional) on this plant for A.Y. 2022-23 shall
income under "Profits and gains from be :(June 2019)
business ln the Assessment Year 2022-23.
(Dec.2019)
a Rs. 2,40,000 a Rs. 40,000
b Rs. 1,75,000 b Rs. 30,000
c Rs. 2,62,500 c Rs. 70,000
d Rs. 2,65,000 d Rs. 60,000
11. Ramesh was engaged in the business of trading 12. XYZ Ltd. has credited a sum of Rs. 10,00,000
of jewellery. During the previous year 2020-21 to Mr. C a contractor on which tax was
debt taken into account by him in computing the deducted at source during the previous year
income amounted to Rs. 2,50,000. However, 2021-22. The payment of such TDS was made
during the previous year 2021-22 it was on 30-11-2022 being the due date of filing
acknowledged that Rs. 1,35,000 is to be return of income. The amount of expenditure
considered as irrecoverable in the accounts of to be disallowed under Section 40(a) in previous
the assessee. Calculate the amount of bad- year 2021-22 will be:
debts written off as irrecoverable to be allowed
as a deduction in the previous year 2021-22:
a Rs. 2,50,000 a Rs. 10,00,000
b Rs. 1,35,000 b Rs. 3,00,000
c Rs. 1,15,000 c Rs. 5,00,000
d No deduction available d Nil
13. In the case of a person whose (a) aggregate of 14. Patel, a textile dealer, purchases goods worth
all amounts received including amount received Rs. 65,000 from Anand and made the

YES ACADEMY FOR CS
for sales, turnover or gross receipts during the payments:

previous year, in cash, does not exceed i. Rs. 12,000 by account payee cheque on 5 th
________ of the said amount; and (b) June, 2021,
aggregate of all payments made including ii. Rs. 8,000 by cash on 16 th August, 2021,
amount incurred for expenditure, in cash, iii. Rs. 15,000 by bearer cheque on 7th
during the previous year does not exceed November, 2021 and
________ of the said payment, he will have to iv. Rs. 30,000 by ECS on 21st March, 2022.
get his accounts audited if his total sales, The amount of expenditure not allowable as per
turnover or gross receipts, as the case may be, provisions of section 40A (3) would be: (June
exceeds __________. 2019)
a 8%, 8%, Rs. 5 crore a NIL
b 8%, 8%, Rs. 10 crore b Rs. 8,000
c 5%, 5%, Rs. 5 crore c Rs. 23,000
d 6%, 6%, Rs. 5 crore d Rs. 38,000
15. Ravi & Co. paid Rs. 40,000 by cash to Mr. Balu 16. When a person carries on the business of
a supplier on 5-9-2021. The cash payment was carrying goods for hire for the whole year with
made on the day on which the bank was on 5 self-owned and 3 leaseholds other than heavy
strike. The amount of expenditure liable for goods vehicles, the presumptive income
disallowance under section 40A (3) is: (June, chargeable to tax under section MAE would be
2017) - (Dec. 2015)
a Rs. 40,000 a Rs. 4,80,000
b Rs. 12,000 b Rs. 7,20,000
c Rs. 20,000 c Rs. 3,96,000
d Nil Ans. d Rs. 3,36,000
17. In year 2021-22 an assessee incurred Rs. 6 18. An employer paid an amount of Rs. 10,000 as
lacs as preliminary expenditure in respect of insurance premium on the health of his
extension of the industrial undertaking. The employees under a scheme framed by GIC. Such
cost of fixed assets acquired out of such payment was made by cheque. The insurance
st
extension was Rs. 100 lacs as on 31 March amount was of Rs. 10,00,000. The amount of
2022. Calculate the amount of deduction to be deduction available to employer:
allowed to him in computation of his income for
the A.Y. 2022-23.
a Nil a Rs. 10,000
b Rs. 1,00,000 b Rs. 10,00,000
c Rs. 1,20,000 c Rs. 1,00,000
d Rs. 6,00,000 d Nil

YES ACADEMY FOR CS
CHAPTER 7 CAPITAL GAIN
1. Ms. Arana inherited a vacant site land 2. Compute the capital gains for AY 2022-23 if
th
consequent to the demise of her father on 10 Mr. Ramesh, a property dealer, sells a
June, 2011. The land was acquired by her commercial plot of land on 1-3-2022 for Rs.
th
father on 10 April, 1991 for Rs. 40,000. The 50,00,000 lakhs which was acquired by him on
st
fair market value of the land on 1 April, 2001 1-8-2018 for Rs. 25,00,000 for selling of
was Rs. 2,55,000 and on the date of offices constructed therein. He had incurred
th
inheritance, i.e., 10 June, 2011 was Rs. land development charges of Rs. 10,00,000 on
3,50,000. The stamp duty value as on 01-04- 1-10-2018. He incurred Rs. 1,00,000 for
2001 is Rs. 2,50,000. The cost of acquisition selling the plot of land. [ CII 18-19:280]
for Ms. Aruna is – [ CII 11-12: 184]
a Rs. 40,000 a Nil
b Rs. 2,50,000 b 15,00,000
c Rs. 2,55,000 c Rs. 14,00,000
d Rs. 3,50,000 d 25,00,000
3. Amin (age 68) Sold on 12-5-2021 one Vacant 4. A owns a capital asset which was purchased by
site at Baroda for ₹ 90 lakhs. The Vacant site him on 1-5-2000 for Rs. 16,00,000-The
was inherited by him from his father in July market value of the said asset as on 1-4-2001
1999 as per the “will” of his father. The FMV was Rs. 17,00,000. The said asset was sold
of vacant site on 1-4-2001 was ₹ 5 lakhs. He for Rs. 52,00,000 during the year. Compute
acquired a residential apartment in Singapore the capital gain for the assessment year 2022-
for ₹ 70 lakhs on 15-10-2021. Compute the 23. (Cost inflation index for F.Y. 2002-03 =
capital gain chargeable to tax in the hands of 100, and 2021-22 = 317)
Amin for the assessment year 2022-23. Cost
Inflation Index FY 2001-02 = 100/ FY 2021-
22 = 317.
a Long-term capital gain ₹ 74.95 lakhs a Rs. 33,00,000
b Long-term capital gain NIL b Rs. 34,00,000
c Long-term capital gain ₹ 4.95 lakhs c Rs. 83,000
d Long-term capital gain ₹ 65 lakhs d Rs. 2,40,000
5. Chiranjeevi entered into an agreement for sale 6. Mrs. R sells a plot of land on 21-11-2021 for
of his house property located at Noida to Rs. 50,00,000. She inherited the plot from her
st
Yashashwi on 1 August, 2018 for a total sale grandfather on 01-04-2011. Her grandfather
consideration of ₹ 125 lakh. Yashashwi paid an had acquired the plot on 01-03-1992 for Rs.
amount of ₹ 25 lakh by account payee cheque 2,00,000. The FMV of the plot as on 01-04-
st
to Chiranjeevi on 1 August, 2018 and balance 2001 was Rs. 8,00,000. She has paid 1.5% of
was agreed to be paid at the time of sales consideration as brokerage. Compute the
registration of the Conveyance Deed which capital gains. (Cost inflation index for F.Y.
st
could only be executed by Chiranjeevi on 1 2002-03 = 100, 2011-11-167,2021-21 =317)
October, 2021. The Stamp Valuation Authority
determined the value of the house property on
the date of registration of deed at ₹ 150

YES ACADEMY FOR CS
lakhs. However, the value determined by the

Stamp Valuation Authority of the house on the
date of agreement (1st August, 2018) was ₹
140 lakhs. The amount of sale consideration for
the purpose of computing the capital gain of he
property in A.Y. 2022-23 to be taken by
Chiranjeevi shall be:
a ₹ 125 Lakhs a Rs. 42,00,000
b ₹ 150 lakhs b Rs. 44,22,000
c ₹ 140 lakhs c Rs. 48,00,000
d ₹ (140 – 25) = ₹ 115 lakhs d Rs. 25,17,000
7. Mr. Chandan (age 70) received Rs. 30,000 8. Short-term capital gains arising from the
every month during the financial year 2021-22 transfer of equity shares in a company or units
on reverse mortgage of his property with State of an equity-oriented fund or units of a
Bank of India. The amount of receipt liable to business trust charged with security
tax in the hands of Mr. Chandan is: (June, transaction tax are subject to income-tax at
2017) the rate of - (June 2016)
a Rs. 2,60,000 a 10%
b Rs. 2,52,000 b 15%
c Rs. 40,000 c 20%
d Nil d Normal rate
9. Mr. Madan sold a vacant land for ₹ 120 lkahs 10. Kapil Dev is engaged in manufacturing activity.
on 10.10.2018. the indexed cost of acquisition The WDV of plant and machinery as on 1-4-
amounts to ₹ 18 lakhs. He deposited ₹ 50 lakhs 2021 was ₹ 6,88,000. The entire plant and
in REC bonds in January 2022 and another ₹ 50 Machinery was sold on 30-3-2022 for ₹
lakhs in March, 2022. The amount of capital 7,80,000. The original cost of plant and
gain liable to tax after deduction under section machinery amounted to ₹ 14,65,000 acquired
54EC is: on 5-4-2-17. Cost inflation index:
FY 2017-18 = 272
FY 2021-22 = 317
Compute capital gain and state its nature.
a ₹ 2 lakhs a Short-term capital gain ₹ 7,77,000
b ₹ 52 lakhs b Short0term capital gain ₹ 92,000
c ₹ 102 lakhs c Long-term capital gain ₹ 6,85,000
d ₹ 18 lakhs d Long-term capital gain ₹ 18,647
11. Manjula (age 62) sold a vacant land for ₹ 12. Compute the tax liability for assessment year
45,15,000 on 5-2-2022. The said land was 2022-23 of resident individual who is having
acquired by her on 7-1-2019 for ₹ 28,00,000. long term capital gains of Rs. 5,00,000 and has
She deposited ₹ 5 lakhs in Rural Electrification no other income –
Bond on 30-3-2022.
Cost inflation index: FY 2018-19 = 280;
FY 2021-22 = 317.

YES ACADEMY FOR CS
Compute the capital gain chargeable to tax for

the assessment year 2022-23
a Short-term capital gain ₹ 17.15 lakhs a Rs. 1,04,000
b Long-term capital gain ₹ 13.45 lakhs b Rs. 39,000
c Short-term capital gain ₹ 12.15 lakhs c Rs. 51,500
d Long-term capital gain ₹ 12.15 lakhs d Rs. 52,000
Note - Rebate under section 87A shall be
admissible.

YES ACADEMY FOR CS
CHAPTER 8 INCOME FROM OTHER SOURCES
1. 1Aman entered into an agreement with Brij for 2. X Ltd. reduced its share capital and for that
sale of a building for Rs. 20 lakhs in June, distributed to its shareholders an amount of
2021. Aman received advance of Rs. 2 lakhs. Rs. 55,00,000. The company possessed
Subsequently, the agreement was cancelled and accumulated profits of Rs. 35,00,000 as on the
Aman forfeited the advance money. The date of distribution. What shall be the amount
advance money is - (Dec. 2015) to be assessed as deemed dividend?
a To be reduced from the cost of acquisition a Rs. 55,00,000
b To be reduced from indexed cost of acquisition b Rs. 35,00,000
c Taxable as capital gains c Rs. 20,00,000
d Taxable as income under the head 'income d No deemed dividend
from other sources'
3. A private limited company engaged in 4. Sarath has received a sum of Rs. 3,40,000 as
manufacturing activity had general reserve of interest on enhanced compensation for
Rs. 20 lakhs. It granted a loan of Rs. 5 lakhs compulsory acquisition of land by State
to a director who held 13% shareholding cum Government in May, 2022, of this, only Rs.
voting rights in the company. The said loan was 12,000 pertains to the current year and the
re-paid by him before the end of the year. rest pertains to earlier years. The amount
The amount of deemed dividend arising out of chargeable to tax for the assessment year
the above transaction is - (Dec. 2015) 2022-23 would be - (June, 2015)
a Rs. 2,60,000 a Rs. 12,000
b Rs. 2,40,000 b Rs. 6,000
c Rs. 5,00,000 c Rs. 3,40,000
d Nil. d Rs. 1,70,000
5. The amount deductible from family pension is 6. Compute income taxable under head income
upto - (Dec. 2014) from other sources received by Mr. X:
Cash gift received from his friend Rs.
on 75,000
occasion of his marriage anniversary
Winnings from lotteries (net) Rs. 70,000
Forfeited advance money received Rs.

on 51,000
occasion of transfer of capital asset
a Rs. 15,000 or 1/3rd of family pension whichever a Rs. 1,96,000
is less
b Rs. 15,000 or ½ of family pension whichever is b Rs. 1,51,000
less
c Rs. 10,000 or 1/3rd of family pension whichever c Rs. 1,75,000
is less
d No deduction. d Rs. 2,26,000
7. Rajesh gifted an immovable property for a 8. As per section 2(22) (e), loan/ advances given
consideration of Rs. 70,00,000. The stamp by a private company to a concern in which its

YES ACADEMY FOR CS
duty value as on the date of agreement is Rs. shareholder has substantial interest, then to
81,00,000 whereas stamp duty value on the the extent of accumulated profits held by the
date of registration was Rs. 82,50,000. Part private company (capitalised accumulated
of the amount of consideration of Rs. profits not included), it shall be considered as
34,00,000 has been received by cheque on the deemed dividend taxable in the hands of
date of agreement for transfer of the asset. shareholder. A person is deemed, to have a
What will be the taxable amount? substantial interest:
a Rs. 34,00,000 a If he holds 20% of the voting power (equity
shares) in the company;
b Rs. 36,00,000 b If he is beneficially entitled to 20% or more of
the income of such concern.
c Rs. 11,00,000 c Either (a) or (b)
d Rs. 10,50,000 d None of these.
9. Compute income taxable under head income 10. Sunder died on 23rd July, 2018 while being in
from other sources: Central Government service. In terms of rules
Dividend from shares of Indian Rs. 3,000 governing his service, his widow Mrs. Sunder is
company paid a family pension of Rs. 10,000 per month
Winnings from lotteries (net) Rs. 70,000 and dearness allowance of 40% thereof.
Rental Income of Plant and Rs. 51,000 Compute taxable income for the assessment
machinery year 2022-23.
a Rs. 1,54,000 a Rs. 1,68,000

b Rs. 1,21,000 b Rs. 1,20,000
c Rs. 1,51,000 c Rs. 1,53,000
d Rs. 1,24,000 d Rs. 1,05,000
11. Lokesh (age 62) received following gifts on the 12. Seema received rent of Rs. 7,00,000 from
occasion of his birthday: letting of plant and machinery (letting of plant
i) Cash gift from elder brother ₹ 30,000; and machinery is not taxable under "Profit and
ii) Gold chain from younger sister market value gain from Business and profession). She
on the date of gift ₹ 38,000; expended Rs. 40,000 for repairs of machinery
iii) Cash gifts from friends (non-relatives) ₹ but failed to deduct TDS on such expense u/s
45,000; 194C. Calculate the taxable income in her hand.
iv) Purchased shares from younger brother for
₹ 1 lakh when the market value of the
shares was ₹ 1,35,000.
Amount of income chargeable to tax in respect
to the above transaction would be:
a ₹ 1,48,000 a Rs. 7,00,000
b ₹ 48,000 b Rs. 6,60,000
c ₹ 80,000 c Rs. 6,72,000
d Nil. d Rs. 6,50,000
13. Ghosh having 25% of the share capital in Ghosh 14. Winnings from lotteries (gross) Rs. 90,000.
Mfg. Industries (P) Ltd. Took loan of Rs. Calculate the amount to be included while

YES ACADEMY FOR CS
3,50,000 on 15-9-2021 from the company. He computing income under the head 'Income from
repaid Rs. 1 lakh on 20-3-2022. The company Other Sources'.
has accumulated profit of Rs. 8 lakh as on 1-
4-2021. It earned profit in the previous year
2021-22 also. The amount assessable as
deemed dividend in the hands of Ghosh would
be:
a Rs. 1,50,000 a Rs. 90,000
b Rs. 2,50,000 b Rs. 1,28,571
c Rs. 3.50,000 c Rs. 27,000
d Nil d Rs. 1,17,000
15. Saagar who follows mercantile system of 16. A firm received drawings worth Rs. 1,00,000
accounting held securities of face value of ₹ as gift from X, an Individual, on 20 th April,
20,000 from 1.10.2021 – 30-1-2022 giving 2021. The taxable amount in the hands of the
interest @ 12% p.a. the due date of interest firm is: -
th st
were 30 June and 31 December every year.
The interest income………will be taxble in the
hands of Mr. Saagar for the P.Y……… the
interest was received on 15.4.2022
a ₹ 1200 for P.Y. 2021-22 a Rs. 1,00,000
b ₹ 1,200 in the P.Y. 2022-23 b Rs. 60,000
c Not taxable in the hands of Mr. Saagar c Rs. 50,000
d ₹ 800 will be taxable for P.Y. 2021-22 d No Tax liability arise

YES ACADEMY FOR CS
CHAPTER 9 CLUBBING OF INCOME
1. Mr. ‘X’ transfers his house property to Mr. Y 2. Shyam transferred 2,000 shares of X Ltd. to
with a condition that 25% of the income Ms. Babita without any consideration. Later,
therefrom should be handed over to him Mr. Y Shyam and Ms. Babita got married to each
earns Rs. 1,00,000 from such house property. other. The dividend income from the shares
In this case – transferred would be - (June, 2015)
a Total amount Rs. 1,00,000 shall be assessed in a Taxable in the hands of Shyam both before and
the hands of X. after marriage
b Only Rs. 25,000 will be assessed in the hands of b Taxable in the hands of Shyam before marriage
X. but not after marriage
c Rs. 25,000 will be assessed in the hands of X and c Taxable in the hands of Shyam after marriage but
Rs. 75,000 will be assessed in the hands of Y. not before marriage
d Total amount Rs. 1,00,000 shall be assessed in the d Never taxable in the hands of Shyam.
hands of Y.
3. The following income that accrue to a minor 4. Incomes of two minor children are included in
child will not be included in the total income of the income of their father. Father is entitled
his parent. to exemption under section 10(32) upto - (Dec.
2014)
a Income earned from fixed deposits transferred a Rs. 1,500
by his grandfather.
b Income earned from house property transferred b Rs. 1,000
by his father
c Income earned from agricultural land transferred c Rs. 3,000
by his mother
d Rs. Income from participation in dance d Rs. 2,000.
competition
5. In the above case, if Suresh is blind then, - 6. Minor Shruti (age 13) has following incomes; (i)
Net income from Dancing ₹ 75,000; (ii) interest
on bank fixed deposits ₹ 62,000 and (iii) Cash
gift from friends of her parents (non-relatives)
₹ 45,000. How much of her income would be
clubbed with the income of her parents after
deduction under section 10(32) of the Act?
a Rs. 40,000 shall be taxable in the hands of a ₹ 60,500
Suresh.
b Rs. 40,000 shall be exempted. b ₹ 1,80,500
c Rs. 40,000 shall be taxable in the hands of Mr. c ₹ 1,05,500
Mahesh.
d Rs. 40,000 shall be taxable in the hands of Mrs. d ₹ 73,500
Mahesh.

YES ACADEMY FOR CS
7. Raja gifts Rs. 2 lakhs to his wife on 1-4-2021 8. Aiyer gifted 100 shares to his wife on 1 st
which she invests in a firm on interest @ 18% August, 2014. She received 200 bonus shares
p.a. On 1-1-2022, Mrs. Raja withdraws the from the company in April, 2020. All the shares
money and gifts it to their son's wife. In this were sold to a friend for Rs. 1,50,000 in May,
case interest of the period 1-4-2021 to 31- 2020. The 100 shares were originally acquired
12-2021 and 1-1-2022 to 31-3-2022 shall be by Aiyer for Rs. 5,000. The capital gain on
clubbed in the total income of __________. sale of shares in the month of May, 2021 shall
be chargeable to tax: (June 2019)
a Mr. and Mrs. Raja respectively. a fully in the hands of Aiyer
b Mr. Raja b fully in the hands of Mrs. Aiyer
c Mrs. Raja and their son’s wife respectively. c for 100 shares in the hands of Aiyer and balance
200 shares in the hands of Mrs. Aiyer
d Mrs. Raja d for 200 shares in the hands of Aiyer and balance
100 shares in the hands of Mrs. Aiyer
9. Mr. A gifts cash of Rs. 1,00,000 to his 10. Rohit is working as Company Secretary in Raj
brother's wife Mrs. B. Mr. B gifts cash of Rs. Chem Pvt. Ltd. on a salary of Rs. 20,000 p.m.
1,00,000 to Mrs. A. From the cash gifted to He got married to Pooja who holds 25% shares
her, Mrs. B invests in a fixed deposit, income of his Company. What will be the impact of
therefrom is Rs. 10,000. Aforesaid Rs. 10,000 salary paid to Rohit by the company in the
will be included in the total income of hands of Pooja? (Dec.2019)
__________.
a Mr. A a No amount to be clubbed
b Mr. B b Club 50% salary
c Mrs. A c Club 100% salary
d Mrs B d 25% salary be clubbed
11. Majnu has gifted on 11th May, 2020 an amount

of Rs. 10,00,000 to his wife Laila without
consideration and also for not to live apart. The
gifted amount was invested by his wife in
interest bearing security on which she earned
interest of Rs. 1,00,000 on 1st January, 2022.
The amount of interest of Rs. 1,00,000 was
further invested by her in the business from
which she earned a profit of Rs. 15,000 for
the period ended on 31st March, 2022. Specify
the income which is to be included in the hands
of Majnu in A.Y. 2022-23. (Dec.2019)
a Rs. 1,15,000
b Rs. 1,00,000
c Rs. 15,000
d Nil

YES ACADEMY FOR CS
CHAPTER 10 SET OF AND CARRY FORWARD
1. The business of Anant & Co. was discontinued 2. Mr. X is found to be the owner of unexplained
in the year 2017-18 due to heavy floods in the investments of Rs. 6,00,000. His tax liability
area that destroyed its machinery. The will be –
business sustained heavy losses. The assessee
was able to revive the business in the Financial
year 2020-21. It could not earn any profits
from this business but his other businesses
were profitable. Can he set off the losses of
revived business? For how many subsequent
years can he carry forward unabsorbed loss?
a He can set off loss against income from other a Rs. 4,68,000
business and carry forward unabsorbed loss up
A.Y. 2029-30, provided the business is now
continued.
b He can set off loss against income from other b Rs. 1,85,400
to A.Y. 2029-30, whether the business is
continued or not
c He can set off loss against income from other c Rs. 1,15,875
to A.Y. 2028-29, provided the business is now
continued.
d The loss cannot ne set off against income of any d Rs. 1,64,800
other business but can be carried forward up to
A.Y. 2029-30.
3. If a person is eligible to claim: 4. Loss from house property and losses in

(1) unabsorbed depreciation; speculation business can be carried forward
(2) current scientific research expenditure; respectively for –
(3) current depreciation;
(4) brought forward business loss. The order of
priority to set-off would be - (Dec. 2015)
a (4), (3), (2) & (1) a 8 Years and 4 Years
b (2), (3), (4) & (1) b 4 Years and 8 Years
c (3), (4), (1) & (2) c 8 Years and 8 Years
d (1), (2), (3) & (4) d 4 Years and 4 Years
5. Mr. Shyam, a resident of Chandigarh, provides 6. Which of the following losses available after
the following information for the financial year inter source set-off, cannobbe set-off from
2021-22: incomes in other heads in the same assessment
Particulers ₹ year - (June 2016)
Income from textile busimess 4,60,000
Income from speculation business 25,000

YES ACADEMY FOR CS
Loss from gambling 12,000

Loss on maintenance of race 15,000
horse
Eligible current year depreciation 5,000
of textile business not adjusted
in the income given above
Unabsorbed depreciation of 10,000
Assessment year 2020-21
brought forward
Speculation business loss of 30,000
assessment year 2020-21
The Gross total Income of Mr. Shyam for the
assessment year 2022-23 will be:
a ₹ 4,40,000 a Speculation losses
b ₹ 4,45,000 b Loss from specified business
c ₹ 4,35,000 c Loss under the head capital gains
d ₹ 4,80,000 d All of the above
7. Mr X has received the following incomes: 8. Mathur Storage (P) Ltd. engaged in chain cold
(i) Salary received as a partner from a storage has brought forward business loss of
partnership firm Rs. 7,50,000. Rs. 12 lakhs relating to A.Y.2021-22. During
(ii) Loss on sale of shares listed in BSE Rs. 3 the previous year 2021-22, its income from the
lakhs. Shares were held for 15 months and said business is Rs. 9 lakhs. It also has profit
STT paid on sale. from trade in food grains of Rs. 6 lakhs. The
(iii) Long-term capital gain on sale of land Rs. total income of the company for the A.Y.
5 lakhs. His gross total income will be – 2022-23 is: (June, 2017)
a Rs. 12,50,000 a Rs. 15 lakhs
b Rs. 9,50,000 b Rs. 9 lakhs
c Rs. 7,50,000 c Rs. 6 lakhs
d Rs. 5,00,000 d Rs. 3 lakhs
[Note: If chain cold storage is a specified
business u/s 35AD, the brought forward
business loss can be set-off only from
profits of specified business is such case the
brought forward business loss can be set-
off to the extent of Rs. 9 lakh and balance
loss shall be carried forward and the answer
will be Rs. 6 lakhs.]
9. Dr. Kumar gifted a property fetching monthly 10. Mr. X has earned Long term capital gains on
rental income of ₹ 1,00,000 to this son’s wife sale of equity shares listed in recognised stock
Divya on 31-5-2021 by executing a gift exchange on which STT - Rs. 7,20,000 Short
settlement deed. She paid municipal tax of ₹ term capital loss of Rs. 2,00,000. General
30,000 on 10-12-2021. Based on court decree business income of Rs. 5,00,000 Find out the
arrear rent of ₹ 4 lakhs was paid by ex-tenant gross total income.
to present owner Divya on 1-3-2022. How much

YES ACADEMY FOR CS
of income of Divya would be clubbed in the

hands of Dr. Kumar?
a ₹ 8.19 Lakhs a Rs. 5,00,000
b ₹ 10.99 Lakhs b Rs. 10,20,000
c ₹ 10.79 Lakhs c Rs. 9,20,000
d ₹ 6.79 Lakhs d Rs. 5,20,000
11. XYZ & Company, a partnership firm has three

partners, X, Y and Z having equal share in
profits of the firm. X retired on 31-12-2021,
profits of the firm for year ending 31-3-2022
were Rs. 1,50,000 and brought forward
business losses for assessment year 2020-21
was Rs. 1,20,000 and unabsorbed depreciation
Rs. 40,000. Find the amount of brought
forward loss that cannot be carried forward?
a Rs. 2,500
b Rs. 3,333
c Rs. 15,833
d Nil

YES ACADEMY FOR CS
CHAPTER 11 PERMISSIBLE DEDUCTION
1. Rajan paid Rs. 25,000 to LIC of India for the 2. Rao, carrying a business, contributed Rs.
maintenance of his disabled son and incurred 40,000 in the National Pension Trust account.
Rs. 15,000 for the treatment of his He also made a tax saving deposit of Rs.
handicapped wife who is working in State Bank 1,20,000 in his PPF account and Rs. 40,000 in
of India. The deduction allowable to him u/s LIC Premium. The total amount eligible for
80DD is - (June 2016) deduction under various sections enumerated in
Chapter VI-A shall be: (June 2019)
a Rs. 15,000 a Rs. 1,90,000
b Rs. 25,000 b Rs. 1,50,000
c Rs. 50,000 c Rs. 1,20,000
d Rs. 75,000 d Rs. 2,00,000
3. Mr. X, 45 years of age has earned income from 4. The maximum amount of deduction under
salary Rs. 5,00,000, Business Loss Rs. section 80C is –
1,80,000 and Income from house property: Rs.
1,50,000. He has made investment of Rs.
1,50,000 in public provident fund and paid
health insurance premium of Rs. 18,000 by
cheque. His Total Income is –
a Rs. 3,32,000 a Rs. 70,000
b Rs. 3,35,000 b Rs. 1,50,000
c Rs. 3,02,000 c Rs. 50,000
d Rs. 3,05,000 d Rs. 2,00,000
5. A pay’s (through account payee cheque) during 6. Mr. Manish pays Rs. 55,000 as medical
the previous year medical insurance premia as insurance premium by cheque under a scheme
under: framed by GIC, for his mother (aged 65 years
a. Rs. 28,000 to keep in force an insurance and who is dependent upon Manish). If her
policy on his health and on the health of his mother is a resident individual what amount of
wife and dependent children; deduction will be allowed to Manish from his
b. Rs. 58,000 to keep in force an insurance Gross Total Income –
policy on the health of his father 62 years
of age who is non-resident. Calculate
deduction under section 80D.
a Rs. 25,000 a Rs. 55,000
b Rs. 50,000 b Rs. 50,000
c Rs. 56,000 c Rs. 25,000
d Rs. 33,000 d Rs. 75,000
7. An individual has made investments in the 8. Raghunath repaid during P.Y. 2021-22
schemes approved under section 80C, and education loan of Rs. 60,000 and interest on
80CCD of Rs. 2,50,000 and Rs. 1,00,000 education loan of Rs. 18,000 taken from Punjab
st
respectively during the year ended 31 March, National Bank for his son to pursue MS in

YES ACADEMY FOR CS
2022. Amount that can be claimed by him as Germany. The loan was taken in the F.Y. 2014-
deduction out of income in assessment year 15 and the payment commenced from F.Y.
2022-23 is - (Dec. 2015) 2014-15. The amount eligible for deduction u/s
80E for the A.Y. 2022-23 is: (June, 2017)
a 50% of Rs. 3,50,000 a Rs. 60,000
b Rs. 1,50,000 under section 80C and Rs. b Rs. 78,000
1,00,000 under section 80CCD
c Rs. 2,00,000 c Rs. 18,000
d None of the above. d Nil
9. Babu Lal authored a book which is covered as 10. Bharat, engaged in business, claimed that he
per provision of section 80QQB and received an paid Rs. 10,000 per month by cheque as rent
amount of royalty of ₹ 2,00,000 @ 20% during for his residence. He does not own any
the year ended 31-3-2022. He had incurred residential building. His total income computed
as expenditure of ₹ 30,000 for earning the before deduction under section 80GG is Rs.
amount of royalty of ₹ 2,00,000. The entire 3,40,000. The amount he can claim as
royalty was received by him from abroad and deduction under section 80GG is - (June 2016)
amount of ₹ 1,10,000 out of the royalty
amount shall be remitted to India till 30-9-
2022. He can claim deduction out of such
royalty income in assessment year 2022-23 for
an amount of……
a ₹ 1,70,000 a Rs. 24,000
b ₹ 80,000 b Rs. 34,000
c ₹ 1,20,000 c Rs. 1,20,000
d ₹ 2,00,000 d Rs. 60,000
11. The following is not allowed as deduction under 12. Sudhan Ltd. Incorporated in April 2019
section 80TTA - (Dec. 2014) commenced commercial production from
1.6.2020. it deployed 100 employees who were
employed for 260 days during the year and
recruited 50 casul workmen who were employed
for 100 days during the financial year 2019-
2020. The salary paid to 100 employeed was ₹
25 lakhs and salary paid to casual workmen was
₹ 6 lakhs. The quantum of deduction under
section 80JJAA is:
a ₹ 7.50 lakhs a Rs. 21,000
b ₹ 9.30 lakhs b Rs. 19,000
c ₹ 25 lakhs c Rs. 10,500
d ₹ 6 lakhs d Rs.'9,500

YES ACADEMY FOR CS
CHAPTER 12 TDS & TCS
1. X Ltd. pays salary of Rs. 5,00,000 as salary 2. X Ltd. pays salary of Rs. 8,00,000 (computed)
to Mr. Shyam. Mr Shyam has reported a as salary to Mr. Kamlesh. Mr. Kamlesh has
business loss of Rs. 1,50,000 to his employer. reported a loss from house property of Rs.
The amount on which tax to be deducted at 2,00,000 to his employer. The monthly amount
source will be – of tax deducted at source will be –
a Rs. 5,00,000 a Rs. 2,817
b Rs. 1,50,000 b Rs. 6,283
c Rs. 3,50,000 c Rs. 1,733
d Nil d Nil
3. The amount of TDS payable on the sum of Rs. 4. X Ltd. pays dividend u/s 2(22) (e) to its
25,000 payables to X Ltd. by Government of shareholders. Mr. A resident who is the
India by way of interest on securities owned by shareholder of such company receives dividend
it would be – Rs. 2,000 through account payee cheque, what
will be the amount of TDS payable –
a Rs. 2,575 a Rs. 206
b Rs. 5,150 b Rs. 618
c Nil c Rs. 412
d Rs. 7,725 d Nil
5. No tax shall be deducted under Section 194A 6. Mr. Ravi solved a crossword puzzle and received
where the amount of such income or, as the Rs. 84,000 after deduction of tax at source.
case may be, the aggregate of the amounts of His income from crossword puzzle chargeable to
such income credited or paid or likely to be tax would be: (June, 2017)
credited or paid during the financial year to
the account of, or to, the payee, does not
exceed __________ where the payer is a
banking company (including any bank or banking
institution).
a Rs. 40,000 a Rs. 84,000
b Rs. 15,000 b Nil
c Rs. 25,000 c Rs. 72,000
d Rs. 5,000 d Rs. 1,20,000
7. Zen Ltd. made a payment of Rs. 11,00,000 to 8. Where the amount of such income or, as the
Amar, a resident transport contractor who case may be, the aggregate of the amounts of
owns 5 goods carriages and who has intimated such income credited or paid or likely to be
his PAN details. The tax to be deducted at credited or paid during the financial year to
source under section 194C will be - (June, the account of, or to, the payee, does not
2015) exceed Rs. __________ no tax shall be
deducted on insurance commission.
a Rs. 10,000 a Rs. 75,000

YES ACADEMY FOR CS
b Rs.200 b Rs. 50,000

c Nil c Rs. 30,000
d Rs. 11,000. d Rs. 15,000
9. Every person, being a seller, who receives any 10. Prakash maintained a recurring deposit by
amount as consideration for sale of a motor paying Rs.20,000 per month in a bank. The
vehicle of the value exceeding __________ interest accrued and credited during 2022-23
shall, at the time of receipt of such amount, on such deposit is Rs. 15,000. The amount of
collect from the buyer, a sum equal to TDS required to be deducted by the bank would
__________ of the sale consideration as be: (June 2019)
income-tax.
a Rs. 10,00,000,1% a ML
b Rs. 2,00,000,1% b Rs. 1,500 @10%
c Rs. 2,00,000,5% c Rs. 3,000 @20%
d Rs. 10,00,000,5% d Rs. 500 @ 10% over Rs. 10,000
11. The maximum amount of rent payment where 12. Compute the amount of tax to be deducted.
deduction of tax at source is not required in a PQR Ltd. paid Rs. 10,00,000 to non-resident
financial year is - (Dec. 2 014) entertainer on 28-07-2021 in respect
performance in an event of promotion of a new
product.
a Rs. 1,20,000 a Rs. 2,08,000
b Rs. 2,40,000 b Rs. 3,12,000
c Rs. 2,00,000 c Rs. 1,04,000
d None of the above. d Nil
13. Payment has been made by X Ltd. to Mr. A by 14. CK & Company is engaged in the diversified
way of royalty for use of cinematograph film is business of sale of Indian made foreign liquor,
Rs. 4,00,000. What will be the amount of TDS tendu leaves, forest produce neither being
payable – timber nor tendu leaves required to collect TCS
as per section 206C of the Income Tax Act on
the amount of sale proceeds of these
products/items during the previous year ended
on 31-3-2020 at the rate of……
a Rs. 4,160 a 1& on all the three
b Rs. 6,000 b 1%, 5% & 2.5%
c Rs. 8,320 c 2.5%, 1% & 5%
d Rs. 12,480 d 5%, 1% & 2.50%

YES ACADEMY FOR CS
CHAPTER 13 ADVANCE TAX
1. Steam (P) Ltd. reports total income of Rs. 20 2. ABC Ltd. whose due date of filing the return
st
lakhs for the year ended 31 March, 2022 for the assessment year 2022-23 was 31-10-
(Turnover in FY 2019-20 is 480 crores). The 2022 failed to file his Return. The Assessing
th
total tax liability payable before 15 Officer completed his assessment on 31-10-
September, 2021 by way of advance tax is - 2023 and determined a tax liability of Rs.
(Dec. 2015) 2,20,000 (without giving credit for advance tax
or TDS). ABC Ltd. had paid an advance tax of
Rs. 40,000 and a TDS of Rs. 18,000.
Determine the interest payable by 'ABC Ltd.'
under section 234B.
a Rs. 93,600 a Rs. 30,000
b Rs. 2,80,800 b Rs. 34,020
c Rs. 1,87,200 c Rs. 60,000
d Rs. 3,12,000 d Rs. 37,080

YES ACADEMY FOR CS
CHAPTER 14 ASSESSMENT OF TOTAL INCOME
1. XYZ Ltd. filed its return of income for the 2. Zeet Ltd. engaged in manufacturing of cement
st
A.Y. 2021-22 on 1 February, 2022. The also had wind mills to generate power. Entire
return was selected for scrutiny assessment u/s power generated by it was used by its wholly
143(3). The Assessing Officer is required to owned subsidiary Zoom Ltd. The amount
serve upon the assessee a notice u/s 143(2) received for the said power supply was Rs. 7
upto - (Dec. 2015) crores. Zeet Ltd. disclosed total income of Rs.
10 crores for the assessment year 2022-23.
The due date for filing return of income by
Zeet Ltd. is - (June 2016)
a 31st July, 2022 a 31st July, 2022
b 30th, June 2022 b 30th September, 2022
c 31st July, 2022 c 31st October, 2022
d 31st October, 2022. d 30th November, 2022
3. Zeet Ltd. Engaged in manufacturing of cement 4. Prosecution for non-furnishing return u/s
also had wind mills to generate power. Entire 139(1), in case where the amount of tax which
power generated by it was used by its wholly would have been evaded, if the failure had not
owned subsidiary Zoom Ltd. The amount been discovered, exceeds Rs. 25,00,000 is –
received for the said power supply was ₹ 7
crores. Zeet Ltd. Disclosed total income of ₹
10 crore for the assessment year 2022-23.
The due date for filing return of income by
Zeet Ltd. Is……
a 31st July, 2022 a With rigorous imprisonment for a term, which
shall not be less than 6 months but which may
extend to 7 years and with fine.
th
b 30 September, 2022 b With rigorous imprisonment for a term which
shall not be less than 3 months but may extend
to 7 years with fine.
c 31st October, 2022 c Rigorous imprisonment for maximum 3 years.
th
d 30 November, 2022 d Rigorous imprisonment for 6 months.
5. Where a person required to furnish a return of 6. The Assessing Officer can complete the
income under section 139, fails to do so within assessment under section 144 of the Act even
the time prescribed in Section 139(1), he shall though there is no failure on the part of
pav, by way of fee, a sum of, __________ if assessee under section 139(1), 139(4), 139(5),
st
the return is furnished on or before 31 day 142(1), 142(2A) or 143(2) of the Act. Such
of December of the assessment year and his powers by the A.O. May be exercised in which
total income does not exceeds Rs. 5,00,000. of the following situations: (Dec. 2019)
a Rs. 100 for every day during which such failure a Where the A.O. Is not satisfied about the
continues. correctness or completeness of the account of
the assesse

YES ACADEMY FOR CS
b Rs. 5,000 b Where the method of accounting has not been

regularly followed by the assesse
c Rs. 1,000 c Where the income has not been computed in
accordance with "ICDS" notified by the
Central Government u/s 145(2)
d Rs. 10,000 d Any of above three or in all the three above
situations

YES ACADEMY FOR CS
CHAPTER 15 COMPUTATION OF TOTAL INCOME
1. Net Profit as per Profit and Loss A/c: ₹ 2. Provisions of alternate minimum tax shall be
15,00,000 applicable when adjusted total income exceeds:
Book Profit: ₹ 13,25,000
What will be the MAT liability with Cess?
a ₹ 2,45,125 a Rs. 20 lakhs
b ₹ 2,54,930 b Rs. 50 lakhs
c ₹ 9,805 c Rs. 10 lakhs
d None of the above d Rs. 10,000
3. Mr. Shiva gifted a let-out building which 4. For the assessment year 2022-23, the amount
fetches rental income of Rs. 10,500 per month of tax payable by unit in SEZ as per normal
to his son's wife on 1-11-2021. The municipal provisions of Income Tax Act is Rs. 4,20,000.
tax of Rs. 6,000 on the property was paid on Alternate minimum tax payable by it on the
10-1-2022. The total income from all other adjusted total income comes to be Rs.
sources (computed) amounts to Rs. 2,60,000 4,90,000. Compute the amount of tax payable
except income from above said property. His by the SEZ.
total income chargeable to tax is: (June, 2017)
a Rs. 3,11,450 a Rs. 4,20,000
b Rs. 3,44,000 b Rs. 4,90,000
c Rs. 3,80,000 c Rs. 70,000
d Rs. 3,33,500 d Nil
5. In case of AOP whose members are other than 6. DLF Limited, an Indian domestic company
foreign company, and their shares are received an amount of ₹ 15 lakhs as dividend
indeterminate, the tax shall be charged: declared and distributed on 18-11-2021 by
John Miller Inc. of UK in which it holds 30% in
nominal value of equity share capital. Indian
company has paid interest of ₹ 5 lakhs on the
amount invested in the shares of John Miller
Inc. the tax payable (rounded off in nearby two
decimal points) on the amount of dividend
received by the Indian company in assessment
year 2022-23 shall be……
a at the rate applicable to individuals a ₹ 3.12 Lakhs
b at tire maximum marginal rate i.e. 30% + b ₹ 2.50 Lakhs
surcharge @ 37%, if applicable + HEC @4%-
42.744% *
c at the rate of 40 % + 2% surcharge + HEC 4 % c ₹ 2.34 Lakhs
d at the rates given in Schedule I of the Income- d ₹ 2.68 Lakhs
tax Act
7. A domestic company distributed a dividend of ₹ 8. Mr. X has earned salary income of Rs.
30,00,000 to its shareholders. Out of this 5,00,000 (computed) and he has suffered loss

YES ACADEMY FOR CS
dividend ₹ 4,00,000 paid to a person on behalf under the head capital gains Rs. 1,50,000. He
of the New Pension System Trust and ₹ has made payment of Rs. 75,000 in public
1,00,000 paid to another corporate provident fund. Determine his total income.
shareholder. The company also received a
dividend of ₹ 2,00,000 from its subsidiary
which paid dividend distribution tax under
Section 115-O. in this case, the amount of
dividend subject to dividend distribution tax for
the domestic company will be.
a ₹ 24,00,000 a Rs. 5,00,000
b ₹ 27,00,000 b Rs. 2,25,000
c ₹ 28,00,000 c Rs. 3,50,000
d ₹ 30,00,000 d Rs. 4,25,000
9. Mr. X has earned salary income of Rs. 10. Mr. X has earned salary income of Rs.
10,00,000 (computed) and he has suffered loss 15,00,000 (computed) and he has suffered loss
under the head capital gains Rs. 1,50,000. He under the head capital gains Rs. 1,50,000. He
has made payment of Rs. 1,00,000 in public has made payment of Rs. 1,00,000 in public
provident fund. Determine his tax liability if he provident fund. Determine his tax liability if he
has opted for Section 115BAC. has opted for Section 115BAC.
a Rs. 78,000 a Rs. 1,95,000
b Rs. 96,200 b Rs. 96,200
c Rs. 92,500 c Rs. 92,500
d Rs. 1,19,350 d Rs. 1,19,350
11. Mr. X, 82 years of age non-resident in India 12. Mr. Ajay, 21 years of age, resident in India,
has earned Long term capital gains on sale of has earned agricultural income of Rs. 8,00,000
building of Rs. 6,00,000 and has no other and has other income of Rs. 1,00,000. He has
income. He has made payment of Rs. 1,00,000 made payment of Rs. 1,00,000 in public
in public provident fund. Determine his tax provident fund. Determine his tax liability if he
liability if he has not opted for Section has not opted for Section 115BAC.
115BAC.
a Nil a Nil
b Rs. 1,24,800 b Rs. 1,03,000
c Rs.1,06,000 c Rs. 30,900
d Rs. 83,200 d Rs. 28,840
13. Total income of XYZ Limited includes the 14. A company has earned book profits of Rs. 50
income of dividend of Rs. 10 Lkahs paid by a lakhs during the financial year 2021-22. The
U.K. base foreign company in which XYZ total income of the company is Rs. 10 lakhs.
Limited holds 30% of th equity share capital. The company is liable to pay income tax of –
The dividend income so received by the company
form the U.K. base foreign company in A.Y.
2022-23 shall be:
a Taxable @ 15% of such income a Rs. 3,12,000

YES ACADEMY FOR CS
b Not taxable being exempt u/s 10(43) b Rs. 7,72,750

c Taxable at the normal rate applicable on c Rs. 9,62,000
domestic company
d Taxable @ 10% of such income d Rs. 7,80,000
15. Ram & Co., a partnership firm worked out total 16. Harish (30 years of age) received salary of Rs.
st
book profits for the year ended 31 March, 50,000 per month. He receives D.A.- 40% of
2022 of Rs. 6,00,000 and has made payment basic salary, City compensatory allowance Rs.
of salary of Rs. 4,60,000 authorized by the 2,200 per month, Fixed Medical allowance - Rs.
partnership deed to the working partners. Firm 40,000. Medical Insurance premium paid in
wants to know that how much amount of salary cash - Rs. 4,800, payment by account payee
paid to partners be allowable as deduction in crossed cheque Rs. 30,000 His net income tax
A.Y. 2022-23. (Dec.2019) liability (ignoring TDS and rebate) if he has not
opted for Section 115BAC would be -:
a Rs. 4,60,000 a Rs. 81,930
b Rs. 3,90,000 b Rs. 84,010
c Rs. 2,70,000 c Rs. 92,700
d Rs. 4,50,000 d Rs. 98,980
17. In case of AOP/BOI where the share of the 18. Murali received Rs. 1 lakh from the HUF of
members are determinate but hone of the which he is a coparcener. The HUF consists of
members has taxable income exceeding four coparceners including his father who is the
maximum exemption limit, nor any member is Karta of the HUF. The amount paid was by way
taxable at a rate higher than the maximum of debit to the capital account of HUF engaged
marginal rate, the tax shall be charged: in textile business. Is the amount of receipt
chargeable to tax - (Dec. 2016)
a at the rate applicable to individual/HUF a Yes, full amount is taxable
b at the maximum marginal rate i.e. 30% + b 50%, i.e., Rs. 50,000 is taxable
surcharge @ 15%, if applicable + HEC @4%
c at the rate of 35% + HEC @ 4% c Nil, i.e., it is exempt from tax
d at the rates given in Schedule I of the Income- d 25%, i.e., Rs. 25,000 is taxable
tax Act
19. A, B and C are the partners in a firm engaged 20. ABC Ltd., a domestic company having a
in medical profession. For the year ended on turnover of Rs. 450 crores has computed its
st
31 March, 2022, the book profit of the firm total income for the year 2021-22 of Rs. 102
was calculated as Rs. 3,00,000. The amount lakhs. The tax payable by the company on such
admissible as remuneration to partners is income in A.Y. 2022-23 shall be: (Dec.2019)
__________.
a 90% of book profits a Rs. 34,05,168
b Rs. 1,50,000 b Rs. 29,70,240
c A or B, whichever is more c Rs. 33,28,000
d Rs. 3,00,000 d Rs. 33,30,968

YES ACADEMY FOR CS
21. A Domestic company which opts for section 22. Chandran, (aged 38 years), owned 6 medium
115BAA or section 115BAB shall pay tax goods vehicles as on 01-04-2021. He acquired
@.......% on income which is chargeable to 2 more medium good vehicles on 1-7-2021. He
special rates under chapter XII of the Act. has unabsorbed depreciation of Rs. 70,000 and
business loss of Rs. 1,00,000 for the financial
year - 2021-22. He had paid life insurance
premium for insurance of married daughter -
Rs. 25,000. Calculate his total income for A.Y.
2022-23:
a Special rate + 10% surcharge + 4% Cess. a Rs. 5,50,000
b 22.88%. b Rs. 4,80,000
c 28.6%. c Rs. 5,25,000
d 17.16%. d Rs. 4,55,000
23. Mr. X, a resident individual, furnishes you with

the following information for the year ended
31-3-2022:
Rs.
Salary income (computed) 5,00,000
Long term capital gains on sale of land 2,50,000
Short term capital gains on sale of 1,50,000
equity shares listed in recognized
stock exchange on which STT paid
Unexplained Investments 2,00,000
Mr. X claims an expenditure of Rs. 15,000
incurred for making such unexplained
investment. You are required to determine his
tax liability for assessment year 2022-23 if he
has not opted for Section 115BAC.
a Rs. 2,23,510
b Rs. 2,44,400
c Rs. 1,44,200
d Rs. 1,25,660

YES ACADEMY FOR CS
CHAPTER 16 APPEAL, REVISION, PENALTY & PROSECUTION
1. Appeals to Commissioner Appeals is to be filed 2. Any party which is aggrieved by an order

within __________ days of service of notice passed by the Appellate Tribunal may file an
of demand. appeal of High Court within - (Dec. 2016)
a 30 days a 30 Days
b 60 days b 60 Days
c 120 days c 90 Days
d 180 days d 120 Days
3. Mr. Rajan did not appear before the Assessing 4. A tax payer wants to prefer an appeal against
Officer in response to a notice issued under the order of the Assessing Officer. He
th
section 143(2). He repeatedly absented from received the order dated 30 April, 2022 on
th
appearing before the Assessing Officer. How 5 May, 2022. He must prefer an appeal
much could be the quantum of penalty the before the CIT (Appeals) under section 246A
Assessing Officer could levy on Mr. Rajan for of the Income Tax Act, 1961, within: (June,
the failure? (June, 2017) 2019)
a Rs. 2,000 a 30 days from the date of order
b Rs. 5,000 b 30 days from the date of receipt of order
c Rs. 10,000 c 60 days from the date of order (d) 60 days
from the date of receipt of order
d Rs. 20,000 d
5. The assessment of Julie (fvt.) Ltd. under 6. An assessment order under section 143(3)
section 143(3) for the assessment year 2021- dated 15-9-2021 was served on the assessee
th
22 was completed on 12 October, 2022. The on 25-09-2021. The Commissioner wants to
th
notice of demand was served on 27 October, make a revision of the order passed under
2022. The assessee has to file appeal before section 143(3) by invoking section 263. The
the Commissioner (Appeals) within - (June time limit for passing revision order under
2016) section 263 is: (June, 2017)
a 30 Days a 31st March, 2022
b 60 Days b 31st March, 2023
c 15 Days c 31st March, 2024
d 90 Days d 26th September, 2025
7. In case if an assessee fails to maintain accounts 8. Penalty for failure to get the accounts audited
under section 44AA, he shall be liable to under Section 44AB:
penalty of __________.
a Rs. 10,000 a 0.5% of Turnover
b Rs. 25,000 b Rs. 1,50,000
c Rs. 50,000 c 0.5% of turnover or Rs. 1,50,000 whichever is
less
d Rs. 1,00,000 d 0.5% of turnover or Rs. 1,50,000, whichever is
more

YES ACADEMY FOR CS
9. If case pertains to an assessee whose total

income does not exceed Rs. __________, then
it mav be disposed of sinεlv by President/any
member of Tribunal.
a Rs. 10,00,000
b Rs. 15,00,000
c Rs. 50,00,000
d Rs. 10,00,000

Direct Tax Mcq&#39;s

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Direct Tax Mcq&#39;s

Uploaded by

Copyright:

Available Formats

CS EXECUTIVE - DIRECT TAX

For Dec 2022

CMA VIPUL SHAH

YES ACADEMY FOR CS +91 8888 235 235

CHAPTER NO. CHAPTER NAME No. of MCQ PAGE NO.

CMA VIPUL SHAH 8888 235 235 1

CHAPTER 1 BASIC CONCEPTS

MULTIPLE CHOICE QUESTIONS

CMA VIPUL SHAH 8888 235 235 2

CMA VIPUL SHAH 8888 235 235 3

a Rs. 33,42,300 a The income for the period 2/4/2020 – 31/3/2021

CMA VIPUL SHAH 8888 235 235 4

CHAPTER 2 RESIDENTIAL STATUS

7. XYZ LLP will be __________ in India if control 8. An Indian company would:

CMA VIPUL SHAH 8888 235 235 5

management, is outside India

CMA VIPUL SHAH 8888 235 235 6

required to compute his Total Income – Particulars Amount

17. From the following particulars of Income

CMA VIPUL SHAH 8888 235 235 7

CHAPTER 3 INCOME EXEMPT FROM TAX

CMA VIPUL SHAH 8888 235 235 8

50,000. Compute the income tax payable by

CMA VIPUL SHAH 8888 235 235 9

follows – duty amounting to Rs. 30 lakhs. Further, the

CMA VIPUL SHAH 8888 235 235 10

CMA VIPUL SHAH 8888 235 235 11

5. A Central Government Officer received during 6. Ramavtar, an employee of GG Carriers provides

CMA VIPUL SHAH 8888 235 235 12

a 1/5th of salary a Rs. 95,000

CMA VIPUL SHAH 8888 235 235 13

b Rs. 10,00,000 b Rs. 20,000

15. Reshma receives Rs. 50,000 p.m. as basic

CMA VIPUL SHAH 8888 235 235 14

CHAPTER 5 INCOME FROM HOUSE PROPERTY

CMA VIPUL SHAH 8888 235 235 15

11. House owned by Suresh was sold on T' January,

CMA VIPUL SHAH 8888 235 235 16

CMA VIPUL SHAH 8888 235 235 17

CMA VIPUL SHAH 8888 235 235 18

for sales, turnover or gross receipts during the payments:

CMA VIPUL SHAH 8888 235 235 19

CHAPTER 7 CAPITAL GAIN

CMA VIPUL SHAH 8888 235 235 20

lakhs. However, the value determined by the

CMA VIPUL SHAH 8888 235 235 21

Compute the capital gain chargeable to tax for

CMA VIPUL SHAH 8888 235 235 22

CHAPTER 8 INCOME FROM OTHER SOURCES

Forfeited advance money received Rs.

CMA VIPUL SHAH 8888 235 235 23

machinery year 2022-23.

a Rs. 1,54,000 a Rs. 1,68,000

CMA VIPUL SHAH 8888 235 235 24

CMA VIPUL SHAH 8888 235 235 25

CHAPTER 9 CLUBBING OF INCOME

CMA VIPUL SHAH 8888 235 235 26

11. Majnu has gifted on 11th May, 2020 an amount

CMA VIPUL SHAH 8888 235 235 27

CHAPTER 10 SET OF AND CARRY FORWARD

3. If a person is eligible to claim: 4. Loss from house property and losses in

CMA VIPUL SHAH 8888 235 235 28

Loss from gambling 12,000

CMA VIPUL SHAH 8888 235 235 29

Direct Tax Mcq's

Direct Tax Mcq's