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Note : All references to sections mentioned in Part-A of the question paper relate to the
Income-tax Act, 1961 and relevant Assessment Year 2016 - 17 unless stated otherwise.
PARTA
1. Under the Income-tax Act, 1961 the term 5. Pawan, employed in Magic Ltd., was
'assessee' means a person eligible for transport allowance of `2,000
(A) Who is an assessee in default per month to meet his travel expenses from
(B) From whom tax is due residence to office. He actually incurred
`1,200 per month towards travel. The
(C) Against whom any proceeding under
amount of travel allowance chargeable to
the Act has been taken
tax as perquisite would be
(D) All of the above.
(A) `24,000
4. Tax holiday under section 10AA in respect 7. Allowances and perquisites allowed to an
of newly established units in SEZ is allowed employee for services outside India are tax
for a total period of free in case of
(A) 5 Years (A) All types of employees
(B) 10 Years
(B) Government employees only
(C) 15 Years
(C) Non-government employees only
(D) 20 Years.
(D) None of the above.
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8. If an LLP claims deduction under section 11. A lady received gifts worth `1,00,000 from
35AD, the provisions of Alternate Minimum her relatives as defined under the Income-
tax Act, 1961 and `60,000 from her office
Tax (AMT) under section 115JC will apply
colleagues on her marriage anniversary. The
when the adjusted total income exceeds taxable amount of gifts would be
(A) `10, i.e., no limit (A) `1,60,000
(B) `10 lakh (B) `60,000
(C) `50,000
13. Swan (Pvt.) Ltd. acquired machinery for
(D) `4,00,000
`5,75,000 which included excise duty of
`75,000 eligible for CENVAT credit.
It borrowed `3,00,000 from a bank for
10. A company incurred capital expenditure
purchase of the said machine. Interest on
on scientific research viz., (i) land `5 lakh; the bank loan upto the date of usage of
(ii) building `10 lakh; and (iii) equipments machine was ascertained as `25,000.
`7 lakh. The amount of expenditure eligible The machine was put to use from
for deduction under section 35 would be 15th September, 2015. Assume the rate of
depreciation at 15%. The eligible amount
(A) `22 lakh of depreciation will be
(B) `17 lakh (A) `90,000
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14. A company has provided laptop worth 17. Satish brought into India, in the previous
`50,000 to its employee for official as well year, past untaxed income which was
earned in U.K. The income will be taxable
as personal purposes. The taxable amount
if Satish is
of perquisite will be
(A) An ordinarily resident
(A) `5,000 (B) A not-ordinarily resident
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21. If there is an apparent error in the 25. Penalty for failure to collect tax at source,
intimation dated 11th June, 2016 issued as a percentage of tax to be collected is
under section 143(1), the time-limit for filing (A) 25%
application for rectification under (B) 100%
section 154 is available up to (C) 75%
(A) 31st March, 2020 (D) 50%.
(B) 31st March, 2021
(C) 31st March, 2017 26. Loss from speculation business is eligible
for carry forward of loss for a period of
(D) 31st October, 2016.
(A) 4 Years
(B) 6 Years
22. When an advance ruling is obtained, it is
(C) 8 Years
applicable to
(D) 12 Years.
(A) All assessees
(B) The applicant who sought it 27. A survey is conducted in the premises of
(C) Those notified the assessee and assessments are reopened
(D) None of the above. for some assessment years. An application
for settlement could be made to the
Settlement Commission when the additional
23. Provisions of section 115JB are applicable amount of income-tax payable on the
in case of income disclosed in the application
(A) Domestic companies only exceeds
(A) `50 lakh
(B) Foreign companies only
(B) `25 lakh
(C) All companies
(C) `10 lakh
(D) Closely held companies.
(D) `100 lakh.
24. Assessees who are eligible to approach 28. Income of a non-resident from shipping
Dispute Resolution Panel regardless of the business in India is computed at the rate
transfer pricing adjustment are of
(A) Co-operative societies (A) 5%
(B) Foreign companies (B) 7.5%
(C) Domestic companies (C) 10%
(D) Firms and LLPs. (D) 30%.
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29. When an assessee has paid advance tax 33. No loss can be set-off against
more than the tax due on the returned
income and the return is filed before the (A) Income from salaries
'due date' specified in section 139(1), the (B) Income from house property
refund amount is eligible for interest @
(A) 12% per annum (C) Income from capital gains
(B) 6% per annum (D) Winnings from lotteries, etc.
(C) 9% per annum
(D) 8% per annum.
34. Varun incurred medical expenditure of
30. The liability to deduct tax at source on `12,000 towards cataract surgery of his
insurance commission will arise when the mother (aged 70 years). She also underwent
commission paid or payable to an agent for
a minor surgery for which he incurred an
the year exceeds
expenditure of `26,000. Deduction under
(A) `5,000
section 80D will be
(B) `10,000
(C) `15,000 (A) `30,000
(D) `20,000
(B) `12,000
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36. If a person responsible for deduction of 39. The order of revision passed by
tax at source, after deduction, fails to deposit Commissioner under section 264 is
the same into the Government treasury, (A) Appealable before Commissioner
he will be liable to pay interest @ (Appeals)
(A) 1% per month or part of the month (B) Appealable before Appellate Tribunal
(C) Appealable before High Court
(B) 1.5% per month or part of the month
(D) Not appealable.
(C) 2% per month or part of the month
(D) 15% per annum. 40. Deduction available under section 80GG in
respect of rent paid cannot be more than
(A) `6,000 per month
37. When an assessee fails to furnish any
information relating to a specified domestic (B) `5,000 per month
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43. A senior citizen is not liable for advance 47. Any party which is aggrieved by an order
tax, if he does not get any income from passed by the Appellate Tribunal may file
(A) Interest or securities an appeal to High Court within
(B) Capital gains
(C) Profit and gains from business or (A) 30 Days
profession (B) 60 Days
(D) All of the above.
(C) 90 Days
52. Revision of an order which is prejudicial 56. An Indian company having 30% voting
to the revenue is made under power in a foreign company received
dividend of `10 lakh from the foreign
(A) Section 264 company. The dividend so received by the
Indian company is
(B) Section 260
(A) Exempt
(C) Section 263 (B) Taxable @ 15%
(C) Taxable at the regular rates
(D) Section 262.
(D) Taxable @ 20%.
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57. Cost of acquisition of securities held with 61. A partnership firm has net profit of
depository is to be computed by `6,20,000 before deducting interest on
(A) Average cost method capital to partners @ 15% of `1,50,000
(B) First in first out (FIFO) method and working partner salary of `1,80,000
(as per the deed of partnership). The
(C) Last in first out (LIFO) method
total income of the firm chargeable to tax
(D) Weighted average cost method. would be
(A) `1,10,000
58. Unabsorbed loss from house property can (B) `3,20,000
be carried forward for (C) `2,90,000
(A) 4 Years (D) `1,00,000
(B) 8 Years
(C) Indefinite period 62. One of the benefits of advance pricing
(D) Can not be carried forward. agreement is
(A) Minimum tax
59. Under section 80QQB, the maximum (B) Certainty in tax liability
deduction in respect of royalty is allowed (C) Exemption from tax
upto (D) Exemption from penalty.
(A) `1,00,000
(B) `1,50,000 63. An amount upto a maximum of `10,000 is
(C) `2,50,000 deductible under section 80TTA from the
(D) `3,00,000 gross total income of
(A) Individual only
(B) HUF and individual only
60. A company acquired a motor car for
`8 lakh on 30th June, 2014. It sold the said (C) Company only
motor car to its employee, Jayant, for (D) All assessees.
`6 lakh on 10th June, 2015. The company
claimed depreciation @ 15% for the year 64. A member of Parliament received `1,50,000
ended 31st March, 2015. The perquisite per month as salary and `4,50,000 as daily
value in the hands of Jayant on sale of motor allowances during previous year 2015-16.
car would be The taxable amount will be
(A) `80,000 (A) Salary `18,00,000
(B) Nil (B) Income from profession `22,50,000
(C) `2,00,000 (C) Income from other sources `18,00,000
(D) `1,40,000 (D) Nil.
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65. Murali received `1 lakh from the HUF of 68. The municipal value of a property is
which he is a coparcener. The HUF consists `2,10,000; fair rent is `1,90,000; standard
of four coparceners including his father who rent is `1,80,000 and the actual rent is
is the Karta of the HUF. The amount paid `2,40,000. The gross annual value of the
was by way of debit to the capital account property would be
of HUF engaged in textile business. Is the
(A) `1,80,000
amount of receipt chargeable to tax
(B) `1,90,000
(A) Yes, full amount is taxable
(C) `2,40,000
(B) 50%, i.e., `50,000 is taxable
(D) `2,10,000
(C) Nil, i.e., it is exempt from tax
(D) 25%, i.e., `25,000 is taxable.
69. Ekta (Pvt.) Ltd., engaged in manufacturing
activity, acquired new plant and machinery
66. If a payee eligible for commission exceeding
for `100 lakh for its manufacturing unit
`5,000 does not furnish his PAN to the
located in Bihar. The acquisition and use
payer, tax is deductible at source at
was from 1st June, 2015. The assessee is
(A) Nil rate eligible for additional depreciation of
(B) 20%
(A) `30 lakh
(C) 10%
(B) `20 lakh
(D) 30%.
(C) `35 lakh
(D) `10 lakh.
67. Long-term capital gains on sale of a
long-term capital asset in October, 2015 is
`105 lakh. The assessee invested `50 lakh 70. An association of persons (AOP) has paid
in REC bonds in March, 2016 and tax at the maximum marginal rate. Yash, a
`55 lakh in NHAI bonds in May, 2016. member of AOP received `1 lakh as his
The amount of exemption eligible under share income. Such income is chargeable
section 54EC is to tax in his assessment @
(A) Nil (A) 10%
(B) `50 lakh (B) Nil
(C) `55 lakh (C) 30%
(D) `105 lakh. (D) 20%.
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PARTB
71. As per section 66E of the Finance Act, 1994 75. An application for registration under
'declared services' include service tax must be submitted in Form
(A) Services by RBI No. ST-1 on becoming liable to pay service
(B) Services relating to agricultural tax within
activities (A) One week
(C) Services by way of transportation of (B) 15 Days
goods (C) 30 Days
(D) Renting of immovable property. (D) Four weeks.
72. Service tax is applicable all over India 76. The superintendent of central excise
except in the State of must issue certificate of registration under
service tax within 7 days of receipt of
(A) Delhi
application in
(B) Jammu and Kashmir
(A) Form No. ST-5
(C) Haryana
(B) Form No. ST-2
(D) Punjab. (C) Form No. ST-3
(D) Form No. ST-4.
73. A resident welfare association formed on
1st June, 2015 received `6,000 per month 77. If the payment of service tax is delayed by
per member as contribution. The aggregate 4 months, the rate of interest applicable for
receipts up to March, 2016 were `12 lakh. the delayed payment is
It paid service tax on telephone bills `2,000 (A) 18% per annum
and service tax on AMC for generator (B) 12% per annum
`3,000. The net service tax liability @ 14% (C) 30% per annum
to the welfare association would be (D) 24% per annum.
(A) Nil
(B) `28,000 78. A service provider received payment in
(C) `23,000 advance and paid service tax also.
(D) `1,68,000 Subsequently, after rendering 50% of the
service, the relationship with service receiver
74. Where the location of recipient of service is got terminated. The excess service tax paid
earlier is eligible for adjustment if
not traceable, the location of service for the
(A) The assessee has closed his business
purpose of service tax would be
(B) The recipient has closed his business
(A) New Delhi
(C) The assessee has refunded the amount
(B) Jammu and Kashmir along with service tax
(C) The location of service provider (D) The assessee has entered into legal
(D) None of the above. dispute.
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79. In case of corporates, the due date for 82. If a service is received outside India but
consumed in India, it will be
payment of service tax is
(A) Taxable in India
(A) 6th day of immediately following (B) Taxable outside India
calendar month (C) Not taxable
(B) 6th day of the month following the (D) Taxable at concessional rate.
respective quarter
83. In VAT regime, zero rating means
(C) 5 th day of the month following
(A) Zero per cent rate of VAT
calendar month
(B) Exempted from VAT
(D) 5th day of the month following the (C) Rate not declared by State
respective quarter. (D) All of the above.
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87. A dealer in Chennai purchased goods from 90. VAT is a
a dealer in Mysore for `70,000 and paid
central sales tax @ 2% being `1,400. The (A) First stage tax
goods purchased were used for manufacture
(B) Last stage tax
of a commodity liable for VAT at 14.5%.
The dealer at Chennai is eligible for input (C) Multi-stage tax
tax credit of
(D) Single stage tax as per the option of
(A) `1,400
the assessee.
(B) `1,000
(C) Nil
(D) `9,800 91. A unit in SEZ availed taxable service from
a service provider. The value of taxable
88. VAT payable on the sale of goods is service is `2,40,000. The entire service is
`6,87,500. The dealer is entitled to avail
consumed inside the unit in SEZ. The
tax credit on purchase of material costing
`10,40,000 (inclusive 4% VAT). The net service tax payable by the unit to the service
amount of VAT payable by the dealer is provider is
(A) `6,47,500 (A) `33,600
(B) `6,45,900
(B) `28,800
(C) `6,87,500
(D) Nil. (C) Nil
(D) `16,800
89. A dealer imported raw material costing
`12,00,000 inclusive of import duty at 20%
rate. He also made purchases locally in the 92. In 1994, the service tax was levied by the
State costing `1,04,000 inclusive of 4% VAT.
Union Government as per Article 246 of
Both the materials were sold at 10% profit
on cost and VAT payable by the dealer is the Constitution of India vide
4% on turnover. The dealer is liable to pay
(A) Entry 94 of the Union List
VAT amounting to
(A) `57,200 (B) Entry 95 of the Union List
(B) `55,000 (C) Entry 96 of the Union List
(C) `53,200
(D) Entry 97 of the Union List.
(D) `32,200
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93. The amount of service tax, interest penalty 97. A small service provider completed his
and fine, etc. shall be rounded off to the service on 20th August, 2015, raised invoice
nearest on 30th September, 2015 and received the
amount on 10th October, 2015. The point
(A) One rupee
of taxation for the service rendered is
(B) Five rupees (A) 10th October, 2015
(C) Ten rupees (B) 30th September, 2015
(D) One hundred rupees. (C) 31st August, 2015
(D) 20th August, 2015.
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Space for Rough Work
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