Semester End Examination July 2016

Exam Date: 7/18/2016

MFM (2nd Semester)

AMF206 - Corporate Tax Planning
1.
2.
3.
4.

Section A: Case Study Total 5 Questions, each question carries 4 marks.

Section B: Total 50 Questions, each question carries 1 mark.
All questions are compulsory.
There is no negative marking for wrong answers.

Section A: CASE STUDY

(each question carries 4 marks)
Kwality Electronics Ltd. Furnishes you the following information for the assessment year 2013-14,2014-15 &
2015-16 for advice as regards set off and carry forward of losses:2013-14

2014-15

2015-16

Interest on debentures

20000

25000

15000

Dividend from Indian company

(gross)

18000

45000

25000

Income from house property

(computed)

20000

20000

20000

Profits or losses from business

before depreciation -

10000

30000

23000

Depreciation

8000

10000

14000

Profits or losses on sale of securities

9000

15000

10000

50000

25000

15000

(long term)
Speculation profits or losses

You are required to compute:

Ques : 1
Option A
Option B

Gross total income of the company for the assessment year 2015-16:Rs. 4000
Rs. 4500
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Option C

Rs. 5000

Option D

Rs. 6500

Ques : 2
Option A
Option B

Gross total income of the company for the assessment year 2014-15:Rs. 60000
Rs. 55000
Rs. 65000
Rs. 75000

Option C
Option D
Ques : 3
Option A
Option B
Option C
Option D
Ques : 4
Option A
Option B
Option C
Option D
Ques : 5
Option A

Gross total income of the company for the assessment year 2013-14:Rs. 81000
Rs. 80000
Rs. 79000
Rs. 86000
Amount chargeable to tax under the head income from other sources in the A.Y. 2013-14 will be:Rs. 2000
Rs. 20000
Rs. 17000
Rs. 24000

Option B
Option C

Amount chargeable to tax under the head income from other sources in the A.Y. 2014-15 will be:Rs. 20000
Rs. 20000
Rs. 25000

Option D

Rs. 24500

Section B
(each question carries 1 mark)
Ques : 6
Option A
Option B
Option C
Option D

Find from the following persons, who are liable to wealth tax:Individual
H.U.F.

Ques : 7
Option A
Option B
Option C
Option D

Wealth tax is payable by:an Indian company

a domestic company
any company
all of the above

Ques : 8
Option A
Option B
Option C

Wealth tax is payable if the net worth of the assesse:exceeds Rs. 250000
is Rs. 3000000 or more
exceeds Rs. 3000000

Company
All of the above

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Option D

Exceeds Rs. 5000000

Ques : 9
Option A

A firm is:not liable to wealth tax

Option B
Option C

liable to wealth tax

not liable to wealth tax but partners share in the value of the firm shall be included in the net
wealth of the partner
liable to VAT only

Option D
Ques : 10
Option A
Option B
Option C
Option D

One house shall be exempt u/s 5(vi) if it is:residential house

residential house which is self-occupied
residential or commercial
commercial house

Ques : 11
Option A
Option B
Option C
Option D

One house shall be exempt u/s 5 (vi) in case of:individual assesse only
any assesse
individual or HUF
individual and HUF

Ques : 12
Option A
Option B
Option C
Option D

Asset held by a minor child is included to the net wealth of:father

mother
father or mother whose net wealth before such clubbing is greater
father or mother whose net wealth before such clubbing is less

Ques : 13
Option A
Option B
Option C
Option D

The due date for furnishing the return of wealth shall be:30th June of the assessment year
the date as mentioned u/s 139(1) of the income tax Act
31 October of the assessment year

Ques : 14
Option A
Option B

Net wealth of the assesse is to be computed as on:31st March preceding the relevant assessment year
first moment of 31st March preceding the relevant assessment year

Option C
Option D

as on last moment of 31st March preceding the relevant assessment year

None of the above

Ques : 15
Option A
Option B
Option C
Option D

In case an individual is a foreign national but resident and ordinarily resident in India, the net
wealth shall:include assets wherever located whether in India or outside
include assets which are located in India
not include any assets
none of the above

Ques : 16

Income tax Act extends to:-

31 December of the assessment year

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Option A

Whole of India

Option B
Option C

Whole of India except Jammu & Kashmir

Whole of India except Sikkim

Option D

Whole if India except Jammu & Kashmir and Sikkim

Ques : 17
Option A
Option B

The circulars issued by CBDT are binding upon:Assesse

Income-tax authorities
Income-tax law
Both the above

Option C
Option D
Ques : 18
Option A
Option B
Option C

A.O.P. should consist of:Individuals only

Persons other than individuals only
Both above

Option D

None of the above

Ques : 19
Option A
Option B
Option C
Option D

Part II of Schedule I of the Finance Act, 2010 has given the rates of tax deductible at source for
the financial year:2009-10
2010-11
2011-12
2012-13

Ques : 20
Option A

Income tax is rounded off to:Nearest ten rupee

Option B
Option C
Option D

Nearest one rupee

No rounding off of tax is done
Nearest to hundred rupee

Ques : 21
Option A
Option B
Option C
Option D

Residential status is to be determined for:Previous year

Assessment year
Accounting year
Current year

Ques : 22
Option A
Option B
Option C
Option D

Total income of a person is determined on the basis of his:Residential status in India

Ques : 23
Option A
Option B

Income deemed to accrue or arise in India is taxable in case of:Resident only

Both resident and not ordinarily resident

Option C

Non resident

Citizenship in India
None of the above
All of the above

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Option D

All the assesses

Ques : 24
Option A

Income which accrue or arise outside India and also received outside India is taxable in case of:Residents only

Option B
Option C

Not ordinarily resident

Both resident and not ordinarily resident
None of the above

Option D
Ques : 25
Option A
Option B
Option C
Option D
Ques : 26
Option A
Option B
Option C
Option D
Ques : 27
Option A
Option B

Dividend payable by an Indian company outside India is:Taxable in India in the hands of the recipient
Exempt in the hands of recipient
Taxable in the hands of the company and exempt in the hands of the recipient
None of the above
Service tax was introduced in India in the year:1993
1995
2004
1994

Option C
Option D

Service tax was introduced first time on:5 services

3 services
4 services
7 services

Ques : 28
Option A
Option B
Option C
Option D

Service tax was initially levied in India by the Constitution vide entry no.:92C of the union list
54 of the service list
92C of the concurrent list
97 of the Union list

Ques : 29
Option A
Option B
Option C
Option D

The power to levy service tax is now provided by the Constitution vide entry no:92C of the Union list
97 of the Union list
54 of the state list
93 of the union list

Ques : 30
Option A
Option B
Option C
Option D

The provisions relating service tax are given in:Chapter V of the Finance Act, 1994

Ques : 31
Option A

Service tax is payable on the value of taxable services @:0.12

Chapter V and VA if the Finance Act, 1994

Chapter VII and VIII of the Finance Act, 2004
The service tax Act, 1994

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Option B

0.1224

Option C
Option D

0.1236
0.103

Ques : 32
Option A

Service tax is charged on:Taxable service provided

Taxable service to be provided
Taxable services provided or to be provided
Any service provided or to be provided

Option B
Option C
Option D
Ques : 33
Option A
Option B
Option C
Option D
Ques : 34
Option A

Education cess was levied on:The finance Act, 1994

The Finance No. (2) Act, 2004
The Finance Act, 2006
The Finance Act, 2005

Option D

Tax is levied under VAT at:Last stage of sale

Multistage
First stage of sale
First and last stage of sale

Ques : 35
Option A
Option B

VAT is calculated by deducting tax credit from tax collected:During the payment period
During the financial year

Option C
Option D

During any period

During current year

Ques : 36
Option A
Option B
Option C
Option D

Loss from specified business referred in section 35AD can be carried forward:For 8 years
For 4 years
Indefinitely
For 5 years

Ques : 37
Option A
Option B
Option C
Option D

Loss on account of owing & maintaining the race horse can be carried forward:For 8 years
For 4 years
Indefinitely
For 6 years

Ques : 38
Option A
Option B
Option C

Loss from derivative trading in shares can be carried forward for:8 years
10 years
4 years

Option D

7 years

Option B
Option C

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Ques : 39
Option A

Loss under the head house property:Can be carried forward for 8 years

Option B
Option C

Cannot be carried forward

Can be carried forward for only 4 years

Option D

Can be carried forward for only 3 years

Ques : 40
Option A
Option B

Speculation loss can be carried forward for the maximum of:8 years
10 years
4 years
3 years

Option C
Option D
Ques : 41
Option A
Option B
Option C
Option D
Ques : 42
Option A
Option B

Long term capital loss can be set off in the same assessment year only from:Long term capital gain
Long term capital loss
Short term capital loss
Short term capital gain

Option C
Option D

Deduction u/s 80C, in respect of LIP, contribution to PF etc. is allowed to:Any assesse
Individual assesse only
Individual or HUF
Individual or HUF who is resident in India

Ques : 43
Option A

Deduction u/s 80C, is allowed to the maximum of:Rs. 70000

Option B
Option C
Option D

Rs. 100000
Rs. 140000
Rs. 200000

Ques : 44
Option A
Option B
Option C
Option D

Deduction under section 80C for tuition fee shall be allowed for the purposes of:Any full time education
Any full or part time education
Full time education in a college
Full time education in a college

Ques : 45
Option A
Option B
Option C
Option D

Deduction under section 80C in respect of tuition fee is allowed to:Any individual only
An individual or HUF
Any assesse

Ques : 46
Option A
Option B

Finance bill becomes the Finance Act when it is passed by:The Lok Sabha
The Lok Sabha & Rajya Sabha

Option C

Both the houses of Parliament and given the assent of the President

None of the above

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Option D

Both the Houses of Parliament and given the assent of the Prime Minister

Ques : 47
Option A

The Circulars issued by CBDT are binding on:Assesse

Option B
Option C

Income tax authorities

Both the above
none of the above

Option D
Ques : 48
Option A
Option B
Option C
Option D
Ques : 49
Option A
Option B
Option C
Option D
Ques : 50
Option A
Option B

A.O.P consists of:Individuals only

Persons other than individuals only
Both the above
Company
Surcharge on income tax is payable by:All assesses except a foreign company
Individual and HUF only
A company, domestic or foreign
All assesses except local authorities or cooperative society

Option C
Option D

Education cess is leviable on:Income tax

Income tax + surcharge if applicable
Surcharge
Surcharge + tax

Ques : 51
Option A
Option B
Option C
Option D

Education cess is leviable @ :0.02

0.05
0.03
0.07

Ques : 52
Option A
Option B
Option C
Option D

Education cess is liable in case of:an individual ease only

an individual and HUF
a company assesse only
all assesses

Ques : 53
Option A
Option B
Option C
Option D

SHEC is liable @:0.02

Ques : 54
Option A

SHEC is liable in case of:an individual assesse only

0.03
0.01
0.05

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Option B

individual and HUF

Option C
Option D

all assesses
all assesses other than cooperative society or local authority

Ques : 55

R was born in England, his parents were born in India in 1951. His grandparents were born in
South Africa. R shall be:a person of Indian origin
a foreign national
none of the above
all of the above

Option A
Option B
Option C
Option D

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