CS Executive Tax Laws and Practice PYQ June 2016: Question Paper and Available Answers

CS Executive Tax Laws and Practice PYQS Series June 2016 100 Questions Indexed

ICSI Examination Archive & Suggested Answers: This directory contains indexed questions from the paper for CS Executive Tax Laws and Practice PYQS (June 2016). Open the source paper and available answers. Older sessions follow the syllabus and statutory provisions applicable to their examination year.

Open Interactive Practice Mode View Chapter Weightage Analysis Download PDF Question Papers

Indexed questions

Arun, a non-resident of India celebrated his 80 th birthday on 10 th October 2015. If his total income for the previous year is ₹6,00,000, his income-tax liability for the previous
Alpha Ltd. is an Indian company. It carries its business in Delhi and London. Total control and management of the company is situated in London. More than 85% of its business incom
Ramson Industries acquired a factory building for self use in November, 2015. The value of land underneath the building was ₹5 lakh and value of building was ₹10 lakh. The amount o
Dividend distribution tax under section 115-O shall be deposited within ______ days from the date of declaration/distribution/payment of dividend, whichever is earlier.
Ms. Smita inherited a vacant site land consequent to the demise of her father on 10 th June, 1990. The land was acquired by her father on 10 th April, 1970 for ₹40,000. The fair ma
Raghu traced a missing girl by spending ₹20,000. For this, he was awarded with a sum of ₹1,20,000. In this case the award is taxable to the extent of —
An employee of a company, who was entitled for a gratuity of ₹8,00,000, also received ₹12,00,000 by commuting 40% of his pension. The taxable amount of commuted pension is —
Ravi is receiving ₹10,000 as medical allowance from his employer. Out of this, he spends ₹5,000 on his own medical treatment, ₹2,000 on the medical treatment of his dependent wife
Ms. Janhvi is provided with an interest free loan by her employer for the purchase of a house. The value of the perquisite shall be —
Ms. Padmaja let out a property for ₹20,000 per month during the year 2015-16. The municipal tax on the let-out property was enhanced retrospectively. Hence, she paid ₹60,000 as mun
Chola Ltd., engaged in manufacture, acquired machineries for ₹30 crore in July, 2014 and for ₹27 crore in April, 2015. All the machines were used within 45 days of acquisition. The
Where an asset used for scientific research for more than three years is sold without having been used for other purposes, then the sale proceeds to the extent of the cost of the a
Where an assessee doing a business incurs any expenditure in respect of which payments made to a person in a day exceeds ₹20,000 should be paid through account payee cheque or dema
Appu Ltd. contributed ₹8,70,000 towards provident fund account of its employees. It actually remitted ₹5,00,000 upto 31 st March and ₹2,50,000 upto the due date for filing the retu
Under which section, the assessee has to reinvest the entire net consideration to claim full exemption for the long-term capital gains earned during a previous year —
Short-term capital gains arising from the transfer of equity shares in a company or units of an equity oriented fund or units of a business trust charged with security transaction
Rishabh received the following gifts during the previous year: (i) ₹50,000 from his employer (ii) ₹1,00,000 from mother's sister (iii) ₹10,000 from his friend on the occasion of hi
The time-limit for making revisional order under section 263(2) and 263(3) is —
Balu paid ₹1,00,000 to Raj for purchase of standing crop (paddy). He harvested the produce, i.e., paddy by incurring expenditure of ₹25,000. He sold the said paddy for ₹1,80,000 to
Bharat, engaged in business, claimed that he paid ₹10,000 per month by cheque as rent for his residence. He does not own any residential building. His total income computed before
Raman & Co., a partnership firm, received ₹5,00,000 from an insurance company under keyman insurance policy consequent to demise of partner Pramod. The amount of premium ₹2,30,
Which of the following losses available after inter source set-off, cannot be set-off from incomes in other heads in the same assessment year —
To carry forward and set-off losses, a loss return must be filed by the assessee within the stipulated time and gets the loss determined by the Assessing Officer. However, this con
Rajan paid ₹25,000 to LIC of India for the maintenance of his disabled son and incurred ₹15,000 for the treatment of his handicapped wife who is working in State Bank of India. The
Deduction in respect of interest on savings accounts under section 80TTA shall be allowed with respect to savings account with —
A return filed by Ms. Mala was found to be defective. The Assessing Officer gave notice of the defect to the assessee. The time-limit for rectification of the defect is —
The book profit of a partnership firm is ₹1,20,000. The actual remuneration paid to working partners is ₹3,54,000. The allowable deduction under section 40(b) towards remuneration
The assessment of Julie (Pvt.) Ltd. under section 143(3) for the assessment year 2014-15 was completed on 12 th October, 2015. The notice of demand was served on 27 th October, 201
Raghu, aged 62 years, has pension income of ₹2,40,000 and rental income (computed) of ₹3,60,000 for the financial year 2015-16. How much amount he must have paid as advance tax in
Acrylic Ltd. sourced its new materials from Breeze Ltd. The relationship of associated enterprises would be established when Acrylic Ltd. buys raw material from Breeze Ltd. exceedi
Comfort (Pvt.) Ltd. issued 10,000 equity shares to Pawan at ₹18 per share when the fair market value of each share was determined at ₹11 per share. The tax implication of the trans
Mrs. Laxmi, 70 years old, received ₹30,000 every month from SBI under reverse mortgage scheme by mortgaging her residential house property. She also received monthly family pension
Chand Ltd. filed its return of income on 7 th December, 2015 declaring loss of ₹3,50,000. Later, it noticed a claim of expenditure omitted in the return filed. The revised return —
Which of the following person is eligible to seek advance ruling —
Rose Ltd. filed its return of income for the assessment year 2015-16 on 10 th August, 2015. The notice under section 143(2) for scrutiny assessment should be served on the assessee
A foreign institutional investor (FII) has total income which includes short-term capital gains on sale of listed shares of ₹30 lakh. The rate of tax for charging such income to ta
Tax credit in respect of MAT paid as per section 115JB will be allowed only in the previous year in which the tax payable on the total income at the normal rate is —
A domestic company distributed a dividend of ₹30,00,000 to its shareholders. Out of this dividend, ₹4,00,000 paid to a person on behalf of the New Pension System Trust and ₹1,00,00
Anand, a resident in India, has a total income of ₹10,00,000 during the previous year 2015-16. This income includes foreign income of ₹3,00,000 from a country with which India does
When a non-domestic company is a member in an AOP and its share of profit is indeterminate, the tax on total income of the AOP is charged at the —
Deduction under section 80C can be claimed for fixed deposit made in any scheduled bank, if the minimum period of deposit is —
Zeet Ltd. engaged in manufacturing of cement also had wind mills to generate power. Entire power generated by it was used by its wholly owned subsidiary Zoom Ltd. The amount receiv
The construction of a house was completed on 31 st January, 2016. The owner of the house took a loan of ₹20,00,000 @ 6% p.a. on 1 st May, 2015. In this case the deduction allowable
Under the head 'profits and gains of business or profession', the method of accounting that should be followed by an assessee is —
Madhu Ltd. owns machinery (rate of depreciation is 15%), the written down value of which as on 1 st April, 2015 is ₹30,00,000. Due to fire, entire assets in the block were destroye
Murali is employed in Megha Ltd., Delhi. He is paid house rent allowance of ₹9,000 per month in financial year 2015-16. His salary for the purpose of computation of house rent allo
Satish is employed as chief engineer in Gama Ltd., Chennai w.e.f. 1 st April, 2015 for a consolidated salary of ₹60,000 per month. He is provided with rent-free unfurnished accommo
Ashwin has speculation business loss brought forward of the assessment years 2010-11 ₹1,00,000; 2011-12 ₹70,000 and 2012-13 ₹60,000. He has income from the same speculation busines
DP & Co. is a partnership firm with 3 partners. The capital of each partner was ₹2 lakh. The partnership deed authorised interest on capital @ 15% and working partner salary to
In case of which of the following co-operative society, the deduction under section 80P is restricted to ₹1,00,000 —
Metro Ltd., a domestic company, is assessed with a total income of ₹11.25 crore. The surcharge payable by the company shall be at the rate of— (A) 2% (B) 5% (C) 10% (D) 12%.
A non-resident Indian is not required to furnish his return of income under section 139(1) if his total income in respect of which he is assessable under the Income-tax Act, 1961 d
While making payment of winnings from horse race, tax will be deducted at source, if the payment exceeds— (A) ₹5,000 (B) ₹10,000 (C) ₹25,000 (D) ₹50,000
The authority for advance ruling in income-tax is appointed by— (A) The President of India (B) The Central Board of Direct Taxes (C) The Central Government (D) The Chief Commission
Interest is payable to assessee on refund under the Income-tax Act, 1961 at the rate of— (A) 5% per annum (B) 6% per annum (C) 9% per annum (D) 12% per annum.
Manoj acquired 1,000 equity shares of ₹10 each in a listed company for ₹35,000 on 1 st July, 2009. The company issued 1,000 rights shares in April, 2011 at ₹15 per share. The compa
Dr. Ashok commenced medical practice on 1 st September, 2015. The previous year for the profession for the assessment year 2016-17 would be— (A) 1 st April, 2015 to 31 st March, 20
Pradip acquired an urban land from Chitra for ₹70 lakh on 10 th October, 2015. At what rate, tax is deductible at source in respect of such transaction— (A) 2% (B) 5% (C) 1% (D) 3%
The validity period of advance pricing agreement (APA) is— (A) 2 Years (B) 3 Years (C) 5 Years (D) 7 Years.
Salary received by a partner from his partnership firm is considered in his personal assessment as— (A) Income from salary (B) Profit from business or profession (C) Income from ot
Deduction of tax from salary as per section 192 shall be at— (A) 10% of salary (B) The average rate of income-tax computed on the basis of rates in force for the financial year in
Rohan won a State Government lottery of ₹1,00,000 on 11 th October, 2015. The government should deduct tax on such winning amounting to— (A) ₹30,000 (B) ₹33,000 (C) ₹33,990 (D) ₹30
Where a non-resident/foreign company is liable to tax at special rate of 10% on account of royalty or fee for technical services, such assessee shall— (A) Be eligible for deduction
As per section 139(1), an individual other than an individual of the age of 60 years or more shall have to file return of income if— (A) His total income exceeds ₹2,50,000 (B) His
The due date of filing the return of income for assessment year 2016-17 in case of a working partner of a firm whose accounts are liable to be audited shall be— (A) 31 st July of t
For the previous year 2014-15, an assessee suffered a business loss of ₹2,50,000. His income from other sources is ₹1,80,000. His due date of return was 31 st July, 2015 but he sub
The notice under section 143(2) must be served within— (A) 12 months from the date of filing of return (B) 12 months from the due date of filing the return under section 139(1) or
When a person suffers from severe disability, the quantum of deduction allowable under section 80U is— (A) ₹50,000 (B) ₹75,000 (C) ₹1,25,000 (D) ₹1,00,000
Biren discontinued wholesale trade in medicines from 1 st July, 2013. He recovered ₹1,50,000 in October, 2015 being a bad debt which was written-off and allowed in assessment year
Mrs. Meena retired from service with Sky Ltd. on 31 st January, 2016. She received the following amounts from unrecognised provident fund: (i) Own contribution ₹1,50,000; (ii) Inte
Service tax in India is administered by— (A) The Service Tax Act, 1994 (B) The Finance Act, 1994 (C) The Indirect Taxes Act, 1994 (D) All of the above.
Service tax return has to be filed— (A) Monthly (B) Quarterly (C) Half-yearly (D) Annually.
Rockey Ltd. provides the following information : Date of completion of service : 11 th September, 2015 Date of invoice : 25 th October, 2015 Date of receipt of payment for service
An Indian company is providing inspection and certification service to a foreign firm. Half of the services were carried out in Italy, 30% of the services provided in Delhi and the
Maru Parcel Services Ltd. transported goods manufactured by Rocket Ltd. in its factory in Noida to various places in Uttar Pradesh. The parcel service company received ₹2,00,000 fr
Service tax code number— (A) Has 10 digits (B) Has 12 digits (C) Has 15 digits (D) Digits vary from State to State.
According to the new partial reverse charge mechanism, the liability to pay service tax is on— (A) The service provider (B) The service receiver (C) Both the service provider and r
From 1 st October, 2014, e-payment of service tax through internet banking is compulsory in case of— (A) Individuals (B) Firms (C) Companies (D) All assessees.
Hari Ltd., a service provider, provides the following particulars relating to the half year ended with 30 th September, 2015: (i) Bill raised for ₹4,00,000 out of which payment of
Maximum amount of penalty for delay in filing service tax return is— (A) ₹1,000 (B) ₹5,000 (C) ₹10,000 (D) ₹20,000
Time-limit for filing refund claim in service tax shall be— (A) One month from the date of payment (B) Three months from the date of payment (C) Six months from the date of payment
Which of the following is not a service specified in the Mega Exemption Notification of service tax— (A) Services provided to UNO (B) Consultancy service (C) Health care service (D
The gross receipts of a service provider exceeded ₹9 lakh on 25 th January, 2016. Within how many days, he must apply for registration under service tax— (A) 10 Days (B) 30 Days (C
Which of the following service is a taxable service— (A) Supply of farm labour (B) Trading of goods (C) Construction of a complex (D) Renting of agro machinery.
Deep Ltd. collected service tax from the recipients of service but did not remit the same for more than 7 months. The maximum penalty that could be levied on the director, manager
When the service provided is inclusive of service tax, the service tax liability on the receipt of ₹5,50,000 would be (assume service tax @ 14%)— (A) ₹67,980 (B) ₹67,544 (C) ₹77,57
Reverse charge basis to pay service tax will arise in which of the following cases— (A) When the service receiver is located in non-taxable territory (B) When the service receiver
Within how many days, a new dealer having reached turnover above the threshold limit must apply for VAT registration— (A) 10 Days (B) 30 Days (C) 15 Days (D) 60 Days.
A registered dealer exported goods outside India. He paid ₹15,000 as VAT on raw materials used in manufacture of goods exported. The VAT so paid is— (A) Not eligible for refund (B)
VAT on which of the following goods is not eligible for input tax credit— (A) Sugar (B) Textiles (C) Tobacco (D) Aviation turbine fuel.
Manohar & Co. paid input VAT at 13.5% on raw materials. It transferred the manufactured goods to its branch in Andhra Pradesh. How much claim of VAT input is allowed— (A) Nil (B) 1
Reverse credit of input tax of VAT would arise when— (A) VAT is refunded (B) Input VAT is adjusted against output VAT (C) Input tax credit is reduced to rectify wrong credit availe
Prakash purchased yarn liable for VAT at 4% and manufactured cloth which was exempt from VAT in the State of Tamil Nadu. He wants to claim refund of VAT paid on input, i.e., yarn.
Which method of VAT computation has been adopted in India— (A) Subtraction method (B) Addition method (C) Tax credit method (D) Income variant.
While determining 'turnover' under the central sales tax, what is the time-limit within which the sold goods returned are eligible for exclusion— (A) One month (B) Six months (C) T
'Sale price' under section 2(h) of the Central Sales Tax Act, 1956 does not include— (A) Excise duty (B) Central sales tax (C) Trade discount (D) Freight charges when not shown sep
Input tax credit under VAT shall be allowed to— (A) Registered dealers (B) Manufacturers (C) Traders (D) All of the above.
Which of the following purchase is not eligible for input tax credit— (A) Purchase for resale within the State (B) Purchase for being used in the execution of works contract (C) In
TIN, a code number used to identify VAT assessee, has 11 digits. The first two digits of TIN represent— (A) The State (B) The Product (C) The Region (D) The Assessee.
Which of the following is not a 'declared good' under the central sales tax— (A) Cotton (B) Jute (C) Sugar (D) Jewellery.

How to Prepare for CS Executive Tax Laws and Practice

Use past questions to practise the paper format and review available answers. Check the current syllabus, applicable law and examination duration before attempting a timed paper.