CBES Board Class 11/CS Executive Tax Laws MCQs Set-3 Sample Test,Sample questions

A borrowed ₹ 5,00,000 @ 1296 p.a. on 1.4.2016 for construction of house property which was completed on 15.3.2020. The amount is still unpaid. The deduction of interest for previous year 2020-2021 shall be:

A Central Government Officer received during the year 2020-21 salary excluding all allowances of ₹ 9,00,000 and amount of entertainment allowance of ₹ 12,000 @ ₹ 1,000 p.m. The maximum amount of entertainment allowance so received by him being exempt under section 16(h) of the Act is

A person carrying a specified profession will have to maintain books of account prescribed by Rule 6F of the Income-tax Rules, 1962 if gross receipts are more than ₹ 1,50,000 for

A person carrying on profession will have to get his accounts audited before the specified date if gross receipts from the profession for a previous year or years relevant to the assessment year exceed

An assessee is not eligible to claim any relief under section 89 of Income-tax Act, 1961, when he is in receipt of income as arrears or in advance during the previous year from his employer:

Anuj owns 6 goods carriage vehicles {other than heavy goods vehicle) out of which 2 goods vehicles are acquired by him on 15th January 2021. His taxable income u/s 44AE will be

‘Notional Profit’ from speculative business is

Composite rent of let-out house property is taxable as:

During the previous year, the employee was reimbursed ₹ 24,000 as medical expenses incurred by him which includes ₹ 7,000 spent in a Government hospital. The taxable prerequisite, in this case, shall be:

Employer’s contribution to Recognized Provident Fund (RPF) in excess of 12% of salary income of an employee shall be treated as:

Find out from the following income derived from house property which is being exempt from Income Tax:

House owned by Suresh was sold on 1st January 2021 and till the date of sale, the house was on rent of ₹ 7,000 p.m. The other relevant details of this house are (i) municipal value ₹ 72,000 p.a. (ii) fair rent ₹ 66,000 p.a. and standard rent ₹ 60,000 p.a. The income chargeable under the head House Property in A.Y. 2021-22 of this house shall be:

In the case of companies, capital expenditure incurred for the purpose of promoting family planning amongst the employees would be deductible to the extent

Interest credited to the statutory provident fund shall be:

John, who recently retired from service of a company on 31st March 2021 is eligible for a monthly pension of ₹ 20,000. He has received gratuity on his retirement also. He wants to commute 50% of his pension for ₹ 6.00 lakh. How much amount of this commuted pension shall be subject to tax in AY 2021-2022?

Mohan retired from Y & Company Ltd. on 31.8.2020 after rendering services for 31 years and 7 months. He was paid ₹ 11 lakh as gratuity under the Payment of Gratuity Act, 1972. His last drawn salary was ₹ 52,000. How much of the amount of gratuity would be exempt?

Mr. Ahmed acquired a property in April 2020 for self-residential use. The loan interest payable to the State Bank of India for the financial year 2020-21 amounts to ₹ 2,10,000. The amount eligible for deduction under section 24 is:

Mr. Amit employed in X Co. Ltd. received ₹ 10,000 per month as house rent allowance in the year 2020-21. His total salary is ₹ 4 lakhs consisting of Basic Pay + DA. He paid rent of ₹ 8,000 per month. How much of HRA is exempt from tax?

Mr. Bala transferred his left out a residential property to his wife by way of gift settlement. During the financial year 2020-21, she earned a rental income of ₹ 30,000 per month. She made a fixed deposit in a bank out of such rental income and earned interest income during the year of ₹ 21,000. The total amount of income liable for clubbing in the hands of Mr. Bala for the assessment year 2020-21 is:

Mr. Balan is employed in SS Ltd at Madurai. He is provided with rent-free accommodation owned by the employer. The percentage of salary to be adopted for the purpose of valuation of perquisite would be:

Mr. Bobby employed in QPR Ltd. was permitted to admit his only son to the school run by the employer. No fee was charged on such education provided to the son of Mr. Bobby. The cost of such education for other children is ₹ 1,800 per month. The perquisite value of free education in the hands of Mr. Bobby would be:

Mr. Murthy is employed in, ABC Management Institute, Pune. He is eligible for ₹ 24,000 as an allowance for the year towards academic and research work. The amount of academic and research allowance chargeable to tax is:

Mr. Vijay employed in ABC Ltd opted for voluntary retirement and received ₹ 22 lakh by way of gratuity.
The Payment of Gratuity Act, 1972 is applicable in his case. The monetary limit for exemption under Section 10(10) is:

Mr. Zen owns a flat in Mumbai which was let out by him in the previous year 2020-2021 on rent of ₹ 20,000 p.m. up to December 2020 and for ₹ 30,000 p.m. Thereafter, the annual municipal value is ₹ 3,00,000, Fair Rent is ₹ 2,50,000 and Standard Rent is ₹ 2,90,000. The Gross Annual Value of the flat shall be taken as:

Ms. Padmaja let out a property for ₹ 20,000 per month during the year 2020-21. The municipal tax on the let-out property was enhanced retrospectively. Hence, she paid * 60,000 as municipal tax which included arrears of municipal tax of ₹ 45,000. Her income from house property is:

Narendra engaged in retail trade let out his fully furnished house with lift, air conditioners, fridge, security staff, and gardener at a rent of ₹ 1,00,000 per month. The agreement did not provide for separate rent for various facilities but is a composite agreement. The amount received by him would be chargeable to tax under the head:

Pawan, employed in Magic Ltd., was eligible for a transport allowance of ₹ 2,000 per month to meet his travel expenses from residence to office. He actually incurred ₹ 1,200 per month towards travel. The amount of travel allowance chargeable to tax as perquisite would be:

Ramesh let out his house on 1.4.2020 on rent of ₹ 15,000 p.m. The fair rent and the municipal value of the house are ₹ 13,500 p.m. and ₹ 16,000 p.m. respectively. Municipal taxes paid for the year were ₹ 12,000. Income from house property for the AY 2021-22 will be:

Ravi employed in Cotton India Ltd. as an accounts manager. The employer paid ₹ 1,60,000 as a contribution to the approved superannuation fund to benefit the employee, Ravi. The amount of such contribution liable to tax as perquisite in the hands of Mr. Ravi is:

Rohan, an employee of the State Government received ₹ 1,000 per month as an entertainment allowance during the financial year 2020-21. His salary excluding any allowance, benefit, or other perquisites for the year is ₹ 8,40,000. The amount of entertainment allowance eligible for deduction is:

Rohit owns a house property in Delhi which he wants to give on rent. He seeks your help to determine the reasonable expected rent when monthly municipal value is ₹ 20,000, fair rent ₹ 25,000, and standard rent ₹ 22,000. The reasonable expected rent will be computed with reference to the following amount p.m.

Sajal is the owner of a house property covered under the Rent Control Act. Municipal value ₹ 30,000, actual rent ₹ 25,000, fair rent ₹ 36,000 and standard rent is ₹ 28,000. The gross annual value of the house property will be:

Santhanam purchased in October 2019 with financial assistance by way of a housing loan provided by PNB Housing Finance Ltd. a flat in Chennai to be used exclusively for his own residential purposes. Interest on the housing loan till March 2021 paid by him was ₹ 2,18,780. He wants to know the amount of deduction to be available to him in respect of interest so paid on the housing loan while computing his income or A. Y. 2021-22.

Santhanam purchased in October 2020, a flat in Chennai, to be used for his own residential purposes with the financial assistance of a housing loan taken from PNB Housing Finance Ltd. He has paid interest on such loan till March 2021 of ₹ 1,78,780. The amount of interest paid on such loan allowed u/s 24 is:

Suresh owns two house properties. The first property was used half for running his business and the other half was let out at ₹ 4,000 p.m. The second property was wholly used as a residence by Suresh. Municipal values of the two properties were the same at ₹ 72,000 each p.a. and local taxes @ 1096. Suresh’s income from house property for the PY 2020-21 will be:

The construction of a house was completed on 31st January 2021. The owner of the house took a loan of ₹ 20,00,000 @ 696 p.a. on 1st May 2020 In this case the deduction allowable for the previous year 2020-21 towards interest on borrowings is:

The employee is provided with furniture costing ₹ 1,50,000 along with house w.e./. 1.7.2020. The value of the furniture to be included in the valuation of the unfurnished house shall be:

The maximum amount eligible for exemption in respect of encashment of earned leave on retirement is:

The maximum amount of gratuity exempt and the maximum amount of leave encashment exempt under the Act respectively are:

The municipal value of a property is ₹ 2,10,000. Fair rent is ₹ 1,90,000 standard rent is ₹ 1,80,000 and the actual rent is * 2,40,000. The gross annual value of the property would be –

The rate of depreciation chargeable on temporary wooden structure for the AY 2021-22 is

Total income of Nand Kishore under the head ‘Salary’ for the financial year 2020-21 of whose basic salary and DA per month was of ₹ 40,000 and ₹ 3,000 respectively and who was also paid leave salary of ₹ 6,000 and ₹ 1,000 of professional tax by the employer shall be

What will be the amount of gross salary which shall be required to be declared in the return of income to be filed for the previous year 2020-21 by Harun, who joined services as Manager Accounts on the salary of ₹ 17,000 p.m. in XYZ Ltd. on 1st April 2018 in the grade of 15,000 – 2000 – 19,000 – 3000 – 28,000?

What will be the Gross Annual Value (GAV) of a house owned by Ramesh covered by Rent Control Act remained let out during the year 2020-21 of which;
(i) Municipal value is ₹ 3,50,000
(ii) Actual (De Facto) Rent is ₹ 3,20,000
(iii) Fair Rent is ₹ 3,00,000, and
(iv) Standard Rent is ₹ 3,60,000

When a house property is let out for a monthly rent of ₹ 25,000 during the financial year 2020-21 and maintenance expenses by way of salary to sweeper and watchman is ₹ 6,000
per month, the income from house property would be:

When a house property is let-out throughout the year for a monthly rent of ₹ 22,000 and municipal tax paid for the current year is ₹ 24,000 and for the earlier year paid now is ₹ 16,000, the income from house property would be:

When a share of each co-owner in house property is not definite, the income from such property shall be:

When interest on employee’s own contribution from the unrecognized provident fund is received, it is:

Where the assessee does not himself carry on scientific research but makes contributions to an approved university, college, or institution, to be used for scientific research related or unrelated to the business of the assessee, then the amount of deduction from income of business shall be allowed on such contribution to the extent of

Z an assessee incurs expenditure for acquisition of an asset in respect of which payment (or aggregate of payment made to a person in a day), otherwise than by an account payee cheque/draft or use of ECS through a bank, exceeds, such payment shall not be eligible for claiming the amount of depreciation on such asset.