Sl No Ans

1 d
2 c
3 d
4 a
5 c
6 d
7 c
8 d
9 d
10 c
11 c
12 c
13 a
14 d
15 c
16 d
17 c
18 b
19 a
20 a
21 a
22 b
23 a
24 b
25 c
26 d
27 c
28 d
29 b
30 c
31 a
32 c
33 b
34 c
35 b
36 c
37 b
38 b
39 a
40 c

41 R
42 E
43 F
44 E
45 R
46
47 T
48 O
49
50 S
51 H
52 E
53 E
54 T
55 S
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
 41) Mrs. Madhuri received the following amounts during the financial year 2011-12.

Amount (in Rs)

Gross Salary 530000
Family Pension 120000
Income of Minor child (not due to special
talent) 49000
Gratuity Received after her husband passing
away 100000

Compute the tax payable by her for the AY 2012-13.

a) 67,500 b) 69,530 c) 90,500 d) None of the above
COMPUTATION OF TAX LIABILITY FOR FY 2014-15
Gross salary 530000

Family Pension 120000

Less: allowed deduction(lower of 15000 or 1/3rd) 15000
105000 105000

Income of minor Child 49000

Less: exemption 1500
47500 47500

Gratuity is exempt (on conditions) upto 10 lakhs 0

Taxable Income 682500

2.

530000
120000

49000

100000

0 200000 0% 0
200001 500000 10% 30000
500001 682500 20% 36500
66500
Add Cess 1995
68495
68500
Ans: D
42) Pramod redeemed 5,000 units of a debt oriented Mutual Fund on 31/07/2010 @ Rs. 43 per unit.
These units were purchased by him on 1/9/2006 @ Rs. 10. Compute the capital gains payable. Cost
of inflation index. 2005-2006 : 497,2006-2007 : 519, 2010-2011 – 711
a) 16,500
b) 29,390
c) NIL.
d) None of the above

31-Jul-10 Sale Consideration 215000

1-Sep-06 CoA 50000
I CoA 68497
LTCG 146503
LTCG Tax with indexation 29388.48 29390
LTCG Tax without indexation 16549.5 16550

Ans: a
Rs. 43 per unit.
payable. Cost
43) R purchased 200 shares on 1 April 1978 for Rs 80 each. He was allotted 200 right shares on 1 st
May 1979 for Rs 100 each. He was further allotted 400 bonus shares on 1 st May 1980. On 4th May
1990 he was further allotted 800 right shares for Rs 160 each. Again on 7 th August 1996 , he was
allotted 800 bonus shares. The fair market value of these shares as on 1 st April 1981 was Rs 120
each. All the above shares were sold by R on 16 th October 2010 for Rs 1000 per share not though a
recogonised stock exchange. What is the capital gain, if CII for 90-91 is 182 and that of 2010-11 is
711.
a) Nil
b) Incomplete information
c) 1217396
d) none of the above
CII
1-Apr-81 Fair market value of 800 shares 96000 100
4-May-90 Purchase of 800 right shares 128000 182
7-Aug-96 800 Bonus shares 0
16-Oct-10 Sale Consideration 2400000 711

I CoA of First 800 Shares 682560

Sale Cons. of First 800 Shares 800000
LTCG from First 800 Shares 117440

I CoA of Second 800 Right Shares 500044

Sale Cons. Of Right shares 800000
LTCG from Right shares 299956

I CoA of Bonus Shares 0

Sale Cons. Of Bonus Shares 800000
LTCG from Bonus Shares 800000

Total LTCG 1217396

Ans: c
ht shares on 1 st
0. On 4th May
1996 , he was
81 was Rs 120
e not though a
t of 2010-11 is
44) Mr. A resident of India , aged 68 years earned an agriculture income of Rs 5 Lacs during the
previous year. If he has a non agriculture income of Rs 3.3 Lacs , compute his tax liability.
a) 21,630 b) 21,000 c) 19,100 d) None of the above
AY 14-15
Total income 830000 a) 91000
0 to 2.5 lacs 0% 0 b)75000
2.5 to 5 lacs 10% 25000 c)16160
above 5 lac 20% 66000
Total 91000 (A)

Agri Income + Basic Exemption 750000

0 to 2.5 lacs 0% 0
2.5 to 5 lacs 10% 25000
above 5 lac 20% 50000
Total 75000 (B)

(A) - (B) 16000

Add cess 164.8
Total 16164.8

Tax to be paid 16160

Ans: c
45) PQR and Associates is a partnership firm of chartered accountants, which satisfies all the
conditions of sec. 184 amd 40(b). For the FY 2011-12, the book profit of the firm is computed to be
Rs. 6,00,000/-. Based on this information, determine the maximum permissible remuneration to the
partners.
a) Rs. 4,50,000/-
b) Rs. 5,40,000/-
c) Rs. 60,000/-
d) Rs. 90,000/-

90% for first 3 lakhs 270000

60% on Balance 180000
Total 450000

Ans: a
 fies all the
mputed to be
ation to the
46) Rahul had submitted return of his income to the extent of Rs. 11.50 lakh for the AY 2012-13.
The Assessing Officer has found concealment of income of Rs. 1.50 lakh in the return
submitted. What is the approximate amount of minimum & maximum penalty applicable u/s
271(1)(c) of the Income Tax Act, if he fails to convince the Assessing Officer? (Ignore surcharge
and cess in calculations)

a) Minimum penalty Rs. 1,50,000 and maximum penalty Rs. 3,00,000

b) Minimum penalty Rs. 45,000 and maximum penalty Rs. 1,35,000
c) Minimum penalty Rs. 30,000 and maximum penalty Rs. 90,000
d) Minimum penalty Rs. 45,000 and maximum penalty Rs. 90,000

Ans: b
 2012-13.
eturn
ble u/s
urcharge
47) A father purchased a residential house for Rs. 5 lakh on 6 th September 1985. He expired in 21 st
March 2005 and his son inherited the property. On this date, the fair market value of the property
was Rs.20 lakh. The son sold the inherited property on 25 th June, 2010 for a net consideration of
Rs.28 lakh. Determine the year from which the son gets the benefit of indexation, if at all, for
calculation of capital gains.
A) 1985-86
B) 2004-05
C) 2005-06
D) Indexation will not be applicable

Ans: a
pired in 21 st
he property
ideration of
f at all, for
48) Mrs. D wins a motor car in a lucky draw held by G Ltd. The market price of the car is Rs 3
Lacs. Before giving the car to D, what is the amount of tax that Mrs. D has to pay.
a) Nil as it’s a prize b) Rs 5000 (flat irrespective of the value of the prize) c) Rs 10,000 irrespective
of the value of the prize d) Rs 90,000

Ans: d

90000
 car is Rs 3

rrespective
49) Recently in an unfortunate event, one of Prasoon's brother died in a road accident. He was a
bachelor and he died intestate. Prason's parents were living with his deceased brother. Apart from
Prasoon ther are three other siblings of the deceased. Prasoon wants to know the applicable order of
priority as per Hindu Succession Act for the disposition of his deceased brother's property.
a) Both parents will get the priority over all siblings of Prasoon including Prasoon himself.
b) All siblings of Prasoon will get the priority over their parents.
c) Prasoon's mother will get priority over her husband and sons.
d) All of them will have equal right over the property of the deceased.

c
t. He was a
Apart from
ble order of
y.
lf.
50) On 1st November 2011, Mr. Kapil, a professional cricketer, got an award of Rs. 40000 from his
sports club for his fine performance during the season. His other taxable income is above Rs. 4
lakh. How much amount of the award would be taxable in Kapil's hands?
a) Rs. 15000
b) Rs. 35000
c) Rs. 40000
d) Nil

Ans: c
 00 from his
above Rs. 4
51) If you invest Rs 5000 per month in the beginning of each month in an equity mutual fund that
gives you 15% pa returns. How much will be the amount after 10 years?
a) Rs 13,15,091 b) Rs 12,99,864 c) Rs 13,76,085 d)Rs 13,93,287
Rate 14.06% APR
FV 1,315,091

Ans: a
ual fund that
52) Mr. X lives in Delhi and is entitled to a basic salary of Rs 50,000 per month and a dearness
allowance of Rs 10,000 per month. 40% of this DA forms a part of the retirement benefits. He is
also entitled to an HRA of Rs 20,000 per month. He actually pays a rent of Rs 20,000 pm for the
rent the last year. What is the taxable HRA in the hands of X.?
a) Rs 1,68,000 b) Rs 1,75,200 c) Rs 64,800 d) Rs 1,80,000
Actual HRA Received 240000
50% of basic 324000
Rent paid in excess of 10% o Salary 175200 (Least is exempt)

Taxable 64800

Ans: c
h and a dearness
t benefits. He is
0,000 pm for the
53) Assume Madhu receives Rs. 28000 in cash as personal gift from her employer during the FY
2011-12 on the account of her wedding What are the tax implications of this amount?
a) Gifts are taxable only if they are received in kind.
b) The entire amount over and above Rs. 25000 is taxable.
c) The entire amount recieved upto Rs. 50000 is tax free.
d) The entire amount is taxable irrespective of the value as in on the occasion of her wedding.

Ans: d
THE ENTIRE AMT IS TAXFREE IRRESPECTIVE OF THE VALUE AS IN THE OCCASION OF HER WEDDING
ring the FY

ding.

ASION OF HER WEDDING

 54) Mr. G has a house property in Delhi whose details are as follows

Particulars Amount (in Rs)

Municipal Value 300000
Standard Rent 312000
Municipal taxes paid 50000
Interest on home loan (paid last year) 160000

Period of occupation for his own residence (last year) 2 months

Actual Rent received for 10 months 35000pm

Calculate the income from house property for Mr. G.

a) Rs 50,000 b) Rs 60,000 c) Rs 1,20,000 d) Rs 1,30,000
For a house property self occupied for part of year & let out for a
MV 300000 Annual value is determined as if the property is let out.
FV nil
SV 312000
AV 350000

GAV 350000
Less: Mun Taxes 50000
Less: Unrealised Rent 0
NAV 300000
Less: Statutory deduction 90000
Less: Interest on borrowed capital 160000
Income from House property 50000

Ans: a
 300000
312000
50000
160000

pied for part of year & let out for any part of same year,
if the property is let out.
Question no 55 and 56 are based on the given situation Ms Niyati purchased 5000 shares of Ms
BlackRock Ltd, at Rs 200 per share on 5th July 2011. On 4th September 2011, BlackRock Ltd
declares a dividend of Rs 10 per share. Niyati sells all the shares on 5 th November 2011.all the
shares are traded in the recognized stock exchange

55) What will be the income/loss if the shares are sold at a price of 192 per share.?
a) Capital Loss of Rs 40,000 shall not be allowed to be carried forward
b) Capital Loss of Rs 40,000 shall be allowed to be carried forward
c) Capital Gain of Rs 10,000 and no tax to be paid on this
d) Dividend of Rs 50,000 tax free and Short Term loss of Rs 40,000 which will be set of again the
dividend income

56) What will be the income/loss if the shares are sold at a price of Rs 175 per share?
a) Capital Loss of Rs 75,000 shall not be allowed to be carried forward
b) Capital Loss of Rs 75,000 shall be allowed to be carried forward
c) Dividend of Rs 50,000 tax free and Short Term loss of Rs 1,25,000 which cannot be setoff
against the dividend income
d) None of the above

5-Jul-11 Purchase of 5000 shares 1000000

4-Sep-11 Record Date & Dividend declared 50000
5-Nov-11 Sale of shares @ Rs.192/share 960000
5-Nov-11 Sale of shares @ Rs.175/share 875000

55) Ans: d
56) Ans: b
e given situation Ms Niyati purchased 5000 shares of Ms
n 5 th July 2011. On 4th September 2011, BlackRock Ltd
Niyati sells all the shares on 5 th November 2011.all the
exchange

hares are sold at a price of 192 per share.?

allowed to be carried forward
owed to be carried forward
o be paid on this
hort Term loss of Rs 40,000 which will be set of again the

hares are sold at a price of Rs 175 per share?

allowed to be carried forward
owed to be carried forward
Short Term loss of Rs 1,25,000 which cannot be setoff

(Note: Purchase within 3 months prior to record date)

Scenario 1
Scenario 2
57 Mr. Shelar in April 2011 transferred Rs.1,00,000 from his Business Income to his spouse
Bank A/c which was converted in a FD in the name of Mrs Suvarna(spouse) fetching @ 10% p.a.
For A.Y.=2012-13, The I.T. officer clubbed u/s 64, Rs.10,000 (interest for one year) in Mr.
Shelar Income Tax Return and accordingly taxed him Rs. 2,000/- (20% tax bracket) and told Mr.
Shelar to pay the same which Mr. Shelar claimed that since he has turned bankrupt he can’t pay
the same.

a) Yes, the I.T.O is right in his demand and Mr. Shelar will pay the tax u/s 64
b) Yes, the I.T.O is right in his demand but now Mrs. Suvarna will pay the tax u/s 65
c) No, the I.T.O is wrong in his demand since as per sec 65, Mr. Shelar will pay tax as per
the tax bracket of Mrs. Suvarna
d) Since he is bankrupt, he need not pay any tax

Ans: b
use
10% p.a.
r.
told Mr.
n’t pay

r
58) When you are preparing a SoA ( Save our Asset )for a client, you would:
(a) Clarify with the client his/her needs and objectives
(b) Identify any outstanding issues
(c) Do the initial review of the client information
(d) Discuss with the client the respective responsibilities of the client, adviser and any
third parties, for implementing the SoA
Ans: d
any
59) Jay received the following amounts in the FY 2011-12:
1. Gift of Rs. 63,000/- from a friend Veeru.
2. Gift of Rs. 24,000/- from his neighbour Basanti

What is the total taxable amount from the above receipts for Jay?
a) Rs. 63,000/-, as the whole amount received from friend exceeded Rs. 50,000/-.
b) Rs. 13,000/-, as the amount received from friend in excess of Rs. 50,000/-
c) Rs. 37,000/-, as the whole amount in excess of Rs. 50,000/- is taxable.
d) The whole amount of Rs. 87,000/- as the aggregate value of gifts received from one person or
more than one person exceeds Rs. 50,000/-.

Ans: d
person or
60) Anoop’s mother wants to stay with Anoop & Shobha on a permanent basis. Before that,
she wants to settle her estate. She has decided to give her Pune house to Anoop. The current market
value of this house is Rs. 25 lakh. Since Anoop is permanently settled in Ahmedabad and has no
intention of returning to Pune, he wants to dispose of the house at current market value. From tax
planning perspective, what would be the right course of action for Anoop for transaction relating to
this house property?
A) Anoop’s mother should sell this house first and then gift the sale proceed to him.
B) Anoop’s mother should gift this house to Anoop first and then he should sell the house.
C) Anoop’s mother should make a Will Deed in favour of Anoop first and then he should sell the
house.
D) Anoop’s mother should gift this house in the name of Anoop and Shobha equally and then they
should sell the house.

Ans: a
Before that,
rent market
and has no
e. From tax
n relating to

e.
uld sell the

then they
61) Within two years of purchase of his flat, Vaibhav entered into an agreement to sell the same to
Mihir for Rs.8 lakh. Vaibhav had bought the flat for Rs. 5.5 lakh. Mihir pays Vaibhav earnest money
of Rs. 50000 in respect of the transaction with the balance money payable within a month.
However, for some unavoidable reason, Mihir could not make the rest of the payment and in terms
of the agreement between the two, Vaibhav forfeited the earnest money paid. Subsequently, within a
month Vaibhav sold the flat to another buyer for Rs.9 lakh . Compute Vaibhav's taxable income
under capital gains.
a)Long term capital gains of Rs. 4 lakh
b) Short term capital gains of Rs. 4 lakh
c)Short term capital gains of Rs. 4.5 lakh
d)Incomplete Information as Cost Inflation Index is not given

Sale Consideration 900000 (A)

Purchase price - forfieted advance 500000 (B)
STCG 400000 (A) - (B)

Ans: b
62) Sanjay, a resident of Nagpur, Recieves Rs. 78,000 as basic salary during FY 2011-12. He stays
with his parents upto August 31, 2010 (for which he does not pay any rent) and thereafter in an
accomodation taken on monthly rent of Rs.3000. His employer pays Rs. 700 per month as house
rent allowance throughout the previous year. Determine the taxable portion of House Rent
Allowance for Sanjay.
a) Rs. 4900
b) Nil
c) Rs. 8400
d) Rs. 3500
Annual Monthly
1) Actual HRA Received 8400 700
2) 40% of basic 31200 2600
3) Rent paid in excess of 10% of salary 16450 2350

Least is exempt
Ans: b
11-12. He stays
hereafter in an
month as house
f House Rent
63) Shashi wants to purchase a car which is costing Rs. 8,50,000. Reviewing her budget she
determines she can afford to pay Rs.15000 per month for three years towards the car. The going rate
of interest is 1% per month for 3 years. How much can she afford to borrow (approx).?
a) Rs.4,51,000
b) Rs.4,56,000
c) Rs.8,50,000
d) None of the above

PV $456,128.70
Ans: b
64) Mrs. Shah retired from Ace Manufacturing Co.Ltd. Mumbai on 31/12/2011. Ace is covered
under the Payment of Gratuity Act, 1972. She served for 30 years and 9 months. Ace paid her a
Gratuity of Rs.400000. Her monthly basic salary at the time of retirement was Rs.9000 p.m.and
Dearness Allowance was Rs.4000 p.m. House Rent Allowance was Rs.1500 p.m. Mrs.Shah lives in
an ownership flat. Compute, the taxable amount of Gratuity
a) Gratuity: Rs. 160000
b) Gratuity: Rs. 157500
c) Gratuity: Rs. 170000
d) Gratuity: Rs. 167500

1) 1000000
2) Actual Gratuity received 400000
3) 15/26 * Last drawn Salary * Years of service 232500
(Yrs of Service rounded off in excess of 6 months)
(Salary = basic + Full DA)
Least is exempt
Taxable 167500
Ans: d
s covered
paid her a
0 p.m.and
.Shah lives in
65) On May 10, 2010, X purchases 1000 equity shares of Rs.10 each in A Ltd. @ Rs. 55.55. On
October 20, 2011, he sells 800 equity shares @ Rs. 37 per share and remaining 200 Shares are sold
on December 20, 2011 @ Rs. 20 per share.A Ltd. Declares 50 percent dividend (record date:August
3,2011). During the previous year 2011-12, he has generated long term capital gain of Rs. 76,000 on
sale of gold. His LTCG for AY 2012-13 is....................
a) Rs.73,890
b) Rs.63,090
c) Rs.58,050
d) None of the abov
CII
10-May-10 CoA of 1000 Shares 55550 711
3-Aug-11 Record date(Dividend declared) 5000
20-Oct-11 Sale of 800 Shares 29600 (Within 3 months of record date. So STCL if any will be ignored upto
20-Dec-11 Sale of 200 Shares 4000 785
LTCG from sale of gold 76000

10-May-10 CoA of 800 Shares 44440

I CoA 49065.26
20-Oct-11 Sale of 800 Shares 29600
LTCL -19465.26

10-May-10 CoA of 200 Shares 11110

I CoA 12266.32
20-Dec-11 Sale of 200 Shares 4000
LTCL -8266.315

Total LTCL from sale of Shares -27731.58

LTCL for the year 48268.42

Ans: d
55. On
es are sold
ate:August
. 76,000 on

L if any will be ignored upto 5000)

66) Rohit, working in the MNC, earns a Basic Salary of Rs. 24,000/- per month. He also gets a
dearness allowance of Rs. 2000/- per month, 60% of which forms part of salary for retirement
benefits. He has been provided with a rent free accomodation in New Delhi by his employer for
which the employer pays a rent of Rs. 5,000/- per month to the landlord. Calculate the perquisite
value of the rent free accommodation for the FY 2011-12.
a) Rs.31,200
b) Rs.59,520
c) Rs.45,360
d) Rs.60,480

Lower of 15% of salary or rent paid by employer.

Salary = Basic + DA for Retirement Benefits

15% of Salary 3780

Rent paid by employer 5000
Perquisite Value 45360
Ans: c
 67) Dr. VijayDinanath Chauhan’s Mutual Fund Investments consist of four different funds.
Performances of these funds are as follows.
Mutual Fund Fund Return of 5 years Beta

A 18% pa 1.25

B 14% pa 0.85

C 16% pa 1.02

D 17% pa 1.20

If the Risk free rate of return is 4% pa and the return of Equity is 15% pa and Inflation is 6% per

year . How would you rank these funds from best to worse on the basis of Jensen’s Alpha a)A, D, C

and B b) A,B, C and D c) C, B, A and D . d) D, A, B and C.

Jensen's Alpha = RP-RF-B*(RM-RF)

Fund return (RP)

Market return (RM)
Risk-free return (RF)
Portfolio Beta (B)

Ans: c
different funds.

MF RP B RF RM Jensen's Alpha
A 18% 1.25 4% 15% 0.0025
B 14% 0.85 4% 15% 0.0065
C 16% 1.02 4% 15% 0.0078
D 17% 1.2 4% 15% -0.002

A positive value for Jensen's alpha means a fund manager has beat the market.

lation is 6% per

Alpha a)A, D, C
68) Urvasi purchase 1000 listed equity shares of Rs 10 each at Rs 115 on 5 th April 1998 and paid Rs
2000 as brokerage. On 3rd March 2003, you were given a bonus of 1 share for every two shares
held. On 24th February 2011 , you are given rights to buy additional 1000 right shares at Rs 60 per
share. You acquired 50% of the rights and sold the balance rights for a sum of Rs 60,000 on 3 rd
April 2011. You sell all the shares through a recognized stock exchange on 24 th March 2012 at Rs
280 per share. If you other income for the year is Rs 1,85,000 what is the total tax payable by you
for the AY 2012-13.
a) Rs 7800 b) Rs 8030 c) Rs 5665 d) none of these

1: Sale of Originally Purchased Shar CII

5-Apr-98 COA of Original purchase 117000 351
24-Mar-12 Sale Consideration 280000 785
Indexed COA 261667
LTCG 18333
LTCG Tax nil
2: Sale of Bonus Shares
3-Mar-03 COA of 500 Bonus shares 0
24-Mar-12 Sale Consideration 140000
LTCG 140000
LTCG Tax nil
3: Transfer of rights on 'Right Shares
24-Feb-11 COA 0
3-Apr-11 Sale Price of 500 shares 60000
STCG 60000
4: Sale of 'Right Shares'
24-Feb-11 COA of 500 shares 30000 711
24-Mar-12 Sale Consideration 140000 785
Indexed COA 33122.36
LTCG 106877.6
LTCG Tax nil

Income 5665
Ans: c
1998 and paid Rs
very two shares
ares at Rs 60 per
Rs 60,000 on 3 rd
March 2012 at Rs
x payable by you
69) A retired from service on 1st November 2011 after serving for 18 years and 9 months. At the
time of retirement he was entitled for the following remuneration
Salary : Rs 25,000 per month
Dearness Allowance : 20% of salary (60% forms a part of retirement benefits)
He was entitled a pension of Rs 12,500 per month w.e.f 1 st Nov 2010, from 1 st Jan 2011 , he got
60% of his pension commuted and received a sum of Rs 7,50,000 as a commuted pension. What is
the taxable pension that will be added to income of Mr. A.
a) Rs 7,50,000 b) Rs 4,16,667 c) Rs 3,33,333 d) Rs 3,73,333
Note: He has received gratuity. Find the Taxable Commuted pension.

Pension for Nov & Dec 25000

Pension for Jan, Feb, March 15000
40000

Non taxable commuted pension 416667

Taxable commuted pension 333333

Ans: c
 9 months. At the

Jan 2011 , he got

d pension. What is
70) Sh. Singham sold gold ornaments on 16 th July 2010 for a sum of Rs 10 Lacs. This was
purchased in 1978 for Rs 60,000 by his father. The fair market value of gold as on 1 st April 2010
was Rs 1,00,000. His father gifted the gold to Mr. Singham on 14th July 2010. Mr. Singham spent
Rs 2 Lacs till 31 st July 2011 (the due date of filing returns) on the construction of house property
and deposited Rs 5 lacs under CGAS by 31 st July 2011.What is the taxable LTCG applicable to Mr.
Singham in this case, given that CII for 10-11 is 711 and that of 81-82 is 100.
a) Rs 4,31,200 as Long Term Capital Gains b) Rs 2,89,000 as Long Term Capital Gain c) Rs
2,70,000 as Long Term Capital Gain d) No capital gain
CII
16-Jul-10 Sale Consideration 1000000 711
1-Apr-81 Fair Mkt Value 100000 100
14-Jul-10 Date of gifting. 711
Indexed CoA 100000
Capital Gain 900000

Exemption for house construction 180000 (Capital Gains * amount spent for new Residential house / amou
Exemption for CGAS Deposit 500000
680000

Taxable Capital Gain 220000

OPTION C
 Lacs. This was
n 1 st April 2010
. Singham spent
f house property
pplicable to Mr.

ain c) Rs

for new Residential house / amount of Net Consideration)

71) Calculate the maximum amount of remuneration that can be paid to the partners in firm
Dabangg Corporation, if the following details are given
Partners Chubul Pandey and Bulbul Pandey have deployed equal capital and the firm has a book
profit of Rs 5 Lacs. Interest @ 24% is Rs 48,000 given to both partners but together.
a) Rs 3,90,000 b) Rs 4,04,400 c) Rs 2,84,400 d) None of the above

90% of first 3 lakhs book profit 270000

60% of balance 2 lakhs book profit 134400
404400

Ans: b
Net Profit
72) Devnarayan earned following monthly salary for the FY 2011-12:
1. Basic Salary Rs. 50,200
2. D. A (forming part of Salary) 50% of basic salary
3. City Compensatory Allowance Rs. 600
4. Children Education Allowance Rs. 300 per child
5. Transport allowance Rs. 1,200
6. Bonus Rs. 80,000

Compute the taxable value of Rent Free Accommodation for FY 2011-12 provided to Devnarayan
assuming the population of Dehradun city is less than 10 lakh (as per 2001 Census). Also assume
the accommodation is owned by Devnarayan's employer.

a) Rs. 1,00,040
b) Rs. 75,030
c) Rs. 69,030
d) None of the above

Perquisite value of unfurnished house provided by employer in an area below 10 lakhs population is 7.5% of salary.
salry includes basic, Bonus, DA for retirement benefits & taxable part of allowances.
Salary
Monthly Annual
Basic 50200 602400
Bonus 80000
DA 25100 301200
City comp Allow 600 7200
Children Edu Allow 400 4800
Transport Allow 400 4800
Taxable value 1000400
Tax (7.5% of taxable value) 75030

Ans: a
 Note:
Bonus amount is Annual
Devanarayanan has two children.
DA forming part of retirement benefits

Devnarayan
lso assume

ion is 7.5% of salary.

73) Vardhanman Limited’s earnings and dividends have been growing at the rate of 18% per annum.

This growth rate is expected to continue for 4 years. After that the growth rate will fall to 12% for

the next 4 years. Thereafter the growth rate is expected to be 6% forever. If the last dividend per

share was Rs 2 and the investors required rate of return is 15%. What is the intrinsic value of the

share?

a) 40.32 b) 23.49 c) 71.84 d) 16.83

on cash i 15
D0 2.00 1 d1 0
D1 2.36 2.36 2 d2 2.36
D2 2.78 2.78 3 d3 2.78
D3 3.29 3.29 4 d4 3.29
D4 3.88 3.88 5 d5 3.88
D5 4.34 4.34 6 d6 4.34
D6 4.86 4.86 7 d7 4.86
D7 5.45 5.45 8 d8 5.45
D8 6.10 71.86104 77.96 9 d9 77.96
esc solve npv 40.33
$40.33
Ans: a
per annum.

to 12% for

ividend per

value of the
74) You sold a residential house on 28th June 2010 for Rs 14 Lacs. You had purchased this house on
1st October 1985 for Rs 1,20,000 and have spent Rs 70,000 on improvement of the house during the
year 1986-87.You purchase another house on 21 st October 2010 for Rs 3,50,000. What is the capital
gains chargeable to tax in this case, given that CII 84-85 is 125, 85-86 is 133, 86-87 is 140 and 10-
11 is 711.
a) Rs 4,02,996 b) Rs 3,50,000 c) Rs 52,996 d) None of the above
CII
28-Jun-10 Sale Consideration 1400000 (A) 711

1-Oct-85 CoA 120000 133

Indexed CoA 641504 (B)
86-87 CoI 70000 140
Indexed CoI 355500 (C')

21-Oct-10 Cost of new house 350000

LTCG 402996 A-(B+C)

CG chargeable to Tax 52996

Ans: c
75) Mr. Rajni has a total income of Rs 2,85,000(this includes LTCG (post indexation) of Rs 40,000
and STCG of Rs 20,000). He contributes Rs 15,000 towards his provident fund and pays a
mediclaim premium of Rs 2000 for himself through cheque and Rs 3000 for his son who is
dependent on him through cash. He also contributes Rs 35,900 towards investment in ELSS. What
is the total tax payable by Mr. Rajni for the AY 12-13
a) Rs 11,550 b) Rs 7420 c) Rs 11,240 d) None of the above
FOR AY 2014-15
Total Income 285000
Less:
LTCG 40000
20000 60000
TAXABLE OTHER INCOME 225000 285000-(40000+20000)
PF 15000
Mediclaim 2000 (Premium should be paid by any mode other than cash)
ELSS 35900

Income chargable to tax 172100

BASIC EXEMPTION LIMIT 200000

LESS: OTHER INCOME 172100
BASIC EXPTION LIMIT AVAILABLE FOR SHORT TERM CAPITAL GAIN 27900
LESS: BAL EXEMPTION LIMIT AMT FROM STCG 20000
TAXABLE STCG NIL

TAX ON LTCG= 40000*20% 40000 20% 8000

ADD: EDUCATION CESS 8000 3% 240
TOTAL TAX LIABILITY 8240
Ans: d
of Rs 40,000
and pays a
son who is
ELSS. What