# CBES Board Class 11-CS Executive Tax Laws MCQs Set/7 Sample Test,Sample questions

1. â‚¹ 1,60,000

2.â‚¹ 60,000

3.â‚¹ 10,000

4. â‚¹ 1,10,000

## Question: A member of Parliament received â‚¹ 1,50,000 per month as salary and â‚¹ 4,50,000 as daily allowances during PY 2020-21. The taxable amount will be

1. Salary â‚¹ 18,00,000

2.Income from profession â‚¹ 22,50,000

3. Income from other sources â‚¹ 18,00,000

4.Nil

## Question: A partnership firm with 4 equal partners brought forward depreciation of â‚¹ 3 lakhs and business loss of â‚¹ 3 lakhs relating to AY 2019-2020. On 1st April 2020, two partners retired. The amount that assessee-firm can set off against its income for the AY 2021-22 would be

1.Unabsorbed depreciation of â‚¹ 3 lakhs plus brought forward business loss of â‚¹ 3 lakhs

2. Unabsorbed depreciation â€˜nilâ€™ plus brought forward business loss of â‚¹ 3 lakhs

3. Unabsorbed depreciation â‚¹ 3 lakhs plus brought forward business loss â€˜nilâ€™.

4.Unabsorbed depreciation â‚¹ 3 lakhs plus brought forward business loss of â‚¹ 1.50 lakhs.

1. â‚¹ 2,60,000

2. â‚¹ 2,40,000

3.â‚¹ 5,00,000

4. Nil

## Question: ABC Pvt. Ltd. has a business loss of â‚¹ 10 lakhs. There is unexplained share application money to the tune of â‚¹ 25 lakhs. The total income of the company will be:

1.15 lakhs

2.35 lakhs

3. 25 lakhs

4. None of the above

1. â‚¹ 15,00,000

2. â‚¹ 30,00,000

3. Nil

4.â‚¹ 40,00,000

## Question: Aiyer gifted 100 shares to his wife on 1st August 2015. She received 200 bonus shares from the company in April 2019. All the shares were sold to a friend for â‚¹ 1,50,000 in May 2020. The 100 shares were originally acquired by Aiyer for â‚¹ 5,000. The capital gain on sale of shares in the month of May 2020 shall be chargeable to tax:

1. Fully in the hands of Aiyer

2. Fully in the hands of Mrs. Aiyer

3.For 100 shares in the hands of Aiyer and balance 200 shares in the hands of Mrs. Aiyer

4. For 200 shares in the hands of Aiyer and balance 100 shares in the hands of Mrs. Aiyer

1. â‚¹ 50,000

2.â‚¹ 1,05,000

3. Nil

4.â‚¹ 55,000

## Question: All income which arises or accrues to the minor child (not suffering from any disability as specified in section 80U) shall be clubbed with the income of parent whose total income excluding the income to be included of the minor not derived from any activity involving application of his skill, talent or specialized knowledge:

1. in the hands of the father only

2.in the hands of a mother only

3.equally in the hands of both mother and father

4. with the income of that parent whose total income is greater before clubbing of such income

1.Nil

2. â‚¹ 1,00,000

3.â‚¹ 70,000

4.â‚¹ 30,000

## Question: Babu Lai won a prize of â‚¹ 1,00,000 in Rajasthan State Lottery and the Lottery Department paid him an amount of â‚¹ 70,000 after deduction of tax at source of 130,000. He had purchased lottery tickets for â‚¹ 8,000. The amount chargeable to tax in the hands of Babu Lai under other sources shall be:

1.â‚¹ 70,000

2. â‚¹ 1,00,000

3. â‚¹ 92,000

4.None of the above

## Question: Baby Meena (age 12) a child artist acted in feature films and earned â‚¹ 3,50,000. The total income of her father is â‚¹ 5,20,000 and her mother is â‚¹ 4,80,000. The minorâ€™s income would be:

1.Chargeable to tax in the hands of father

2.Chargeable to tax in the hands of mother

3. Chargeable to tax in her own hands

4.Fully exempt from tax

## Question: Comfort (Pvt.) Ltd. issued 10,000 equity shares to Pawan at â‚¹ 18 per share when the fair market value of each share was determined at â‚¹ 11 per share. The tax implication of the transaction is

1. â‚¹ 70,000 taxable as income for Comfort (Pvt.) Ltd.

2. â‚¹ 20,000 taxable as income for Pawan

3.â‚¹ 10,000 taxable as income for Pawan

4. Nil

## Question: If a person is eligible to claim: (1) Unabsorbed depreciation (2) Current scientific research expenditure (3) Current depreciation (4) Brought forward business loss The order of priority to set-off would be

1. (4), (3), (2) & (1)

2. (2), (3), (4) & (1)

3. (3), (4), (1) & (2)

4. (1), (2), (3) & (4)

## Question: If an individual, having a sales turnover of â‚¹ 60 lakhs files his return of income for the AY 2021 -22 after the due date, showing unabsorbed business loss of â‚¹ 23,000 and unabsorbed depreciation of â‚¹ 45,000, he can carry forward to the subsequent assessment years

1.Both unabsorbed business loss of â‚¹ 23,000 and unabsorbed depreciation of â‚¹ 45,000

2.Only unabsorbed business loss of â‚¹ 23,000

3.Only unabsorbed depreciation of â‚¹ 45,000

4.Neither unabsorbed business loss of â‚¹ 23,000 nor unabsorbed depreciation of â‚¹ 45,000.

## Question: In the hands of Mr. Sarath, a salaried employee, the following income shall be chargeable to tax as income under the head â€œIncome from other sourcesâ€: (i) Dividend (ii) Income from the hiring of machinery (iii) Winning from Lottery (iv) Interest on securities Select the correct answer from the options given below:

1. (i) and (iii)

2. (iii) and (iv)

3. All the four above

4. (i), (iii) and (iv)

## Question: John, engaged in fertilizer trade, received rent by sub-letting a building. This will be taxable under the head

1. Income from house property

2. Income from capital gains

3. Income from profits and gains of business and profession

4. Income from other sources

## Question: Kapoor gifted â‚¹ 10,00,000 to his wife Sunita Kapoor on 15th May 2020. The amount of gift of â‚¹ 10,00,000 was invested by his wife in debentures of a company on 1st June 2020 earning interest @12% p.a. The income of interest from the debentures earned by Sunita Kapoor shall be with the income of Kapoor in AY 2020-21.

1.1,20,000, not clubbed

2. 1,00,000, clubbed

3. 1,00,000, not clubbed

4.1,20,000, clubbed

1. â‚¹ 4,50,000

2. â‚¹ 15,00,000

3.â‚¹ 5,00,000

4. â‚¹ 1,50,000

1.â‚¹ 1,48,000

2.â‚¹ 1,18,000

3.180,000

4.Nil

## Question: Loss from the activity of owning and maintaining race horses could be set-off

1.Against income under any of the five heads of income

2.Only against income under the head â€œIncome from other sources

3. Only against income under the head â€˜Profits and gains of business or professionâ€™

4.Only against income from the same activity.

## Question: Mr. Pankaj, a salaried employee, has taken a house on rent of â‚¹ 12,000 p.m. which was sub-let by him for â‚¹ 15,000 p.m. He has incurred miscellaneous expenses in relation to the sub-let of the house of â‚¹ 1,000. How much income from the sub-letting of the house shall be taxable in the AY 2021-22 where the house was taken on rent and also sublet by him from 1 st April 2020 onwards:

1. â‚¹ 36,000

2. â‚¹ 26,000

3. â‚¹ 1,44,000

4.None of the above

## Question: Mr. Ram received a cash gift of â‚¹ 51,000 from his friends on the occasion of his 50th birthday. None of the friends are relatives. The amount liable to tax in the hands of Mr. Ram would be:

1.Nil

2. â‚¹ 1,000

3. â‚¹ 51,000

4. â‚¹ 46,000 after deducting causal income of â‚¹ 5,000

1. â‚¹ 84,000

2. Nil

3. â‚¹ 72,000

4. â‚¹ 1,20,000

1.â‚¹ 3,11,450

2. â‚¹ 3,44,000

3. â‚¹ 3,80,000

4.â‚¹ 3,33,500

1.â‚¹ 80,000

2.â‚¹ Nil

3. â‚¹ 67,500

4. â‚¹ 92,500

1. â‚¹ 60,000

2. â‚¹ 40,000

3. â‚¹ 20,000

4. â‚¹ 15,000

1. â‚¹ 4,20,000

2. â‚¹ 2,40,000

3. â‚¹ 3,60,000

4. â‚¹ 3,55,000

1. â‚¹ 1,80,000

2. â‚¹ 1,20,000

3. â‚¹ 1,65,000

4. Nil

## Question: R has taken a house on rent and sublets the same to G. Income from such house property shall be taxable under the head:

1. Income from house property

2. Income from other sources

3. Income from house property or income from other sources as decided by R

4. None of the above

1. â‚¹ 93,600

2. â‚¹ 22,660

3.â‚¹ 12,360

4. â‚¹ 25,750

1. â‚¹ 3,00,000

2.â‚¹ 2,00,000

3.â‚¹ 1,50,000

4. Nil

## Question: Ram has gifted an amount of â‚¹ 10,00,000 to his wife Sita without consideration (but not to live apart), which was invested by his wife in interest-bearing security. She earned an interest of â‚¹ 1,00,000. The interest of â‚¹ 1,00,000 was further invested by her in the business from which she earned a profit of â‚¹ 15,000. The income which is to be included out of this gifted amount in the hands of Ram is:

1.â‚¹ 1,15,000

2.â‚¹ 15,000

3.â‚¹ 1,00,000

4. Nil, because the gift is too relative

1.â‚¹ 1,15,000

2.â‚¹ 1,00,000

3. â‚¹ 15,000

4. Nil

1. Nil

2.â‚¹ 30,000

3. â‚¹ 70,000

4. â‚¹ 80,000

1.Nil

2.â‚¹ 50,000

3. â‚¹ 1,50,000

4. â‚¹ 2,10,000

## Question: Rohit (a Chartered Accountant) is working as Accounts Officer in Raj (P) Ltd. on a salary of â‚¹ 20,000 p.m. He got married to Ms. Pooja who holds 25% shares of this company. What will be the impact of salary paid to Rohit by the company in the hands of Ms. Pooja

1.100% salary to be clubbed

2. 50% salary to be clubbed

3.No amount be clubbed

4.25% salary be clubbed

## Question: Rohit is working as Company Secretary in Raj Chem Pvt. Ltd. on a salary of â‚¹ 20,000 p.m. He got married to Pooja who holds 25% shares of this Company. What will be the impact of salary paid to Rohit by the company in the hands of Pooja?

1.No amount to be clubbed

2. Club 50% salary

3. Club 100% salary

4.25% salary be clubbed

1.â‚¹ 41,000

2.â‚¹ 46,000

3. â‚¹ 31,000

4. â‚¹ 26,000

## Question: Shyam transferred 2,000 shares of X Ltd. to Ms. Babita without any consideration. Later, Shyam and Ms. Babita got married to each other. The dividend income from the shares transferred would be

1.Taxable in the hands of Shyam both before and after marriage

2. Taxable in the hands of Shyam before marriage but not after marriage

3.Taxable in the hands of Shyam after marriage but not before marriage

4. Never taxable in the hands of Shyam

## Question: State which out of the following gifts received during the year by Girish from different persons shall be subject to tax in the assessment year 2021-22: (i) Wristwatch of â‚¹ 75,000 given by a non-resident friend. (ii) Cash of â‚¹ 51,000 given by her elder brother. (ii) Cash of â‚¹ 21,000 each given by 4 friends on his birthday. (iv) Painting of â‚¹ 30,000 given by employer on his birthday. Select the correct answer from the options given below:

1. (iii) and (iv)

2.(i), (in) and (iv)

3.(ii) and (iii)

4.All the four in (i), (ii), (iii) and (iv)

1.â‚¹ 1,71,600

2. â‚¹ 30900

3.â‚¹ 36,050

4. â‚¹ 10,300

## Question: 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 condition is not applicable to

1. Loss from house property

2.Loss from speculation

4. Loss from capital assets

## Question: Transfer of income is revocable in the following cases :

1.Sale with a condition of re-purchase

2. Power to change beneficiary or trustees

3. Both (A) and (B)

4. Neither (A) nor (B)

## Question: Where a firm or closely held company received from any person any property being shares of the closely held company without consideration:

1. the whole of the fair market value of the shares shall be taxable

2.the whole of the FMV shall be taxable if it exceeds â‚¹ 50,000

3. the whole of FMV shall be exempt

4. the whole of the cost of such shares shall be exempt

1.15%

2.10%

3. 20%

4. 30%

## Question: Which of the following income will be taxable as income from other sources?

1.Purchase of house from husband for inadequate consideration

2. Purchase of painting from the registered dealer at invoice value less than fair market value

3.Cash gift from a non-resident friend on marriage anniversary

4. All of the above

## Question: 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

1.Speculation losses

3.Loss under the head â€˜Capital gainsâ€™

4. All of the above

## Question: Which out of the following income is not to be clubbed while computing income of the Hindu Undivided Family (HUF) for the assessment year 2021-22?

1.Fees or remuneration received by the member as a director or a partner in the company or firm if the funds of the HUF are invested in a company or firm.

2. Income from â€˜strident and personal income of the members.

3. Income of minor sons out of the investments of the family funds.

4. None of the above

1.â‚¹ 5,000

2. â‚¹ 10,000

3. â‚¹ 25,000

4. â‚¹ 50,000

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