CBES Board Class 11-CS Executive Tax Laws MCQs Set/9 Sample Test,Sample questions

10096 deduction in respect of donations as per section 80G without any qualifying amount or limit is available in the case of:

1. Prime Minister Drought Relief Fund

2. Jawaharlal Nehru Memorial Fund

3.Payment to the local authority for promotion of family planning

4. Africa Fund

50% deduction of the eligible amount is allowed u/s 80CCG, provided some of the conditions out of the following are to be fulfilled:
(i) The assessee is a Resident Individual.
(ii) The gross total income does not exceed ₹ 12 lakh.
(iii) He has acquired listed shares or listed units of equity-oriented funds in accordance with a notified scheme.
(iv) The investment is locked in for a period of 3 years from the date of acquisition in accordance with the equity-oriented scheme.

1. (i), (ii) and (iv)

2.All the four above

3. (i) and (iii)

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

A registered political party has income during the year 2020-21 of banks interest ₹ 5,00,000, rent from letting of building ₹ 3,00,000 and voluntary contribution by cheque ₹ 8,00,000.
Total income chargeable to tax u/s 13 A of the Income-tax Act, 1961 for the AY 2021 -22 of the political party shall be:

1. ₹ 5,00,000

2. ₹ 8,00,000

3. ₹ 16,00,000


A registered trade union earned income by way of interest on a fixed deposit held with the State Bank of India of ₹ 5,60,000.
The interest income chargeable to tax in the hands of a trade union would be:

1.₹ 5,60,000


3. ₹ 2,60,000

4.₹ 3,10,000

ABC Limited fulfilling all the conditions of operating different infrastructure facilities for claiming deduction u/s 80-IA. Find which are being not covered under infrastructure facility out of the following :

1.Developing of Toll-Road

2.Operating and maintaining of Highway Project

3.Operating and maintaining of an Airport

4. Developing of industrial park

An assessee can avail of the deduction in respect of rent paid u/s 80GG of the Act subject to a maximum amount of:

1. ₹ 5,000 p.m.

2. 25% of the adjusted total income

3.₹ 3,000 p.m.

4. None of the above

An electoral trust receiving voluntary contributions for the purpose of distributing to political parties registered under Section 29A of the Representation of the People
Act, 1951 must distribute such contributions.


2. 95%


4. 50%

Any payment in commutation of pension received from a pension fund set up by the Life Insurance Corporation of India in terms of section 10(23AAB) of the Income-tax Act, 1961, is:

1. Liable for tax

2. Fully exempt from tax

3.Partly liable for tax

4. Taxable @10%

Arjun has a salary income of ₹ 6,60,000. He also received interest of ₹ 18,000 on his fixed deposit (after deducting TDS @ 10%) and ₹ 2,000 on his savings account with SBI. He deposited ₹ 50,000 in the PPF account.
The net income-tax liability of Arjun is

1. ₹ 33,390

2.₹ 35,330

3.₹ 46,270

4.₹ 40,040

Deduction u/s 80C from the gross total income of an amount equal to the eligible investment made subject to a maximum amount of ₹ 1,50,000 is allowed to the assessee who is:

1.A Hindu Undivided Family

2.Any person

3. An individual

4. Both (A) and (C)

During the year 2020-21, Basu won ₹ 4,00,000 from a motor car rally out of which he deposited ₹ 1,50,000 in his PPF account. He does not have any other income.
Net tax payable by Basu for A.Y. 2021 – 22 will be

1.₹ 1,24,800

2.₹ 15,450

3.₹ 1,23,600

4. None of the above

Green-Wood Plantation Ltd. is engaged in the cultivation and processing of Tea. Their net income during AY 2021-22 is to the tune of ₹ 20 Lakh.
What proportion out of the income of ₹ 20 lakh would be treated as agriculture income?


2. 25%

3. 40%

4. 60%

he maximum amount of deduction (in terms of ₹) in the case of an individual who is resident in India, a patentee, and in receipt of income by way of royalty in respect of a patent registered on or after the first day of April 2003 under the Patents Act, 1970 is allowed:

1. 100% of such income

2. 50% of such income

3. ₹ 3 lakh

4.No such deduction under the Act

If non-agricultural income is ₹ 4,52,000 and net agricultural income is ₹ 40,000, the tax liability of an individual assessee will be

1. Nil

2. ₹ 200

3. ₹ 206

4. ₹ 4,326

Incomes of two minor children are included in the income of their father.
Father is entitled to exemption u/s 10(32) up to

1. ₹ 1,500

2.₹ 1,000

3. ₹ 3,000

4. ₹ 2,000

Mr. Anand engaged in business wants to deposit in the pension fund of the Life Insurance Corporation of India.
The maximum amount of contribution eligible for deduction from total income is:

1.₹ 10,000

2.₹ 50,000

3. ₹ 1,00,000

4.₹ 1,50,000

Mr. Baskar a person with a disability referred to in Section 80U is employed in a bank. He paid ₹ 50,000 as a premium on the life insurance policy taken on himself and whose sum assured is ₹ 4 lakh.
The amount of premium eligible for deduction under Section 80C would be:

1. ₹ 40,000 (10% of sum assured)

2. ₹ 50,000

3. Nil (since it exceeded 10%)

4.None of the above

Mr. Ganesh gave a donation by way of a cheque of ₹ 40,000 and by cash ₹ 5,000 to an approved charitable trust having recognition under section 80G. His gross total income for the assessment year 2021-22 is ₹ 5 lakh.
The quantum of deduction under section 80G would be:

1. ₹ 45,000

2. ₹ 5,000

3.₹ 40,000

4.₹ 20,000

Mr. Menon having a tea estate in Munnar (Kerala) earned ₹ 5 lakh by way of growing tea leaves and manufacturing tea.
The income chargeable to tax would be:

1.₹ 2,00,000

2. ₹ 1,75,000

3. ₹ 1,25,000

4.₹ 3,00,000

Mr. Ramesh engaged in the business of growing and manufacturing tea in India received ₹ 2 lakhs from the Tea Board towards a replacement of tea bushes destroyed by a forest fire.
The amount received from Tea Beard by Mr. Ramesh is:

1.Liable to tax

2. Exempt from tax

3.50% is exempt from tax

4. 25% is exempt from the tax

Mr. Rath borrowed a loan of ₹ 10 lakh for higher education in India in the year 2009-10. He completed the course study in 2012-13. He started repayment of the loan in April 2014. He paid interest of ₹ 41,000 and principal of ₹ 1,20,000 during the financial year 2020-21.
The amount eligible for deduction under section 80E would be:

1. ₹ 1,20,000

2. ₹ 1,61,000

3. ₹ 41,000

4.₹ 1,00,000 (monetary limit)

Mr. Robert aged 52 years received an annual pension of ₹ 5,60,000 during the financial year 2020-21.
His agricultural income in India is 150,000. His net income-tax liability is:

1. ₹ 22,660

2. ₹ 9,880

3. ₹ 22,880

4. ₹ 24,500

Mr. Sankar received ₹ 50,000 as an educational scholarship from Nehru Memorial Trust (a charitable trust). The scholarship is to assist Mr. Sankar in pursuing an M.A. (History) at Jawaharlal Nehru University, New Delhi.
The amount of scholarship liable to tax is:

1. ₹ 50,000

2. ₹ 10,000

3.₹ 25,000

4. Nil

Mr. Sridhar employed in KL Ltd. took voluntary retirement in December 2020 and received ₹ 2,00,000 from National Pension System Trust.
The amount so received chargeable to income-tax is:

1. Nil as 10096 is exempt

2. ₹ 1,20,000 as 40% is exempt

3.₹ 1,00,000 as 50% is exempt

4. ₹ 80,000 as 60% is exempt

Mr. Uday is a resident individual having a patent registered on 1.7.2016 under the Patents Act, 1970. He received ₹ 5 lakh by way of royalty from ABC Ltd. during the financial year 2020-21.
The quantum of royalty eligible for deduction would be:

1. ₹ 5 lakhs

2.₹ 3 lakhs

3. ₹ 1 lakh

4. ₹ 2 lakhs

Mr. Veer earns a monthly rental income of ₹ 60,000 from house property. He suffers from a severe disability and has obtained a certificate from the prescribed medical authority. He has not incurred any expenditure towards the treatment of severe disability.
His total income chargeable to tax after deduction under Section 80U would be:

1.₹ 3,79,000

2. ₹ 4,29,000

3. ₹ 5,04,000

4.₹ 7,20,000

Mr. Vinayak derived income from the sale of tea manufactured and grown in Coorg, Karnataka. His income for the previous year 2020-21 from the said activity is ₹ 20 lakh.
The amount exempt from tax by way of agricultural income is:

1.₹ 8 lakhs (40%)

2. ₹ 5 lakhs (25%)

3.₹ 12 lakhs (60%)

4. ₹ 7 lakhs (35%)

Mrs. Rose derives 15,40,000 by way of income from the sale of coffee grown and cured by sellers in India.
The income chargeable to income tax would be

1. 50%, le. ₹ 12,70,000

2.25%, le. ₹ 1,35,000

3. 40%, le. ₹ 2,16,000

4.60%, le. ₹ 3,24,000

Murali received ₹ 1 lakh from the HUF of which he is a coparcener. The HUF consists of four coparceners including his father who is the Karta of the HUF.
The amount paid was by way of debit to the capital account of HUF engaged in the textile business. Is the amount of receipt chargeable to tax

1.Yes, the full amount is taxable

2. 50%, le. ₹ 50,000 is taxable

3.Nil, le. it is exempt from tax

4. 25%, le. 125,000 is taxable

Nargis during the previous year 1 st April 2020 to 31 st March 2021 had donated the amount of ₹ 50,000 each in Africa Fund, National Children Fund, National Illness Assistance Fund, and a further amount of ₹ 30,000 in Rajiv Gandhi Foundation.
The amount of deduction eligible to be claimed by her as per section………in AY 2021-22 shall be of……

1. 8OG ₹ 1,80,000

2. 80G ₹ 1,65,000

3. 8OGGB ₹ 1,50,000

4. 80G ₹ 90,000

Pawan reports a net income of ₹ 5 lakh from the activity of growing and manufacturing rubber.
How much of such income is to be treated as non-agricultural income

1.₹ 1,75,000

2. ₹ 2,00,000

3.₹ 1,25,000

4. Nil

Rao, carrying business, contributed ₹ 40,000 in the National Pension Trust account. He also made a tax-saving deposit of ₹ 1,20,000 in his PPF account and ₹ 40,000 in LIC Premium.
The total amount eligible for deduction under various sections enumerated in Chapter VI-A shall be:

1.₹ 1,90,000

2. ₹ 1,50,000

3. ₹ 1,20,000

4.₹ 2,00,000

Registered political parties have to maintain a record of the contributions and names and address of the persons who have made such contribution where each contribution exceeds:

1.₹ 1,000

2. ₹ 5,000

3. ₹ 10,000

4.₹ 20,000

S JG Ltd., a manufacturer of leather goods in a factory located at Noida having an annual turnover of ₹ 50 Crore. The company, during the year, employed 200 new regular workers in the factory, which was 2096 of the existing workforce employed on the last day of the preceding year. It paid ₹ 30 lakh to the new workers during the year as additional wages. All workmen were employed from 1st May 2019.
The eligible amount of deduction which the company can claim under section 80JJAA of Income-tax Act, 1961 is:

1.₹ 30 lakh

2. ₹ 15 lakh

3.₹ 9 lakh

4. ₹ 18 lakh

Sudhan Ltd. incorporated in April 2020 commenced commercial production from 1.6.2020. It deployed 100 employees who were employed for 260 days during the year and recruited 50 casual workmen who were employed for 100 days during the financial year 2020-21. The salary paid to 100 employees was ₹ 25 lakh and the salary paid to casual workmen was ₹ 6 lakh.
The quantum of deduction under section 80JJAA is:

1. ₹ 7.50 lakh

2. ₹ 9.30 lakh

3.₹ 25 lakh

4. ₹ 6 lakh

Tax holiday under Section 10AA in respect of newly established units in SEZ is allowed for a total period of

1.5 Years

2. 10 Years

3. 15 Years

4. 20 Years

The contribution made or given other than by way of cash by an Indian company in the previous year to any political party or to an electoral trust shall be allowed as deduction while computing its total income under section 80GGB of Income-tax Act, 1961 of an amount maximum or up to:

1. ₹ 50,000

2. ₹ 1,50,000

3.No monetary ceiling limit

4. None of the above

The following incomes derived, received, and earned during the previous year are not subject to tax being exempt under the Act:
(i) Money received by an individual as a member of HUF.
(ii) Share of profit received by a partner from LLP.
(iii) Interest in Savings bank account.
(iv) Income of SAARC Fund.

1. (i) and (ii)

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

3.None of the above

4. All of the above

The income derived from growing, manufacturing, and sale of Centrifuged latex or Cenex or Latex-based cops as per Rule 7A of the Income-tax Rules, 1962 shall be taken as agricultural and non-agricultural income in the following ratio:

1. 75% and 25%

2. 60% and 40%

3. 65% and 35%

4. None of the above

The income of an assessee engaged in the business of growing and manufacturing tea in India is taxable to the extent of

1. 40% of such income

2.60% of such income

3. 70% of such income

4.30% of such income

The maximum amount of any death-cwm-retirement gratuity received by an employee not covered under the Payment of Gratuity Act, 1972 on Superannuation from the employer exempt from tax is of

1.₹ 20 Lakh

2. ₹ 10 Lakh

3.₹ 5 Lakh

4. ₹ 15 Lakh

The Patna High Court following the decision laid down by the Bombay High Court in the case of Mahindra Sintered Products Ltd. Held that to claim special deduction u/s 80J, the assessee has to establish the fact/facts relating to

1. Investment of substantial fresh capital in the new industrial undertaking so set up

2. Earning of profits clearly attributable to the said undertaking

3. Manufacture or production of articles on the said undertaking

4.All of the above

The profits of a co-operative society engaged in (i) Carrying out the business of banking, (ii) A cottage industry, and (iii) Collective disposal of labors of its member are eligible for deduction u/s 80P up-to

1. 75% of the profits

2.100% of the profits

3.50% of the profits

4.None of the above

The profits of a Co-operative Society engaged in (i) Carrying out the business of banking, (ii) A cottage industry, and (m) Collective disposal of labor of its members are exempt from tax as per section 80P up to :

1. 75% of the profits

2. 100% of the profits

3.50% of the profits

4. 40% of the profits

The quantum of deduction available to offshore Banking Units under section 80LA of Income-tax Act, 1961 located in Special Economic Zone (SEZ) and satisfying all conditions from the Gross Total Income is:

1.10096 of such income for five consecutive assessment years, relating to the previous year in which the permission was obtained

2. 5096 of such income for the next five consecutive years

3.2596 of such income for the next ten years

4. Both (A) and (B)

Timer, (aged 51 years) subscribed to health insurance for himself, his wife, and his son and paid a premium of ₹ 28,000. He also incurred medical expenditure for his parents during the year amounting to ₹ 32,000.
He can claim deduction for these expenses as per section 80D of the Income-tax Act, 1961, of:

1.₹ 57,000

2.₹ 30,000

3.₹ 28,000

4. ₹ 55,000

Under the Income-tax Act, 1961, dividend derived from the shares held as stock-in-trade are taxable under the head

1. Income from other sources

2.Income from profits and gains of business or profession

3.Capital gains

4.Either capital gains or income from profits and gains of business or profession

Which of the under-mentioned incomes of a Co-operative Society is not eligible for deduction under Section 80P of the Income Tax Act, 1961 when the gross total income of the society exceeds ₹ 20,000?

1.Agency business

2.Income from letting of godown

3. Income from house property

4.Dividend from other Co-operative Societies

XYZ Pvt. Ltd. had distributed an income of ₹ 9,00,000 to Rajesh for the reason of buy-back of its shares from him on 1st March 2021. These shares were purchased by him for ₹ 5,00,000 on 1st March 2014.
The income out of the amount received by Rajesh against the buy-back of shares from the company XYZ Pvt. Ltd. shall be subject to tax in AY 2021-22 shall be of

1. ₹ 4 lakh

2.₹ 9 lakh

3.Nil being exempt u/s 10(34A) of Act

4.None of the above

XYZ Pvt. Ltd. had distributed income of ₹ 6 lakh to Rajesh for the reason of buyback of its shares (Not being listed on a recognized stock exchange) from him on 1st February 2021. The amount of ₹ 6 lakh received by Rajesh in the A.Y. 2021-22 shall be

1. Taxable in full

2.Exempt u/s 10(344)

3.Taxable @ 20%

4.Taxable at the normal rate of tax


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