AMF206
Semester End Examination July 2016
Exam Date: 7/18/2016
MFM (2nd Semester)
AMF206 - Corporate Tax Planning
1. Section A:
“Case Study
” Total 5 Questions, each question carries 4 marks.
2. Section B: Total 50 Questions, each question carries 1 mark.
3. All questions are compulsory.
4. There is no negative marking for wrong answers.
Section A: CASE STUDY
(each question carries 4 marks)
Kwality Electronics Ltd. Furnishes you the following information for the assessment year 2013-14,2014-15 & 2015-16 for advice as regards set off and carry forward of losses:-
2013-14 2014-15 2015-16 Interest on debentures 20000 25000 15000
Dividend from Indian company 18000 45000 25000
(gross)
Income from house property 20000 20000 20000
(computed)
Profits or losses from business 10000 30000 23000
before depreciation -
Depreciation 8000 10000 14000
Profits or losses on sale of securities 9000 15000 10000
(long term)
Speculation profits or losses 50000 25000 15000
You are required to compute:
Ques : 1 Gross total income of the company for the assessment year 2015-16:- Option A Rs. 4000
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Option C Rs. 5000
Option D Rs. 6500
Ques : 2 Gross total income of the company for the assessment year 2014-15:- Option A Rs. 60000
Option B Rs. 55000
Option C Rs. 65000
Option D Rs. 75000
Ques : 3 Gross total income of the company for the assessment year 2013-14:- Option A Rs. 81000
Option B Rs. 80000
Option C Rs. 79000
Option D Rs. 86000
Ques : 4 Amount chargeable to tax under the head income from other sources in the A.Y. 2013-14 will be:- Option A Rs. 2000
Option B Rs. 20000
Option C Rs. 17000
Option D Rs. 24000
Ques : 5 Amount chargeable to tax under the head income from other sources in the A.Y. 2014-15 will be:- Option A Rs. 20000
Option B Rs. 20000
Option C Rs. 25000
Option D Rs. 24500
Section B
(each question carries 1 mark)
Ques : 6 Find from the following persons, who are liable to wealth tax:- Option A Individual
Option B H.U.F.
Option C Company
Option D All of the above
Ques : 7 Wealth tax is payable by:- Option A an Indian company
Option B a domestic company
Option C any company
Option D all of the above
Ques : 8 Wealth tax is payable if the net worth of the assesse:- Option A exceeds Rs. 250000
Option B is Rs. 3000000 or more
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Option D Exceeds Rs. 5000000
Ques : 9 A firm is:-
Option A not liable to wealth tax
Option B liable to wealth tax
Option C not liable to wealth tax but partner’s share in the value of the firm shall be included in the net wealth of the partner
Option D liable to VAT only
Ques : 10 One house shall be exempt u/s 5(vi) if it is:- Option A residential house
Option B residential house which is self-occupied
Option C residential or commercial
Option D commercial house
Ques : 11 One house shall be exempt u/s 5 (vi) in case of:- Option A individual assesse only
Option B any assesse
Option C individual or HUF
Option D individual and HUF
Ques : 12 Asset held by a minor child is included to the net wealth of:- Option A father
Option B mother
Option C father or mother whose net wealth before such clubbing is greater
Option D father or mother whose net wealth before such clubbing is less
Ques : 13 The due date for furnishing the return of wealth shall be:- Option A 30th June of the assessment year
Option B the date as mentioned u/s 139(1) of the income tax Act
Option C 31 October of the assessment year
Option D 31 December of the assessment year
Ques : 14 Net wealth of the assesse is to be computed as on:- Option A 31st March preceding the relevant assessment year
Option B first moment of 31st March preceding the relevant assessment year
Option C as on last moment of 31st March preceding the relevant assessment year
Option D None of the above
Ques : 15 In case an individual is a foreign national but resident and ordinarily resident in India, the net wealth shall:-
Option A include assets wherever located whether in India or outside
Option B include assets which are located in India
Option C not include any assets
Option D none of the above
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Option A Whole of India
Option B Whole of India except Jammu & Kashmir
Option C Whole of India except Sikkim
Option D Whole if India except Jammu & Kashmir and Sikkim
Ques : 17 The circulars issued by CBDT are binding upon:- Option A Assesse
Option B Income-tax authorities
Option C Income-tax law
Option D Both the above
Ques : 18 A.O.P. should consist of:- Option A Individuals only
Option B Persons other than individuals only
Option C Both above
Option D None of the above
Ques : 19 Part II of Schedule I of the Finance Act, 2010 has given the rates of tax deductible at source for the financial year:-
Option A 2009-10
Option B 2010-11
Option C 2011-12
Option D 2012-13
Ques : 20 Income tax is rounded off to:- Option A Nearest ten rupee
Option B Nearest one rupee
Option C No rounding off of tax is done
Option D Nearest to hundred rupee
Ques : 21 Residential status is to be determined for:- Option A Previous year
Option B Assessment year
Option C Accounting year
Option D Current year
Ques : 22 Total income of a person is determined on the basis of his:- Option A Residential status in India
Option B Citizenship in India
Option C None of the above
Option D All of the above
Ques : 23 Income deemed to accrue or arise in India is taxable in case of:- Option A Resident only
Option B Both resident and not ordinarily resident
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Option D All the assesses
Ques : 24 Income which accrue or arise outside India and also received outside India is taxable in case of:- Option A Residents only
Option B Not ordinarily resident
Option C Both resident and not ordinarily resident
Option D None of the above
Ques : 25 Dividend payable by an Indian company outside India is:- Option A Taxable in India in the hands of the recipient
Option B Exempt in the hands of recipient
Option C Taxable in the hands of the company and exempt in the hands of the recipient
Option D None of the above
Ques : 26 Service tax was introduced in India in the year:- Option A 1993
Option B 1995
Option C 2004
Option D 1994
Ques : 27 Service tax was introduced first time on:- Option A 5 services
Option B 3 services
Option C 4 services
Option D 7 services
Ques : 28 Service tax was initially levied in India by the Constitution vide entry no.:- Option A 92C of the union list
Option B 54 of the service list
Option C 92C of the concurrent list
Option D 97 of the Union list
Ques : 29 The power to levy service tax is now provided by the Constitution vide entry no:- Option A 92C of the Union list
Option B 97 of the Union list
Option C 54 of the state list
Option D 93 of the union list
Ques : 30 The provisions relating service tax are given in:- Option A Chapter V of the Finance Act, 1994
Option B Chapter V and VA if the Finance Act, 1994
Option C Chapter VII and VIII of the Finance Act, 2004
Option D The service tax Act, 1994
Ques : 31 Service tax is payable on the value of taxable services @:- Option A 0.12
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Option B 0.1224
Option C 0.1236
Option D 0.103
Ques : 32 Service tax is charged on:- Option A Taxable service provided
Option B Taxable service to be provided
Option C Taxable services provided or to be provided
Option D Any service provided or to be provided
Ques : 33 Education cess was levied on:- Option A The finance Act, 1994
Option B The Finance No. (2) Act, 2004
Option C The Finance Act, 2006
Option D The Finance Act, 2005
Ques : 34 Tax is levied under VAT at:- Option A Last stage of sale
Option B Multistage
Option C First stage of sale
Option D First and last stage of sale
Ques : 35 VAT is calculated by deducting tax credit from tax collected:- Option A During the payment period
Option B During the financial year
Option C During any period
Option D During current year
Ques : 36 Loss from specified business referred in section 35AD can be carried forward:- Option A For 8 years
Option B For 4 years
Option C Indefinitely
Option D For 5 years
Ques : 37 Loss on account of owing & maintaining the race horse can be carried forward:- Option A For 8 years
Option B For 4 years
Option C Indefinitely
Option D For 6 years
Ques : 38 Loss from derivative trading in shares can be carried forward for:- Option A 8 years
Option B 10 years
Option C 4 years
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Ques : 39 Loss under the head house property:- Option A Can be carried forward for 8 years
Option B Cannot be carried forward
Option C Can be carried forward for only 4 years
Option D Can be carried forward for only 3 years
Ques : 40 Speculation loss can be carried forward for the maximum of:- Option A 8 years
Option B 10 years
Option C 4 years
Option D 3 years
Ques : 41 Long term capital loss can be set off in the same assessment year only from:- Option A Long term capital gain
Option B Long term capital loss
Option C Short term capital loss
Option D Short term capital gain
Ques : 42 Deduction u/s 80C, in respect of LIP, contribution to PF etc. is allowed to:- Option A Any assesse
Option B Individual assesse only
Option C Individual or HUF
Option D Individual or HUF who is resident in India
Ques : 43 Deduction u/s 80C, is allowed to the maximum of:- Option A Rs. 70000
Option B Rs. 100000
Option C Rs. 140000
Option D Rs. 200000
Ques : 44 Deduction under section 80C for tuition fee shall be allowed for the purposes of:- Option A Any full time education
Option B Any full or part time education
Option C Full time education in a college
Option D Full time education in a college
Ques : 45 Deduction under section 80C in respect of tuition fee is allowed to:- Option A Any individual only
Option B An individual or HUF
Option C Any assesse
Option D None of the above
Ques : 46 Finance bill becomes the Finance Act when it is passed by:- Option A The Lok Sabha
Option B The Lok Sabha & Rajya Sabha
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Option D Both the Houses of Parliament and given the assent of the Prime Minister
Ques : 47 The Circulars issued by CBDT are binding on:- Option A Assesse
Option B Income tax authorities
Option C Both the above
Option D none of the above
Ques : 48 A.O.P consists of:- Option A Individuals only
Option B Persons other than individuals only
Option C Both the above
Option D Company
Ques : 49 Surcharge on income tax is payable by:- Option A All assesses except a foreign company
Option B Individual and HUF only
Option C A company, domestic or foreign
Option D All assesses except local authorities or cooperative society
Ques : 50 Education cess is leviable on:- Option A Income tax
Option B Income tax + surcharge if applicable
Option C Surcharge
Option D Surcharge + tax
Ques : 51 Education cess is leviable @ :- Option A 0.02
Option B 0.05
Option C 0.03
Option D 0.07
Ques : 52 Education cess is liable in case of:- Option A an individual ease only
Option B an individual and HUF
Option C a company assesse only
Option D all assesses
Ques : 53 SHEC is liable @:- Option A 0.02
Option B 0.03
Option C 0.01
Option D 0.05
Ques : 54 SHEC is liable in case of:- Option A an individual assesse only
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Option B individual and HUF
Option C all assesses
Option D all assesses other than cooperative society or local authority
Ques : 55 R was born in England, his parents were born in India in 1951. His grandparents were born in South Africa. R shall be:-
Option A a person of Indian origin
Option B a foreign national
Option C none of the above