MOCK TEST of INCOME TAX WITHOUT SOLUTION

CA Vivek Gaba CS EXECUTIVE MOCK TEST PAPER TAX LAWS
Most Important Question

of
INCOME TAX
Residential Status
nd
1. In 2 additional condition, assessee should have stayed in India for:
a) more than 730 days during 7 immediately preceding previous year
b) 730 days or more during 7 immediately preceding previous year
c) 365 days or more during 4 immediately preceding previous year
d) 182 days or during relevant immediately preceding previous year
2. HUF which is Resident India shall be said to ROR in India if:
a) any adult of HUF satisfies both additional conditions
b) Karta of HUF satisfies any one basic condition
c) Karta of HUF satisfies both additional conditions
d) Karta of HUF satisfies any one additional condition
3. Past untaxed profit of the financial year 2002-03 brought to India in 2017-18 is chargeable to
tax in the assessment year 2018-19 in hands of:
a) All the assessee b) ROR
c) Non-resident in India d) None of the above
4. Income accruing from agriculture activity in foreign country is taxable in case of an
assessee who is:
a) Resident/ Resident and ordinarily resident b) Resident and not ordinarily resident
c) Non-resident d) None of the above
5. An individual born in India left for employment from India to France on 30.10.2017. He
visited outside India for the first time. His residential status for the assessment year 2018-19
will be
a) ROR b) RNOR c) Non-resident d) None of the above
6. “X”, a foreign national visited India during the previous year 2017-18 for 180 days. He had
never visited India prior to this visit. “X” in this case shall be:
a) Resident in India b) Non-resident in India
c) RNOR d) None of the above
7. Following are the particulars of Income of Vivek –
(i) Salary received Govt. Of India for service rendered o/s India 1,00,000 (Including
15,000 perquisites & Allowances 10,000)
(ii) Dividend from Indian company received in India 50,000
If Mr. Vivek is Non-Resident what is his total income ?
a) 1,50,000 b) 75,000 c) 1,25,000 d) None of the

above
(i) Past untaxed profits brought in India during the previous year 1,75,000
(ii) Royalty received in India from Non-Resident who used the right Business outside India 10,000
(iii) Agriculture income from lands situated in Japan and received in India 37,000
If Mr. Vivek is Non-resident what is his total income?
a) 2,37,000 b) 62,000 c) 47,000 d) None of the above
9. Income chargeable under the head “Salaries” payable by Govt. Of India to a citizen of India
for service rendered outside India is taxable if the person is –
a) Resident b) RNOR in India
c) Non-resident in India d) Any of the above
10. A company is said to be a resident in India in previous year, if :
a) It is an Indian Company
b) Its place of effective management is in India
c) Either it is an Indian Company or its place of effective management is in India
d) None of the above
11. VGC ltd an Indian company will be _________ in India if its place of effective management
is wholly situated outside India during the previous year –
a) Resident in India b) Non-resident of India
c) RNOR in India d) None of the above
12. Determine the residential status of Mr. VG, an Indian Citizen who has left India for the first
time on 15th August, 2017 for the purpose of visit outside India. He came back to India on
17th march 2018 –
a) ROR in India b) Non-resident in India
13. Determine the residential status of Mr. VG person of Indian origin, who came India for the
first time on 25th Dec, 2017 for 210 days –
14. The Residential status of HUF depends upon the __________
a) Control and management if affairs b) Place of effective management
c) Place of residence of Karta d) None of the above
15. To claim the status of NR for Individual –
a) Only one basic condition need to be satisfied
b) One basic and one additional condition are to be satisfied
c) Need not satisfy any of Basic the condition
d) One both additional condition are to be satisfied
16. Every year, the residential status of an assessee
a) may change b) will certainly change
c) will not change d) None of the above
17. Which of the following may be ordinarily resident in India?

a) partnership firm b) Joint stock company
c) Associate of persons d) Hindu Undivided Family
18. Income deemed to accrue or arise in India is taxable in case of
a) Resident only b) Both ordinarily resident and NR
c) Non-resident d) all the assessees
19. Vivek was born on 5 April 1997 in India and later on took citizenship of USA. Neither his
parents nor his grand-parents were born in divided/ undivided India. He shall be
a) citizen of India b) person of Indian origin
c) Foreign national d) Resident of India
20. Vivek, a foreign national, but a person of Indian origin visited India during P.Y. 2017-18 for
181 days. During 4 preceding year, he was in India for 400 days. He shall be:
c) not ordinarily resident in India d) Any of the above
21. A person may be resident in ………… in any previous year:
a) more than one country b) only one country
c) only two country d) none of the above
22. Steve Waugh, the Australian cricketer comes to India for 100 days every year. Find out his
residential status for the A.Y. 2018-19.
a) Non-resident b) ROR c) RNOR d) None of the above
23. ‘R’, a person of Indian origin visited India on 6.10.2017 and plans to stay here for 185
days. During 4 years prior to previous year 2017-18, he was in India for 750 days. Earlier
to that he was never in India. For the AY 2018-19, ‘R’ shall be:
a) resident and ordinarily resident in India b) resident but not ordinarily resident in
India
c) non-resident d) None of the above
(i) Interest on U.K. Development Bonds (1/4th being received in India) 3,00,000
(ii) Profit on sale of a house in India but received in U.K 3,50,000
If Mr. Vivek is RNOR what is his total income?
a) 3,50,000 b) 4,25,000 c) 6,50,000 d) 3,00,000
(ii) Income from agriculture in USA being invested there only 1,12,500
(iii) Income from business in U.K. being controlled from India 1,15,150
If Mr. Vivek is ROR what is his total income?
a) 4,02,650 b) 2,27,650 c) 1,15,150 d) None of the above
(ii) Dividend from a Japanese Company received in Japan 1,00,000
(iii) Agriculture income from land in Haryana 2,70,000
(iv) Profit on sale of shares of RIL ltd. received in Japan 1,50,000

If Mr. Vivek is ROR what is his total income?
27. The following additional conditions are to be satisfied by a person to be resident and
ordinarily resident in India:
a) He is a resident in at least any two out of the ten previous years immediately
preceding the relevant previous year
b) He has been in India for 730 days or more during the seven previous years immediately
preceding the relevant previous year
c) Both (A) and (B) of above
28. X, an Indian citizen, who is living in Delhi since 1980, left for Japan on 1 July, 2017 for
employment. He came back to India on 1 april, 2018 on a visit and stayed for 4 months.
His residential status for the assessment year 2018-19 would be:
a) Resident and ordinarily resident b) Not ordinarily resident
c) Non resident d) Resident.

29. If Karta is resident and ordinarily resident in India but control and management of HUF
is situated Wholly outside India in the previous year, the HUF is —
a) Resident and ordinarily resident b) Not ordinarily resident
c) Non resident d) Resident.

30. Atul, a foreign citizen. His father was born in Delhi in 1951 and mother was born in
England in 1950. His grandfather was born in Delhi in 1922. Atul visited India to see Taj
Mahal and visit other historical places. He came to India on 1 November, 2017 for 200
days. He has never come to India before. His residential status for assessment year 2018-
19 will be:
a) Non resident in India b) Not ordinarily resident in India
c) Resident in India d) None of the above.
Income from Salary

1. Ramesh is employed by TJ Ltd., at a salary of ` 20,000 per month. As TJ Ltd. was in
financial crisis, it paid the salary of Jan 2018 to March 2018 to Ramesh only in July
2018. The gross salary of Ramesh for A.Y. 2018-19 shall be:
a) ` 2,40,000 b) ` 1,80,000 b) ` 2,50,000 d) None of the
above
2. Salary of D is ` 10,000 p.m. D had taken salary in advance for the months of April 2018
to June 2018 in March 2018 itself. His gross salary for A.Y. 2018-19 shall be:
a) ` 2,40,000 b) ` 1,80,000 c) ` 1,20,000 d) ` 1,50,000
3. Gratuity shall be exempt in case of:

a) Central and State government employees

b) Central and State government employees, Employees of local Authorities and employees
of Statutory Corporation
c) Central and State government employees, Employees of local Authorities
4. ‘R’ was employed on 1.7.2011 in the grade of `15,000-400-17,000-500-22,000. His gross
salary for the assessment year 2018-19 shall be: ,
a) `1,99,200 b) `2,04,000 c) `2,08,500 d) `2,10,000
5. ‘R’ was employed from 1.8.2013 in the grade of `15,000-400-17,000-500-22,000 and his
salary was fixed at `16,200 from the date of joining. His gross salary for the
assessment year 2018-19 shall be:
a) 199,200 b) `2,04,000 c) `2,08,000 d) `2,14,000
6. An employee was also entitled to gratuity. He got 60 % of his pension commuted and
received a sum of `12,00,000 as commuted pension. The exemption in his case shall
be:
a) `12,00,000 b) `5,33,333 c) `6,66,667 d) `8,00,000
7. A’ is entitled to children education allowance @ `80 p.m. per child for 3 children
amounting to `240 p.m. It will be exempt to the extent of:
a) ` 200 p.m. b) ` 160 p.m. c) `240 p.m. d) ` 100 p.m.
8. ‘R’ is entitled to ` 6,000 as medical allowance. He spends ` 4,000 on his medical
treatment and `1,000 on the medical treatment of his major son not dependent on him.
The exemption in this case shall be:
a) ` 4,000 b) ` 5,000 c) NIL d) ` 200 p.m.
9. The employee is provided with furniture costing ` 1,50,000 along with house w.e.f.
1.7.2017. The value of the furniture to be included in the valuation of unfurnished house
shall be:
a) ` 11,250 b) `15,000 c) ` 22,500 d) `16,875
st th
10. Salary of ‘R’ becomes due on 1 of next month and it is paid on 7 of that month. For
assessment year 2018-19, the salary of ‘R’ shall be taken from:
a) April 2017 to March 2018 b) March 2017 to February 2018
c) Any of the above d) None of the above
11. R is provided with interest free loan by the employer for purchase of a house. The
value of this perquisite shall be determined as the sum equal to:
a) simple interest computed @ 10 % p.a.
b) simple interest computed @ 13 % p.a.
c) simple interest computed at the rate charged by SBI on the 1 st of the relevant previous
year on the maximum outstanding monthly balance
d) simple interest computed at the rate charged by SBI on the last day of the month
12. The employer has purchased a car for Rs.3,00,000 which was being used for official
purposes. After 2 years and 6 months of its use, the car is sold to R, the employee, for
Rs.1,20,000. The value of this perquisite shall be:
a) Rs.72,000 b) Rs.60,000 c) 1,80,000 d) Rs.1,23,000
13. Determine the value of unfurnished rent-free accommodation (house in Delhi & owned by
employer) as per given following data if company is private company or semi govt.
company
Basic salary 60,000
Bonus 1,800
Entertainment allowance (taxable) 6,000
Electricity expenses 2,000
Employment tax paid by employer 2,000
Fair rent of house 48,000
a) 10,170 b) 48,000 c) 10,770 d) None of the
14. Determine the value of unfurnished rent-free accommodation (house in Delhi & owned
by employer) as per given following data if company is Govt. company.
Basic salary 60,000
Bonus 1,800
Entertainment allowance (taxable) 6,000
Electricity expenses 2,000
Employment tax paid by employer 2,000
Fair rent of house 48,000
Fair rent prescribed by the Govt. (licence fee) 6,000
a) 10,170 b) 48,000 c) 6,000 d) None of the
above
15. Mr. Vivek is employed at Bombay. His basic salary is 5,000 p.m. He receives 5,000 p.a.
as HRA. Rent paid by him 12,000 p.a. Find out the amount of taxable HRA?
a) Nil b) 5,000 c) 1,000 d) 6,000
16. Interest credited to RPF in excess of _________ is taxable as deemed receipt –
a) 8% b) 9.5% c) 8.5% d) 9%
17. R is provided with a rent free accommodation owned by his employer in Delhi. The
value of this perquisite shall be:
a) 20% of salary b) 15% of salary c) 10% of salary d) 7.5 % of
salary
18. Rashi is entitled to get a pension of ` 600 per month from a private company. She gets
3/5th of the pension commuted and received ` 36,000. She did not receive gratuity. The
taxable value of commuted value of pension is
a) ` 16,000 b) ` 6,000 c) ` 18,000 d) ` 10,000

19. Swati is an employee of private company. In the previous year she received salary of `
1,80,000 and entertainment allowance of ` 12,000. She spent ` 6,000 on entertainment.
Under section 16(ii), she is entitled to deduction of:
a) ` 12,000 b) ` 6,000 c) ` 5,000 d) Nil
20. An assessee received ` 200 per month for 3 children as children education allowance.
What shall be the amount exempt in his hands for such allowance?
a) ` 7,200 b) ` 3,600 c) ` 2,400 d) Nil
21. Transport Allowance received by assessee is exempt upto
a) amount received
b) ` 1600 p.m. or ` 3200 p.m. for blind/handicapped employee
c) Lower of a) and b) d) None of the above
22. An assessee, transport employee received allowance allowed to them of ` 20,000. The
amount spent by him is ` 12,000. What amount would be exempt on account of
allowance?
a) ` 12,000 b) ` 10,000 c) ` 14,000 d) Nil
23. For an employee other than Government employee, when RFA given to employee is
not owned by employer, what amount shall be taxable in the hands of employee?
a) Actual Rent or 20 % of Salary, whichever is less
b) Actual Rent or 15 % of Salary, whichever is less
c) Actual Rent or 10 % of Salary, whichever is less
24. Ravi retired on 01.10.2017 receiving ` 5,000 p.m. as pension. On 01.02.2018, he
commuted 60% of his pension and received ` 3,00,000 as commuted pension and
receiving gratuity of ` 5,00,000 at the time of retirement. What amount of uncommuted
and commuted pension is taxable if he is a non-government employee?
a) ` 24,000, ` 50,000 b) ` 24,000, ` 1,33,333
c) Nil, ` 1,33,333 d) Nil, ` 50,000
25. Entertainment allowance in case of Government employee is:
a) fully exempt
b) fully taxable
c) exempt up to certain limits mentioned in section 16(ii)
d) first included in salary and thereafter deduction allowed from gross salary under section
16(ii)
26. If salary due for March 2018 is received by P later in April 2018, it is chargeable as
income of assessment year
a) 2016-17 b) 2017-18 c) 2018-19 d) None of the above
27. Which section of Income tax Act provides about exemption of amount received by way
Retrenchment compensation?
a) 10(10) b) 10(10B) c) 10(10AA) d) 10(10C)

28. Compensation received in Voluntary Retirement is exempt under section 10(10C) to the
maximum extent of
a) 2,40,000 b) 5,00,000 c) 3,50,000 d) 10,00,000
29. Leave travel concession for a tax free perquisite for:
a) one journey in a block of 4 years b) one journey in a block of 3 years
c) two journeys in a block of 5 years d) two journey in a block of 4 years
30. Ravi retired on 01.10.2017 receiving ` 5,000 p.m. as pension. On 01.02.2018, he
commuted 60% of his pension and received ` 3,00,000 as commuted pension if he is a
government employee. What amount of uncommuted and commuted pension be taxable?
a) ` 24,000, Nil b) ` 24,000, ` 3,00,000
c) Nil, ` 3,00,000 d) Nil, Nil
CAPITAL GAINS, OTHER SOURCES & HOUSE PROPERTY

1. Second Proviso to Section 48 is applicable while computing
a) Only on Short Term Capital Gain b) Only on Long Term Capital Gain
c) Both Short Term and long Term Capital Gain d) None of the above
2. In case of a Immovable property being as Land or building of both, short term capital asset
means capital asset held by an assessee for ……… immediately preceding the date of its
transfer.
a) not more than 36 months b) not more than 12 months
c) not more than 24 months d) None of the above
3. The rate of taxability defined in Section 111A for Short Term Capital Gain is
a) 10 % b) 15 % c) 20 % d) Nil
4. Benefit of slab rate is not available on short term capital gains under section 111A to
a) resident Individual b) resident HUF
c) both of the above d) Non-resident
5. An interim order for giving compensation was passed in 20 July 2014 in pursuance of which
compensation was received. The final order of the court was passed on 7 April 2017. The
amount shall be taxable in which assessment year?
a) 2017-18 b) 2018-19 c) 2014-15 d) 2013-14
6. Exemption under section 54 is available if investment is made by the assessee in
a) residential house either in India or outside India
b) any number of residential house in India
c) one residential house in India
d) any number of residential house either in India or outside India
7. Section 112 is applicable on
a) All assessee excluding Non-residents b) All assessee including Non residents
c) Non-residents d) All assessee being individual
8. Assessee shall invest capital gain within 6 months from date of transfer in which asset to
claim exemption under section 54EC
a) Bond of State Bank of India b) Bonds of NHAI or RECI
c) Residential house d) Government bonds or debenture
9. Long term capital gain is chargeable to tax @______ under section______?
a) 20%, 112 b) 20%, 111A
c) 10%, 111A d) 15%, 112
10. Long term capital gain on equity share(STT paid) are chargeable to tax @______ under
section______?
a) 20%, 112 b) Exempt, 10(38)
c) 10%, 111A d) 15%, 112
11. Which of the following asset is a short-term capital asset, if it is held for more than 12
months?
a) Listed Securities b) Units of Equity Oriented mutual fund
c) Zero coupon bonds d) None of the above
12. Cost of acquisition in case of bonus shares allotted before 1-4-01 will be-
a) Face value on the date of allotment b) Nil
c) Market value as on 1-4-01 d) Current market value
13. Short-term capital gain is a gain arising from the transfer of an asset (Normal case) which
is held by the assessee for not more than:
a) 36 months from the date of its acquisition
b) 12 months from the date of its acquisition
c) 12 months from the date of its acquisition in case of listed securities, units of equity MF
and unit of UTI and zero coupon bond , 24 Month in Case of Unlisted shares
14. For claiming exemption under section 54, the assessee should construct the residential
property within:
a) one year before or two years after the date of transfer
b) one year before or three years after the date of transfer
c) within three years after the date of transfer
d) within two years after the date of transfer
15. Exemption u/s 54F is available in respect of transfer of:
a) any capital asset b) any capital asset other than residential house property
c) residential house property d) such section does not exist
16. Deduction u/s 80C to 80U is allowed from:
a) income from long-term capital gain as well as short-term capital gain
b) short-term capital gain other than short-term capital gain from shares transferred
through a recognized stock exchange
c) long-term capital gain
d) neither from income from long-term or short-term capital gain
17. Short-term capital gain arising for the transfer of equity shares and units of equity oriented
fund shall be taxable:
a) at the normal rate

b) at the rate of 20 %
c) at the rate of 10 % if transferred on or after 1.10.2004
d) at the rate of 15 % if transferred on or after 1.10.2004 through a recognised stock
exchange and such transaction is chargeable to securities transaction tax
18. Transfer of capital asset in the scheme of demerger shall not be regarded as transfer for
the purpose of capital gain if:
a) the demerged company is an Indian company
b) the resulting company is an Indian company
c) both demerged and resulting company should be an Indian company
d) none of the above
19. No indexation of cost of acquisition is done even though there is LTCG in case of:
a) bonds or debentures
b) certain assets held by non-residents
c) certain assets held by non-residents and any bonds or debentures other than capital
indexed bonds & Sovereign Gold Bonds issued by Government/RBI
20. Total income for AY 2018-19 of an resident individual including long-term capital gain of
`60,000 is `2,90,000. The tax on total income shall be:
a) ` 5,500 b) ` 5,665 c) ` 12,000 d) ` 8,240
21. Which of the following movable personal asset is not a capital asset?
a) archaeological collections b) drawings
c) sculptures d) Car
22. Which of the following is a capital asset
a) Stock of business b) Car of an Individual
c) Land in Delhi used for agricultural purpose d) Scooter of an Individual
23. Which of following conditions should be satisfied to claim exemption under section 10(37)
(i) Assessee being an individual or HUF
(ii) Asset being transferred in agricultural land in urban area
(iii) Asset being transferred in agricultural land
(iv) Asset is used for agricultural purposes by HUF or individual or parent of the individual
during the period of two years immediately preceding the date of transfer.
(v) transfer takes place by way of compulsory acquisition under any law
a) (i), (iii) b) (i), (ii) and (iv)
c) (i), (iii), (iv) and (v) d) (i), (ii), (iv) and (v)
24. X converts his capital asset (acquired on June 10, 1988 for ` 60,000) into SIT in 10.03.2017.
The fair market value on date of conversion was ` 3,00,000. He subsequently sells stock-in-
trade so converted for `4,00,000 on June 10, 2018. What is date of transfer of asset?
a) June 10, 1988 b) March 10, 2017
c) June 10, 2018 d) None of the above
25. X converts his capital asset (acquired on June 10, 1988 for ` 60,000) into SIT in March 10,
2017. FMV as on date of above conversion was ` 3,00,000. He subsequently sells stock-in-
trade so converted for `4,00,000 on June 10, 2018. What shall be taxable under head
PGBP?
a) ` 2,40,000 b) ` 3,40,000 c) ` 1,00,000 d) Nil
26. Which section deals about taxability of insurance claims received
a) Section 45(1A) b) Section 45(2) c) Section 45(2) d) Section 45(1)
27. Unlisted Debentures held for 25 months is:
a) Long term capital asset b) Short term capital asset
c) Either of the above d) None of the above
28. For an Resident individual who has derived short term capital gains of ` 4,00,000 from
transfer of listed equity shares after 1.10.2004, with other income of ` 2,00,000 (these two
income making up his Total Income), income tax payable in respect of short term capital
gains is:
a) ` 52,500 b) 54,075 c) ` 60,000 d) None of the above
29. Exemption under section 54EC shall be available to:
a) any assessee b) individual only
c) resident individual and HUF d) None of the above
30. Amended order shall be passed in how many years & period shall be calculated from which
date
a) 3 years, from end of PY in which order reducing value was passed in appeal or revision
b) 4 years, from end of PY in which order reducing value was passed in appeal or revision
c) 3 years, from end of AY in which order reducing value was passed in appeal or revision
d) 4 years, from end of AY in which order reducing value was passed in appeal or revision
31. When did pre-acquisition or pre-construction period commences –
a) On the 1st April when the loan is taken b) On the date of loan
st
c) On the 1 April of the year when construction is completed d) None of the above
32. VG took a loan of 8,00,000 on 1-4-2016 from a bank for construction of a house. The
loan carries an interest @ 12% p.a. The construction is completed on 31-3-2018. The
entire loan is still outstanding on 31-3-2018. The pre-construction period interest will be–
a) 96,000 b) Nil c) 1,92,000 d) 19,200
33. Salman is owner of house which has let out monthly rent of 20,000. The fair rent of
house is 2,90,000 and standard rent is 2,60,000. The municipal value of hosue is
2,80,000 and municipal taxes levied @10% of municipal value. The entire amount of
municipal tax for the year ended 31-03-2018 are payable by owner. Interest on loan is
60,000(outstanding). The income from House property will be –
a) 1,22,000 b) 1,02,400 c) 88,400 d) 1,48,400
34. If the respective shares of income of co-owners are not definite and ascertainable, the
co-owners shall be assessed as –
a) AOP b) BOI
c) Joint owners d) Any of the above

35. Find out the Gross Annual Value of house property A, if the following is given:
Municipal Value = 1,20,000 Fair Rent = 1,08,000
Standard Rent = 1,32,000 Actual Rent = 1,25,000 Unrealised rent = 20,000
a) 1,20,000 b) 1,08,000 c) 1,32,000 d) 1,45,000
36. Find out the Gross Annual Value of house property A, if the following is given –
Standard Rent = 1,32,000 Actual Rent = 12,000 p.m. Vacancy = 3 Month
a) 1,25,000 b) 1,08,000 c) 1,20,000 d) 1,45,000
37. VG is the owner of house which has been let out at a monthly rent 25,000. The fair
rent of house is 2,90,000 and standard rent is 2,60,000. The municipal value of house is
2,80,000 and municipal taxes are levied 10% of municipal value. The entire amount of
municipal tax are outstanding for the year ended 31-03-2017. The amount of municipal
taxes to be allowed as deduction for computing the annual value will be –
a) 30,000 b) 28,000 c) Nil d) 26,000
38. Vivek owns a house, which is self-occupied upto 31-5-2017. W.e.f. 1-6-2017, the property
is let out to Ram at 42,000 p.m. Determine GAV of house is municipal value is 4,15,000
; fair rent 4,30,000 and standard rent is 4,10,000 .
a) 4,20,000 b) 4,10,000 d) 4,15,000 d) Nil
39. Mr. VG owns a house. The municipal value of the house is 50,000. He paid municipal
tax of 8,000 during the previous year. He uses this house for residential purpose but
let-out half of the house @ 3,000 p.m. compute the net annual value of house –
a) 32,000 b) 26,000 c) 46,000 d) 42,000
40. VG has two house properties – the first of which was used half for running his business
and other half was let out at 3,000 p.m. The second property was wholly used as
residence by Mr. VG. Municipal tax for the two properties were the same at 7,200 each
per annum. The business and the let out premise were insured against loss by fire and
the insurance premium was 900 p.m. Compute income from house property in hands of
MR. VG –
a) 22,680 b) 36,000 c) 32,400 d) Nil
41. Composite rent (Inseparable) of let-out property is taxable as –
a) Income from PGBP
b) Income from Other Sources
c) Income from House property
d) Either (a) or (b) above depending upon certain conditions.
42. In which of the following cases the annual value of the house is taken to be taken NIL–
a) Self occupied house b) Vacancy for the whole period
c) If the assessee holds two house property d) Both (a) & (b)
43. VG 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 following amount per month –
a) 22,000 b) 25,000 c) 20,000 d) None of the
44. Find out the Gross Annual Value of house property A, if the following is given –
Standard Rent = 1,32,000 Actual Rent = 12,000 p.m.
Vacancy = 3 Month Unrealised rent = 1 month
a) 96,000 b) 1,08,000 c) 1,20,000 d) None of the above
45. The sum for which the property might reasonably by expected to let out to year is
known as
a) Expected rent b) Standard rent c) Annual value d) Municipal value
46. assessee has borrowed money for purchase of a house and interest is payable outside
India. Such interest shall:
a) be allowed as deduction
b) not be allowed as deduction
c) be allowed as deduction if the tax is deducted at source
d) none of the above
47. Tick from the under mentioned, the cases where annual value can be negative.
a) let out property , deemed let-out property , partly let-out & partly self-occupied property
b) one self-occupied property, deemed let-out property
c) deemed let-out property
d) one property which could not be occupied due to employment elsewhere
48. R has taken a house on rent and sublets the same to G. Income from such house
property shall be taxable under the head:
a) income from house property b) income from other sources
c) At the option of assessing officer d) None of the above
49. Municipal valuation of the house is `1,00,000; whereas the fair rent of house property
`1,20,000 and standard rent is `1,10,000; actual rent received or receivable is `1,40,000;
municipal taxes paid 10%. The Net annual value in this case shall be:
a) `90,000 b) `1,00,000 c) `1,30,000 d) ` 91,000
st
50. Vivek let-out his house property on 1 April, 2015 on rent 15,000 p.m. The fair rent &
municipal value of house is 13,500 p.m. and 16,000 p.m. respectively. Municipal tax paid
for the year is 12,000. Income from the house property for Assessment year 2016-17.
a) 1,26,000 b) 1,76,000 c) 1,05,000 d) None of the
51. Mr. VG is an American national, is resident in India during the PY ending on 31-3-2018.
He was the owner of building located in New York. The same was on Rent @ US
$12,500 p.m. The Municipal corporation of New York was paid taxes on such building of
US $10,000 on 12-2-2018. The value of one US $ in Indian rupee remained at 60
throughout the year. VG wants to know his taxable income for house property for
assessment year 2018-19 –
a) 58,80,000 b) NIL c) 63,00,000 d) None of the above
52. M took a loan of ` 6,00,000 on 1.4.2015 from a bank for construction of a house. The
loan carries an interest @ 10%p.a. The construction is completed on 15.6.2017. The
entire loan is still outstanding. Compute the interest allowable for the assessment year
2018-19.
a) ` 60,000 b) ` 1,80,000 c) ` 84,000 d) ` 24,000
53. Where fresh loan has been raised to repay the original loan and second borrowing is
used to repay the original loan, the interest paid on the second loan would ……………
a) not be allowed as a deduction u/s24 b) also be allowed as a deduction u/s24
c) may be allowed as a deduction u/s24 d) none of the above
54. Where the self occupied property whose GAV is nil is repaired, renewed or
reconstructed with capital borrowed on or after 01.04.1999. What is the maximum
deduction of interest that shall be allowed?
a) ` 2,00,000 b) ` 30,000
c) Nil, no deduction is allowed d) deduction is allowed without any limit
55. parna has one house property where she stays with her family. The rent of similar
property in the neighborhood is ` 25,000 p.m. The municipal valuation is ` 23,000 p.m.
Municipal taxes paid are ` 8,000. Loan of ` 20,00,000 was taken on 01.01.2010 from
ICICI Housing Finance Ltd. The construction was completed on 25.11.2012. The
accumulated interest up to 31.3.2015 is `1,50,000. During previous year 2017-18, Aparna
paid ` 1,88,000 which included `1,44,000 as interest. Compute Aparna’s income from
house property for AY 2018-19. All conditions for higher deduction of interest are
satisfied.
a) Loss of ` 1,50,000 b) Loss of ` 1,74,000 c) Loss of ` 30,000 d) Nil
56. The following income received by Mr. VG during the previous year 2017-18-
Director fees 5,000
Income from agriculture land in Pakistan 15,000
Rent from let out of land situated in Punjab 20,000
Interest on deposit with HDFC bank 1,000
Dividend from Indian company 15,000
You are required to calculate income from other sources assessment year 2018-19
a) 41,000 b) 56,000 c) 20,000 d) 1,000
57. The following income received by Mr. VG during the previous year 2017-18-
Rent from subletting a house 28,000
Other expenses on sublet or house 1,000
Rent payable for sublet house 12,000
Winning from horse race (gross) 15,000
Dividend from Indian company 15,000
You are required to calculate income from other sources assessment year 2018-19 –
a) 30,000 b) 45,000 c) 43,000 d) 58,000
58. An assessee received family pension of ` 90,000, what amount is taxable u/h Other
Sources?
a) ` 60,000 b) ` 75,000 c) ` 45,000 d) None of the above
59. If the income under head Other Sources includes family pension, what is the deduction
allowed from such family pension.
a) 1/3rd of family pension income b) ` 15,000
c) least of a) and b) d) average of a) and b)
60. What is the amount of deduction available on interest received from enhanced
compensation?
a) 60% of income by way of interest on enhanced compensation
b) 50% of income by way of interest on enhanced compensation
c) 70% of income by way of interest on enhanced compensation
d) Nil
61. Dividend from Indian company is exempt under section ………………
a) 10(34) b) 10(35) c) 10(33) d) None
62. Which of the following property is not taxable when transferred without consideration under
section 56(2)(vii)?
a) drawings b) paintings c) cars d) sculptures
th
63. On 5 February 2018, R gets a gift of motor car from his relative M. Fair market value of the
car is ` 3,60,000.The amount taxable u/s 56(2)(x) is
a) ` 3,60,000 b) ` 3,10,000 c) Nil d) ` 50,000
th
64. On 5 February, 2018 Vivek gets a gift of Gold Ring from a relative Ashish. Fair market
value of Ring is 3,60,000. The amount of taxable in hands of Vivek under section 56(2)(x)
is?
a) 3,60,000 b) 3,10,000 c) 50,000 d) Nil
65. Dividend paid by an Indian company is 12,00,000 to Resident Individual:
a) Taxable in India in the hands of the recipient @ 10%
b) Exempt in the hands of recipient u/s 10(34)
c) Taxable in the hands of the company and exempt in the hands of the recipient
66. Rohit has received gift of ` 1,50,000 in cash from brother of his spouse. The amount
a) shall be taxable
b) exempt from tax since amount is received from a relative
c) may be taxable
d) not included in income
67. Income by way of winnings from lotteries, crossword puzzles, races including horse races or
card games and other games of any sort or from gambling or betting of any form would be
taxed at rate of ……………
a) 25 %
b) 30 % + surcharge, if applicable, + education cess+ secondary & higher education cess
c) 20 %
d) Exempt from tax
68. An assessee received interest on compensation amounting to ` 10,00,000. What amount is
taxable under head Other Sources?
a) ` 7,00,000 b) ` 5,00,000 c) ` 3,50,000 d) Nil
69. Abhi received gift of ` 51,000 in cash from his friend. The amount shall be taxable in hands
of-
a) Abhi b) his friend
c) none of the above d) Any of the above
70. Family pension received by a widow of a member of the armed forces where the death of
the member has occurred in the course of the operational duties in the circumstances and
subject to prescribed conditions:
a) exempt upto ` 3,00,000 b) exempt under section 10(19)
c) exempt upto ` 3,50,000 d) chargeable to tax
Basic Concept of INCOME TAX

1. The surcharge applicable in the case of an individual is -
a) 2% of tax payable if total income exceeds 100 lakh
b) 10% of tax payable if total income exceeds 50 lakh
c) 15% of tax payable if total income exceeds ` 100 lakh
d) Both A or B
2. The surcharge applicable to a domestic company for A.Y. 2018-19 is -
a) 2% always irrespective of level of income
b) 10% if total income exceeds ` 1 crore.
c) 5% if total income exceeds ` 1 crore
d) 7% if the total income exceeds ` 1 crore but upto` 10 crore.
3. The surcharge applicable to a foreign company for A.Y. 2018-19 is -
a) Nil
b) 2% if the total income exceeds ` 1crore upto` 10 crore
c) 2.5% if the total income exceeds ` 1 crore upto` 10 crore
d) 5% in all cases
4. A non-resident individual having taxable income in India of ` 3,00,000 shall be allowed rebate
of how much under section 87A
a) 2,500 b) 3,000 c) 5,000 d) Nil
5. ABC Inc, a foreign company has a total income of ` 1 crore. What would be the amount of
surcharge applicable?
a) 10% b) 2% c) 5% d) Nil
6. A newly set up business coming into existence, the first previous year will commence from
a) Date of set up of business b) 1st April of previous year
c) Any date after set up of business d) one day before date of set up of business
7. Exemption limit of ` 3,00,000 or ` 5,00,000 is applicable for
a) Resident Individual b) Non-resident Individual
c) Both resident and non-resident Individual d) none of them
8. Income tax is charged on the basis of rate prescribed by
a) Income tax Act b) Finance Act
c) Central Board of Direct Taxes d) Ministry of Law
9. Charging section of income tax is
a) Section 4 b) Section 9 c) Section 15 d) Section 28
10. Rebate under section 87A is allowed to
a) Resident individual b) any individual (resident or non-resident)
c) Resident individual and HUF d) all assessee
11. Rebate under section 87A shall be allowed to the maximum extent of
a) ` 3,000 b) ` 2,500 c) ` 2,000 d) tax payable
12. Assessment year is a period of
a) more than 12 months b)12 months and less than 12 months
c) 12 months only d)12 months and more than 12 months
13. All assessee are required to follow
a) uniform previous year which must be calendar year only
b) uniform previous year which must be financial year only
c) any period of12 months
d) Period starting from 1st July to 30th June only
14. First previous year in case of a business/ profession newly set up on 31.3.2018 would:
a) Start from 1st April, 2017 and end on 31st March, 2018
b) Start from 31st March, 2018 and will end on 31st March, 2018
c) Start from 1st January, 2018 and end on 31st December, 2018
d) Start from1st January, 2018 and will end on 31st March, 2018
15. A person follows Calendar year for accounting. For taxation, he has to follow:
a) Calendar year only-1st January to 31st December
b) Financial year only-1st April to 31st March
c) Any of the Calendar or Financial year as per his choice
d) He will have to follow extended year from 1 January to next 31 March (period of15 months)
16. Calculate Income-tax payable by an Individual (aged 30 years) for AY 2018-19 if his total
income is ` 1,01,20,000:
a) ` 33,10,165 b) ` 32,75,775 c) 28,12,500 d) ` Nil
17. Total income is to be rounded off to nearest multiple of....... and taxis to be rounded off to
nearest multiple of.........
a) Ten, Rupee b) Hundred, Ten c) Ten,Ten d)Rupee, Rupee
18. Surcharge in case of an individual or HUF for assessment year 2018-19 is payable at rate of:
a) 12% of the income-tax payable provided the total income exceed ` 6,00,000.
b) 10% of the income-tax payable provided the total income exceeds ` 50,00,000
c) 5% of the income-tax payable if the total income exceeds ` 1,80,50,000
d) 15% of the income-tax payable provided the total income exceeds ` 90,00,000
19. The maximum amount on which income-tax is not chargeable in case of firm is:
a) ` 2,00,000 b) ` 2,50,000 c) ` 5,00,000 d) Nil
20. Education cess is leviable in case of
a) An individual and HUF b) A company assessee only
c) All assesses d) Only Individual
21. The total Income of the assessee has been computed as ` 2,53,494.90. After rounding off, total
Income will be taken as ……….
a) ` 2,53,500 b) ` 2,53,490 c) ` 2,53,495 d) ` 2,54,000
22. Calculate rebate available u/s 87A to a resident individual having total income of` 3,00,000.
a) ` 3,000 b) ` 1,500 c) ` 2,500 d) ` 2,000
23. Rebate under section 87A is allowed only on fulfillment of which condition
i) Assessee should be resident individual
ii) the Income of assessee is upto` 3,50,000
iii) All assessee
a) (i) and (ii) b) only (ii) c) (ii) and (iii) d) (iii)
st
24. Income of a business commenced & Set-up on 1 March, 2018 will be assessed during the
assessment year…………………….?
a) 2017-2018 b) 2016-2017 c) 2018-2019 d) 2013-2014
25. The maximum exemption limit under the income Tax Act ,1961 in case of a women who is 65
year of age and who is non-resident in India is ` …………………………?
a) 2,00,000 b) 2,50,000 c) 3,00,000 d) 5,00,000
26. AOP should consist of :
a) Individual only b) Persons other than individual only
c) Both the above d) None of the above
27. From which entry does Central Government get power to levy Income tax
a) Entry 97 of Union List b) Entry 92C of Concurrent List
c) Entry 82 of Union List d) Entry 92C of State List
28. Hindu undivided family (HUF) includes:
a) Family of Muslims, Christians b) family of Jains, Sikhs, Buddhist
c) Both of the above d) None of the above
29. Surcharge is calculated as a % of ……….

a) Gross Total income b) Basic Tax
c) Total Income d) Tax + Total income
30. Light Ltd., a domestic company has income of ` 10 crore, what rate of surcharge is applicable
on same
a) 10% b) 2% c) 7% d) Nil
31. The rate of tax applicable to a domestic company for A.Y. 2018 -19 if company T.O in P.Y
2015-16 was 43 crore is -
a) 30% b) 25% c) 40% d) 45%
32. Year in which income is taxable is known as …… & year in which it is earned is known as ......
a) Previous year, Assessment year b) Assessment year, Previous year
c) Assessment year, financial year d) financial year, Previous year
33. Mrs. V (Age 82 year) is non-resident in India for the assessment year 2018-19. For the
previous year 2017-18, her income chargeable to tax in India is ` 8,30,000. Find out Tax
liability.
a) 98,880 b) 80,860 c) 78,500 d) 86,000
34. Mr. V, resident in India for the assessment year 2018-19. For the previous year 2017-18, his
income chargeable to tax in India is ` 10,00,000. Find out Tax liability if born on (i) 15th Jan,
1938 (ii) 15th Jan, 1958 (without cess)
a) 1,00,000 / 1,10,000 b) 1,16,800 / 1,36,800
c) 1,03,000 / 1,13,300 d) None of the above
35. The maximum amount on which income tax is not chargeable in case of HUF for assessment
year 2018-19.
a) 2,00,000 b) 2,20,000 c) 2,50,000 d) 1,80,000

MOCK TEST of INCOME TAX WITHOUT SOLUTION

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CA Vivek Gaba CS EXECUTIVE MOCK TEST PAPER TAX LAWS

Most Important Question

a) 1,50,000 b) 75,000 c) 1,25,000 d) None of the

17. Which of the following may be ordinarily resident in India?

(iv) Profit on sale of shares of RIL ltd. received in Japan 1,50,000

c) Non resident d) Resident.

c) Non resident d) Resident.

c) Resident in India d) None of the above.

Income from Salary

3. Gratuity shall be exempt in case of:

a) Central and State government employees

a) ` 16,000 b) ` 6,000 c) ` 18,000 d) ` 10,000

a) 10(10) b) 10(10B) c) 10(10AA) d) 10(10C)

CAPITAL GAINS, OTHER SOURCES & HOUSE PROPERTY

a) at the normal rate

c) Joint owners d) Any of the above

Basic Concept of INCOME TAX

29. Surcharge is calculated as a % of ……….

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