Appeal, Set comm., DRP Etc Mock Test IGP-CS CA Vivek Gaba

Transcription

1 1. Taking full advantage of loopholes of law so as to attract least incidence of tax is known as a) Tax planning b) Tax evasion c) Tax avoidance d) Tax management 2. Which is the relevant Form No. for filing application of AAR by a Resident having transition with Non-resident a) 34C b) 34D c) 34E d) 34EA 3. How much is the fee for filing an application for advance ruling (i.e. PSU) a) 2,500 b) 5,000 c) 10,000 d) 20, The first appeal to CIT (A) must be filed in Form No. a) 35 b) 36 c) 34 d) None of the above 5. The time limit for filing appeal to ITAT is a) 30 days from the receipt of the order to be appealed against b) 30 days from the passing of the order to be appealed against c) 60 days from the receipt of the order to be appealed against d) 30 days from the passing of the order to be appealed against 6. Revision of order not cover under section 263 can be done by commissioner : a) On his own motion b) On the request of assessee b) On the request of assessing officer d) On his own motion or on the request of assessee. 7. Mr. VG has non-agriculture income of 6,50,000. Agriculture income earned of 50,000. Compute the income tax payable by him. a) 66,950 b) 72,100 c) 5,150 d) 61, Mr. Vivek has non-agriculture income of 50,000. Agriculture income earned of 7,000. On what amount the partial integration would be applicable? a) 50,000 b) 7,000 c) 57,000 d) Will not applicable 9. Mr. Vivek has non-agriculture income of 2,52,000. Net Agriculture income earned of 40,000. The tax liability of an individual assessee will be? a) Nil b) 200 c) 206 d) 4, Where the AO is aggrieved by order of the CIT(A), further appeals in respect of same lies to a) ITAT b) CIT (R) c) CBDT d) DRP 11. What shall be the rate of tax at which TDS on salary under section 192 shall be deducted? a) 30 % b) Average rate of income tax (including cess) c) 20 % d) Average rate of income tax (excluding cess) 12. When shall tax not be deducted in case of winning from race horses? a) When winning from race horses is upto ` 15,000 b) When winning from race horses is upto ` 10,000 c) When winning from race horses is upto ` 5,000 d) TDS shall always be deducted 13. What shall be the rate at which TDS on winnings from lotteries or crossword puzzles & Race horses be deducted under section 194B?

2 a) 20 % b) 10 % c) 30 % d) 15 % 14. In case of salary TDS certificate issued in: a) Form 16 b) Form 16A c) Form 15 d) Form 15H 15. The maximum amount which can be paid without deduction of tax at source from winning from lotteries is? a) 10,000 b) 5,000 c) 1,000 d) 20, Deductee submitted PAN but it was invalid, then TDS shall deducted at the rate: a) 20% b) Rate specified in the section c) Rate specified in the ACT d) Rate specified in ACT or Rates in force or 20% whichever is HIGHER 17. During the PY ending 31st March, 2017, a charitable trust earned an income of ` 4,00,000. Amount applied by trust is ` 2,00,000. How much amount shall be taxable? a) ` 3,40,000 b) ` 4,00,000 c) ` 1,40,000 d) Nil 18. Total donation received by assessee is ` 60,00,000. Out of which anonymous donation is of `20,00,000. What amount of anonymous donation shall be chargeable to tax a) ` 20,00,000 b) ` 19,00,000 c) ` 17,00,000 d) Nil 19. What will be the tax liability in case of an individual whose agricultural income is 1,00,000, expenses relating to agriculture is 20,000 and income from business is 3,00,000. a) 10,300 b) 5,000 c) 5,150 d) Nil 20. If amount payable as per normal provision of Income tax act is 52,000 and AMT is 47,000. The AMT credit available with assessee is 15,000. What is the amount payable and the AMT credit that shall be carried forward? a) 52,000, 10,000 b) 47,000, 10,000 c) 52,000, 15,000 d) 37,000, Nil 21. AMT is applicable on a) Individual whose Adjusted Total Income is ` 25 lakhs b) Individual whose Adjusted Total Income does not exceed ` 20 lakhs c) HUF whose Adjusted Total Income does not exceed ` 20 lakhs 22. MAT credit can be carried forward for a) 10 previous years b) 10 assessment years c) indefinite d) no carry forward 23. When an order is passed by Commissioner of Income Tax, it shall be appealed in front of a) Income tax appellate authority b) Commissioner of Income Tax (Appeal) c) High Court d) Supreme Court 24. What is total amount during the previous year upto which TDS on fees for professional or technical service shall not be deducted? a) ` 20,000 b) ` 75,000 c) ` 30,000 d) Nil 25. Which of the following method are part of Bilateral relief: a) Tax credit method b) Tax exemption method c) Both a) and b

3 26. Under Section 90, the Central Government may enter into agreement with the Government of other country for which of the following reasons: a) For granting relief b) For avoidance of double taxation c) For exchange of information d) All the above. 27. If transaction falls under Income tax Act and DTAA then what would be the treatment of such transaction a) Apply whichever is more beneficial to the assessee b) Income tax Act c) DTAA 28. Penalty u/s 2% on value of each international transaction or SDT shall be levied because of: a) Failure to keep and maintain document b) Failure to report such transaction which he is required c) Failure to maintain or furnish correct information or document d) All the above 29. Penalty for failure to furnish report from Chartered Accountant under section.. shall be of an amount. a) 271B, 1 lakh b) 271(1)(c), 1 lakh c) 271AA, 1 lakh d) 271BA, 1 lakh 30. Under which of the following two enterprise are not associated enterprise: a) Guarantee by A Ltd. of 10% of Total borrowing of B Ltd. b) Executive director of B Ltd. appointed by A Ltd. c) A Ltd. has 25% voting power in B Ltd. d) Goods sold by A Ltd. to B Ltd. where the price is B Ltd. governs the price of goods 31. The Income-tax Act, 1961 empowers the Central Government to enter into double taxation avoidance agreements with other countries under section: (A) 87 (B) 88 (C) 90 (D) None of the above 32. As per transfer pricing provisions, an advance pricing agreement (APA) is valid for (A) Such period as specified in the APA, but not exceeding 3 consecutive years (B) Such period as specified in the APA, but not exceeding 5 consecutive years (C) 2 Years (D) None of the above. 33. Reference to Transfer pricing officer is given under (A) Section 92CA (B) Section 92C (C) Section 92A (D) Section 92B 34. Within how many days should appeal be filed to High Court? (A) 45 (B) 60 (C) 180 (D) What is maximum amount upto which TDS on commission on sale of lottery tickets shall not be deducted? (A) ` 15,000 (B) ` 20,000 (C) ` 1,000 (D) Nil 36. What shall be the rate of TDS under section 194I on payment of rent of plant and machinery where rent is paid to any person other than individual or HUF? (A) 1 % (B) 2 % (C) 10 % (D) Nil

4 37. Settlement commission shall pass final order within months from the end of the months in which application for settlement was made - a) 6 months (B) 12 months (C) 18 months (D) 24 Months 38. Who is an eligible to become Chairman of AAR? (A) retired judge of High Court (B) pass out of Indian legal service (ILS) exam (C) retired judge of Supreme Court (D) pass out of Indian Revenue service (IRS) exam 39. How much fees is to be paid while making application for AAR? (A) 2,500 (B) 5,000 (C) 10,000 (D) Nil 40. When can application made to AAR can be withdrawn (A) cannot be withdrawn (B) within 7 days from date of making application (C) within 21 days from date of making application (D) within 30 days from date of making application 41. Tax Planning is : (A) lawful (B) Unethical (C) Not within the framework of law (D) None of the above 42. Mr. Vivek deposit 1,50,000 in PPF A/c to claim deduction under section 80C. It is (A) Tax planning (B) Tax evasion (C) Tax management (D) Tax avoidance 43. The basis objectives of tax planning is (A) Reduction of tax liability (B) Minimization of litigation (C) Productive investment (D) All the above 44. Permissive tax planning is (A) Objective of tax planning (B) Area of tax planning (C) Type of tax planning (D) None of the above 45. When the tax on total income computed as per.. is less than, such. shall be deemed to be total income (A) Income tax Act, Book Profits, Book Profits (B) Companies Act, Taxable Profits, Profit (C) Income tax Act, 18.5% of Book Profits, Book Profits (D) Companies Act, 18.5% of Taxable Profits, Taxable Profit 46. MAT credit shall be allowed to be carried forward and set off up to. (A) 8 assessment year (B) 10 assessment year (C) 8 previous year (D) 10 previous year 47. Which is the charging section of Alternate Minimum Tax? (A) Section 115JB(1) (B) Section 115B(2) (C) Section 115JC (D) Section AMT is not applicable on (A) Individual whose Adjusted Total Income does not exceed ` 20 lakhs (B) HUF whose Adjusted Total Income does not exceed ` 20 lakhs

5 (C) Artificial juridical person whose Adjusted Total Income does not exceed ` 20 lakhs (D) All of the above 49. Unilateral relief is provided by government in case: a) where no agreement exist b) where agreement exist c) Either a) or b) 50. Kalpesh Kumar, a resident individual, is musician deriving income of ` 75,000 from concerts performed outside India. Tax of ` 10,000 was deducted at source in the country where concerts were performed. India does not have any double tax avoidance agreement with that country. His income in India amounted to ` 2,25,000. Compute tax liability of Kalpesh Kumar for AY assuming he deposited `10,000 in Public Provident Fund & paid medical insurance premium in respect of his father, aged 65 years, `20,000. Calculate tax payable in India. a) ` 3,270 b) nil c) `5,150 d) ` 10, Specified domestic transaction defined under; a) Section 92A b) Section 92B c) Section 92BA d) Section 92CA 52. Report of transfer pricing shall be furnished: a) on or before 30 th November of PY b) on or before 30 th November of AY c) on or after 30 th November of AY d) on or after 30 th November of PY 53. Maintenance, keeping of information and document is defined under a) Section 92D b) Section 92F c) Section 92E d) Section 92BA 54. Appeal to ITAT shall be given in how many days? a) 45 b) 60 c) 180 d) What is total amount during the previous year upto which TDS on rent under section 194I shall not be deducted? a) ` 30,000 b) ` 75,000 c) ` 2,00,000 d) ` 1,80, What shall be rate of TDS on fees for professional or technical service under section 194J? a) 20 % b) 10 % c) 30 % d) 15 % 57. Which of the following is not an example of capital receipt? a) money received on issue of shares b) money received on sale of land c) money received on sale of goods d) none of the above 58. Which of the following income is an agricultural income a) Income from brick making b) Income from agricultural land situated in Pakistan c) Prize from Government on account of higher crop yield d) Compensation received from insurance company on account of loss of crop 59. When can assessee utilise MAT credit? a) When tax payable as per income tax act is less than MAT b) When MAT is more than tax as per income tax act c) When tax as per income tax act is more than MAT d) All of the above 60. What is the amount payable to Government when tax as per normal provision of Income tax Act is 1,20,000 and as per the provision of AMT is 1,21,000

6 a) 1,20,000 b) 1,21,000 c) 1,20, Under Section 90, the Central Government may enter into agreement with the Government of other country for which of the following reasons: b) For granting relief b) For avoidance of double taxation c) For exchange of information d) All the above. 62. When rate as per Income tax for a transaction is 15% whereas as per DTAA is 20%. Which rate of tax shall be applicable a) 20% b) 15% c) 17.5% d) Nil 63. Associated enterprises defined under: a) Section 92 b) Section 92CA c) Section 92B d) None of above 64. The advance pricing agreement shall be binding in following cases: a) There is change in law b) Change in facts of agreement c) Both a) and b) 65. Research expenditure incurred for the benefit of A Ltd, India and B Inc, UK by A Ltd. The allocation of expense shall be on the basis of a) Arm s length price b) Transaction price c) Cost plus profit d) on any basis 66. The chapter of Transfer pricing is defined from a) Sec 92 to 92C b) Sec 92 to 92F c) Sec 92 to 92CA d) Sec 92 to 92 BA 67. CIT(R) can pass order under section 263 if a) order passed by AO is erroneous b) order passed by AO is prejudicial to interest of revenue c) order passed by AO is erroneous and prejudicial to interest of revenue d) on discretion of CIT(R) 68. Which of the following statement is true: a) Under exemption method income is taxed in one of the two countries b) Under tax credit method income is taxable in both the countries but tax paid in one country shall be allowed as credit from tax payable in other country. c) Bilateral relief given where agreement exists with other countries d) All the above 69. For maintaining information and document of international transaction, aggregate value of international transaction should be: a) More than 1 crores b) 1 crore or more c) Less than 1 crore d) None the above. 70. Which the final fact finding authority? a) CIT (A) b) ITAT c) High court d) Supreme Court 71. On which question can appeal to High Court be filed? a) Question of fact b) Question of law

7 c) Any of the above d) as per discretion of High Court 72. Which of the following statement is correct? a) Appeal against order of ITAT shall be filed to Supreme Court b) Appeal against order of ITAT shall be filed to High Court c) No appeal against order of ITAT shall be filed 73. Which of the following statement is incorrect? a) Appeal against order of ITAT shall be filed to High Court on Question of law b) Appeal against order of High Court shall be filed to Supreme Court c) Appeal against order of ITAT shall be filed to High Court on Question of fact d) All of the above 74. Appeal to ITAT cannot be given against which of the following? a) against order passed by CIT(A) b) order passed by AO according to direction given Dispute Resolution Panel c) order passed by CIT(R) under section Which is the first appellate authority? a) Income tax appellate authority b) Commissioner of Income Tax (Appeal) c) High Court d) Supreme Court 76. For International Transaction which of the Followings conditions satisfied: a) It must be a transaction between two or more associated enterprises b) At least one of the both party must be NR. c) Both a) and b) 77. Associated enterprises defined under: b) Section 92A b) Section 92CA c) Section 92B d) None of above. 78. TPO has power... for determining ALP: a) To summon under section 131 b) To call information under section 133 c) To survey under section 133A d) All the above. 79. Information and document are required to be kept for from the end of relevant. a) 8 years, assessment year b) 8 years, previous year c) 8 years, calendar year d) None the above 80. The documents when required to be submitted by Assessee within 30 days when requirement by Assessing Officer can be extended by further period of a) Max 30 days b) Min 30 days c) Max 1 month d) None the above 81. APA can be valid for maximum: a) 5 consecutive previous year b) 5 consecutive assessment year c) 5 consecutive calendar year 82. If assessee has already filed a return u/s 139, then also he shall file modified return within a) 3 months b) 30 days c) 2 months d) 120 days 83. If income is earned in a country with which no agreement exists, relief is provided under:

8 a) Section 90 b) Section 90A c) Section 91 d) All the above 84. The partial integration of Agricultural Income with Non Agricultural Income is done in case of a) all assessee b) any assessee other than who is liable to be taxed at flat rate of income tax c) Individual, HUF, AOP or BOI 85. The partial integration of Agricultural Income is done to compute tax on: a) Non Agricultural Income b) Agricultural Income c) Both a) and b) 86. There will be no partial integration of Agricultural income with Non Agricultural Income, if Non Agricultural Income does not exceed a) ` 1,60,000 b) ` 2,50,000 c) ` 2,60,000 d) ` 2,00, There will be no partial integration, if the Agricultural Income does not exceed a) ` 14,000 b) ` 50,000 c) ` 5,000 d) ` 10, AMT is applicable on: a) Individual b) HUF c) Firm d) Any of the above 89. Garima has won a horse race on and is entitled to a prize of ` 2,00,000. The Race Club should deduct the TDS amounting to: a) ` 66,000 b) ` 61,800 c) ` 60,435 d) ` 60, Madhu has won a horse race and is entitled to a prize of ` 10,00,000. The Race Club should deduct the TDS amounting to: a) ` 3,00,000 b) ` 3,36,000 c) ` 3,30,000 d) ` 3,09, Penalty for failure to submit report under section 92E a) ` 1,00,000 b) ` 50,000 c) ` 2,00,000 d) ` 1,50, A professor earned 8 lakh from a foreign country where no DTAA exist with that country and tax at source of was deducted. The assessee is an Indian citizen and resides in India. His other income in India if 2,67000 tax relief under section 91 will be a) ` 60,000 b) ` 80,000 c) ` 1,20,000 d) nil 93. The following methods as per section 92C are used in determination of arms length prices for international transactions and specific domestic transaction except a) comparable uncontrolled price method b) cost method c) resale price method d) transaction net margin method 94. MAT is levied under section a) 115AB b) 115QB c) 115BC d) 115JB 95. The rate of TDS in case of listed debentures for the financial year is a) 20% b) 21% c) 10% d) 30% 96. A sold a machine to B (associated enterprise) and in turn b sold the same machinery to C (an independent party) at sale margin of 30% for 4 lakh but B has incurred 4000 in sending the machine to C. From the above data, determine the arm's length price a) ` 2,76,000 b) ` 1,20,000 c) ` 2,80,000 d) ` 4,00, Method for determining arms length price is given under section

9 a) 92A b) 92B c) 92C d) 92D 98. Application for advance ruling may be made by a) Resident only b) non-resident only c) both (a) and (b) d) All non-resident and few resident 99. MAT is applicable on: a) Individual b) HUF c) Firm d) Company 100. No tax is to be deducted at source if the amount credited or paid to the contractors during the relevant previous year does not exceed: a) ` 30,000 b) ` 75,000 c) ` 30,000 at one time or ` 1,00,000 in aggregate in financial year d) Nil 101. XYZ Ltd. has taken a showroom on rent at ` 25,000 from R Limited. XYZ Ltd. should deduct tax at source amounting to: a) Nil b) ` 30,000 c) ` 24,000 d) ` 27, XYZ Ltd. has taken a showroom on rent at ` 25,000 from Reena Ltd. XYZ Ltd. should deduct tax at source amounting to: a) Nil b) ` 20,000 c) ` 24,000 d) ` 15, What is Tax Haven? a) tax charged at 10% b) exemption limit is high c) high rebate is given d) No tax 104. Transaction between 2 Enterprise where one is non-resident is a) international transaction b) cross border transaction c) foreign transaction d) domestic transaction For Any Doubt you can whatsapp or message at Love CA Vivek Gaba (CS Tax Faculty) Target 90+ in Tax Laws All The Very Best.