Salary Mock Test 3 IGP-CS CA Vivek Gaba

Transcription

1 1. Rashi is entitled to get a pension of ` 600 per month from a private company. She gets 3/5 th 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, 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 3. 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 4. 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 5. 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 6. Mr. Arvind has the following receipts from his employer: Particulars ` (1) Basic pay (2) Dearness allowance (D.A.) (3) Commission (4) Motor car for personal use (expenditure met by the employer) (5) House rent allowance 3,000 p.m. 600 p.m. 6,000 p.a. 500 p.m. 900 p.m. Find out the amount of HRA eligible for exemption to him assuming that he paid a rent of ` 1,000 p.m. for his accommodation at Kanpur. DA forms part of salary for retirement benefits. a) ` 7,680 b) ` 10,800 c) ` 17,280 d) Nil 7. 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 d) None of the above 8. Ram, Finance Manager in ABC Ltd. The company has provided him rent-free unfurnished accommodation in Mumbai. He gives you the following particulars: Particulars ` Basic salary Advance salary for April 2015 Dearness Allowance ` 6,000 p.m. ` 5,000 ` 2,000 p.m. (30% for retirement benefits)

2 Bonus ` 1,500 p.m. Even though the company allotted house to him on , he occupied the same only from Calculate the taxable value of perquisite for A.Y a) ` 6,075 b) ` 6,000 c) ` 4,500 d) Nil 9. An employer provided his employee a sofa set whose actual cost is ` 70,000. Employee pays ` 2,000 to his employee towards this sofa set. What amount shall be taxable in the hands of the employee? a) ` 7,000 b) ` 2,000 c) ` 5,000 d) ` 10, Ravi retired on receiving ` 5,000 p.m. as pension. On , 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, Rohit who is not a government employee retired on after 20 years 10 months of service, receiving leave salary of ` 5,00,000. Other details of his salary income are: Basic Salary : ` 5,000 p.m. (` 1,000 was increased w.e.f ) Dearness Allowance : ` 3,000 p.m. (60% of which is for retirement benefits) Commission : ` 500 p.m. Bonus : ` 1,000 p.m. Leave availed during service : 480 days He was entitled to 30 days leave every year. How much amount of leave salary shall be taxable? a) Nil b) ` 4,73,600 c) ` 5,00,000 d) None of the above 12. Salary of R becomes due on 1 st of next month and it is paid on 7 th of that month. For assessment year , the salary of R shall be taken from: a) April 2016 to March 2017 (B) March 2016 to February 2017 (C) Any of the above (D) None of the above 13. Commuted pension received shall be fully exempt in case of: a) Government employee b) Government employee or an employee of local authority c) Government employee or an employee of local authority or an employee of statutory corporation d) None of the above 14. During the previous year, the employee was reimbursed ` 24,000 as medical expenses incurred by him which includes ` 7,000 spent in Government hospital. The taxable perquisite in this case shall be: a) Rs.9,000 (B) Rs. NIL (C) Rs.2,000 (D) Rs.24, An employer has provided a motor car of 1.5 litre capacity to his employee which the employee is allowed to use for official purpose and for travelling from office to residence and back. The expenses of running and maintenance of Motor Car are met by the employer. The value of this

3 perquisite shall be: a) Rs.1,800 p.m. (B) Rs.600 p.m. (C) Rs.NIL (D) Rs.2,400 p.m. 16. R is an employee of Indian Oil Corporation Ltd. He is provided with free gas for his personal purposes by the employer. The value of this perquisite shall be: a) NIL (B) 6 1/4 % of the salary (C) Manufacturing cost per unit (D) Market rate of gas 17. 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 10 % p.a. (B) simple interest 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 18. 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, An employee is neither a Government employee nor covered under Payment of Gratuity Act, Salary for the purpose of calculating half month shall be taken as: (A) last drawn salary (B) average salary of 10 months preceding the month of retirement (C) average salary of each completed year 20. Employer s contribution to recognized provident fund shall be: a) fully exempt (B) fully taxable b) exempt up to 12 % of salary (D) exempt upto 15% of salary 21. R, who is entitled to a Salary of `15,000 p.m., took an advance of `40,000 against the salary in the month of March The gross salary of R for the AY shall be: (A) ` 2,20,000 (B) ` 1,80,000 (C) None of these two (D) ` 2,40, R, who is entitled to Salary of `20,000 p.m., took advance salary from his employer for the months of April and May 2017 along with salary for March 2017 on The gross salary of R for assessment year shall be: (A) ` 2,40,000 (B) ` 2,80,000 (C) None of these two (D) ` 2,00, R worked with a previous employer for 3 years but was not entitled to any gratuity. He worked with the present employer for 8 years and 7 months. The completed years of service for calculating exemption of gratuity shall be taken as: (A) 11 years (B) 8 years (C) 9 years (D) 2 years 24. For the purpose of calculating exemption of gratuity, salary shall include: a. fixed commission (B) commission if it is a fixed percentage on turnover

4 b. none of these two (C) At the option of assessee 25. A is entitled to children education `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. 26. 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. 27. R is an employee of a Transport Company. He is entitled to transport allowance of `10,000 p.m. He spends `4,000 p.m. The exemption shall be: a. ` 10,000 p.m. (B) ` 4,000 p.m. (C) ` 7,000 (D) None of the above 28. Mrs. R, wife of R who is employed in G Ltd. went for bypass surgery in England along with her husband. Expenses on medical treatment of wife and stay outside India of wife and R amounted to `7,00,000 as against `6,50,000 permitted by RBI. The travel expenses amounted to `1,50,000. All expenses were reimbursed by the employer. Assume the gross salary and income from other sources of the employee are `1,40,000 and `80,000 respectively. The taxable perquisite in this case shall be: (A) NIL (B) `50,000 (C) `2,00,000 (D) `1,50, Salary of employee is ` 2,00,000. Fair rent of the unfurnished house given to employee is `1,30,000. The valuation of the perquisite of the house In case of Government Employee shall be: (A) ` 20,000 (B) License fee determined by the Government (C) ` 50,000 (D) ` 1,30, The employee is provided with furniture costing ` 1,50,000 along with house w.e.f 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, 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 (Assume Gratuity Received): a. `12,00,000 b) `4,00,000 c) `6,66,667 d) `8,00, R is entitled to Hostel expenditure allowance of `600 p.m. for his 3 `200 per child. The exemption in this case shall be: a. `600 p.m. b) `400 p.m. c) `300 p.m. d) ` 100 p.m. 33. R is entitled to a transport allowance of `2,000 p.m. for commuting from his residence to office and back. He spends `600 p.m. The exemption shall be: a. `1,000 p.m. b) `1,600 p.m. c) `800 p.m. d) None of the above 34. 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)

5 d. first included in salary and thereafter deduction allowed from gross salary under section 16(ii) 35. If salary due for March 2017 is received by P later in April 2017, it is chargeable as income of assessment year a) b) c) d) None of the above 36. Allowance to High Court Judges is a) taxable b) partly exempt c) fully taxable d) fully exempt 37. Interest on loan shall not be taxable in which case? a. Loans on the last day of the month does not exceed ` 20,000 b. Loan is provided for the construction of house c. Any of the above d. None of the above 38. Ravi retired on receiving ` 5,000 p.m. as pension. On , 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 39. 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) 40. 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, If the rent is paid for a house situated in Mumbai, the HRA shall be exempt to the maximum extent of: a) 40% of salary b) 50% of salary c) 60% of salary d) whole amount 42. C is entitled to a transport allowance of ` 1,400 per month for commuting from his residence to office and back. He spends ` 600 per month. The Taxable shall be a) 1,000 pm b) 200 pm c) 1600 pm d) None of the above 43. 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 For Any Doubt you can whatsapp or message at Love CA Vivek Gaba (CS Tax Faculty)

6 Target 90+ in Tax Laws All The Very Best.