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Corporate Tax Planning V1
Q1. Define annual value and discuss the deduction to be made out of Annual Value f
or computing income from house property?
Q2. Explain the procedure for registration under Service Tax.
Q3. How do you determine the residential status of company?
Q4. Write short note on any three of the following.
a.
What is Permanent Account Number?
b.
What do you mean by GTI?
c.
Who is specified employee?
d.
Define previous year.
e.
Expand CBDT and CIT.
Q5. Discuss briefly the provisions relating to set off and carry forward of nonspeculative business losses?
Q6. When an individual is assessable in respect of income of his or her minor ch
ild?
Q7. Explain the different kind of provident fund.
Q8. Differentiate between the following: (i) Defective return of income and Belated
return of income (ii) Tax avoidance and Tax Evasion
Case Detail :
Case Study
Dr. Bankey Lal, a businessman, constructed a multi-storied building consisting 1
6 flats of equal size. The construction was started in April 2004 and completed
on March 31, 2008. Of these 16 Flats, 8 were let-out to tenants for their reside
nce, 2 to tenants for their business, 2 were used by Doctor Bankey Lal for their
business, 2 were used by him for his own business and 2 were allocated to 2 emp
loyees of Dr. Bankey Lal; Business for their residence and the occupation of the
se 2 flats by the two employees facilitated the carrying of on his business. The
rent charged from each of the ten tenants were Rs 500 p.m. but from the two emp
loyees of Dr. Bankey Lal@ Rs 200 p.m. One of the tenants were in arrear of rent
for two months during the year and was unable to pay the same. After, he vacated
the flat, Dr. Bankey Lal had to wait for two months to get new tenant. The expe
nses incurred by Dr. Bankey Lal in respect of the flats during the year ended on
31 March 2013 were as follows :- Municipal taxes for each flat Rs 750, cost of
repair of each flat Rs 500, annual interest on loan on construction of house Rs
24000, Fire is insurance premium for flat Rs 100, Law charges in connection with
a lease agreement were paid for each flat Rs 500.
Q1. Compute the income from house property of Dr. Bankey Lal for the assessment
year 2013-2014.
Assignment - C
Q1: A.O.P should consist of:
a. Individual only
b. Persons other than individual only
c. Both the above
d. None of the above
Q2: Body of individual should consist of :
a. Individual only
b. Persons other than individual only
c. Both the above
d. None of the above
Q3: The maximum amount on which income-tax is not chargeable in case a co-operat

ive society is:

a. Rs.50,000
b. Rs.30,000
c. Nil ( The slab rates are 10,000/- onwards)
Q4: Which of the following types of income is not specifically exempt from incom
e tax
a. Statutory redundancy pay
b. Income from Individual Savings Accounts
c. Any benefit in kind provided to employees by an employer
d. Income from National Savings Certificates
Q5: The basic rate of income tax on non-savings income for tax year 2012-13 is:
a. 20%
b. 10%
c. 40%
d. 50%
Q6: If a married couple (or civil partners) receive joint income, the amount of
that income will normally be divided equally between them for tax purposes. True
or False?
a. True
b. False
Q7: A taxpayer has taxable income for 2012-13 (after deducting the personal allo
wance) of 75,200. None of the income is derived from savings or dividends. The in
come tax liability for the year is:
a. 15,040
b. 23,206
c. 30,080
d. 37,600
Q8: A taxpayer has taxable income for 2012-13 (after deducting the personal allo
wance) of 185,300. None of the income is derived from savings or dividends. The i
ncome tax liability for the year is:
a. 92,650
b. 74,120
c. 70,776
d. 37,060
Q9: Which of the following types of income is received by individuals without de
duction of basic rate tax?
a. Loan interest paid by UK companies
b. Building society interest
c. Patent royalties
d. Bank interest received on a National Savings bank account
Q10: In 2012-13, an individual receives net building society interest of 792. The
equivalent gross income is:
a. 792
b. 1,320
c. 880
d. 990
Q11: In 2012-13, George has property income of 8,780 and net bank interest of 4,00
0. He claims the personal allowance of 8,105. What is the income tax borne for th
e year?
a. 931.50
b. 864.00
c. 1,135.00

d. 567.50
Q12: In 2012-13, an individual receives a net dividend of 648. The equivalent gro
ss income is:
a. 720
b. 810
c. 648
d. 6,480
Q13: Which of the following is a "chargeable asset" for CGT purposes?
a. A motor car
b. A taxpayer's principal private residence
c. A taxpayer's holiday home
d. Gilt-edged securities
Q14: Payments on account of capital gains tax fall due on 31 January in the tax
year concerned and on the following 31 July. True or False?
a. True
b. False
Q15: In some cases assessment year and previous year can be same financial year.
a. True
b. False
Q16: In 2012-13, Steven has business profits of 34,125, net bank interest of 1,240
and net dividends of 9,000. He claims the personal allowance of 8,105. What is th
e income tax payable for the year after subtracting tax deducted at source?
a. 7,234
b. 5,924
c. 8,154
d. 6,164
Q17: Which of the following is not a "chargeable person" for CGT purposes
a. An individual who is resident and ordinarily resident in the UK
b. A company which is resident in the UK
c. A partner in a UK partnership
d. A trustee of a UK trust
Q18: Which of the following could give rise to a capital gain (or allowable loss
)?
a. A gift of an asset to a charity
b. A transfer of an asset between a husband and wife who live together during th
e tax year in which the transfer occurs
c. A disposal caused by the death of the taxpayer
d. The receipt of compensation on the destruction of an asset
Q19: A taxpayer has a single capital gain in 2012-13 of 18,000. The gain does not
qualify for entrepreneur's relief and there are no other gains or losses in the
year.
The taxpayer's taxable income for the year (after deducting the personal allowan
ce) is 20,000 and there are no Gift Aid donations or pension contributions during
the year.
The CGT liability for the year is:
a. 1,332
b. 2,072
c. 3,240
d. 3,603
Q20: A taxpayer has a single capital gain in 2012-13 of 15,600. The gain does not
qualify for entrepreneur's relief and there are no other gains or losses in the

year.
The taxpayer's taxable income for the year (after deducting the personal allowan
ce) is 50,000 and there are no Gift Aid donations or pension contributions during
the year.
The CGT liability for the year is
a. 900
b. 4,368
c. 1,400
d. 2,808
Q21: A taxpayer has a single capital gain in 2012-13 of 22,500. The gain does not
qualify for entrepreneur's relief and there are no other gains or losses in the
year. The taxpayer's taxable income for the year (after deducting the personal
allowance) is 30,000 and there are no Gift Aid donations or pension contributions
during the year.
The CGT liability for the year is:
a. 2,142
b. 5,863
c. 2,895
d. 3,332
Q22: A taxpayer has a capital loss brought forward from the previous tax year of
2,000. In 2012-13 he has capital gains of 18,200 and allowable losses of 700. What
is the CGT assessment for 2012-13?
a. 17,500
b. 15,500
c. 6,900
d. 4,900
Q23: A new business was set up on15-11-2008 and it commenced its business from 1
-12-2008.The first previous year in this case shall be:
a. 15-11-2008 to 31-3-2009
b. 1-12-2008 to 31-3-2009
c. 2008-2009
d. None of the above
Q24: A person leaves India permanently on 15-11-2008.The assessment year for inc
ome earned till 15-11-2008 in this case shall be:
a. 2007-08
b. 2008-09
c. 2009-10
d. All of the above
Q25: Surcharge in case of an individual or HUF for assessment year 2009-10 is pa
yable at the rate of :
a. 12% of the income-tax payable provided the total income exceed Rs.60,000.
b. 10% of the income-tax payable provided the total income exceeds Rs.10,00,000
c. 5% of the income-tax payable if the total income exceeds Rs.8,50,000
d. None of the above
Q26: Surcharge in case of a firm for assessment year 2009-10 is payable at the r
ate:
a. 2.5% of income-tax payable
b. 5% of income-tax payable
c. 10% of income-tax payable
d. All of the above
Q27: A local authority is taxable at flat rate of income-tax.
a. True
b. False

Q28: Betty died on 30 November 2012, having made net capital losses of 5,000 betw
een 6 April 2012 and the date of her death. Her net gains in the previous three
years (and the annual exemption for each of those years) were as follows:
Betty's CGT assessment for 2009-10 is:
a. 5,400
b. 10,400
c. 7,300
d. 8,400
Q29: Betty died on 30 November 2012, having made net capital losses of 5,000 betw
een 6 April 2012 and the date of her death. Her net gains in the previous three
years (and the annual exemption for each of those years) were as follows:
Betty's CGT assessment for 2011-12 is:
a. 12,500
b. 10,600
c. 1,900
d. nil
Q30: The maximum amount on which income-tax is not chargeable in case of firm is
:
a. Rs.1,00,000
b. Rs. 90,000
c. Nil
d. None of the above
Q31: Income which accrue outside India from a business controlled from India is
taxable in case of:
a. Resident only
b. Not ordinarily resident only
c. Both ordinarily resident and NOR
d. Non-resident
Q32: Income which accrue or arise outside India and also received outside India
taxable in case of:
a. resident only
b. not ordinarily resident
c. both ordinarily resident and NOR
d. none of the above
Q33: TI of a person is determined on the basis of his:
a. residential status in India
b. citizenship in India
c. none
d. both of the above
Q34: Once a person is a resident in a P.Yr. he shall be deemed to be resident fo
r subsequent P. Yr.
a. True
b. False
Q35: Once a person is resident for a source of income in a particular P. Y r. he
shall be deemed to be resident for all other sources of income in the same P. Y
r :
a. True
b. False
Q36: R Ltd., is an Indian company whose entire control and management of its aff

airs is situated outside India. R Ltd., shall be :

a. Resident in India
b. Non-resident in India
c. Not ordinarily resident in India
d. All of the above
Q37: R Ltd., is registered in U.K. The control and management of its affairs is
situated in India .R Ltd shall be :
a. Resident in India
b. Non-resident
c. Not ordinarily resident in India
d. None of the above
Q38: R, a foreign national visited India during previous year 2008-09 for 180 da
ys. Earlier to this he never visited India. R in this case shall be:
a. Resident in India
b. Non-resident
c. Not ordinarily resident in India
d. None of the above
Q39: An Indian company is always resident in India
a. True
b. False
Q40: Dividend paid by an Indian company is:
a. Taxable in India in the hands of the recipient
b. Exempt in the hands of recipient
c. Taxable in the hands of the company and exempt in the hands of the recipient
d. All of the above
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