# Computation of Total Income and Tax Liability of Various Entities – CS Executive Tax Laws MCQ

Going through the Computation of Total Income and Tax Liability of Various Entities – CS Executive Tax Laws MCQ Questions with Answers you can quickly revise the concepts.

## Computation of Total Income and Tax Liability of Various Entities – Tax Laws CS Executive MCQs

Question 1.
Arjun has a salary income of ₹ 4,60,000. He also received an interest of ₹ 18,000 on his fixed deposit (after deducting TDS @ 10%) and ₹ 2,000 on his savings account with SBI. He deposited ₹ 50,000 in PPF account. The net income-tax liability of Arjun is-
(a) ₹ 13,390
(b) ₹ 15,330
(c) ₹ 16,270
(d) Nil
(d) Nil

Question 2.
During the year 2020-2021, Basu won ₹ 4,00,000 from a motor car rally out of which he deposited, 1,50,000 in his PPF account. He does not have any other income. Net tax payable by Basu for AY 2021-22 will beta)
(a) ₹ 1,24,800
(b) ₹ 15,450
(c) ₹ 1,23,600
(d) None of the above
(a) ₹ 1,24,800
During the year 2019-2020, Basu won ₹ 4,00,000 from a motor car rally out of which he deposited, 1,50,000 in his PPF account. Deduction under section 80C is not available on Winnings from races etc. Therefore, the whole amount of ₹ 4,00,000 will be taxable @ 30% + 4% surcharge (4,00,000 × 30% = 1,20,000) + (4% on 1,20, 000 =4,800) = ₹ 1,24,800

Question 3.
Balu paid 11,00,000 to Raj for purchase of standing crop (paddy). He harvested the produce i.e. paddy by incurring expenditure of ₹ 25,000. He sold the said paddy for 1,80,000 to a trader. His other income for the year ended 31st March, 2021 was ₹ 4,60,000. The total income of Balu is –
(a) ₹ 6,40,000
(b) ₹ 5,15,000
(c) ₹ 4,85,000
(d) ₹ 5,60,000
(b) ₹ 5,15,000
Harvesting of Paddy is not considered to be agricultural income. Profit accruing form the purchase of a standing crop and resale after harvest is not agricultural income, within the meaning of Section 2( 1 A) of the Income-tax Act, 1961. Therefore his profit from paddy = (₹ 1,80,000 -1,00,000 -25,000) = 55,000. His other income ₹ 4,60,000. Total income = ₹5,15,000 i.e. (4,60,000 + 55,000)

Question 4.
Mrs. Laxmi, 70 years old, received ₹ 30,000 every month from SBI under reverse mortgage scheme by mortgaging her residential house property. She also received monthly family pension of ₹ 15,000. Her total income for the assessment year 2021-22 is ……..
(a) ₹ 5,40,000
(b) ₹ 1,80,000
(c) ₹ 1,65,000
(d) ₹ 3,60,000
(c) ₹ 1,65,000
Monthly instalments or lump-sum payment received under reverse mortgage are exempt u/s 10(43). Family pension is deductible upto 1/3rd of the pension or ₹ 15,000 whichever is less under section 57. Mrs. Laxmi receives ₹ 15,000 p.m. Therefore her total income is ₹ (15,000 × 12) – 15,000 = ₹ 1,65,000. 5/6. Monthly instalments or lump-sum payment received under reverse mortgage are exempt u/s 10(43). Hence (d) is the answer.

Question 5.
Ms. Pinky (age 61) pledged her residential building with State Bank of India and received ₹ 10,000 every month under reverse mortgage scheme during the financial year 2020-21. The amount liable to income-tax in respect of such receipt would be:
(a) ₹ 84,000 (after deducting 30%)
(b) ₹ 60,000 (after deducting 50%)
(c) ₹ 1,20,000 (fully taxable)
(d) Nil (as it is exempted from tax)
(d) Nil (as it is exempted from tax)

Question 6.
Mr. Chandan (age 70) received ₹ 30,000 every month during the financial year 202021 on reverse mortgage of his property with State Bank of India. The amount of receipt liable to tax in the hands of Mr. Chandan is:
(a) ₹ 3,60,000
(b) ₹ 2,52,000
(c) ₹ 40,000
(d) Nil
(d) Nil

Question 7.
Total income-tax including education cess payable in case of a resident individual aged 58 years, whose computed total income is ₹ 3,40,000 for assessment year 2021-22 shall be:
(a) ₹ 9,270
(b) ₹ 2,080
(c) Nil
(d) ₹ 4,635
(c) Nil

Question 8.
Anand, a resident individual having computed for the previous year 1st April, 2020 to 31st March, 2021 his business loss at ₹ 60,000, short term capital gain on sale of gold of ₹ 40,000 long term capital gain on sale of house property of ₹ 3,60,000. The amount of total income to be declared in the return for the assessment year 2021-22 by Anand shall be
(a) ₹ 4,00,000
(b) ₹ 3,40,000
(c) ₹ 4,00,000 and carry forward loss of ₹ 60,000
(d) None of the above
(b) ₹ 3,40,000

Question 8A.
Arartrika is working in a multinational company whose taxable salary is 8,90,000. This amount was without deducting the exemption of House rent allowance of ₹ 70,000 and daily allowance of ₹ 50,000 and deductions u/s 16 amounting to ₹ 65,000. She is not sure whether she should exercise the option to pay tax u/s 115BAC. She hires the services of a professional and asks what would be the tax liability without surcharge and health and education cess, if she does or does not opt for the concessional rates.
(a) ₹51,000 u/s 115BAC and ₹ 53,500 at normal rates.
(b) ₹ 53,500 u/s 115BAC and ₹ 51,000 at normal rates.
(c) ₹ 51,000 u/s 115BAC and ₹ 49,500 at normal rates.
(d) ₹ 54,000 u/s 115BAC and ₹ 53,500 at normal rates.
(a) ₹51,000 u/s 115BAC and ₹ 53,500 at normal rates.

Question 8B.
Mr. Vinayak had opted for concessional rates u/s 115BAC. His total income for the year 2021-22 was ₹ 12,70,000. Calculate his tax liability together with health and education cess.
(a) ₹ 2,01,240
(b) ₹ 1,35,200
(c) ₹ 1,30,000
(d) ₹ 1,45,000
(b) ₹ 1,35,200

Question 8C.
Ms. Gargi has business income of ₹ 9,46,000 and is eligible to claim deduction of Sections 80C, 80CCD(2), 80G and 80 JJAA to the extent of ₹ 40,000, ₹ 60,000, ₹ 1,90,000 and ₹ 76,000 respectively. What will be her normal tax liability and tax liability u/s 115BAC ignoring health and education cess.
(a) ₹ 28,500 at normal rates and ₹ 40,500 u/s 115BAC.
(b) ₹ 28,500 at normal rates and ₹ 46,500 u/s 115BAC
(c) ₹ 30,500 at normal rates and ₹ 46,500 u/s 115BAC
(d) ₹ 29,500 at normal rates and ₹ 40,500 u/s 115BAC
(b) ₹ 28,500 at normal rates and ₹ 46,500 u/s 115BAC

Question 8D.
The total Income of Sri Ganesh for the A.Y. 2020-21 is ₹ 2.5 crores which includes STCGu/s 111A of ₹ 90 lakh. The surcharge will be levied on Income-tax
(a) 15% on Income-tax on STCG u/s 111A and 2 5% on Income-tax on other income of 1.6 crores.
(b) 25% on Income-tax on other income of 1.6 crores and no surcharge on Income-tax on STCG.
(c) 15% on Income-tax on total income.
(d) None of the above.
(c) 15% on Income-tax on total income.

Question 8E.
The total Income of Sri Ganesh for the A.Y. 2021-22 is ₹ 2.5 crores which includes STCG u/s 111A of ₹ 30 lakhs. The surcharge will be levied on Income-tax
(a) 15% on Income-tax on STCG u/s 111A and 25% on Income-tax on other income of 2.2 crores.
(b) 25% on Income-tax on other income of 1.6 crores and no surcharge on Income-tax on STCG.
(c) 15% on Income-tax on total income.
(d) None of the above.
(a) 15% on Income-tax on STCG u/s 111A and 25% on Income-tax on other income of 2.2 crores.

Question 8F.
Mr. Samuel is a non-resident who owns a ship. On 21st June 2020, the Ship leaves Cochin port after loading goods for Mr. Anand. Mr. Anand pays Mr. Samuel ₹ 5,25,000 for carrying his goods to be shipped to a port in U.K. He also pays ₹ 75,000 as handling charges and ₹ 10,000 demurrage charges. Mr. Samuel has to pay tax of ₹ on Income before getting clearance for leaving the Cochin port.
(a) 45,750
(b) 45,000
(c) 39,375
(d) 36,000
(a) 45,750

Question 9.
RSHUF consists of R Karta, Y and S co-parceners, D, the daughter of a co-parcener and W, the wife of Karta as members. The following can demand the partition of RSHUF:
(a) D
(b) R, Y and S
(c) W
(d) (a) and (b) above
(d) (a) and (b) above

Question 9A.
An HUF decided to go for partial partition on 20.12.2019. It now contends that HUF should now be assessed accordingly in the P.Y. 2020-21. The Assessing Officer did not record any claim for partial partition as partial partition is not recognized if effected after
(a) 31.3.1960
(b) 31.12.1969
(c) 31.12.1978
(d) 31.3.1969
(c) 31.12.1978

Question 10.
The provisions of AMT under Chapter XIIBA shall not apply to an individual, a HUF, etc., if the adjusted total income of such person does not exceed :
(a) ₹ 10,00,000
(b) ₹ 25,00,000
(c) ₹ 5,00,000
(d) ₹ 20,00,000
(d) ₹ 20,00,000

Question 10A.
After the death of father, his property was inherited by his four sons. The property was acquired by the government compulsorily and the Assessing Officer was of the opinion that capital gains arising out of acquisition should be taxed in the hands of brothers as AOP. The court held that the brothers should be assessed as :
(a) Firm
(b) Individuals
(c) AOP
(d) HUF
(b) Individuals

Question 10B.
The special rates applicable u/s 115BAC allows deduction or exemption of following except:
(a) Transport Allowance granted to a divyang employee to meet expenditure for the purpose of commuting between place of residence and place of duty.
(b) Any Allowance granted to meet the cost of travel on tour or on transfer.
(c) Conveyance Allowance granted to meet the expenditure on conveyance in performance of duties of an office.
(d) Additional deprecation under clause (iia) of sub-section (1) of section 32.
(d) Additional deprecation under clause (iia) of sub-section (1) of section 32.

Question 10C.
The special rates applicable u/s 115BAC does not allow deduction or exemption of following except:
(a) Daily Allowance to meet the ordinary daily charges incurred by an employee on account of absence from his normal place of duty.
(b) House rent allowance as contained in clause (13A) of section 10;
(c) Allowance for income of minor as contained in clause (32) of section 10;
(d) Standard deduction, deduction for entertainment allowance and employment/professional tax as contained in section 16;
(a) Daily Allowance to meet the ordinary daily charges incurred by an employee on account of absence from his normal place of duty.

Question 10D.
The special rates applicable u/s 115BAC does not allow deduction or exemption of which of the following:
(a) Leave travel concession as contained in clause (5) of section 10;
(b) Allowances to MPs/MLAs as contained in clause (17) of section 10
(c) Deductions under sections 32AD, 33AB, 33ABA
(d) All of the above
(d) All of the above

Question 10E.
An assessee exercising the option u/s 115BAC is not allowed to set off loss:
(a) Carried forward or depreciation from any earlier assessment year, if such loss or depreciation is attributable to any of the deductions not allowable u/s 115BAC.
(b) under the head “Income from house property” with any other head of income
(c) Both (a) & (b)
(d) None of the above
(c) Both (a) & (b)

Question 11.
Profit earned during the year by a partnership firm is ₹ 1,40,000. The maximum amount of remuneration deductible from profit is –
(a) ₹ 1,50,000
(b) ₹ 1,40,000
(c) ₹ 1,26,000
(d) ₹ 50,000
(a) ₹ 1,50,000
The book profits of the firm are ₹ 1,40,000. It can distribute 90% of ₹ 1,40,000 = 1,26,000. The firm can distribute 90% of the book profits up to ₹ 3,00,000 or ₹ 1,50,000 whichever is higher. As, 1,50,000 is higher therefore, (a) is the answer.

Question 12.
Under the Income-tax Act, 1961, interest on capital received by a partner from a partnership firm is chargeable under the head
(a) profits and gains of business or profession
(b) Income from other sources
(c) Capital gains
(d) None of the above
(a) profits and gains of business or profession

Question 13.
A non-professional firm M/s Bright has book profits of ₹ 9,36,000. The admissible remuneration to working partners for income-tax purpose shall be –
(a) ₹ 6,51,600
(b) ₹ 6,81,600
(c) ₹ 2,70,000
(d) None of the above
(a) ₹ 6,51,600
The book profits of the firm are ₹ 9,36,000. It can distribute 90% of first ₹ 3,00,000 + 60% of the balance book profit of ₹ 6,36,000 = 2,70,000 + 381,600 = 6,51,600.

Question 14.
When a partnership firm has total sales of X 90 lakh, the maximum amount deductible as salary of working partners on the basis of presumptive income determined u/s 44AD is –
(a) ₹ 5,22,000
(b) ₹ 3,60,000
(c) ₹ 3,30,000
(d) Nil
(d) Nil
Under presumptive taxation, the rate of income is comprehensive and no further deductions are allowed under any other section. The remunerations to partners is also no longer allowed.

Question 15.
The book profit of a partnership firm is ₹ 1,20,000. The actual remuneration paid to working partners is ₹ 3,54,000. The allowable deduction under Section 40(b) towards remuneration to partners is –
(a) ₹ 1,50,000
(b) ₹ 3,54,000
(c) ₹ 1,08,000
(d) ₹ 1,20,000
(a) ₹ 1,50,000
The book profits of the firm are ₹ 1,20,000. It can distribute 90% of ₹ 1,20,000 = 1,08,000. The firm can distribute 90% of the book profits up to ₹ 3,00,000 or ₹ 1,50,000 whichever is higher. As, 1,50,000 is higher therefore, (a) is the answer.

Question 16.
Ram & Co., a partnership firm worked out total book profits for they earended 31st March, 2020 of ₹ 6,00,000 and has made payment of salary of ₹ 4,60,000 authorized by the partnership deed to the working partners Firm wants to know that how much amount of salary paid to partners be allowable as deduction in A.Y. 2020-21.
(a) ₹ 4,60,000
(b) ₹ 3,90,000
(c)₹ 2,70,000
(d) ₹ 4,50,000
(d) ₹ 4,50,000

Question 17.
Salary received by a partner from his partnership firm is considered in his personal assessment as –
(a) Income from salary
(b) Profit from business or profession
(c) Income from other sources
(d) Exempted income
(b) Profit from business or profession

Question 18.
A partnership firm had net profit of ₹ 6,20,000 before deducting interest on capitals to partners @ 15% of ₹1,50,000 and working partners salary of ₹ 1,80,000 (as per deed of partnership), total income of firm chargeable to tax will be:
(a) ₹ 1,10,000
(b) ₹ 3,20,000
(c) ₹ 2,90,000
(d) 1 1,00,000
(b) ₹ 3,20,000
Interest on Capital is allowed up-to 12%. In this question it is ₹ 1,50,000 @ of 15%. Therefore, interest @ 12% will be ₹ 1,20,000.

Question 19.
Surabi Textiles (firm) incurred a business loss of ₹ 4,40,000 for the assessment year 2021 -22 before allowance of working partner salary. The firm paid working partner salary of ₹ 1,20,000 each to three partners. The business income of the firm for the assessment year 2021-22 after deduction of working partner salary is:
(a) Loss ₹ 5,90,000
(b) Loss ₹ 4,40,000
(c) Loss ₹ 80,000
(d) Loss ₹ 8,00,000
(a) Loss ₹ 5,90,000

Question 20.
Murali & Co. a partnership firm consisting of 3 partners is engaged in textile trade. Its net profit before allowing interest on capital and working partner salary to partners was ₹ 9 lakhs. The partnership deed does not provide for interest on capital. It provides for working partner salary at ₹ 25,000 per month for all the 3 partners. The income of the firm after allowance of working partner salary would be:
(a) ₹ 90,000
(b) ₹ 2,70,000
(c) ₹ Nil
(d) ₹ 3,60,000
(b) ₹ 2,70,000

Question 21.
When Mr. X retired from X & Co. a partnership firm on 1.1.2021, he was paid ₹ 5 lakhs for not doing a competing business for the next 5 years. The amount so received chargeable to tax in the hands of Mr. X is:
(a) Nil
(b) ₹ 5,00,000
(c) ₹ 1,00,000
(d) ₹ 2,50,000
(b) ₹ 5,00,000

Question 22.
Mr. Vijay is partner in Tools & Co., a partnership firm in Mumbai. He received ₹ 30,000 as share income from the firm for the year ended 31.3.2021. He also received interest at 12% per annum the capital invested in the firm and the amount being ₹ 24,000. His income from the firm includible in individual assessment is:
(a) ₹ 54,000
(b) ₹ 24,000
(c) ₹ 30,000
(d) Nil
(b) ₹ 24,000
Share from the partnership firm is exempt but the interest deductible in the hands of firm is the individual income of partners. Hence (b).

Question 23.
Ram & Co., a proprietorship firm has paid tax for the assessment year 2021 -22 as per section 115 JC of the Income-tax Act, 1961 . Credit of such paid tax can be carried forward by the proprietor for a period of following number of assessment years immediately succeeding the assessment year 2021-22 :
(a) 8 years
(b) 5 years
(c) 10 years
(d) 15 years
(b) 5 years
From A.Y. 2019-20, Tax paid u/s 115JC can be carried forward for 15 years. Hint: Tax on ₹ 32,00,000 will be ₹ 7,72,500 and if AMT is applied his adjusted total income will be (32,00,000 + 11,00,000 = 43,00,000) Tax on ₹ 43,00,000 @ 18.5% = ₹ 7,95,500. Since tax under AMT is higher, he will have to pay ₹ 7,95,500.

Question 24.
Ram & Co., a partnership firm, worked out total book profits for the year ended 31st March, 2021 at ₹ 5,00,000. The firm has made payment of salary of ₹ 4,60,000 authorized by the deed to the working partners and wants to know that how much amount of salary paid to partners is allowable :
(a) Actual salary paid of ₹ 4,60,000
(b) ₹ 3,90,000
(c) 1 2,70,000
(d) ₹ 2,50,000
(b) ₹ 3,90,000

Question 25.
In which case a partnership firm is not entitled to carry forward and set off so much of the losses proportionate to the share of a retired or deceased person exceeding his/ her share of profits, if any, in the firm in respect of the previous year :
(a) When the public are not substantially interested in firm
(b) When the business or profession is succeeded by another person
(c) When a change occurred in constitution of the firm
(d) None of the above
(c) When a change occurred in constitution of the firm

Question 26.
Under the Income-tax Act, 1961, LLP is chargeable to tax @-……..
(a) 30% plus HEC or AMT @ 18.5% plus HEC
(b) 30% plus HEC or AMT @ 17.5%
(c) 30% plus HEC or MAT@ 18.5% plus HEC
(d) 30% plus HEC or MAT @ 18.5%.
(a) 30% plus HEC or AMT @ 18.5% plus HEC

Question 27.
When an LLP has book profit of ₹ 6 lakh, the maximum amount allowable towards the salary of working partners would beta)
(a) ₹ 4,50,000
(b) ₹ 6,00,000
(c) ₹ 3,00,000
(d) Nil
(a) ₹ 4,50,000

Question 28.
From tax point of view, a Limited Liability Partnership (LLP) is treated as –
(b) General partnership firm
(c) Private limited company
(d) Public limited company
(b) General partnership firm

Question 29.
DJPA, LLP, resident in India has received dividend of ₹ 15 lakh from R Ltd., an Indian company, on which the company R Ltd. had paid Dividend Distribution Tax (DDT) under section 115-0 of the Income- tax Act, 1961. The amount of tax payable by DJPA, LLP in respect of such dividend income for A.Y. 2021-22 shall be :
(a) ₹ 5 lakh
(b) ₹ 10 lakh
(c) ₹ 52,000
(d) ₹ 77,250
(c) ₹ 52,000

Question 30.
Provisions of Section 115 JC are not at all applicable to –
(a) LLPs
(b) Companies
(c) Partnership firms
(d) Individuals
(b) Companies

Question 30A.
The credit for Alternative Minimum Tax can be carried forward for set off up to a maximum period of Assessment years succeeding the assessment year in which credit becomes allowable.
(a) 10
(b) 15
(c) 18
(d) 20
(b) 15

Question 30B.
The credit for Alternative Minimum Tax can be carried forward for set off u/s:
(a) 115JB
(b) 115JC
(c) 115JD
(d) 115JJB
(c) 115JD

Question 30C.
The income of Mr. Atharv for the P.Y. 2020-21 from business is ₹ 32,00,000 after claiming a deduction of ₹ 11,00,000 u/s 80JJAA. His tax liability will be ₹ (Ignore higher education cess.)
(a) 7,72,500
(b) 8,03,300
(c) 7,95,500
(d) 8,19,365
(c) 7,95,500

Question 31.
Alternate minimum tax u/s 115JC is not applicable to-
(a) Company
(b) Individual
(c) Partnership firm
(d) Association of persons
(a) Company

Question 32.
If an LLP claims deduction under Section 35AD, the provisions of Alternate Minimum Tax (AMT) under Section 115JC will apply when the adjusted total income exceeds –
(a) ₹ 10 i.e. no limit
(b) ₹ 10 lakh
(c) ₹ 20 lakh
(d) ₹ 3 Crore
(b) ₹ 10 lakh

Question 33.
The provisions of alternate minimum tax under section 115JC are applicable for limited liability partnership when the adjusted total income exceeds:
(a) ₹ 10 lakhs
(b) ₹ 20 lakhs
(c) ₹ 100 lakhs
(d) ₹ 5 lakhs
(a) ₹ 10 lakhs

Question 34.
The provisions of Alternate Minimum Tax (AMT) will apply only when the adjusted total income computed under section 115JC exceeds:
(a) ₹ 5 lakhs
(b) ₹ 20 lakhs
(c) ₹ 50 lakhs
(d) ₹ 100 lakhs
(b) ₹ 20 lakhs

Question 35.
The rate of tax for unit in International Financial Service Centre (IFSC) under Alternate Minimum Tax is :
(a) 18.5%
(b) 12%
(c) 17.5%
(d) 9%
(d) 9%

Question 36.
If the individual does not claim deduction under section Alternate minimum tax is not applicable.
(a) 80H to 80RRB (except section 80P)
(c) 10AA
(d) All of the above
(d) All of the above

Question 37.
When a non-domestic company is a member in an AOP and its share of profit is indeterminate, the tax on total income of the AOP is charged at the –
(a) Nominal rate
(b) Maximum marginal rate
(c) Rate applicable to the company
(d) Least of the above three rates
(c) Rate applicable to the company

Question 38.
An association of persons (AOP) has paid tax at the maximum marginal rate. Yash, a member of AOP received ₹ 1 lakh as his share income. Such income is chargeable to tax in his assessment @ –
(a) 10%
(b) Nil
(c) 20%
(d) 30%
(b) Nil

Question 39.
Tax shall be charged on the total income of the AOP at the maximum marginal rate under the provisions of section 167B of Income-tax Act, 1961 :
(a) where individual shares of the members of an association or body are indeterminable or unknown in relation to the whole of income
(b) where members share equally
(c) where the individual shares of the members of an associate or body are indeterminable or unknown relating to any part of income
(d) Both (a) and (c)
(a) where individual shares of the members of an association or body are indeterminable or unknown in relation to the whole of income

Question 40.
A registered political party have income during the year 2020-21 of banks interest ₹ 5,00,000, rent from letting of building ₹ 3,00,000 and voluntary contribution by cheque ₹ 8,00,000. Total income chargeable to tax under section 13A of the Income-tax Act, 1961 for the A.Y. 2021-22 of the political party shall be:
(a) ₹ 5,00,000
(b) ₹ 8,00,000
(c) ₹ 16,00,000
(d) Nil
(d) Nil

Question 41.
The voluntary contributions received by an electoral trust during the year is not included in its income –
(a) When 85% of contribution is distributed in the year
(b) When 95% of contribution is distributed in the year
(c) To the extent of ₹ 10 lakh
(d) To the extent of 50% of contribution or ₹ 100 lakh whichever is less
(b) When 95% of contribution is distributed in the year

Question  42.
Ray Charitable Trust (registered under section 12AA) has total income of ₹ 20 lakhs. It applied ₹ 10 lakhs towards its objects. How much is chargeable to tax in case the trust does not opt for accumulation of income under section 11 (2) of the Act
(a) ₹ 10 lakhs
(b) ₹ 1 lakhs
(c) ₹ 5 lakhs
(d) ₹ 3 lakhs
(b) ₹ 1 lakhs

Question 43.
A charitable trust registered u/s 12AA has gross receipts of ₹ 40 lakh, it spent ₹ 28 lakh towards its objects. The total income of the trust chargeable to income-tax would be –
(a) Nil
(b) ₹ 12 lakh
(c) ₹ 6 lakh
(d) ₹ 2 lakh
(c) ₹ 6 lakh

Question 44.
Samode Charitable Trust formed under the Trust Deed on 1st May, 2018 filed an application for grant of registration u/s 12AA of the Act to the CIT (Exemption) on 13th May, 2018. The CIT (Exemption) did not pass any order as to Registration of the Trust, till 31st March, 2019. The trust shall be deemed to have the registration as per provisions of Act under section 12AA effective from
(a) 1st May, 2018
(b) 1st December, 2018
(c) 13th May, 2018
(d) 13th November, 2018
(b) 1st December, 2018

Question 45.
A registered trade union earned ₹ 1,00,000 by way of interest on bank deposit and ₹ 1,50,000 by way of rent from let out premises. Total income of the Trade union chargeable to tax would beta)
(a) ₹ 2,24,000
(b) ₹ 2,80,000
(c) ₹ 2,50,000
(d) Nil
(d) Nil

Question 46.
A capital asset purchased on 11th Sept., 2012 for ₹ 2,00,000 was sold for ₹ 3,00,000 on 18th Dec., 2019 by a Charitable Trust registered under section 12AA of the Income-tax Act. New capital asset after the sale was purchased on 1st January, 2020 for ₹ 2,60,000. The amount of capital gain arising from the sale of capital asset utilized in purchase of new asset for the A.Y. 2020-21 shall be and taxable amount shall be
(a) ₹ 40,000 and ₹ 60,000
(b) ₹ 1,00,000 and₹ 2,60,000
(c) ₹ 2,60,000 and ₹ 1,00,000
(d) ₹ 60,000 and ₹ 40,000
(d) ₹ 60,000 and ₹ 40,000

Question 47.
A charitable trust registered as per section 12AA of Income-tax Act, having capital asset purchased in June, 2015 for ₹ 1,00,000 and used for the charitable purposes till the same was sold in December, 2018 for ₹ 1,50,000. The Trust, after sale of capital asset purchased a new capital asset for ₹ 1,20,000 which was also used for charitable purposes of the Trust. The amount to capital gain utilized in purchase of new capital asset by Trust shall be ……….
(a) ₹ 20,000
(b) ₹ 50,000
(c) ₹ 30,000
(d) Nil
(a) ₹ 20,000

Question 48.
Ram Kripa Charitable Trust owns a capital asset of ₹ 2,00,000 and half of the income from such asset is utilized for charitable purposes. The asset was sold for ₹ 3,50,000 and from the sale proceeds, the trust bought another asset for ₹ 2,90,000. The amount of capital gain deemed to have been applied for charitable purposes is :
(a) ₹ 45,000
(b) ₹ 30,000
(c) ₹ 75,000
(d) None of the above
(a) ₹ 45,000
The cost of new asset acquired is ₹ 2,90,000. The cost of old asset transferred is ₹ 2,00,000. The capital gains on transfer (3,50,000 -2,00,000 = 1,50,000). Lower of Capital Gain or (cost of new asset – cost of asset transferred) is used for charitable purposes. It implies ₹ 90,000, but as half the income from the asset is used for charitable purpose, only ₹ 45,000 is applied.

Question 48A.
A charitable institution earned an In-come of ₹ 1,00,000 during the P. Y. 2019-20. Out of the total income it received ₹ 55,000 on 31.3.2020. It accumulated ₹ 15,000 and applied ₹ 30,000 for charitable purposes during P.Y. 2019-20. It applied another ₹ 55,000 for charitable purposes in the P.Y. 2020-21. It can claim exemption of
(a) ₹ 85,000
(b) ₹ 1,00,000
(c) ₹ 30,000
(d) ₹ 45,000
(b) ₹ 1,00,000

Question 48B.
For a company to be considered a Startup, its turnover should not exceed for any of the financial years since incorporation or registration.
(a) 50 crores
(b) 100 crores
(c) 150 crores
(d) 200 crores
(b) 100 crores

Question 48C.
A company shall be considered as a Startup company for a period of years from the date of incorporation or registration if incorporated as a private company.
(a) 3
(b) 5
(c) 10
(d) 15