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CMA Inter Direct Tax Study Material MCQs

CMA Inter Direct Tax Study Material MCQs – CMA Inter Direct Tax Study Material is designed strictly as per the latest syllabus and exam pattern.

CMA Inter Direct Tax Study Material MCQs

Question 1.
Choose the most appropriate alternative:
(i) The basic exemption limit for a non-resident super senior citizen above the age of 80 years for the assessment year 2023-24 is
A. ₹ 2,00,000
B. ₹ 2,50,000
C. ₹ 5,00,000
D. ₹ 1,60,000
Answer:
B. ₹ 2,50,000
₹ 2,50,000. Basic exemption limit for all non resident assessee is ₹ 2,50,000.

Question 2.
(ii) When patent is transferred, the amount received is
A. Not chargeable to tax
B. Chargeable under the head ‘Profits and gains of business or profession’
C. Taxable under the head ‘Income from other sources’
D. Adjusted towards the patent value in the block of assets
Answer:
D. Adjusted towards the patent value in the block of assets
Patent is an intangible asset. As per Section 2(11) of the Income Tax Act, there is a block for intangible assets, and it the
asset is transferred, the amount should be adjusted in the same block of assets.

Question 3.
(iii) Rent derived from land located outside India, used exclusively for agricultural purpose is
A. Agricultural income
B. Exempt income
C. Taxable as business income
D. Taxable under the head ‘Income from other sources’.
Answer:
D. Taxable under the head ‘Income from other sources’.
Taxable under the head ‘Income from Other Sources’. As per Section 10(1) of the Income Tax Act, agricultural income in India is fully exempt from tax. Foreign agricultural income will not fall under Section 10(1), hence taxable under the head ‘Income from Other Sources’.

Question 4.
(iv) Ram introduced his building costing ₹ 10,00,000 acquired in April, 2015 into the business newly commenced by him from 01.04.2022. The actual cost of building for the purpose of depreciation for the assessment year 2023-24 would be ₹
A. 10,00,000
B. 5,90,490
C. 6,56,100
D. None of these.
Answer:
C. 6,56,100
(10,00,000 – 10% of 10,00,000 = 9,00,000
9,00,000 – 10% of 9,00,000 = 8,10,000
8,10,000 – 10% of 8,10,000 = 7,29,000
7,29,000 – 10% of 7,29,000 = 6,56,100)

CMA Inter Direct Tax Study Material MCQs

Question 5.
(v) Motor car with more than 1.6 litres cubic capacity is given to the employee both for official and personal use with expenditure on running and maintenance met by the employer. The car was self driven by the employee. The perquisite value shall be
A. ₹ 1,200 p.m.
B. ₹ 1,800 p.m.
C. ₹ 2,400 p.m.
D. Nil
Answer:
C. ₹ 2,400 p.m.
₹ 2,400 pm. As per Rule 3(2)(a) of the Income Tax Act, if employer is providing car with more than 1600 cc capacity to his employee and running and maintenance is borne by employer, the taxable value of perquisite is ₹ 2,400 pm

Question 6.
(vi) The liability for payment of advance tax would arise only when the tax liability of the taxpayer after reducing tax deductible at source exceeds
A. ₹ 10,000
B. ₹ 5,000
C. ₹ 20,000
D. None of these
Answer:
A. ₹ 10,000
As per Section 208 of Income Tax Act, 1961, liability of advance tax arises when estimated tax liability of tax payer exceeds ₹ 10,000.

Question 7.
(vii) Amount is received under the notified reverse mortgage scheme, is
A. Taxable as ‘Income from other sources’
B. Exempt from tax
C. 50% taxable
D. Taxable as capital gain
Answer:
(B) Exempt from tax.

Question 8.
(viii) Azhar, being an employee in a transport company, received ₹ 10,000 per month by way of allowance to meet his personal expenses in the course of running such transport system from one place to another. The amount chargeable to tax is
A. Nil
B. 3,000 p.m.
C. Fully-taxable
D. Fully exempt
Answer:
(B) 3,000 pm.
As per Section 10(14), allowance given to transport employees are exempt to the extent of least of following
i. 70% of allowance or
ii. ₹ 10,000. p.m.

Question 9.
(ix) Rajiv received scholarship of ₹ 20,000 to meet the cost of education. The amount of scholarship chargeable to tax is ₹.
A. Nil
B. ₹ 20,000
C. ₹ 10,000
D. ₹ 5,000
Answer:
(A) Nil, The scholarship granted to meet the cost of education is exempt from tax u/s 10 (16).

Question 10.
(x) Sita received family pension of ₹ 10,000 per month in the capacity of widow of the deceased spouse who died in the course of operational duties in Indian army. The amount c family pension chargeable to tax is
A. ₹ 1,20,000
B. ₹ 1,05,000
C. Nil
D. ₹ 30,000.
Answer:
(C) Nil, the family pension received by the family members of armed forces is exempted from tax u/s 10(19).

Question 11.
(xi) A religious trust received ₹ 2,00,000 by way of anonymous donation. The total amount of donation received during the year was ₹ 15,00,000. The amount of anonymous donation chargeable to tax is
A. ₹ 2,00,000
B. ₹ 1,00,000
C. ₹ 75,000
D. Nil. Not taxable
Answer:
(D) Nil. Not Chargeable. The anonymous donation received for religious purposes is excluded from the ambit of taxable
donation.

CMA Inter Direct Tax Study Material MCQs

Question 12.
(xii) Fees paid to Registrar of Companies for increasing the authorized capital of a company is
A. Capital expenditure
B. Fully deductible
C. 50% deductible
D. 75% deductible (Dec 2012, 1 x 12 = 12 marks)
Answer:
(A) Capital Expenditure. A fee paid to ROC is non-recurring expenses. Hence it is capital expenditure.

(b) Fill up the blanks:

(i) Interest received on delayed payment of enhanced compensation shall be deemed to be ……………………………. (income/not an
income/interest relating to the concerned year alone is income) of the year in which it is received.
Answer:
Income

(ii) Gift received from a trust is ……………………………. (included/not included) in the taxable income of an individual.
Answer:
Included

(iii) Dividend received from a company having only agricultural income is ………………………. (agricultural income/non-agricultural income/50% taxable) in the hands of its shareholder.
Answer:
Nonagricultural income

(iv) There are two schools of Hindu Law, one in Mitakshara and the other is ……………….. .
Answer:
Dayabhaga

(v) The depreciation allowable in respect of an asset used for the purpose of business for less than 180 days shall be restricted
to …………………. (50%/25%/75%) of the normal rate of depreciation.
Answer:
50%

(vi) The rate of TDS will be ………………………….. in all cases, if PAN is not furnished by the deductee.
Answer:
20%

(vii) The minimum alternate tax u/s 115JB for the AX. 2023-24 shall be …………………………………… % of book profit [Basic rate excluding surcharge, educationcess, etc.].
Answer:
15%

(viii) The minimum penalty levied u/s 271A for not maintaining books of account, documents as required u/s 44AA is ……………….. .
Answer:
₹ 25,000

(ix) Prima facie, revision of any order can be made by the Commissioner of Income-tax within ………………………. years.
Answer:
4

(x) Unabsorbed loss under the head ‘Capital gains’ shall be carried forward for a period of ……………………… , assessment years immediately following the assessment year in which such loss was incurred.
Answer:
8

(xi) Loss from gambling ……………………………. (can/cannot) be carried forward and set off in subsequent years under profits from gambling. (Dec 2012, 1 x 12 =12 marks)
Answer:
Cannot

Question 13.
Choose the most appropriate alternative:
(i) The basic Exemption limit for a female below the age of 60 years for the assessment year 2023-24 is
(a) ₹ 1,80,000
(b) ₹ 1,90,000
(c) ₹ 2,00,000
(d) ₹ 2,50,000
Answer:
(d) ₹ 2,50,000

Question 14.
(ii) Under Rule 7A of the Income Tax.Rules, the following %age of income from manufacture of Rubber shall be deemed to be business income and liable to tax
(a) 15%
(b) 25%
(c) 35%
(d) 50%
Answer:
(c) 35%

Question 15.
(iii) Interest is payable to assessee on Refund under the Income Tax Act, 1961 at the rate of
(a) 5%
(b) 6%
(c) 9%
(d) 12%
Answer:
(b) 6%

CMA Inter Direct Tax Study Material MCQs

Question 16.
(iv) The maximum penalty leviable for failure to keep or maintain books of account or document as required u/s. 44AA of the Income Tax Act, 1961 is
(a) ₹ 25,000
(b) ₹ 75,000
(c) ₹ 1,00,000
(d) ₹ 1,50,000
Answer:
(a) ₹ 25,000
The correct answer is ₹ 25,000 u/s. 271A.

Question 17.
(v) Tax on non-monetary benefit paid by the employer is
(a) Fully-taxable
(b) Taxable to the extent of 50%
(c) Taxable to the extent of 60%
(d) Fully exempted from Tax.
Answer:
(d) Fully exempted from Tax.

Question 18.
(vi) The maximum amount of deduction from Gross Total Income available to an individual for interest on savings bank deposit is
(a) ₹ 5,000
(b) ₹ 7,500,
(c) ₹ 10,000
(d) ₹ 12,000
Answer:
(c) ₹ 10,000

Question 19.
(vii) Loss from activity of owning and maintaining race horses can be carried forward for: (Assessment years)
(a) 4
(b) 6
(c) 8
(d) 5
Answer:
(a) 4
4 Assessment years

Question 20.
(viii) Annual value of house property it is not let out s taken as ……………………. .
Answer:
Nil

Question 21.
(ix) No tax is deductible if the amount of rent credited or paid during the financial year does not exceed rupees …………………… u/s 194 I of the Income Tax Act, 1961.
Answer:
₹ 2,40,000

Question 22.
(x) When entire net consideration has been invested by an individual towards subscription of shares of an eligible company the exemption, u/s. 54GB of the Income Tax Act,1961 would be
(a) NIL
(b) 10% of capital gain
(c) 50% of capital gain
(d) 100% of capital gain
Answer:
(d) 100% of capital gain

Question 23.
(xi) Amount received towards share application money when not properly explained it is ……………………. .
(a) taxable u/s. 68
(b) exempt u/s. 10
(c) fully taxable but deduction at 50% u/s. 57 (iii) is allowable
(d) None of the above
Answer:
(a) taxable u/s. 68

Question 24.
(xii) Book profit u/s. 115JB of a domestic company was ₹ 52 lakhs. The tax liability of the company for the assessment year 2023-24 would be
(a) 18.54% including cess
(b) 15.60% including cess
(c) 20% including cess surcharge at 5%
(d) 19.431 % including cess and surcharge at 2% (June 2013, 1 x 12 = 12 marks)
Answer:
(b) 15.60% including cess

(b) Fill up the blanks:
(i) Any sum paid to an approved university, college or other institutions u/s. 35(1) (iii) of the Income Tax Act, 1961 the allowable deduction is ……………………….. (100%/125%)
Answer:
100%

(ii) Interest payable to a partner by a firm shall not exceed …………………………. (18%/12%) per annum.
Answer:
12%

(iii) An assessee ………………………….. (can/cannot) spread over the arrears of rent over the past several years.
Answer:
Cannot

(iv) Chapter VI-A deduction …………………………. (shall/shall not) be allowed in respect of income from short term capital gain.
Answer:
Chapter VIA deduction shall be allowed in respect of short-term capital gain, generally. However, in case it is short-term capital gaiñ in respect of transaction in equity shares in a company chargeable to STT (u/s 111 A) deduction under Chapter VIA shall not be allowed. The question does not mention the type of transaction. Hence, both answers would be possible.

(v) Dividend receives by an Indian Company on shares of a Foreign Company is ……………………. (taxable/exempted)
Answer:
Taxable

(vi) Salary received by Mr. P a foreign national and a non-resident out-side India for services rendered in India for 150 days is …………………….. (chargeable/not chargeable) to tax in India.
Answer:
Chargeable

(vii) Deduction for provision for bad and doubtful debts made by a public financial institution is allowed up to …………………………… % of total income before allowing such deduction and deduction under chapter VIA.
Answer:
5

(viii) Z. Ltd. awarded three contracts for repair work of ₹ 22,000, ₹ 23,000 and ₹ 30,000 respectively to L. Ltd. in the year 2022-23. Z. Ltd. is …………………………. (required/not required) to deduct tax at source under Section 194C of the Income Tax Act 1961.
Answer:
Not Required

(ix) In case of slum sale of any undertaking indexation benefit is ……………………………….. (allowed/not allowed) for the purpose of computation of capital gain.
Answer:
Not allowed

(x) Annual value of any one palace in the occupation of a former ruler is ………………… .
Answer:
Exempt

(xi) A charitable trust must apply at least ……………………….. percent of its income towards its objects.
Answer:
85

(xii) The time limit for issue of notice to assess the income in relation to assets located outside India for reassessment purposes is …………………………… years from the end of the relevant assessment year. (June 2013, 1 x 12 = 12 marks)
Answer:
16

Question 25.
(b) Choose the most appropriate alternative:
(i) Travel expenditure of the patient and the attender for medical treatment abroad is fully exempted, ¡f gross total income before including reimbursement of toreign travel expenditure is
(A) ₹ 2,00,000
(B) ₹ 2,50,000
(C) ₹’ 3,00,000
(D) ₹ 5,00,000
Answer:
(A) ₹ 2,00,000

Question 26.
(ii) Audit of accounts u/s 44AB of the Income-tax Act, 1961 is mandatory for a person carrying on profession where his gross receipts exceed
(A) ₹ 40,00,000
(B) ₹ 60,00,000
(C) ₹ 20,00,000
(D) ₹ 50,00,000
Answer:
(D) ₹ 50,00,000

CMA Inter Direct Tax Study Material MCQs

Question 27.
(iii) Long-term capital gain arising from sale of listed shares in a recognized stock exchange (SU paid) is exempt under Section
……………………….. of the Income-tax Act, 1961:
(A) 10(35)
(B) 10(37)
(C) 112A
(D) 10(36)
Answer:
(C) 112A

Question 28.
(iv) Deduction in respect of interest on deposits in savings account is allowed under Section 80 TTA of the Income-tax Act, 1961 to the maximum extent of
(A) ₹ 5,000
(B) ₹ 10,000
(C) ₹ 15,000
(D) ₹ 20,000
Answer:
(B) ₹ 10,000

Question 29.
(v) An assessee who has no income from business or profession will not be required to pay any advance tax ¡f the said assessee is alan
(A) Firm
(B) AOP
(C) Senior citizen
(D) Indian Company (Dec 2013,1 x 5 = 5 marks)
Answer:
(C) Senior citizen

(a) Fill up the blanks:
(i) Mr. A, a senior citizen, has total income of 8 lacs, earned by way of interest from secured debentures. The advance tax payable by him is ₹ ………………….. .
Answer:
Zero

(ii) A partnership firm will be treated as nonresident, only if the ………………………… of the control and management of its affairs is situate outside India.
Answer:
Whole

(iii) An employee of a partnership firm is treated as “specified employee” if the income under the head “Salaries”, excluding non-monetary perquisites exceeds ₹ ……………………… .
Answer:
50,000

(iv) The maximum amount of retrenchment compensation exempt u/s 10 (10B) in the hands of a person, when received from a private scheme not approved by the Board, is ₹ …………………………. .
Answer:
5,00,000

(v) Where any unrealized rent, earlier allowed as deduction is realized subsequently, the deduction available therefor is ₹ ………………………. .
Answer:
30% deductIon u/s 25A is available

(vi) In the case of a payee not having PAN for whom tax ¡s to be deducted at source u/s 1 94A, the rate applicable is ……………………………… . (June 2014, 6 marks)
Answer:
20%

(b) Choose the most appropriate alternative:

Question 30.
(i) For an employee in receipt of fixed medicál allowance, the maximum amount which is exempt is ₹
(A) 12,000
(B) 15000
(C) 18,000
(D) Nil
Answer:
(D) Nil

Question 31.
(ii) Disallowance for ependìture incurred in relation to exempt income is made under Section
(A) 14A
(B) 14
(C) 80A
(D) 10(33)
Answer:
(A) 14A

Question 32.
(iii) Where any land is located within aerial distance of 7 kms. from municipal limits, to be regarded as capital asset u/s 2(14), the population of the municipality as per last census done before 1.3.2013 should be more than
(A) 9 lacs
(B) 8 lacs
(C) 10 lacs
(D) None of these
Answer:
(C) 10 lacs

Question 33.
(iv) To avail exemption u/s 54, an individual should purchase a new residential house within …………………………. years from the date of sale
(A) 2
(B) 3
(C) 1
(D) 4
Answer:
(A) 2

Question 34.
(v) For an assessee engaged ¡n manufacturing activity, additional depreciation u/s 32(1 )(iv) for second-hand machinery costing ₹ 3 lacs, installed on 12.05.2015 is ₹
(A) 30,000
(B) 45,000
(C) 60,000
(D) Nil (June 2014, 5 marks)
Answer:
(D) Nil.

(a) Fill up the blanks:
(i) Deduction under Section 80G for donation to National Children’s Fund is ……………………… percent.
Answer:
100

(ii) Life Insurance premium paid in excess of ……………. percent of the actual capital sum assured LS not deductible under Section 80C, in respect of policies issued on or after 01.04.2013.
Answer:
10

(iii) Commodities transaction tax is ………………….. even if it is incurred in the course of business.
Answer:
Deductible

(iv) Buyback of unlisted shares by a company is ………………. in the hands of the shareholder.
Answer:
Exempt

(v) Rebate under Section 87 is to be calculated ………………………. the levy of education cess.
Answer:
Before

(vi) Rate of income-tax applicable for foreign institutional investors in respect of income from notified bonds and government securities is ………………………… .
Answer:
20%

(vii) The due date for furnishing Annual Information Return is …………………… .
Answer:
31st August

(viii) Sale of gold coin in excess of ………………………… is liable for tax collection at source. (Dec 2014, 1 x 8= 8 marks)
Answer:
₹ 2 lakhs

(b) Choose the most appropriate alternative:

Question 35.
(i) Deduction for investment in new plant or machinery under Section 32AC is applicable for
(A) all assessees
(B) companies
(C) partnership firms
(D) individuals
Answer:
(B) companies

Question 36.
(ii) Income of securitization trust from the activity of securitization is
(A) exempt [Section 10(23 DA)]
(B) taxable at 20%
(C) taxable at 5%
(D) taxable at the regular rates
Answer:
(A) exempt [Section 10(23 DA)]

CMA Inter Direct Tax Study Material MCQs

Question 37.
(iii) Royalty paid by State Government undertaking to the State Government is
(a) deductible
(B) inadmissible
(C) 50% deductible
(D) 20% deductible
Answer:
(B) inadmissible

Question 38.
(iv) Time limit for setting up undertaking for generation of power to avail deduction under Section 80-IA is available upto
(A) 31.03.2019
(B) 31.03.2018
(C) 31.03.2017
(D) 31.03.2016
Answer:
(C) 31.03.2017

Question 39.
(v) The maximum deduction under Rajiv Gandhi Equity Savings Scheme is
(A) ₹ 10,000
(B) ₹ 50,000
(C) ₹ 1,00,000
(D) ₹ 25,000 (Dec 2014, 1 x 5 = 5 marks)
Answer:
(D) ₹ 25,000

(a) Fill up the blanks:
(i) A company incorporated outside India is said to be resident in India if control and management is …………………. situated in India.
Answer:
Wholly

(ii) A foreign company is liable to surcharge at 5%, if the total income exceeds ……………………. .
Answer:
₹ 10 crores

(iii) A Zero coupon bond is a long-term capital asset, it it is held for more than …………………………… months before transfer.
Answer:
12 months

(iv) If statement of deduction of tax at source is not filed within due date, the deductor is liable to a fee of …………….. per day of default or the amount of tax deductible, whichever is less.
Answer:
200

(v) Maximum amount of exemption under section 10(10C) of the Income-tax Act in respect of compensation received for voluntary retirement is ₹ ……………………. .
Answer:
₹ 5 lacs

(vi) A manufacturing company investing more than ₹ …………………. in new plant and machinery in the previous year 2022-23 is entitled to investment allowance @ 15%.
Answer:
₹ 25 crores

(vii) An assessee can contest an order of the Income-tax Appellate Tribunal on any substantial question of law of filing appeal to the jurisdictional High Court within ……………………. days from the date of receipt of the said order.
Answer:
120

(viii) Royalty payable by Government to a non-resident is liable to be taxed at …………………. % on gross amount of royalty. ( June 2015, 1 x 8 = 8 marks)
Answer:
25

(b) Choose the most appropriate alternative:

Question 40.
(i) Subject to fulfilment of other conditions, remuneration received by a foreign national as an employee of a foreign enterprise for services rendered by him during his stay in India is exempted from income tax, if his stay in India does not exceed a period of
(A) 30 days
(B) 60 days
(C) 90 days
(D) 120 days
Answer:
(B) 60 days

Question 41.
(ii) Long-term capital gain on off-market sale of shares of a listed company without availing of indexation benefit is taxed at
(A) 5%
(B) 10%
(C) 15%
(D) 20%
Answer:
(B) 10%

Question 42.
(iv) Deduction under section 80 JJAA ¡n respect of employment of new workmen can be claimed by a company for an amount equal to
(A) 15% of additional wages to new workmen
(B) 20% of additional wages to new workmen
(C) 25% of additional wages to new workmen
(D) 30% of additional wages to new workmen
Answer:
(D) 30% of additional wages to new workmen

Question 43.
(v) A return of income for Assessment Year 2023-24 filed within the due date specified ¡n Section 139(1) can be revised by the assessee at any time before expiry of
(A) 31 March, 2023
(B) 318t March, 2024
(C) 31st December, 2022
(D) 31st December, 2023 (June 2015, 1 x 4 = 4 marks)
Answer:
(D) 31st December, 2023

(a) Fill up the blanks:
(i) Assessee’s own contribution to the National Pension Scheme is eligible for a maximum deduction of ………………….. .
Answer:
₹ 50,000

(ii) Any payment received from an account opened under Sukanya Samriddhi Açcount Rules, 2014 is ……………………….. .
Answer:
Exempt (Sec. 10(IIA)]

(iii) A charitable trust in order to be eligible for exemption under section 11 must not have more than …………………….. % of aggregate receipts from any activity in the nature of trade, commerce or business.
Answer:
20

(iv) The amount of deduction towards health insurance premium paid by an individual (not being a senior citizen) is limited to ₹ ……………………. .
Answer:
25,000

(v) Fee under section 234E for delay in filing of quarterly TDS/TCS return is ₹ ……………………. per day. . (June 2016, 1 x 5 = 5 marks)
Answer:
200

(b) Choose the most appropriate alternative:
Question 44.
(i) A senior citizen having total income consisting of pension and let out property income aggregating to ₹ 6 lakhs must have paid advance tax during the financial year 2022-23 of
(a) NIL
(b) 90% of ₹ 28,840
(c) 90% of ₹ 44,290
(d) 90% of ₹ 39,140
Answer:
(a) NIL

Question 45.
(ii) Mr. Ramji is employed in ABC Ltd who maintained a hospital for treatment of employees. During the financial year 2022-23, the value of medical benefits availed by Ramji’s family from the hospital was ₹ 2,10,000. The amount of medical perquisite chargeable to income tax would be
(a) ₹ 2,10,000
(b) ₹ 1,05,000
(c) ₹ 21,000
(d) NIL
Answer:
(d) NIL

Question 46.
(iii) Mr. Laxman occupied his apartment till December 2022 and thereafter occupied the quarters provided by the employer. The apartment of Mr. Laxman was let out at ₹ 20,000 per month from 1st January, 2023. The annual value of the property would be
(a) ₹ 60,000
(b) ₹ 2,40,000
(c) ₹ 1,80,000
(d) Nil
Answer:
(a) ₹ 60,000

Question 47.
(iv) When a company paid ₹ 5 lakhs to Indian Institute of Technology to carry on research in a field unrelated to the activity of the company, the amount eligible for deduction paid by way of donation would be
(a) ₹ 5,00,000(100%)
(b) ₹ 6,25,000 (125%)
(c) ₹ 7,50,000 (150%)
(d) ₹ 7,50,000 (150%)
Answer:
(a) ₹ 5,00,000(100%)

Question 48.
(v) Mr. A has loss from regular business of ₹ 8 lakhs and income from speculation business of? 11 lakhs. His total income chargeable to tax would be
(a) ₹ 3,00,000
(b) ₹ 11,00,000
(c) ₹ 7,00,000
(d) ₹ 2,50,000 (June 2016, 1 x 5 = 5 marks)
Answer:
(a) ₹ 3,00,000

CMA Inter Direct Tax Study Material MCQs

(c) State without indicating reason whether the following statements are true or false:
(i) Share of a private limited company held for 15 months before its sale is,a long-term capital asset.
Answer:
False

(ii) A return of income filed without payment of self-assessment tax is a defective return.
Answer:
True

(iii) Profit from growing and manufacturing tea in India is fully exempted from income tax under section 10(1) of the Income-tax Act.
Answer:
False

(iv) Tax is required to be deducted at source from salary at the time of payment and not at the time of crediting salary to the account of the employee.
Answer:
True

(v) Capital gain arising from compulsory acquisition of a property under law is taxab’e in the year of receipt of compensation or part thereof. (June 2016, 1 x 5 = 5 marks)
Answer:
True.

(a) Fill up the blanks:
(i) The maximum amount deductible under section 88 TTA in respect of interest on savings bank account is ₹ ………………. .
Answer:
₹ 10,000

(ii) Monetary limit for exemption in the case of encashment of earned leave on superannuation received by private sector employees is ₹ …………………… .
Answer:
₹ 3,00,000

(iii) When unrealized rent of 50,000 in respect of a let-out property is realized subsequently, the amount liable to tax would be ₹ ………………….. .
Answer:
₹ 35,000

(iv) Interest on enhanced compensation received by Mr. A, a resident individual is ₹ 4,00,000 of which 75% pertains to earlier financial years. The amount of such interest to be included in the total income under the head ‘income from other sources’ is ₹ ……………………… .
Answer:
₹ 2,00,000

(v) Medical expenditure of ₹ 40,000 was incurred by Mr. A on his mother (being a senior citizen). The amount eligible for deduction under section 80D would be …………………….. . (Dec 2016, 1 x 5 = 5 marks)
Answer:
₹ 40,000.

Question 49.
(b) Choose the most appropriate alternative:
(i) When a person having agricultural lands sells the seeds taken from such lands in a nursery, which is pert of the said lands, the income from such sale is treated as
(A) Business income
(B) Agricultural income
(C) Income from other sources
(D) None of the above
Answer:
(B) Agricultural income.

CMA Inter Direct Tax Study Material MCQs

Question 50.
(ii) An employer has paid medical insurance premium of ₹ 12,000 in respect of a salaried employee drawing annual salary of ₹ 6 lakhs. The amount of perquisite charged in the hands of emploiee is
(A) Nil
(B) ₹ 6,000
(C) ₹ 12,000
(D) None of the above
Answer:
(A) Nil

Question 51.
(iii) The rate of depreciation for a block of assets consisting of buildings used as factory is
(A) 2.5%
(B) 5%
(C) 10%
(D) None of the above
Answer:
(C) 10%

Question 52.
(iv) In case of a Hindu Undivided Family, where the return of income cannot be signed by the Karta, the same can be signed by
(A) the next senior-most male member.
(B) Karta’s wife.
(C) any male member of the family.
(D) any adult member of the family.
Answer:
(D) any adult member of the family.

Question 53.
(v) In case of an individual or HUF, to determine whether certain TDS provisions are attracted, what has to be seen is whether the person is subject to tax audit under section 44AB in
(A) the immediately preceding financial year.
(B) current year.
(C) last two continuous financial years.
(D) None of the above. (Dec 2016, 1 x 5 = 5 marks)
Answer:
(A) the immediately preceding financial year.

Question 54.
(c) Match the following:

(i) Securities Transaction Tax (a) Maximum limit ₹ 50 lakhs
(ii) Contribution of Employer to Pension Fund of Central Government (b) Includible as Salary income of employee
(iii) Donation in kind (c) Not deductible while computing income from property
(iv) Ground rent (d) Deductible as business expenditure
(v) Bonds specified in Section 54EC (e) Not eligible for deduction under section 80G

(Dec 2016, 1 x 5 = 5 marks)
Answer:

(i) Securities Transaction Tax (d) Deductible as business expenditure
(ii) Contribution of Employer to Pension Fund of Central Government (b) Includible as Salary income of employee
(iii) Donation in kind (e) Not eligible for deduction under section 80G
(iv) Ground rent (c) Not deductible while computing income from property
(v) Bonds specified in Section 54EC (a) Maximum limit ₹ 50 lakhs

Question 55.
(a) Find the most suitable alternative for the following:
(i) The number of identities included in the definition of persons is
(a) five
(b) six
(c) seven
(d) eight
Answer:
(c) seven

Question 56.
(ii) A trust shall not be considered as charitable trust for according the benefits of Section II when the commercial activities in the previous year exceed ₹ ………………… .
(a) 1o lakhs
(b) 25 lakhs
(c) 15 lakhs
(d) 30 lakhs
Answer:
(ii) There is no option in respect of correct answer as it should be 20% of gross receipt.

CMA Inter Direct Tax Study Material MCQs

Question 57.
(iii) Deduction available under section 24(a) is of NAy.
(a) 30%
(b) 50%
(c) 15%
(d) 70%
Answer:
(a) 30%

Question 58.
(iv) Expenditure incurred by a businessman for ready-to-use software is entitled to benefit of
(a) 15% as depreciation
(b) 30% as depreciation
(c) 60% as depreciation
(d) 100% as revenue expenditure
Answer:
(d) 100% as revenue expenditure

Question 59.
(v) The basic exemption limit for a resident super senior citizen above the age of 80 is
(a) ₹ 2,00,000
(b) ₹ 2,50,000
(c) ₹ 5,00,000
(d) None of the above
Answer:
(c) ₹ 5,00,000

Question 60.
(vi) The provisions relating to interest on delay in payment of refund are given in section
(a) 234A
(b) 234B
(c) 244A
(d) 244B
Answer:
(c) 244A

Question 61.
(vii) Which of the following can be corrected while processing the return of income under section 143(1)?
(a) Any arithmetical error in the return
(b) Any mistake in the return of income
(c) Any error of principle in the return of income
(d) Any claim by the taxpayer which is against law
Answer:
(a) Any arithmetical error in the return

Question 62.
(viii) Notice under section 156 is given for
(a) failure to submit return
(b) tax demand
(c) deferment of tax
(d) None of the above
Answer:
(b) tax demand

Question 63.
(ix) As per Section 271 H, where a person fails to file the statement of tax deducted/collected at source i.e. TDS/TCS return on or before the due dates prescribed in this regard, then he shall be liable to pay penalty under section 271 H. Maximum penalty that can be levied is ₹ ………………… .
(a) 1,00,000, but not exceeding the amount of TDS/TCS.
(b) 2,00,000
(c) 3,00,000
(d) 3,00,000
Answer:
(a) 1,00,000 but not exceeding the amount of TDS/TCS

CMA Inter Direct Tax Study Material MCQs

Question 64.
(x) The threshold exemption limit for Equalization levy is
(a) ₹ 5 lakh
(b) ₹ 3 lakh
(c) ₹ 2 lakh
(d) ₹ 1 lakh (June 2017, 1 x 10 = 10 marks)
Answer:
(d) ₹ 1 Lakh

(b) Match the following:

(i) Section 87A (A) ₹ 5,000
(ii) Section 80GG (B) ₹12,500 (or) Actual Tax (w.e.l.)
(iii) Sukanya Samrudhi Scheme (C) ₹ 1,500
(iv) Minor child exemption (D) 30% deduction
(V) Arrears of rent (E) Section 80 C

(June 2017, 1 x 5 = 5 marks)
Answer:

(i) Section 87A (B) ₹12,500 (or) Actual Tax (w.e.l.)
(ii) Section 80GG (A) ₹ 5,000
(iii) Sukanya Samrudhi Scheme (E) Section 80C
(iv) Minor child exemption (C) ₹ 1,500
(v) Arrears of rent (D) 30% deduction

(c) State whether true or false:
(i) An Indian company is always resident in India.
Answer:
True

(ii) Salary received by a member of Parliament is exempt.
Answer:
False

(iii) Income of a self-occupied property cannot be negative.
Answer:
False

(iv) Preliminary expenditures are allowed deduction in 10 equal instalments.
Answer:
False

(v) Capital gain arises from the transfer of any capital asset. (June 2017, 1 x 5 = 5 marks)
Answer:
True

(d) Fill in the blanks:
(i) In case of an Indian citizen who leaves India during the previous year for employment outside India, the period f 60 days shall be substituted by ………………………. days.
Answer:
182 days

(ii) Scholarship received by a student was ₹ 2,000 p.m. He spends ₹ 16,000 for meeting the cost of education. The Balance ₹ 8,000 is ……………………. .
Answer:
Exempt

CMA Inter Direct Tax Study Material MCQs

(iii) Generally, income is taxable under the head, house property only when the assesse is the ……………………… of such house property.
Answer:
Owner

(iv) Salary, bonus, commission or remuneration due to or received by a working partner from the firm is taxable under the head …………………….. .
Answer:
Profits and gains of Business or profession

(v) Period for holding bonus shares or any other financial asset without any payment shall be reckoned from the date of …………………………. . (June 2017, 1 x 5 = 5 marks)
Answer:
Allotment

(a) Choose the most appropnate alternative:
Question 65.
(i) When Mr. Balu paid royalty to Dr. Peter of Sweden for use of know-how in India, such payment is
(a) exempt from tax.
(b) accruing in India.
(c) accrues in Sweden.
(d) received in India.
Answer:
(b) accruing in India.

Question 66.
(ii) In the case of foreign company with total income of more than ₹ 1 crore but less than 10 crores the surcharge liveable is at
(a) 5%
(b) 12%
(c) 2%
(d) 1%
Answer:
(c) 2%

Question 67.
(iii) Mr. Han resident in India received ₹ 11 lakhs by way of dividend from Indian companies. Such dividend is
(a) exempt from tax.
(b) taxable at regular rates.
(c) taxable at maximum marginal rate.
(d) taxable at 10%.
Answer:
(d) taxable at 10%.

Question 68.
(iv) When an employee receives money on closure of national pension System trust it is
(a) chargeable to tax.
(b) exempt from tax.
(c) 40% is exempt from tax.
(d) 60% is exempt from tax.
Answer:
(c) 40% is exempt from tax.

Question 69.
(v) When employer contributes to approved superannuation fund it is chargeable to tax as perquisite when the contribution exceeds
(a) ₹ 1,50,000
(b) ₹ 1,00,000
(c) ₹ 50,000
(d) ₹ 20,000
Answer:
(a) ₹ 1,50,000

Question 70.
(vi) When the shares are held in unlisted company, it is treated as long-term capital asset when the holding period exceeds
(a) 36 months.
(b) 24 months.
(c) 12 months.
(d) 6 months.
Answer:
(b) 24 months.

CMA Inter Direct Tax Study Material MCQs

Question 71.
(vii) Long-term capital gain arising from transfer of unlisted securities in the hands of non-resident/foreign company is chargeable to tax at
(a) 10%
(b) 20%
(c) 30%
(d) 40%
Answer:
(a) 10%

Question 72.
(viii) Interest on housing loan taken by individual being his first residential house is eligible for deduction under section 80EE up to a maximum of
(a) ₹ 30,000
(b) ₹ 50,000
(c) ₹ 1,50,000
(d) ₹ 72,00,000
Answer:
(b) ₹ 50,000

Question 73.
(ix) A start-up can claim deduction under section 80 – IAC for ……………………. consecutive years beginning from the year in which the eligible start-up was incorporated.
(a) 1
(b) 2
(c) 3
(d) 5
Answer:
(c) 3

Question 74.
(x) When the return of income for the assessment year 2023-24 is filed under section 139(4), the assessee can revise the return on or before
(a) 31.03.2024
(b) 31.12.2023
(c) 31.03.2025
(d) 31.12.2024 (Dec 2017, 1 x 10 = 10 marks)
Answer:
(b) 31.12.2023

(b) Match the following:

(i) Additional depreciation for plant used for more than 180 days (a) 40%
(ii) Basic exemption limit of income for resident individual being senior citizen (b) ₹ 40,000
(iii) Rate of tax for LLP (c) ₹ 3,00,000
(iv) Depreciation for computers (d) 30%
(v) Exemption in respect of Post office SB interest (e) 20%

(Dec 2017, 1 x 5 = 5 marks)
Answer:

(i) Additional depreciation for plant used for more than 180 days (e) 20%
(ii) Basic exemption limit of income for resident individual being senior citizen (c) ₹ 3,00,000
(iii) Rate of tax for LLP (d) 30%
(iv) Depreciation for computers (a) 40%
(v) Exemption in respect of Post office SB interest (b) ₹ 40,000

(c) State whether the following are True or False:
(i) Interest on deposit certificates issued under Gold Monetization Scheme. 2015 is exempt from tax.
Answer:
The Statement is true: Interest on deposit certificates issued under Gold Monetization scheme 2015 is exempt from tax u/s 10(15)(vi).

(ii) The monetary limit of ₹ 5 lakhs in respect of gratuity received by an employee covered by Payment of Gratuity Act, 1972 is exempt from tax.
Answer:
The Statement is false: The Monetary limit is ₹ 20 lakhs.

(iii) Medical insurance premium paid by son for parents who are senior citizens is deductible up to a maximum of ₹ 35,000.
Answer:
The Statement is false: Medical insurance premium paid by son for parents who are senior citizen is deductible upto a maximum of ₹ 50,000. (iii) (ci) Rate of tax for LLP is 30%.

(iv) In order to avail carry forward loss from house property, the return of income must be filed before the due date specified in Section 139(1).
Answer:
The Statement Is false: In order to avail carry forward loss from house property, ¡t Return of income is furnished after the due date.

(v) 30% of the additional employee cost incurred by the employer is deductible under section 80JJAA. (Dec 2017, 1 x 5 = 5 marks)
Answer:
Statement is true: 30% of the additional employee cost incurred by the employer is deductible u/s 80JJAA.

CMA Inter Direct Tax Study Material MCQs

(d) Fill up the blanks:
(i) When a director of a company received ₹ 30 lakhs by way of non-complete fee, it is taxable under the head ……………….. .
Answer:
Profit and Gains of Business or Professional.

(ii) When unrealized rent is received based on court decree but at the time of receipt the property was not owned by the assessee, it is taxable under the head …………………….. .
Answer:
Income from House Property

(iii) When Mr. Ashwin received ₹ 20,000 as scholarship for meeting the cost of education it is ………………….. .
Answer:
Exempt

(iv) The Income Computation Disclosure Standards (ICDS) will apply only when the assesse adopts ……………………… method of accounting.
Answer:
Mercantile

(v) Speculation loss can be carried forward for a maximum period of (number of) years after the year of such loss.
(Dec 2017, 1 x 5 = 5 marks)
Answer:
Four

(a) Choose the most appropriate alternative:
Question 75.
(i) Which of the following ¡s not a case of deemed ownership of house property?
(a) Transfer to spouse for inadequate consideration
(b) Transfer to minor child for inadequate consideration
(c) Co-owner of a Property
(d) None of the above.
Answer:
(c) Co-owner of a Property

Question 76.
(ii) Where assessment has not been completed, belated income tax return for the A.Y. 2023-24 can be filed up to:
(a) 31.03.2024
(b) 31.12.2023
(c) 31.03.2025
(d) Cannot be filed belatedly.
Answer:
(b) 31.12.2023

CMA Inter Direct Tax Study Material MCQs

Question 77.
(iii) An individual estimates that he is required to pay ₹ 1,00,000 as advance tax. By 15th of December, how much amount must be paid by the individual? .
(a) ₹ 30,000
(b) ₹ 75,000
(c) ₹ 1,00,000
(d) Nil.
Answer:
(b) ₹ 75,000

Question 78.
(iv) Section 80 RRB the Income-tax Act, 1961 deals with deduction from gross total income in respect of income by way of
(a) Interest on debentures of a government company
(b) Royalty income on authors
(c) Royalty on patents
(d) Royalty from textbooks.
Answer:
(c) Royalty on patents

Question 79.
(v) Preliminary expenses that can be amortized under the Income-tax Act 1961 has to be restricted to ……………………… of the cost of the Project.
(a) 5%
(b) 15%
(c) 20%
(d) None of the above.
Answer:
(a) 5%

Question 80.
(vi) Maximum Marginal Rate for the AY. 2023-24 is
(a) 34.5%
(b) 33.99%
(c) 42.74%
(d) None of the above.
Answer:
(c) 42.74%

Question 81.
(vii) Rebate u/s 87A can be claimed by
(a) Any resident
(b) Resident Individual
(c) Any person
(d) Any person other than non resident
Answer:
(b) Resident lndividual

Question 82.
(viii) As per Section 115 BBDA dividend from lndian companies is taxable in the hands of certain recipients at ………………….. when the aggregate dividend exceeds ……………………. .
(a) 10%, 1 lakh
(b) 15%, 10 lakhs
(c) 10%, 10 lakhs
(d) 5%, 5 lakhs
Answer:
(c) 10%, 10 lakhs

Question 83.
(ix) ICDS VIII deals with …………………….. .
(a) Government Grants
(b) Securities
(c) Revenue recognition
(d) Construction Contract
Answer:
(b) Securities

Question 84.
(x) Income escaping assessment is covered under section
(a) 144
(b) 156
(c) 143 (3)
(d) 147 (June 2018, 1 x 10 = 10 marks)
Answer:
(d) 147

(b) Match the following:

(i) ALTERNATE MINIMUM TAX (A) SECTION 44AD
(ii) RETURN BY WHOM TO BE VERIFIED (B) SECTION 263
(iii) REVISION BY COMMISSIONER (C) SECTION 140
(iv) PRESUMPTIVE TAX (D) SECTION 80EE
(v) ₹ 50,000 (E) SECTION 115JC

(June 2018, 1 x 5 = 5 marks)
Answer:

(i) Alternate Minimum Tax (E) Section 115JC
(ii) Return by Whom to be Verified (C) Section 140
(iii) Revision by Commissioner (B) Section 263
(iv) Presumptive Tax (A) Section 44AD
(v) ₹ 50,000 (D) Section 88EE

(c) State whether True or False:
(i) All incomes that accrue to a minor child will be included ¡n the total income of that parent whose total income is greater.
Answer:
False

(ii) Caution money forfeited by the assessee is taxable in the year of forfeiture under the head capital gains.
Answer:
False

(iii) Paintings are not considered as rersonal effects in the context of “capital asset” definition.
Answer:
True

(iv) In the hands of a manufacturer, factory building newly constructed is not eligible for additional depreciation.
Answer:
True

(v) Income from assets acquired by spouse out of pin money or household savings ¡s not subject to clubbing. (June 2018, 1 x 5 = 5 marks)
Answer:
True.

CMA Inter Direct Tax Study Material MCQs

(d) Fill in the blanks:
(i) Deduction under section 80GGB in respect of house rent paid is applicable to ………………………. .
Answer:
Individual (Note: Deduction for house rent paid is under Section 80GG, not under Section 80GGB.)

(ii) Unabsorbed depreciation shall be allowed to be carried forward for any number of years and such carried forward unabsorbed depreciation may be set off against any income, other than …………………….. .
Answer:
Income from salary, winning from lotteries, crossword puzzles, etc.

(iii) Income referred to in Sec. 68 to Sec. 69D shall be taxable @ …………………………. (Excluding SC and Cess)
Answer:
60%.

(iv) ……………………………… received by an electoral trust shall be exempted.
Answer:
Any voluntary contributions.

(v) Income from sub-letting of a house property by a salaried employee is taxable under the head …………………… .
(June 2018, 1 x 5 = 5 marks)
Answer:
Income from other sources.

(a) Choose the most appropriate alternative:
Question 85.
(i) Short-term capital gain on sale of listed shares (STT paid) in a recognized stock exchange is chargeable to income-tax @ …………………………….. %.
(a) 10
(b) 15
(c) 20
(d) 30
Answer:
(b) 15

Question 86.
(ii) When the total income of an individual exceeds ₹ 50 lakhs, the surcharge is payable @
(a) 5%
(b) 7%
(c) 10%
(d) 12%
Answer:
(c) 10%

Question 87.
(iii) When the amount is withdrawn from National Pension System Trust, it is chargeable to tax to the extent the withdrawal exceeds ……………………. % of the contribution of the assessee.
(a) 10
(b) 25
(c) 15
(d)20
Answer:
(b) 25

Question 88.
(iv) Ms. Jothi (aged 23) got married and left India to join her husband in the United Kingdom on 10.06.2022. She had never left India earlier. Her residential status for the assessment year 2023-24 is:
(a) Resident and ordinarily resident
(b) Resident but not ordinarily resident
(c) Non-resident
(d) None of the above.
Answer:
(a) Resident and Ordinary Resident

Question 89.
(v) While computing TDS on salary paid to employees, the losses given below to the applicable extent would be considered by the employer:
(a) Loss from business
(b) Loss from house property
(c) Long-term capital loss
(d) Short-term capital loss
Answer:
(b) Loss from house property

Question 90.
(vi) When tax is not deducted at source on annual rent of ₹ 2 lakhs paid to landlord by a company, the amount liable for dis allowance under section 40(a) (ia) is
(a) Nil
(b) ₹ 2,00,000
(c) ₹ 20,000
(d) ₹ 60,000
Answer:
(d) ₹ 60,000

Question 91.
(vii) When the assessee has loss, from house property, the maximum amount of such loss eligible for set of against other permissible incomes would be
(a) ₹’ 30,000
(b) ₹ 1,50,000
(c) ₹’ 2,00,000
(d) No Limit
Answer:

Question 92.
(viii) When a capital asset was acquired on 01.04.2001 and sold in June, 2022, the cost of acquisition or the fair market value of the asset as on at the option of the assessee is to be adopted for indexation purpose:
(a) 01.04.2012
(b) 01.04.2001
(c) 01.04.1992
(d) 01.04.1982
Answer:

Question 93.
(ix) When a motor car is sold for ₹’ 12 lakhs by a dealer to a buyer holding PAN the amount of tax collectible as source shall be ……………………… .
(a) ₹’ 12,000 (1%)
(b) ₹’ 24,000 (2%)
(c) ₹’ 1,20,000 (10%)
(d) Nil
Answer:

Question 94.
(x) Cash donation given to a charitable trust (approved under section 80G) is eligible for deduction under that section, when the amount of donation does not exceed ₹’ …………………………. .
(a) 2,000
(b) 5,000
(c) 7,000
(d) 10,000 (Dec 2018, 1 x 10 = 10 marks)
Answer:
(a) 2,000

(b) Match the following (Sufficient to give the corresponding item in column 3 for column 1; reproducing columns 2 and 4
are not required):

(i) Depreciation on patents (A) 40%
(ii) Amount received by an individual as a loan in a reverse mortgage (B) Valuation of inventories
(iii) Interest partner on capital (C) 25%
(iv) Depreciation on solar power generating system (D) Exempted since there is no transfer
(v) ICDS II (E) Allowed up to 12% p.a.

(Dec 2018, 1 x 5 = 5 marks)
Answer:

(i) Depreciation on patents (c) 25%
(ii) Amount received by an individual as a loan in a reverse mortgage (d) Exempted, since there is no transfer
(iii) Interest partner on capital (e) Allowed up to 12% p.a.
(iv) Depreciation on solar power generating system (a) 40%
(v) ICDS II (b) Valuation of inventories

CMA Inter Direct Tax Study Material MCQs

(c) State whether following statements are True or False.
(i) Cost of self-generated goodwill of business is deemed to be Nil.
Answer:
True

(ii) Reimbursement of ordinary medical expenses’by the employer is fully exempted.
Answer:
False

(iii) Where capital gain arises to an individual from the transfer of a capital asset, being immovable property under a joint developmen agreement, the capital gain ¡s chargeable to tax in the previous year in which the certificate of completion for whole or part of the project is issued by the competent authority.
Answer:
True

(iv) In order to avail carry forward of unabsorbed depreciation, the assessee must lurnish the return of income within the due date specified in section 139(1).
Answer:
False

(v) In order to claim exemption under section 54B, the agricultural land, which is transferred, must have been used by the assessee or his parents for at least 3 years prior to the date of transfer. (Dec 2018, 1 x 5 = 5 marks)
Answer:
False

(d) Fill in the blanks.
(i) The total income computed will have to be rounded off to the nearest multiple of …………………….. .
Answer:
10

(ii) Domestic company means alan …………………………. company.
Answer:
Indian

(iii) Additional depreciation on factory building for ₹ 30 lakhs, acquired by a manufacturer on 1 Dec., 2022 is …………………….. .
Answer:
Nil

(iv) Unabsorbed depreciation can be carried forward for ………………………. years.
Answer:
any number of

(v) An assessee, who receives leave encashment during continuation of his service, can also claim . (Dec 2018, 1 x 5 = 5 marks)
Answer:
Relief under Section 89

(a) Choose the most appropriate alternative for the following (option to be given only in capital letter A, B, C or D; entire
answer need not be reproduced):
Question 95.
(i) In the case of a domestic company (turnover/gross receipts ₹ 70 crores), the basic rate of income-tax applicable for computing as per normal provisions would be ……………………….., when the turnover of the company has been ₹ 45 crores in the previous year relevant to the assessment year 2020-21. (Note: ignore surcharge, education cess, etc.)
(a) 30%
(b) 29%
(c) 25%
(d) 35%
Answer:
(c) 25%

Question 96.
(ii) The maximum marginal rate of tax applicable for individual taxpayer having total income of ₹ 1.5 crore (including surcharge and health & education cess) is ………………………. .
(a) 34.32%
(b) 35.88%
(c) 34.944%
(d) 29.12%
Answer:
(b) 35.88%

Question 97.
(iii) When a charitable trust pays ₹ 50,000 per month towards rent to a resident for the premises occupied by it without deduction of tax at source for the entire previous year 2022-23, the amount of rental expenditure liable for disallowance would be ……………………. .
(a) Nil
(b) ₹ 6,00,000
(c) ₹ 4,20,000
(d) ₹ 180,000
Answer:
(d) ₹ 18,00,00

CMA Inter Direct Tax Study Material MCQs

Question 98.
(iv) The lock-in-period for capital gain bonds issued by National Highway Authority of India for the purpose of deduction under section 54EC is ……………….. .
(a) 5 years
(b) 3 years
(c) 7 years
(d) 1 year
Answer:
(a) 5 years

Question 99.
(v) The TDS rate for payments made to a non-resident sportsman is …………………………….. %.
(a) 20
(b) 20.8
(c) 30
(d) Nil
Answer:
(b) 20.8

Question 100.
(vi) Where a partner of a firm transfers any capital asset to the firm by way of capital contribution, for the purpose of computing capital gain in the hands of the partner, the amount of deemed consideration is
(a) cost to the partner.
(b) fair market value of the asset on the date of transfer.
(c) the amount recorded in the books of the firm.
(d) value as determined by the Stamp Valuation Authority.
Answer:
(c) the amount recorded in the books of the firm.

Question 101.
(vii) When the gross receipts from profession exceed …………………………. lakhs, it is liable for audit under section 44AB and the provisions of section 44ADA will not apply.
(a) 50
(b) 25
(c) 100
(d) 20
Answer:
(a) 50

Question 102.
(viii) Medical insurance premium incurred for senior citizen is eligible for deduion up to ₹ ………………………. under section 80D.
(a) 30,000
(b) 50,000
(c) 1,00,000
(d) 60,000
Answer:
(b) 50,000

Question 103.
(ix) When a resident senior citizen having gross total income of ₹ 5,56,000, has derived interest from savings account in a nationalized bank of ₹ 8,200 and fixed deposit interest of ₹ 47,000 from such bank, he is eligible for deduction of ………………………….. from the gross total income.
(a) 55,200
(b) 8,200
(c) 47,000
(d) 50,000
Answer:
(d) 50,000

Question 104.
(x) Seshan, a retired civil servant received monthly pension of ₹ 60,000 during the previous year 2022-23. The amount of pension liable to tax after standard deduction would be ₹ ………………………….. .
(a) 7,10,000
(b) 7,00,000
(c) 6,70,000
(d) 6,30,000 (June 2019, 1 × 10 = 10 marks)
Answer:
(c) 6,70,000

(b) Match the following (sufficient to give the corresponding item in column 3 for column 1; reproducing columns 2 and 4
are not required):

(i) ICDS IX A. Quoting of A adhaar number
(ii) Section 139AA B. ₹1500 per child u/s 10(32)
(iii) Minor son/daughter clubbing C. Borrowing cost
(iv) Sec 45(2) D. Exempted from tax u/s 10(17)
(v) Any allowance received by MP/MLA E. Conversion of Capital asset into Stock in trade

(June 2019, 1 x 5 = 5 marks)
Answer:

(i) ICDS IX (C) Borrowing Cost
(ii) Section 139 AA (A) Quoting of Aaclhar number
(iii) Minor son/daughter clubbing (B) ₹ 1500 per child u/s 10(32)
(iv) Sec 45(2) (E) Conversion of Capital asset into stock in trade
(v) Any allowance received by MP/MLA (D) Exempted from tax u/s 10(17)

(c) State whether the following are True or False:
(i) In applicable situations of TDS, such TDS is to be deducted on amount including GST component.
Answer:
False

(ii) Contribution made to political party by way of cash to the extent of ₹ 10,000 is allowed as business expenditure.
Answer:
False

(iii) Unabsorbed depreciation can be carried forward for any number of years.
Answer:
True

(iv) Interest on normal compensation/enhanced compensation is fully chargeable to tax in the year of receipt.
Answer:
False

(v) Long-term capital gain arising from sale of Usted shares (STT paid) is not fufly exempted from tax. (June 2019, 1 x 5 = 5 marks)
Answer:
True

(d) Fill up the blanks:
(i) Payment of royalty to a person resident in India requires deduction of tax at source at the rate of ………………………. .
Answer:
10%

(ii) The amount of wages paid to eligible new workmen by an assessee engaged in non-seasonal manufacturing activity is deductible u/s 80JJAA @ ……………………………… % of the wages so paid.
Answer:
30

(iii) An expenditure, for which cash payment is made for a sum exceeding …………………… on a single day is disallowed.
Answer:
10,000

(iv) If a return of income is not furnished within the due date prescribed in Section 139(1), such return can be filed on or before …………………… provided the assessment is not completed.
Answer:
31st December 2022

(v) Maximum amount of exemption under section 10(10C) in respect of compensation received for voluntary retirement is ₹ ………………………… . (June 2019, 1 x 5 = 5 marks)
Answer:
₹ 5,00,000.

(a) Choose the most appropriate alternative for the following (Option to be given only ¡n capital letter A,B,C or D; entire
answer need not be reproduced):
Question 105.
(i) Mr. Atul (aged 63), a resident Indian, paid for himself through account payee cheque, health insurance premium of ₹ 2,10,000 for 5 years in one lump sum on 28.03.2023. The eligible amount of deduction under section 80-D for the Assessment Year 2023-24 would be ₹ …………………….. .
(a) 50,000
(b) 30,000
(c) Nil
(d) 42,000
Answer:
(d) 42,000

Question 106.
(ii) Ramesh Tea Ltd., acquired a motor car for ₹ 6,20,000 on 30.08.2022. The company is engaged in manufacture of tea in India. The amount of depreciation allowable on such motor car would be.
(a) 93,000
(b) 37,200
(c) 46,500
(d) Nil
Answer:
(a) 93,000

Question 107.
(iii) When an individual non-resident has total income exceeding ₹ 50 lakhs, the amount of surcharge payable on income tax would be
(a)17%
(b) 15%
(c) 12%
(d) 10%
Answer:
(d) 10%

CMA Inter Direct Tax Study Material MCQs

Question 108.
(iv) When a charitable trust paid rent of ₹50,000 per month throughout the previous year 2022-23 and no tax was deducted at source, the amount of expenditure to be considered for computing the application of income by the trust would be ……………………….. .
(a) 6,00,000
(b) 1,80,000
(c) 3,00,000
(d) 4,20,000
Answer:
(d) 4,20,000

Question 109.
(v) Manoj a resident employee in ABC Ltd., an Indian Company, has gross annual salary income of ₹ 20,60,000. Tue standard deduction available under section 16(1) would be ₹ …………………… .
(a) Nil
(b) 30,000
(c) 40,000
(d) 50,000
Answer:
(d) 50,000

Question 110.
(vi) Shares in unlisted companies, in order to be treated as long-term capital asset, should be held for a minimum period of …………………… immediately prior to the date of transfer.
(a) 365 days
(b) 12 months
(c) 24 months
(d) None of the above
Answer:
(c) 24 months

Question 111.
(vii) Padmaja Power Co. (P) Ltd. is engaged in generation and distribution of electrical power. It avails deduction under section 80-IA. The gross receipts of the company is ₹ 89 lakhs. The last date for filling the return of income in order to be eligible to avail deduction under section 80-IA is …………………… . (Note: Assume there is no extension of time for filing the return of income)
(a) 31.10.2023
(b) 31.07.2023
(c) 30.11.2023
(d) 31.03.2024
Answer:
(a) 31.10.2023

Question 112.
(viii) Mr. Harivallabh incurred medical expenditure of ₹ 1,20,000 in respect of the disease specified in rule 11 DD for his father (aged 66) who is wholly dependent on him. The amount eligible for deduction from his gross total income would be ………………………. .
(a) 40,000
(b) 60,000
(c) 80,000
(d) 1,00,000
Answer:
(d) 1,00,000

Question 113.
(ix) When Mr. Avinash earned long-term capital gain of ₹ 1,80,000 on sale of listed shares, his total income being ₹ 10 lakhs, the amount of income-tax (including cess) on the said long-term capital gain would be ……………………. .
(a)Nil
(b) 18,720
(c) 8,320
(d) 10,400
Answer:
(c) 8,320

Question 114.
(x) Mr. Seshan received a loan of ₹ 2 Lakhs from Seshan Trading (P) Ltd. in which he has 35% equity shareholding (with voting power). The accumulated profits of the company on the date of loan was ₹ 10 lakhs. The amount of tax (ignore cess) payable on such loan would be ₹ ……………………….. .
(a) @ 10% by Mr. Seshan
(b) @ 20% by the company
(c) @ 30% by the company
(d) depended upon other income earned by Mr. Seshan. (Dec 2019, 1 x 10=10 marks)
Answer:
(c) @ 30% by the company

(b) Match the following (Sufficient to give the corresponding item in column 3 for column 1; reproducing columns 2 and 4 are not required):

(i) Threshold limit for TDS deduction on commission/brokerage under section 194H (A) 18,000
(ii) Rate of tax on royalty from registered patent in india. (B) 2,000
(iii) Rate of tax deduction at source for participating in a Television channel game show in case of residents. (C) 10%
(iv) Cash donation exceeding this amount is not admissible under section 80G. (D) 30%
(v) Taxable amount where enhanced compensation of ₹ 36,000 has been received. (E) ₹ 15,000

(Dec 2019, 1 x 5 = 5 marks)
Answer:

(i) Threshold limit for T.D.S deduction on commission/brokerage under Section 194-H (E) ₹ 15,000
(ii) Rate of tax on Royalty from registered patent in India (C) 10%
(iii) Rate of tax deduction at Source for participating in a Television Channel game show in case of residents (D) 30%
(iv) Cash donation exceeding this amount is not admissible under Section 80-G (B) 2,000
(v) Taxable amount where enhanced compensation of ₹ 36,000 has been received (A) 18,000

(c) State whether the following statements are True or False:
(i) Income from sale of seeds derived from a nursery adjacent to agricultural lands is an agricultural income.
Answer:
Income from sale of seeds derived from a nursery adjacent to agricultural lands is an agricultural income – True

(ii) Unabsorbed depreciation can be carried forward for a maximum period of eight assessment years.
Answer:
Unabsorbed depreciation can be carried forward for a maximum period of eight assessment year – False

(iii) Cash gifts of ₹ 1,00,000 received from uncle’s son by a resident individual is taxable as income from other sources.
Answer:
Cash gift of ₹ 1,00,000 received from uncle’s son by a resident individual is taxable as income from other sources – True

(iv) A firm, resident in India, having total income of ₹ 1,46,000 is eligible to claim deduction u/s 80D.
Answer:
A firm, resident in India, having total income of ₹ 1,46,000 is eligible to claim deduction u/s 80-D – False

(v) For adjusting brought forward business loss with current year business income, one of the conditions is that such business must be continued during the current year. (Dec 2019, 1 x 5 = 5 marks)
Answer:
For adjusting brought forward business loss with current year business income, one of the conditions is that such business must be continued during the current year – False.

CMA Inter Direct Tax Study Material MCQs

(d) Fill in the blanks:
(i) A resident Indian aged 62, who has received interest of ₹ 12,000 from savings bank account and ₹ 43,000 as interest on bank fixed deposits, is eligible to a deduction of ………………………. from his gross total income.
Answer:
A resident Indian aged 62, who has received interest of ₹ 12,000, from saving bank account and ₹ 43,000 as interest on bank deposits, is eligible to a deduction of ₹ 50,000 from his gross total income.

(ii) Daily allowance received by a member of parliament is ………………………….. .
Answer:
Daily allowance received by a member of parliament is exempt.

(iii) An expenditure, for which cash payment is made for a sum exceeding ₹……………………. on a single day is disallowed u/s 40A(3).
Answer:
An expenditure for which cash payment is made for a sum exceeding ₹ 10,000 on a single day is disallowed u/s 40A(3).

(iv) If a return of income for the AY 2023-24 is not filed within the due date prescribed in section 139(1), such return can be filed on or before ………………………….. provided assessment is not completed.
Answer:
If a return of income for the A.Y. 2023-24 is, not filed within the due date prescribed in Section 139(1), such return can be filed on or before 31.12.2023, provided assessment is not completed.

(v) Maximum amount of exemption under section 10(10C) in respect of compensation received for voluntary retirement is ₹ ……………………….. . (Dec 2019, 1 x 5 = 5 marks)
Answer:
Maximum amount of exemption under Section 10(10C) in respect of compensation received for voluntary Retirement is ₹ 5,00,000.

Question 115.
When ₹ 4 lakh is paid by resident Mr. X (having PAN) towards overseas tour program, how much must be collected by the tour operator by way of TCS?
(1) @20% ₹ 80,000
(2) @ 10% ₹ 40,000
(3) @ 0.50% ₹ 2,000
(4) @ 5% ₹ 20,000
Answer:
(3)@ 0.50% ₹ 2,000

Question 116.
When a member of AOP receives share income it is exempt from tax when
(1) When shares of members in the AOP is determinate.
(2) AOP paid tax at the maximum marginal rate .
(3) When AOP does not pay tax.
(4) AOP paid tax at the regular rates
Answer:
(2) AOP paid tax at the maximum marginal rate.

Question 117.
When the resident individual has total income of ₹ 60 lakhs, the rate of surcharge applicable is
(1) 10%
(2) 15%
(3) 37%
(4) 25%
Answer:
(1) 10%

Question 118.
When a company opts for section 115BAB for the assessment year 2023-24, the maximum rate of depreciation allowable for
the eligible assets owned by it is
(1) NIL
(2) 40%
(3) 30%
(4) 15%
Answer:
(2) 40%

Question 119.
R gifted his house property to his married minor daughter. The income from such house properly shall be included in the hands of:
(1) it will be first computed as minor daughter’s income and clubbed in the income of the R or Mrs R depending upon whose total income is higher.
(2) income of married minor daughter
(3) R as deemed owner
(4) R. However, ¡t will be first computed as minor daughter’s income and then clubbed in the income of R
Answer;
(1) it will be first computed as minor daughter’s income and clubbed in the income of the R or Mrs R depending upon whose total income is higher.

Question 120.
When an employee receives ₹ 18,700 from the employer by way of reimbursement of medical expenditure incurred by him for his family, the amount liable for inclusion by way of perquisite is:
(1) ₹ 18,700
(2) ₹ 15,000
(3) ₹ 3,700
(4) NIL
Answer:
(4) NIL

CMA Inter Direct Tax Study Material MCQs

Question 121.
Gift of money amounting to ₹ 2,00,000 given in India by a resident on 16.08.2022 to a non-resident (non-relative) shall be:
(1) taxable to the extent of ₹ 1,50,000
(2) exempt
(3) be fully taxable in the hands of the resident
(4) fuLly taxable in the hands of non-resident
Answer:
(4) fully taxable ¡n the hands of non-resident

Question 122.
In the case of charitable trust registered under section 12AA when the amount of anonymous donation received is Z20 Iakhs, the quantum of anonymous donation liable to tax would be:
(1) ₹ 1 lakh
(2) ₹ 19 lakhs
(3) ₹ 20 lakhs
(4) Nil
Answer:
(2) ₹ 19 lakhs

Question 123.
Where a part of the block of asset is sold for a price less than the opening W.D.V. plus cost of assets, if any, acquired during the year, the balance amount shall be treated as:
(1) Terminal/balancing depreciation
(2) None of the given options
(3) W.D.V for the purpose of charging current year deprecation
(4) short-term capital loss
Answer:
(3) W.D.V for the purpose of charging current year deprecation

Question 124.
The following income shan be exempt under Section 10(23FC) of Income-tax Act, 1961:
1. Interest received from special purpose vehicle
2. Dividend received or receivable from a special purpose vehicle
(1) Both 1 and 2
(2) 2 only
(3) Neither 1 nor 2
(4) 1 only
Answer:
(1) Both 1 and 2

Question 125.
What is the monetary limit for transactions between eligible holding company and subsidiary company to trigger the provisions of
specified domestic transactions?
(1) ₹ 200 lakhs
(2) ₹ 500 lakhs
(3) ₹ 2000 Iakhs
(4) ₹ 100 lakhs
Answer:
(3) ₹ 2000 lakhs

Question 126.
A business loss can be curried forward and set off in the subsequent assessment year when the business on account of which this
loss has arisen:
(1) None of the given options
(2) is continued for any part of the previous year
(3) is continued or not
(4) is continued in the assessment year in hick the such loss is set off
Answer:
(3) is continued or not

CMA Inter Direct Tax Study Material MCQs

Question 127.
Alternate Minimum Tax is applicable in case of
(1) individual or HUF
(2) Firm and individual
(3) any person other than a company
(4) firm and a company
Answer:
(3) any person other than a company’

Question 128.
Suresh incurred ₹’ 90,000 by way of salary paid to employees which has not been accounted for in th business. The amount
of income-tax payable on such salary (Ignore HEC but consider surcharge)
(1) NIL
(2) None of the given options
(3) ₹’ 67,500
(4) ₹ 54,000
Answer:
(3) ₹’ 67,500

Question 129.
While computing the capital gains, an eligible assessee is allowed to opt for market value as on 1.4.2022 in case of:
(1) all capital assets other than depreciable assets, goodwill of a business, trademark or brand name, right to manufacture, right to carry on any business or profession tenancy rights, loom hours, and route permits.
(2) all capital assets other than depreciable asset
(3) None of the given options
(4) all capital assets
Answer:
(1) all capital assets other than depreciable assets, goodwill of a business, trademark, or brand name, right to manufacture, right to carry on any business or profession tenancy rights, loom hours, and route permits.

Question 130.
An undertaking was owned and operated for 28 months before it was sold on slump sale basis. Land and buildings form part of its assets. The resultant gain would be
(1) Short-term capital gain
(2) Exempted income
(3) Long-term capital gain
(4) Business income
Answer:
(1) Short-term capital gain

Question 131.
An award of ₹ 1,00,000 was announced for tracing a missing person. R traced the person and received the award amount. In the hands of R, such receipt shall be:
(1) exempt up to ₹ 50,000
(2) casual income
(3) fully taxable
(4) fully exempt
Answer:
(3) fully taxable

Question 132.
Which of the following propositions are correct for availing deduction under section 80-IAC:
(1) 80-IAC provides for a deduction of an amount equal to 100% of the profits or gains derived from an eligible startup for 3 consecutive assessment years out of 10 years beginning from the year of incorporation.
(2) The deduction shall be available to an eligible start-up if the total turnover of its business does not exceed ₹ 25 crores in any of the previous years beginning from the year of incorporation
(1) 1 only
(2) Neither 1 nor 2
(3) 2 only
(4) Both 1 and 2
Answer:
1 only

Question 133.
Ram commenced construction of residential building on 01.04.2016. Interest on housing loan up to 31.03.2022 was ₹ 4,40,003. Interest for the period from 01.04.2022 to 30.09.2022 (being the date of completion of construction of the residential house) was ₹ 60,000. Interest for the period from 01.10.2022 to 31.03.2023 amounts to ₹ 50,000. How much is the interest eligible for deduction under section 24 for the assessment year 2023-24 for this let-out property?
(1) ₹ 1,50,000
(2) ₹ 1,98,000
(3) ₹ 5,00,000
(4) ₹ 1,00,000
Answer:
(2) ₹ 1,98,000

Question 134.
A company makes regular payments of brokerage to a person for purchase of raw materials. When does the company become liable to deduct tax at source on such brokerage?
(1) When the aggregate brokerage paid or payable exceeds ₹ 50,000
(2) When the aggregate brokerage paid or payable exceeds ₹ 15,000
(3) When the brokerage payable exceeds ₹ 10,000
(4) When the aggregate brokerage paid exceeds ₹ 30,000 (Dec 2021, 1 x 20 =20 marks)
Answer:
(2) When the aggregate brokerage paid or payable exceeds ₹ 15,000

Question 135.
Maintenance of specified books of accounts compulsory if gross receipts in all three preceding PY exceeds ………………….. in case of
persons carrying on the profession of technical consultancy.
Answer:
₹ 1,50,000.

Question 136.
Compensation received under Voluntary Retirement Scheme by an individual shall be regarded as …………………. while computing the income under the head USalariesI
Answer:
Profit in lieu of salary

Question 137.
The rate (excluding surcharge and Cess) of tax applicable on the total income of local authority is …………………….. .
Answer:
30%

Question 138.
A surgeon (doctor) has aggregate annual receipt of ₹ 48 lakhs (₹ 20 lakhs through cash and rest through bank) for the year ended 31.03.2023. His presumptive income under section 44ADA is ₹ …………………………. .
Answer:
₹ 24 lakhs

CMA Inter Direct Tax Study Material MCQs

Question 139.
When a partnership firm pays salary to working partners of ₹ 6 lakhs when the partnership deed permits payment of 5,40,000. The Book profit of the firm is ₹ 6,00,000. The quantum of remuneration allowable in the hands of firm will be …………………… .
Answer:
₹ 4,50,000

Question 140.
An agricultural land situated beyond ………………….. from the limits of municipality is not regarded as a capital asset, even though the population of municipality as per the last preceding census exceeds ₹ 1 lakh but less than ₹ 10 lakhs.
Answer:
6Kms

Question 141.
When the assessment under section 143(3) is made on 10th December, 2022 by the National Faceless Assessment Centre (NFAC), the time limit for filing petition for rectification of mistake under section 154 would expire by (date).
Answer:
31 .3.2027

Question 142.
When a senior resident individual incurs medical expenditure of ₹ 60,000 towards cataract surgery to his mother (super senior citizen) the amount eligible for deduction under section 80-D is ……………………. if there is no health insurance policy coverage for her.
Answer:
₹ 50,000.

Question 143.
In case of a capital asset, being land or building or both, the fair market vafue of such asset on 1-04-2023 shall not exceed the ……………………… of such asset as on 1- 04-2023 where such stamp duty value is available.
Answer:
Stamp duty value

Question 144.
Royalty of ₹ 1oo lakhs was paid outside India to Andrew, a non-resident for sale of his cinematographic films; -iL such films are to be telecasted in Indian TV channels then the said amount shall be …………………….. (taxable/exempt! partially taxable) ¡n the hands of Andrew
Answer:
Taxable

Question 145.
Mr. Veer, a salaried employee made own contribution to the National Pension Scheme of 50,000 when his basic salary and DA in the previous year is ₹ 480,000. Where the employer contribution is Nil, then he is eligible for a maximum deduction of …………………. under section 80CC D (1).
Answer:
₹ 48,000

Question 146.
Loss from speculation business is eligible for carry forward and set off for subsequent …………………. assessment years
Answer:
4

Question 147.
When an Indian company earns ₹ 20 lakhs by way of income from transfer of carbon credits, the rate of tax applicable on such
income would be ……………………… % (ignore surcharge and cess)
Answer:
10

Question 148.
Person authorized to verity the Return of Income [Section 140] for Political party is ………………… of such party
Answer:
The chief executive officer

Question 149.
Mr. A, a resident individual has sold his vacant site to his friend Mr. B, for ₹ 60,00,000. The stamp duty valuation of the house is ₹ 62,00,000. The amount assessable as income in the hands of Mr. B is …………………. as per section 56(2)(viib) of Income tax Act, 1961.
Answer:
Nil

Question 150.
Mr. A, a senior citizen (Resident), having total income of 8 lacs, earned by way of interest from secured debentures. The advance tax payable by him is ₹ …………………… .
Answer:
NIL

Question 151.
When the actual rent is (per annum) ₹ 72,000, fair rent is ₹ 96,000 and standardrent is ₹ 84,000 and no property tax has been paid, the chargeable income from house property is ………………….. .
Answer:
₹ 58,800.

Question 152.
In case of assessee who has securities partly in physical form and partly in dematerialized form, FlEO method will be applied in respect of the …………………… .
Answer:
Dematerialized holding

Question 153.
When a domestic company deriving business income pays ₹ 30,000 to an approved institution engaged in scientific research it is eligible for deduction of ………………………… % under section 35 of Income tax Act,1 961.
Answer:
100%

CMA Inter Direct Tax Study Material MCQs

Question 154.
When fees for cost audit paid to a resident was ₹ 40,000, the amount of income-tax deductible at source on the said amount would be
Answer:
₹ 4,000 (Dec 2021, 1 × 20 = 20 marks)

CMA Inter Direct Tax Study Material MCQs Read More »

CS Executive Jurisprudence, Interpretation & General Laws Chapter Wise Weightage

CS Executive: Jurisprudence, Interpretation & General Laws Chapter Wise Weightage

Wondering how to cover the CS Executive Jurisprudence, Interpretation & General Laws entire syllabus? Don’t worry as we have covered the complete info about JIGL Chapter Wise Weightage in detail. Based on the weightage allotted you can understand what are the Jurisprudence, Interpretation & General Laws Important Chapters and allot more time for them. Planning your preparation as per the CS Executive Jurisprudence, Interpretation & General Laws Chapter Wise Weightage can aid you in scoring better grades in exams.

Additional Read: CS Executive: Jurisprudence, Interpretation & General Laws Important Questions

CS Executive Jurisprudence Chapter Wise Weightage

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Chapter 2014 2015 2016 2017 2018 2019 2020
D J D J D J D J D J D D
1 9 5 5 5
2 21 13 9 13
3 4 4 9 4
4 4 4 8 5
5 4 4 12 8
6 17 4 8 12
7 4 8 4 8
8 9 16 4 12
9 8 5 16 4
10 4 4 16 9
11 12 13 4 8
12 16 8 8
13 18 5 5 10 3 12 5 11 16 12 9 8
14 5 5 5 3 5 5 5 8 8 8 8
15 15 5 5 3 5 10 8 4 4
16 4 4 4 8
17 8 4 4 8

Final Words

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CS Executive: Jurisprudence, Interpretation & General Laws Chapter Wise Weightage Read More »

CS Executive Economic, Business and Commercial Laws Chapter Wise Weightage

CS Executive: Economic, Business and Commercial Laws Chapter Wise Weightage

Students who are aiming to get good scores in CS Executive Economic Business and Commercial Laws Exams must know the Chapter Wise Weightage before itself. Get the know the Important Chapters in CS Executive Economic Business and Commercial Laws and invest more time on them. Cover the entire syllabus smartly and stand out from the rest of the crowd taking the help of the Economic Business and Commercial Laws CS Executive Marks Distribution Table provided.

Do Read: CS Executive: Economic, Business and Commercial Laws Important Questions

Economic Business and Commercial Laws CS Executive Chapter Wise Weightage

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Chapter 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
J D J D J D J D J D J D J D J D J D J D J D D
1 5 5 4 9
2 5 5 5 5 5 10 5 5 9 9 9 9
3 4 1 4 4 2 4 2 2 8 8 3 9 5 5 9 9 9
4 2 5 1 1 3 9 5 6 5 3 9 9 4 4
5 2 1 1 3 1 7 4 5 4 4
6 5 5 4 4 5 3 5 9 6 2 5 4 4
7 8 5 5 5 3 5 6 5 8 3 4 5
8 3 10 5 5 5 5 9 4 4 8
9 8 4 9 4
10 5 8 3 3 5 8 13 9 4
11 3 11 8 5 7 7 16 5 5 11 11 20 25 25 25 25
12 8 10 8 5 5 8 13 8 5 13 13 5 10 8 8 8 4 7
13 5 8 5 3 5 5 5 5 10 3 5 5 5 5 3 4
14 3 3 3 3 5 3 4
15 25 8 22 5 17 12 14 8 10 18 6 27 13 3 10 11 7 7 8 7
16 3 3 3 6
17 3 3 3 7
18 5 10 5 5 5 5 3 8 14 5 10 10 10 5 3 4 3 3
19 20 10 15 5 5 10 13 8 6 13 10 13 13 10 15 13 8 12 4
20 4 3 3 6
21 3 3 8 6
22 3 3 3
23 4 4 8 3
Total 25 72 72 76 37 51 43 56 48 64 84 67 61 78 67 87 68 72 66 135 135 135 135

Conclusion

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TDS on Sale of Immovable Property, Section 194-IA, Form 26QB 

TDS On Sale Of Property: Tax Deducted at Source (TDS) is the tax that is to be deducted on some expenses and payments. It is the tax that is deposited with the government annually and systematically. Immovable property is any land (other than agricultural land) or any building or part of a building. Read on the article to find more about How TO Claim TDS On Sale Of Property

Meaning of Agricultural Land

The land is not treated as agricultural land when:

  • It has a population of less than 10,000 within the jurisdiction of the Municipality or
  • It is situated in any area within below given distance measured:
The population of the Municipality Distance from Municipal limit
More than 10,000 but does not exceed 1,00,000 Within 2 km
More than 1,00,000 but does not exceed 10,00,000 Within 6 km
Exceeding 10,00,000 Within 8 km

How to Pay TDS and File Form 26QB_

TDS Rate On Sale Of Property Applicability

On the 1st of June 2013, the Finance Act 2013 inserted the Section194-IA. An individual purchasing any immovable property (except agricultural land) from a resident is required to pay TDS on sale of property @ 1% of the amount payable. This means that the TDS rate for the sale of immovable property is deducted at 1%.TDS is exempted when the property value is below Rs.50 Lakhs. In addition to this, TDS is required to be deducted from every immovable property like commercial property, industrial property, and residential property.

Exceptions

  • Section 194-LA regarding compulsory acquisition is applicable when provisions of this section are not.
  • TDS is to be deducted under Section 195 based on capital gains if the seller is a non-resident or NRI and not under this section.
  • TDS is deducted on installments paid on or after 1st June 2013 for construction buildings properties and no TDS is deducted on installments paid before 1st June 2013.

Rate of TDS

TDS on sale of a property is deducted @1% on the amount payable to the seller of the property. TDS is deducted @20% if the PAN number of the seller is not available.

Threshold Limit

No TDS on sale of a property is deducted when the value of the property is below Rs.50 Lakhs. When the value of a property is Rs.50 Lakhs or more then the TDS is deducted on the whole amount and not just the exceeding amount. TDS On Sale Of Property reduced.

Time of Deduction

Tax is to be deducted at the time of the credit of such sum to the account of the transferor or at the time of payment of such sum in cash or issued cheque or draft or by any other mode whichever comes first.

TDS on sale of a property is to be deducted from the first installment if the value of the property is more than Rs.50 Lakhs and then each and every installment. The buyer should not wait for the aggregate value of installments to exceed Rs.50 Lakhs as it is not right. If the buyer took a loan to pay the seller, it is still considered as tds on sale of property payment and TDS is to be deducted. The EMI payment date of the buyer to the bank is irrelevant.

TDS On Sale Of Property Due Date and Form 26QB

The buyer of the property has to file Form 26QB which is a declaration statement within 30days from the end of the month in which the payment has to be made. A separate TDS deduction is not to be filed. Form 26QB is filled online and manual submission is not allowed.

Other Points

  • TDS on sale of a property is to be deducted on each installment and for each deduction a separate Form 26QB is to be filled.
  • Form 26QB is filled for one seller and one buyer combination.
  • Tax Deduction and Collection Account Number (TDCAN) is not required by a person deducting tax under this TDS On Sale Of Property section.

How to Pay TDS and File Form 26QB?

Form 26QB is a declaration statement and hence, it’s not possible to pay TDS without filling this form and vice versa.

These are the steps on how to fill the Form 26QB;

  1. Search for the link –  https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp
  2. Now click on Form 26QB and if you have a demand notice from the income tax department then click on it for TDS on property.

e-Payment of Taxes

Sections of TDS and File Form 26QB

Here, the form will have various sections as follows:

  • Tax Applicable: If the buyer is a company select corporate tax if not then income tax.
  • Type of Payment: TDS on sale of the property will be selected by default.
  • Status of seller: Option resident is to be selected here and in case the seller is an NRI, form 27Q is to be filled.
  • Pan and Address: The PAN and address of the buyer and seller is to be entered along with the complete address of the transferred property.
  • Amount Paid: The total amount paid to the seller is entered in the form. If the payment is made in installments, the amount of installments is entered in Form 26QB.
  • TDS @1% will automatically be filled on the amount paid based on PAN the number entered above.
  • If the payment is to be made by internet banking or debit cards, select the e-tax  Option. Select the following date for payment using authorized bank branches.
  • Enter the confirmation code and then proceed by clicking on the proceed button.
  • The name of the purchase and seller will be shown on the next page along with all the details shown on the previous screen. Cross-check all the information and then click on confirm.
  • In case any changes are to be made in the challan filed, an acknowledgment number will be generated. You will be redirected to the internet banking site if you immediately select the e-tax option or else a challan will be generated which can be deposited in any authorized bank.
  • When the TDS will be deducted then only the return can be considered as submitted.

TDS Certificate in Form 16B is to be Seller

Now, within 15 days from filing Form 26QB, the TDS certificate in Form 16B is to be provided to the seller by the buyer. The form is to be downloaded from the website of traces.

Consequences of Non-Payment and Non-Filing of Form 26QB

  • Interest for TDS not deducted: Interest @1% is charged per month for the period from the date on which TDS is deductible to the date on which TDS is collected. Interest on Late Payment of TDS on Sale of Property.
  • Interest for TDS deducted but not paid: Interest @1% is charged per month for the period from the date on which TDS is collected to the date on which TDS is paid.
  • Penalty for late filing of Form 26QB: Penalty for late filing of Form 26QB is payable @Rs.200 along with the interest penalty. The penalty amount cannot exceed the number of TDS to be deducted. Under Section 271-H, an additional penalty of Rs.10,000 to Rs.1,00,000 is to be paid if the default continues for more than one year.

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How To Surrender GST

How To Surrender GST | Steps, Rules and Ways To Cancel GST Registration

How To Surrender GST: In India, everybody’s focus is on GST in the present situation because of its complicated and unique rules. Many people in India are still confused on matters like the process for GST registration, filing the return forms, tax challan, e-way bill and different forms which are related to GST. But among all these problems, the major issue faced by people is How to surrender GST after registration? and the place where one can surrender the GST registration certificate

Some people apply for GST by mistake and get the GST registration certificate form; thus, they become worried and think of ways to return the certificate which has been delivered to him/her by mistake. Most people are unaware of the time limit for surrender of GST registration certificate surrendering process. Through this article, we will discuss the process in a detailed manner so that one can get a clear idea.

One can surrender the GST registration certificate only if his/her annual turnover is less than 20 lakhs ( total sale and unregistered purchase). Application for surrendering GST certificate can be filed only after one year of GST registration and not one day before that. Read on the Article to know more about GST Cancellation Fees, GST Late Fees Cancellation and GST Cancellation Charges.

CGST Rule for Cancellation Of Registration

The registration that has been granted to an individual can get cancelled if the individual:

  • is not involved in any business at the location mentioned in the registration form. The declared location of the business in the form is considered fake.
  • Takes the liberty to issue a bill without conducting any supply of goods and services. This action is considered to be a violation of the provisions in the GST act.
  • His/her actions violates or breaks the provisions mentioned in section 171 of the GST Act or the rules made thereunder.

Rules for Cancelling/Surrendering GST

The rules that have been followed while cancelling or surrendering the GST registration certificate form by a particular individual, business, or the government:

  • When the proper officer (who has been assigned for executing the job of approving cancellation) is satisfied with all the claims produced before him to support the demand of cancelling the GST registration done of an individual or a business entity, if the proper officer approves the claim, then the form is liable to get cancelled under section 29. Before approving the claim, he/she will draft notice and direct the individual or the business entity to show the cause of his actions within a period of seven days from the date of issuing notice. The individual or the business entity must explain why their registration shall not be cancelled.
  • The reply to the proper officer’s cause notice has to be forwarded within the specified period mentioned in the sub-rule. The cause notice issued under sub-rule(1) must be furnished in FORM REG-18.
  • When a person has taken the liberty to draft an application for re registration of gst after cancellation of his/her registration is no longer liable to remain registered, and his/her registration must get cancelled by the proper officer as soon as possible. The proper officer is responsible for issuing an order in FORM GST REG-19 within a period of thirty days from the date of submission of cancellation application under sub-rule (1) of rule 20.  The proper officer will decide a particular date from when the individual’s registration will be considered cancelled. Before that, the individual must clear all the tax debts that are pending. Only after clearing all the debts his/her registration can get cancelled. The individual needs to pay the pending penalties and the amount which he/she is liable to pay because it is mentioned in sub-section (5) of section 29.
  • Suppose the reply forwarded by the individual for the show cause notice is considered to be satisfactory and sounds believable to the proper officer. In that case, he/she is responsible for dropping the proceedings and passing an order in FORM GST REG-20.
  • The provisions in sub-rule (3) are applied to the legal heirs of a deceased proprietor. This happens only in the case where the proprietor has submitted a cancellation certificate before dying.

Rules for Cancelling or Surrendering GST

Ways to Cancel or Surrender GST Registration

GST registration can get cancelled or surrendered in the following three ways:

  1. GST Getting Surrendered By The Registered Person Himself
  2. GST Getting Surrendered By The GST Officer
  3. GST Getting Surrendered By The Legal Hirer

GST Getting Surrendered By The Registered Person Himself

A registered person is liable to apply for cancellation of his/her registration only if he satisfies the following.

  • His/her annual turnover is less than 20 lakhs, including registered and unregistered incomes.
  • The business of the individual has stopped its operations and is planning for discontinuation.
  • Uncertain death of the proprietor can force the business to shut down.
  • When the business of an individual is no longer liable to the GST according to the rules issued by the government.

GST Getting Surrendered By The Gst Officer

GST officer has the authority to cancel the registration of an individual or a company if they fall under the following conditions:

  • Violation of GST policies or rules by a particular organization.
  • When a registered person has stopped filing the tax return for the last three years.
  • When a registered company has not generated any income and is not involved in any type of business for the last six months after getting registered for GST.
  • Some other issues can also be the cause of cancellation.

GST Getting Surrendered By The Legal Hirer

A legal hirer has all the authority to apply for the cancellation of the registration after the death of the proprietor. This is only possible in a sole proprietorship business.

Steps for Cancellation of GST Registration

Steps for Cancellation of GST Registration

Every individual residing in India and has done GST registration has the doubt How to surrender GST? So to clear out all your doubts, here are the detailed steps which one need to follow for cancelling his/her GST registration:

  • Step – 1: Log in to the official website of GST and then click on the option Cancellation of Provisional Registration.
  • Step – 2: The cancellation webpage opens on your computer.
    • Your GSTIN and the name of the business will appear on the website automatically.
    • You then need to give a reason for the cancellation of registration.
  • Step – 3: The website will ask if you have issued any tax invoices in that particular month.
  • Step – 4: Then fill up the blank places with the details the website is asking for in order to move forward with the process.
  • Step – 5: Finally, you need to sign off with the EVC with you are a proprietorship or partnership. LLPs and companies must sign off with a DSC.

Conclusion on Surrender of GST Registration

GST is an important matter for all who are into business or for those who earn a good amount every year. So it’s important for them to know all the processes and rules related to GST. From this article, we understand the rules, ways of GST cancellation process, fees, letter format, form and how to surrender GST. This might have helped a lot of individuals.

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CS Executive Company Law Chapter Wise Weightage

CS Executive: Company Law Chapter Wise Weightage | Important Chapters in Company Law CS Executive New Syllabus

Trying to figure out what are the Important Chapters in CS Executive Company Law? You have landed on the right page as we will provide you with the necessary information on CS Executive Company Law Chapter Wise Weightage. Having a glance at them allows you to figure out the Crucial Topics you need to pay attention to in order to score high grades in exams. You can download the CS Executive Company Law Chapter Wise Weightage PDF for free and make your preparation effective.

Also, Refer: CS Executive: Company Law Important Questions and Answers

CS Executive Chapter Wise Weightage for Company Law

Below is the list of Chapter Wise Weightage for CS Executive Company Law. You can use it as quick guidance to know what are the important chapters and to plan your preparation in advance. Identify the chapters that have more weightage and concentrate on them so that you can score better grades. To make you familiar with the CS Executive Company Law Marks Distribution in a better way we have listed the below table.

Chapter 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
J D J D J D J D J D J D J D J D J D J D J D D
1 5 13 4 5 4 14 9 9 15 4 4 10 3 10 5 3
2 35 9 12 4 12 7 14 8 4 5 14
3 18 16 20 9 4 8 45 4 4 4 13 13 13 12 16 8 8 17 12 3
4 6 8 3 16 4 4 4 3 8 5
5 6 8 5 8 4 8 13 4 12 8 10 6 3
6 4 5 4 4 4 8 5 5 5 5 5 5 3 5 10
7 4 9 5 4 12 8 4 4 4 4 4 3 3 3 8
8 4 4 4 4 4 8 3 4 3
9 4 4 14 5 9 4 8 20 12 12 8 22 4 12 13 14 7 5
10 4 4 4 4 8 4 4 8 3
11 6 10 4 8 4 8 3 9 7
12 4
13 5 4 5 8 4 8 4 5 12 8 3 3 10 3
14 8 4 8 4 4 3 3 5
15 8 18 21 14 4 14 12 12 16 17 24 34 12 20 4 8 15 27 13 13
16 4 8 4 2 8 4 4 4 8 12 4
17 4 4 4 4 4 4 4 14 4 4 10 20
18 5 16 10 4 4 13 12 5 14 13 13 17 8 12 8 8 15 17 14
19 4 4 4 4 9
20 8 4 10
21 12

Wrapping Up

We believe the information shared regarding the CS Executive Company Law Chapter Wise Weightage helped you be aware of the important chapters in the new syllabus. If you feel any information is missing on the same you can leave us your queries through the comment section and we will look into them.

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CS Executive Financial and Strategic Management Chapter Wise Weightage

CS Executive Financial and Strategic Management Chapter Wise Weightage

Learn How to Strategize your CS Executive Financial and Strategic Management Preparation by using our CS Executive Financial and Strategic Management Chapter Wise Weightage. Plan your preparation schedule depending on the Weightage and score better grades in your exams. You can download the Financial and Strategic Management CS Executive Chapter Marks Distribution Table for free and use it whenever needed.

Additional Read: CS Executive Financial and Strategic Management MCQ

Financial and Strategic Management CS Executive Chapter Wise Weightage

Access the free to use Financial and Strategic Management CS Executive Chapter Wise Marks Distribution over here and know what are the important chapters. Strategize your preparation as per the CS Executive Financial and Strategic Management Chapter Weightage and score good grades in exams.

Chapter 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
J D J D J D J D J D J D J D J D J D J D J D D
1 10 8
2 3 3
3 2 1
4 6 2
5 3 1
6 3 2
7 7 7
8 4 8
9 4 4
10 5 7
11 11 15
12 2 2
13 2 3
14 6 4
15 6 8
16 10 8
17 8 9
18 8 8
Total 100 100

Wrapping Up

Hope the data prevailing regarding the CS Executive Financial and Strategic Management Chapter Wise Weightage has been useful in your preparation to the possible extent. If you feel any information is missing and needs to be added do reach us through the comment box so that we will look into them. Stay connected to our site to avail latest updates on CS Executive Important Questions, Notes, Chapterwise Weightage at your fingertips.

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CS Executive Setting Up of Business Entities and Closure Chapter Wise Weightage

CS Executive: Setting Up of Business Entities and Closure Chapter Wise Weightage

Find CS Executive Setting Up of Business Entities and Closure Chapter Wise Weightage provided below to know the important chapters within the syllabus. We have provided the Setting Up of Business Entities and Closure CS Executive Marks Distribution for all Chapters making your preparation much simple. Allot time in your preparation depending on the weightage the chapter has so that you can score higher grades in exams.

Also, See: CS Executive: Setting Up of Business Entities and Closure Important Questions

Setting Up of Business Entities and Closure CS Executive Chapter Wise Marks Distribution

Download the Setting Up of Business Entities and closure CS Executive Chapter Wise Weightage for free and keep it handy. Know the Yearwise CS Executive Setting Up of Business Entities and Closure Chapter Weightage and know how the marks distribution is changing over the years.

Chapter 2014 2015 2016 2017 2018 2019 2020
D J D J D J D J D J D D
1 4 4 4
2 8 13 13 14 8 22 4 4 9 10 5
3 13 5 12 4 9 8 12 8 5 12 4
4 4 4 18 8 4 12 5 5 5 4
5 4 8 9 4 5 4 4 4
6 4 6 9
7 8 9 15 14 13 12 13 5 8 4
8 8 13 4
9 9 5 4 4
10 8 8 8 4
11 8 10
12 4 8 5 4
13 20 17 8 8
14 3 3 3
15 8 3 12
16 18 13 9 11 10 11 11 9 8
17 16 6 16 8
18 3 3 10 5 5 8 3 8 8 6 11
19 6 3 3 3
20 4 12 14 11 3 16
21 4 5 11 19 6

Summary

Hope the knowledge shared regarding the CS Executive: Setting Up of Business Entities and Closure Chapter Wise Weightage has helped you to the possible extent. If you have any queries do leave us your queries through the comment section and we will guide you. Stay tuned to our website to avail latest updates on CS Executive Important Questions, Notes, Chapter Wise Weightage of various subjects.

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Fraud and Responsibilities of the Auditor in this Regard – CA Inter Audit MCQ

Students should practice these Fraud and Responsibilities of the Auditor in this Regard – CA Inter Audit MCQ based on the latest syllabus.

Fraud and Responsibilities of the Auditor in this Regard – CA Inter Audit MCQ

Question 1.
When credit purchases of ₹ 5100 is recorded on credit side and credit sales of ₹ 5100 is recorded on debit side, this kind of error is called
(a) Error of omission
(b) Compensating error
(c) Error of principle
(d) Error of commission
Answer:
(b) Compensating error

Question 2.
If, as a result of a misstatement resulting from fraud, the auditor encounters exceptional circumstances that bring into question his ability to continue performing the audit, he shall _____
(a) Withdraw from the engagement immediately
(b) Report to Audit team regarding withdrawal
(c) Determine the professional and legal responsibilities applicable in the circumstances
(d) Ask the management for his withdrawal
Answer:
(c) Determine the professional and legal responsibilities applicable in the circumstances

Question 3.
Which of the following is an example of inflating cash payments?
(a) Making payments against purchase vouchers
(b) Teeming and lading
(c) Not accounting for cash sales fully
(d) Making payments against inflated vouchers
Answer:
(d) Making payments against inflated vouchers

Question 4.
The type of errors, the existence of which becomes apparent in the process of compilation of accounts is known as _____
(a) Self-revealing errors
(b) Intentional errors
(c) Concealed errors
(d) Unconcealed errors
Answer:
(a) Self-revealing errors

Fraud and Responsibilities of the Auditor in this Regard – CA Inter Audit MCQ

Question 5.
Misappropriation of assets may occur because there is _____
(a) Adequate record keeping with respect to assets
(b) Known history of violations of securities laws
(c) Lack of complete and timely reconciliations of assets
(d) Dispute between shareholders in a closely held entity
Answer:
(c) Lack of complete and timely reconciliations of assets

Question 6.
SA 240 define fraud as ‘an intentional act by one or more individuals among management, those charged with governance, _____ , involving the use of deception to obtain an unjust or illegal advantage
(a) employees or third parties
(b) employees, vendors or third parties
(c) employees or others
(d) employees or vendors
Answer:
(a) employees or third parties

Question 7.
A situation where someone believes they have a favourable or promising combination of circumstances to commit an undetectable fraud is the description of:
(a) perceived pressure
(b) rationalisation
(c) management fraud
(d) perceived opportunity
Answer:
(d) perceived opportunity

Question 8.
Which of the following considerations of fraud and error by the auditor is not required by SA 240?
(a) the auditor should communicate to management any material weaknesses in internal control related to the prevention or detection of fraud and error
(b) based on the risk assessment the auditor should design audit procedures to obtain reasonable as-surance that material misstatements arising from fraud and error are detected
(c) when the auditor encounters circumstances that may indicate that there is a material misstatement in the financial statements resulting from fraud or error, the auditor should inform regulatory bodies
(d) the auditor should be satisfied that those charged with governance have been informed of any material weaknesses in internal control related to the prevention and detection of fraud
Answer:
(c) when the auditor encounters circumstances that may indicate that there is a material misstatement in the financial statements resulting from fraud or error, the auditor should inform regulatory bodies

Question 9.
Concerning fraud, the auditor’s current position is that:
(a) the auditor is responsible for obtaining reasonable assurance that the financial statements are free from material statement, whether caused by fraud or error
(b) when fraud is discovered by the auditor, they must report it in their audit opinion
(c) fraud detection is the objective of an audit
(d) the auditor can take no responsibility for fraud
Answer:
(a) the auditor is responsible for obtaining reasonable assurance that the financial statements are free from material statement, whether caused by fraud or error

Question 10.
Fraudulent financial reporting involves
(a) Management override of controls that otherwise may appear to be operating effectively
(b) Causing an entity to pay for goods and services not received
(c) Stealing physical assets or intellectual property
(d) Using an entity’s assets for personal use
Answer:
(a) Management override of controls that otherwise may appear to be operating effectively

Fraud and Responsibilities of the Auditor in this Regard – CA Inter Audit MCQ

Question 11.
Misappropriation of assets involves the theft of an entity’s assets and is often perpetrated by employees in relatively small and immaterial amounts. Misappropriation of assets can be accomplished in a variety of ways. Which of the following is not an example of misappropriation of assets?
(a) Misappropriating collections on accounts receivable or diverting receipts in respect of written-off accounts to personal bank accounts
(b) Inappropriately adjusting assumptions and changing judgments used to estimate account balances
(c) Stealing inventory for personal use or for sale, stealing scrap for resale, colluding with a competitor by disclosing technological data in return for payment
(d) Payments to fictitious vendors, kickbacks paid by vendors to the entity’s purchasing agents in return for inflating prices, payments to fictitious employees
Answer:
(b) Inappropriately adjusting assumptions and changing judgments used to estimate account balances

Question 12.
If, as a result of a misstatement resulting from fraud or suspected fraud, the auditor encounters exceptional circumstances that bring into question the auditor’s ability to continue performing the audit, the auditor shall:
(a) consider the nature of modifications to be made in the audit report
(b) consider whether it is appropriate to withdraw from the engagement, where withdrawal from the engagement is legally permitted
(c) communicate his inability to continue the audit to Central Government
(d) none of the above
Answer:
(b) consider whether it is appropriate to withdraw from the engagement, where withdrawal from the engagement is legally permitted

Question 13.
Cloud Ltd. appointed an auditor for the financial year 2018-19. While going through the audit procedure, the auditor observed that the management has entered into certain transactions which are irregular in nature and the management is personally benefited from such transactions
(a) Auditor should consider the requirements of SA 240 and recognize the possibility that a material misstatement due to fraud could exist
(b) Auditor should consider the requirements of Section 143(12) of Companies Act, 2013 as to reporting of fraud to the Central Government
(c) Auditor should consider the requirements of Para 3(x) of CARO, 2016 as to reporting of fraud
(d) All of the above
Answer:
(d) All of the above

Question 14.
While conducting statutory Audit of ABC Ltd., you come across “I Owe You” amounting to ₹ 2 crores as against a cash balance shown in books of ₹ 2.10 crores. You also observe that despite similar high balances throughout the year, small amounts of ₹ 50,000 are withdrawn from the bank to meet day-to-day expenses
(a) Auditor should consider the requirements of SA 240 and recognize the possibility that a material misstatement due to fraud could exist
(b) Auditor should carry out surprise verification of cash more frequently to ascertain whether it agrees as per the requirements of Guidance Note on Audit of Cash and Bank balances
(c) Both (a) and (b)
(d) Either (a) or (b)
Answer:
(c) Both (a) and (b)

Question 15.
M/s Honest Limited has entered into a transaction on 5th March, 2018, near year-end, whereby it has agreed to pay ₹ 5 lakhs p.m. to Mr. Y as annual retainer-ship fee for “engineering consultation”. No amount was actually paid, but ₹ 60 lakhs is provided in books of account as on March 31, 2018. Your inquiry elicits a response that need-based consultation was obtained round the year, but there is no documentary or other evidence of receipt of the service. As the auditor of M/s Honest Limited, what would be your approach?
(a) Auditor should consider the requirements of SA 240 and recognize the possibility that a material misstatement due to fraud could exist
(b) Auditor should consider the requirements of Section 143(12) of Companies Act, 2013 as to reporting of fraud to the Central Government
(c) Auditor should consider the requirements of Para 3(x) of CARO, 2016 as to reporting of fraud
(d) All of the above
Answer:
(d) All of the above

Question 16.
As per Sec. 143(12) of Companies Act, 2013, if an auditor of a company in the course of the performance of his duties as auditor, has reason to believe that an offence of fraud involving such amount or amounts as may be prescribed, is being or has been committed in the company by its officers or employees, the auditor shall report the matter to the Central Government within such time and in such manner as may be prescribed. The amount prescribed for this purpose is
(a) Individually ₹ 1 Cr. or above
(b) Individually above ₹ 1 Cr.
(c) ₹ 1 Cr. or above in aggregate
(d) above ₹ 1 Cr. in aggregate
Answer:
(a) Individually ₹ 1 Cr. or above

Question 17.
Reporting of fraud to Central Government re quired under Section 143(12) of Companies Act, 2013 read with Rule 13 of Companies (Audit & Auditor’s) Rules, 2014 shall be in the form of a statement as specified in and sent to
(a) Form ADT-3; Secretary, Institute of Chartered Accountants of India
(b) Form ADT-4; Secretary, Ministry of Corporate Affairs
(c) Form ADT-4; Secretary, Ministry of Law and Justice
(d) Form ADT-3; Secretary, Indian Institute of Corporate Affairs
Answer:
(b) Form ADT-4; Secretary, Ministry of Corporate Affairs

Fraud and Responsibilities of the Auditor in this Regard – CA Inter Audit MCQ

Question 18.
As per Sec. 143(15) of Companies Act, 2013, if any auditor, cost accountant or company secretary in practice do not comply with the provisions of Sec. 143(12), he shall be punishable with fine which shall not be less than but which may extend to
(a) ₹ 1 lac; ₹ 25 Lacs
(b) ₹ 5 lacs; ₹ 25 Lacs
(c) ₹ 1 lac; ₹ 5 Lacs
(d) ₹ 1 lac; ₹ 10 Lacs
Answer:
(a) ₹ 1 lac; ₹ 25 Lacs

Question 19.
Report u/s 143(12) with respect to fraud shall be sent to
(a) Registrar of Companies
(b) Company Law Board
(c) Secretary, Ministry of Home affairs
(d) None of the above
Answer:
(d) None of the above

Question 20.
As per Sec. 143(12) of Companies Act, 2013, if an auditor of a company in the course of the perfor-mance of his duties as auditor, has reason to believe that an offence of fraud involving such amount or j amounts as may be prescribed, is being or has been committed in the company by its officers or employees, the auditor shall report the matter to the Central Government within such time and in such manner as may be prescribed. The amount so prescribed is
(a) ₹ 1 Cr. or above, individually as per Rule 13 of Companies (Audit and Auditor’s) Rules, 2014
(b) ₹ 1 Cr. or above, in aggregate as per Rule 13 of Companies (Audit and Auditor’s) Rules, 2014
(c) ₹ 1 Cr. or above, individually as per Rule 13 of Companies (Accounts) Rules, 2014
(d) ₹ 1 Cr. or above, in aggregate as per Rule 13 of Companies (Accounts) Rules, 2014
Answer:
(a) ₹ 1 Cr. or above, individually as per Rule 13 of Companies (Audit and Auditor’s) Rules, 2014

Question 21.
Which of the following is an example of inflating cash payments?
(a) Making payments against purchase vouchers.
(b) Teeming and lading.
(c) Not accounting for cash sales fully.
(d) Making payments against inflated vouchers.
Answer:
(d) Making payments against inflated vouchers.

Question 22.
The type of errors, existence of which becomes apparent in the process of compilation of accounts is known as
(a) Self-revealing errors.
(b) Intentional errors.
(c) Concealed errors.
(d) Unconcealed errors.
Answer:
(a) Self-revealing errors.

Question 23.
The standard that requires auditors to analyse journal entries in an audit is?
(a) SA 260
(b) SA 230
(c) SA 315
(d) SA 240
Answer:
(d) SA 240

Fraud and Responsibilities of the Auditor in this Regard – CA Inter Audit MCQ

Question 24.
If, as a result of a misstatement resulting from fraud, the auditor encounters exceptional circumstances that bring into question his ability to continue performing the audit, he shall-
(a) Withdraw from the engagement immediately.
(b) Report to Audit team regarding withdrawal.
(c) Determine the professional and legal responsibilities applicable in the circumstances.
(d) Ask the management for his withdrawal.
Answer:
(c) Determine the professional and legal responsibilities applicable in the circumstances.

Fraud and Responsibilities of the Auditor in this Regard – CA Inter Audit MCQ Read More »

Risk Assessment and Internal Control – CA Inter Audit MCQ

Students should practice these Risk Assessment and Internal Control – CA Inter Audit MCQ based on the latest syllabus.

Risk Assessment and Internal Control – CA Inter Audit MCQ

Question 1.
The risk that a misstatement that could occur in an assertion about a class of transaction, account balance or disclosure and that could be material, either individually or when aggregated with other misstatements, will not be prevented, or detected and corrected, on a timely basis by the entity’s internal control is known as:
(a) Inherent Risk
(b) Control Risk
(c) Risk of Material Misstatement
(d) Detection Risk
Answer:
(b) Control Risk

Question 2.
Risk arises to inherent limitations of control is known as:
(a) Inherent Risk
(b) Control Risk
(c) Risk of Material Misstatements
(d) Detection Risk
Answer:
(b) Control Risk

Question 3.
Risks of material misstatement at the overall financial statement level refer to risks of material misstatement
(a) that relate pervasively to the financial statements as a whole and potentially affect many assertions
(b) are assessed in order to determine the NTE of fur-ther audit procedures necessary to obtain sufficient appropriate audit evidence
(c) that material misstatement will not be prevented or detected and corrected on a timely basis by the internal control system
(d) both (a) and (b)
Answer:
(a) that relate pervasively to the financial statements as a whole and potentially affect many assertions

Risk Assessment and Internal Control – CA Inter Audit MCQ

Question 4.
When inherent and control risks are high, acceptable detection risk needs to be
(a) low to reduce audit risk to an acceptably high level
(b) high to reduce audit risk to an acceptably high level
(c) low to reduce audit risk to an acceptably low level
(d) high to reduce audit risk to an acceptably low level
Answer:
(c) low to reduce audit risk to an acceptably low level

Question 5.
Which of the following statement is correct?
(a) SA 315 has a purpose to establish standards to form procedures to be followed to have an understanding of the entity and its environment
(b) Risk of material misstatement may be defined as the risk that the financial statements are materially misstated subsequent to audit.
(c) Internal control can provide absolute assurance
(d) Inherent and Control Risk, and detection risk have same meaning
Answer:
(a) SA 315 has a purpose to establish standards to form procedures to be followed to have an understanding of the entity and its environment

Question 6.
Which of the following is not a component of Risk Assessment Procedures?
(a) Inquiries of management, and of others within the entity
(b) Analytical procedures
(c) Observation and inspection
(d) Reperformance
Answer:
(d) Reperformance

Question 7.
Risk arises on account of judgment on part of auditor, test nature of audit and nature of audit evidences collected:
(a) Inherent Risk
(b) Control Risk
(c) Risk of Material Misstatements
(d) Detection Risk
Answer:
(d) Detection Risk

Question 8.
Procedures performed to obtain an understanding of the entity and its environment, including the entity’s internal control, to identify and assess the risks of material misstatement, whether due to fraud or error, at the financial statement and assertion levels are known as:
(a) Risk Assessment procedures
(b) Compliance procedures
(c) Substantive procedure
(d) Substantive Analytical procedures
Answer:
(a) Risk Assessment procedures

Risk Assessment and Internal Control – CA Inter Audit MCQ

Question 9.
Components of risk of material misstatement at the assertion level are:
(a) Inherent risk and detection risk
(b) inherent risk and control risk
(c) Control risk and detection risk
(d) Inherent risk, control risk and detection risk
Answer:
(b) inherent risk and control risk

Question 10.
Audit risk is a function of the
(a) Risks of material misstatement and detection risk.
(b) Audit risk and detection risk.
(c) Control risk and detection risk.
(d) Inherent risk and detection risk
Answer:
(a) Risks of material misstatement and detection risk.

Question 11.
Risk of material misstatement may be defined as the risk that the financial statements are materially misstated _________
(a) after audit,
(b) during audit.
(c) prior to audit.
(d) All of the above
Answer:
(c) prior to audit.

Question 12.
The assessment of risks is a matter
(a) capable of precise measurement rather than matter of professional judgment,
(b) of professional judgment, rather than a matter capable of precise measurement.
(c) of professional judgment as well as capable of precise measurement sometimes.
(d) none of the above
Answer:
(b) of professional judgment, rather than a matter capable of precise measurement.

Question 13.
Which of the following is not an assertion about presentation and disclosure?
(a) Occurrence and rights and obligations
(b) Completeness
(c) Classification and understandability
(d) Existence
Answer:
(d) Existence

Question 14.
Which of the following Assertion is not related to assertion about presentation and disclosure:
(a) Occurrence and rights and obligations
(b) Completeness
(c) Classification and understandability
(d) Valuation and allocation
Answer:
(d) Valuation and allocation

Question 15.
Assertions used by the auditor to consider the different types of potential misstatements in relation to transactions occurred during the year include:
(a) Occurrence, completeness, accuracy and cut-off
(b) Existence, completeness, valuation and allocation
(c) Occurrence, completeness, understandability and classification
(d) Valuation, measurement, rights and obligations.
Answer:
(a) Occurrence, completeness, accuracy and cut-off

Question 16.
AH of the following are components of internal control except:
(a) Management Reports
(b) Risk Assessment Process
(c) Monitoring
(d) The Information System
Answer:
(a) Management Reports

Risk Assessment and Internal Control – CA Inter Audit MCQ

Question 17.
Implementation of a control means that the control exists and that:
(a) all necessary personnel are trained to operate the control
(b) the entity is using it
(c) the control was properly designed
(d) the control is documented
Answer:
(b) the entity is using it

Question 18.
Process to assess the effectiveness of internal control performance over time is known as:
(a) Entity risk assessment process
(b) Risk assessment process of statutory auditor
(c) Control activities relevant to audit
(d) Monitoring of controls
Answer:
(d) Monitoring of controls

Question 19.
Policies and procedures that help ensure that management directives are carried out are known as:
(a) Control Environment
(b) Entity risk assessment process
(c) Information System
(d) Control activities relevant to audit
Answer:
(d) Control activities relevant to audit

Question 20.
Which of the following is not a component of internal control system?
(a) Control Environment
(b) Risk assessment process of statutory auditor
(c) Information System
(d) Control activities relevant to audit
Answer:
(b) Risk assessment process of statutory auditor

Question 21.
A graphic presentation of internal controls in the organisation and is normally drawn up to show the controls in each section or sub-section is known as:
(a) Narrative Records
(b) Check List
(c) Internal Control Questionnaire
(d) Flowchart
Answer:
(d) Flowchart

Question 22.
A series of instructions and/or questions which a member of the auditing staff must follow and/or answer, is known as:
(a) Narrative Records
(b) Check List
(c) Internal Control Questionnaire
(d) Flowchart
Answer:
(b) Check List

Question 23.
The auditor’s primary consideration is whether, and how, a specific control prevents, or detects and corrects, material misstatements:
(a) in classes of transactions
(b) in account balances
(c) in disclosures
(d) in classes of transactions, account balances or disclosures
Answer:
(d) in classes of transactions, account balances or disclosures

Question 24.
All of the following are sub-systems (contents) of an entity’s information system except:
(a) Computer systems software
(b) Production system
(c) Personnel information
(d) Customer and vendor records
Answer:
(c) Personnel information

Question 25.
Key components to assess and evaluate the control environment includes:
(a) Enterprise Risk management
(b) SegregationofjobresponsibilitiesandjobRotation in Sensitive Areas
(c) IT Based Controls
(d) All of the above
Answer:
(d) All of the above

Question 26.
Which of the following makes for an effective control environment with regards to commitment to competence?
(a) assure independence from management
(b) increase interaction between senior management and operating management
(c) reduce pressure to meet unrealistic performance targets
(d) its culture is one in which quality and competence are openly valued
Answer:
(d) its culture is one in which quality and competence are openly valued

Risk Assessment and Internal Control – CA Inter Audit MCQ

Question 27.
New life Hospital is a multi-specialty hospital which has been facing a lot of pilferage and troubles regardingtheir inventory maintenance and control.
On investigation into the matter it was found that the person in charge of inventory inflow and outflow from the store house is also responsible for purchases and maintaining inventory records. According to you, which basic system control has been violated
(a) Internal Audit
(b) Internal Check
(c) Monitoring
(d) Risk assessment
Answer:
(b) Internal Check

Question 28.
Because the assessment of the risk of material misstatement takes account of internal control,
(a) The extent of substantive procedures may need to be increased irrespective of the results from tests of controls.
(b) The extent of substantive procedures may need to be increased when the results from tests of controls are satisfactory.
(c) The extent of substantive procedures may need to be decreased when the results from tests of controls are unsatisfactory.
(d) The extent of substantive procedures may need to be increased when the results from tests of controls are unsatisfactory
Answer:
(d) The extent of substantive procedures may need to be increased when the results from tests of controls are unsatisfactory

Question 29.
When deviations from controls upon which the auditor intends to rely are detected,
(a) The auditor shall not make any inquiries to understand these matters and their potential consequences
(b) The auditor shall make specific inquiries to understand these matters and their potential consequences
(c) The auditor shall make general inquiries to understand these matters and their potential consequences
(d) The auditor shall make both general as well as specific inquiries to understand these matters and their potential consequences
Answer:
(b) The auditor shall make specific inquiries to understand these matters and their potential consequences

Question 30.
When more persuasive audit evidence is needed regarding the effectiveness of a control,
(a) It may be appropriate to increase the extent of testing of the control and reduce the extent of the degree of reliance on controls
(b) It may be appropriate to decrease the extent of testing of the control as well as the degree of reliance on controls
(c) It may be appropriate to decrease the extent of testing of the control and increase the extent of the degree of reliance on controls
(d) It may be appropriate to increase the extent of testing of the control as well as the degree of reliance on controls
Answer:
(d) It may be appropriate to increase the extent of testing of the control as well as the degree of reliance on controls

Question 31.
An independent management function, which involves a continuous and critical appraisal of the functioning of an entity with a view to suggest improvements thereto and add value to and strengthen the overall governance mechanism of the entity is known as:
(a) Internal Control
(b) Internal Audit
(c) Internal Check
(d) Risk assessment process
Answer:
(b) Internal Audit

Question 32.
Which of the below mentioned standard prescribes the auditors requirements while using the work of internal auditors:
(a) SA 299
(b) SA 600
(c) SA 610
(d) SA 620
Answer:
(c) SA 610

Question 33.
Internal Auditor shall be
(a) a practicing chartered accountant
(b) a practicing cost accountant.
(c) an employee of the company
(d) either be a chartered accountant (whether in Practice or not) or a cost accountant, or such other professional as may be decided by the Board
Answer:
(d) either be a chartered accountant (whether in Practice or not) or a cost accountant, or such other professional as may be decided by the Board

Question 34.
Which of the following company is required to have internal audit system as per Sec. 138 of Companies Act, 2013:
(a) Unlisted public company having paid up equity share capital of 50 crore rupees or more during the preceding financial year.
(b) Unlisted public company having paid up equity share capital of 50 crore rupees or more during the current financial year.
(c) Unlisted public company having paid up share capital of 50 crore rupees or more during the preceding financial year.
(d) Unlisted public company having paid up share capital of 50 crore rupees or more during the current financial year.
Answer:
(c) Unlisted public company having paid up share capital of 50 crore rupees or more during the preceding financial year.

Risk Assessment and Internal Control – CA Inter Audit MCQ

Question 35.
The objectives and scope of internal audit functions typically include designed to evaluate and improve the effectiveness of the entity’s governance processes, risk management and internal control
(a) assurance activities only
(b) consulting activities only
(c) assurance and consulting activities
(d) risk management activities
Answer:
(c) assurance and consulting activities

Question 36.
Scope of Internal Audit is:
(a) restricted to financial statements
(b) not restricted to financial statements, but also extends to the task review of all operations of the enterprise
(c) not restricted to financial statements, but also ex-tends to take upon the function of the operational manager
(d) not restricted to financial statements, but also ex-tends to statutory reporting under Section 143(3) of Companies Act, 2013
Answer:
(b) not restricted to financial statements, but also extends to the task review of all operations of the enterprise

Question 37.
Which ofthe following public unlisted companies, required to appoint an internal auditor?
(a) Companies having paid up equity capital and re-serves of ₹ 50 cr. or above during the preceding financial year
(b) Companies having turnover of ₹ 200 cr. or more during the current financial year
(c) Companies having outstandingloans or borrowings from banks, financial institutions and directors exceeding ? 100 Cr. or more at any point of time during the preceding financial year
(d) None of the above
Answer:
(d) None of the above

Question 38.
Which of the following private companies, required to appoint an internal auditor?
(a) Companies having paid up capital ₹ 50 cr. or above during the preceding financial year
(b) Companies having turnover of ₹ 200 cr. or more during the preceding financial year
(c) Companies having outstanding loans or borrowings from banks, financial institutions and directors exceeding ₹ 100 Cr. or more at any point of time during the preceding financial year
(d) Both (b) and (c)
Answer:
(b) Companies having turnover of ₹ 200 cr. or more during the preceding financial year

Question 39.
Which ofthe following companies is notrequired to appoint an internal auditor?
(a) Public companies having its securities listed on Main Board of Stock Exchange
(b) Public companies having its securities listed on ITP
(c) Unlisted Public companies having paid up share capital of ₹ 50 crores or above during the preceding financial year
(d) Private companies having paid up share capital of ₹ 50 crores or above during the preceding financial year
Answer:
(d) Private companies having paid up share capital of ₹ 50 crores or above during the preceding financial year

Question 40.
Which of the following companies is required to appoint an internal auditor?
(a) Private companies having paid up share capital of ₹ 40 crores during the preceding financial year
(b) Private companies having turnover of ₹ 120 cr. during the preceding financial year
(c) Private companies having outstanding loans or borrowings from banks or financial institutions was ₹ 105 Cr. attheend of preceding financial year.
(d) None of the above
Answer:
(c) Private companies having outstanding loans or borrowings from banks or financial institutions was ₹ 105 Cr. attheend of preceding financial year.

Question 41.
When more persuasive audit evidence is needed regarding the effectiveness of a control,
(a) it may be appropriate to increase the extent of testing of the control and reduce the extent of the degree of reliance on controls.
(b) it maybe appropriate to decrease the extent of testing of the control as well as the degree of reliance on controls.
(c) it may be appropriate to decrease the extent of testing of the control and increase the extent of the degree of reliance on controls.
(d) it may be appropriate to increase the extent of testing of the control as well as the degree of reliance on controls.
Answer:
(d) it may be appropriate to increase the extent of testing of the control as well as the degree of reliance on controls.

Question 42.
When deviations from controls upon which the auditor intends to rely are detected,
(a) the auditor shall not make any inquiries to under-stand these matters and their potential consequences
(b) the auditor shall make specific inquiries to under-stand these matters and their potential consequences
(c) the auditor shall make general inquiries to under-stand these matters and their potential consequences
(d) the auditor shall make both general as well as specific inquiries to understand these matters and their potential consequences
Answer:
(b) the auditor shall make specific inquiries to under-stand these matters and their potential consequences

Risk Assessment and Internal Control – CA Inter Audit MCQ

Question 43.
Risk of material misstatement may be defined as the risk
(a) that the financial statements are materially mis-stated after audit.
(b) that the financial statements are materially mis-stated during audit.
(c) that the financial statements are materially mis-stated prior to audit.
(d) All of the above
Answer:
(c) that the financial statements are materially mis-stated prior to audit.

Question 44.
The assessment of the risks of material misstatement may be expressed in
(a) quantitative terms, such as in percentages, or in non-quantitative terms.
(b) quantitative terms, such as in percentages,
(c) non-quantitative terms.
(d) none of the above
Answer:
(a) quantitative terms, such as in percentages, or in non-quantitative terms.

Question 45.
SA 315 establishes requirements and provides guidance on identifying and assessing the risks of material misstatement
(a) at the financial statement levels only.
(b) at the assertion levels only.
(c) at the financial statement and assertion levels.
(d) at the financial statement or assertion levels.
Answer:
(c) at the financial statement and assertion levels.

Question 46.
SA 315 establishes requirements and provides guidance on identifying and assessing the risks of material misstatement
(a) at the financial statement levels only.
(b) at the assertion levels only.
(c) at the financial statement and assertion levels.
(d) at the financial statement or assertion levels.
Answer:
(c) at the financial statement and assertion levels.

Question 47.
The risks of material misstatement at the assertion level consist of two components:
(a) Inherent risk and detection risk
(b) Control risk and detection risk
(c) Audit risk and detection risk
(d) Inherent risk and control risk
Answer:
(d) Inherent risk and control risk

Question 48.
The Guidance Note on Audit of Internal Financial Controls over Financial Reporting has been issued by?
(a) ICAI
(b) SEBI
(c) MCA
(d) RBI
Answer:
(a) ICAI

Question 49.
Audit risk is a function of the
(a) risks of material misstatement and detection risk.
(b) audit risk and detection risk.
(c) control risk and detection risk.
(d) inherent risk and detection risk.
Answer:
(a) risks of material misstatement and detection risk.

Risk Assessment and Internal Control – CA Inter Audit MCQ

Question 50.
Risk of material misstatement may be defined as the risk
(a) that the financial statements are materially mis-stated after audit.
(b) that the financial statements are materially mis-stated during audit.
(c) that the financial statements are materially mis-stated prior to audit.
(d) All of the above
Answer:
(c) that the financial statements are materially mis-stated prior to audit.

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Jharkhand Gramin Bank Personal Loan @ 9.99% | Different Types of Personal Loan, How To Apply and Verification Process

Jharkhand Gramin Bank Personal Loan @ 9.99% | Different Types of Personal Loan, How To Apply and Verification Process

Jharkhand Gramin Bank Personal Loan: Jharkhand Rajya Gramin Bank is a Regional Rural Bank established on 1st April 2019 with the amalgamation of the erstwhile Vananchal Gramin Bank and former Jharkhand Gramin Bank under the Act 1976.

It is under the courtship of the Ministry of Finance, Government of India. This Bank is sponsored by the State Bank of India & is owned jointly by the Government of India, Government of Jharkhand, and State Bank of India.

The Bank operates in all 24 districts of Jharkhand State, with its Head Office at Ranchi (sub-capital of Jharkhand State). This specific article focuses on Jharkhand Gramin Bank loan interest, Gramin Bank Personal Loan rate, and also sheds light on Gramin Bank’s steps for Mudra loan.

Curious to check other banks’ offered Personal loan features, eligibility, interest rates, tax benefits, and a repayment plan. Go with our one-stop Personal Loan Page & swipe out your doubts within no time.

Jharkhand Gramin Bank

Different Personal Loan offered by Jharkhand Gramin Bank

Different Personal Loan offered by Jharkhand Gramin Bank are:

  • Doctor Loan: Jharkhand Gramin Bank offers particular personal loans to any doctor. Doctors can always avail of a personal loan starting at the age of 25 years instead of 28 years for other self-employed professionals, and the business stability for doctors should be only for three years.
  • Doctors may avail of this loan as a way out of their financial problems or emergencies.
  • Marriage Loan: Jharkhand Gramin Bank offers Personal Loans for Marriages to people who require to pay for wedding-related expenses. This personal loan for marriage can be utilised for anything and assists you in funding a wedding without burdening your financial condition. The loan, can be dispensed on the same day.
  • Loan for Government Employees: Jharkhand Gramin Bank Personal Loan for all kinds of Government Employees is beneficial for people working in government agencies and is offered at low-interest rates, starting at just 9.99% per annum.

You can avail any of these said loans with other special offers and also followed by a quick disbursal. The Bank does not at all charge any processing fees if the Defence Personnel benefits from a loan. This loan can be also applied for online through the Dialabank or in person by visiting the nearest bank branch.

Loan for Pensioners

The Jharkhand Gramin Bank, Personal Loan for Pensioners, can be availed of by retired Central Government, State Government, and Defence Forces employees. The Bank offers a plethora of attractive features when it comes to any Personal Loan for Pensioners like:

  • Minimum Pension Amount of Rs. 25000
  • 50% of extra income (Fixed Deposit interest rental income, and much more) can be counted as an Actual Income Low-interest rate
  • Tenure starting from twelve months

Personal Loan Balance Transfer

Personal Loan Balance Transfer refers to a specified process where one’s shifts the entire outstanding personal loan amount from one specified lending institution to another.

You can employ of this option if the repayment in the recent personal loan terms is burdensome for you and the other lender is charging you lower interest rates and offering some additional features. To transfer your loan balance, you will have to pay the fore-closure fee to the lender and the processing fees to the new lender.

This process of balance transfer with Jharkhand Gramin Bank is straightforward.

Loan Top Up

You can avail of the personal loan top-up facility from Jharkhand Gramin Bank to borrow an additional loan amount after the tenure ends. You can easily apply the top-up facility if you are regular in your EMI Payment.

Jharkhand Gramin Bank You can also avail of a personal loan top-up with a quick disbursal and no charges for collateral requirement for the maximum amount equating to the original loan’s amount.

Types of Jharkhand Gramin Bank Personal Loan

Home renovation loan

The Jharkhand Gramin Bank offers a separate home redesign credit for people who want to get their homes repaired. This individual credit can assist necessary fixes or aid the candidates in getting new fittings, installations, and other furniture for their home.

Some vital highlights of the Jharkhand Gramin Bank Home Renovation Loan are as follow:

  • The financing cost for Home Renovation Loan in Jharkhand Gramin Bank begins at as low as about 11.25%.
  • People might be qualified for any advance sum up to Rs. 20 Lakh to get their home remodelled.
  • The advance sum usually gets credited into the record within just 72 hours after the Bank favors the user’s application.

Holiday Loan

The Holiday Loan of the Jharkhand Gramin Bank can assist you in designing your fantasy get-away with any minor issue.

This individual advance from the Jharkhand Gramin Bank can support a scope of excursion-related amounts, inclusive of flight ticket booking, homestay facilities, guided visits, and such others. Key highlights of the Holiday Loan of Jharkhand Gramin Bank are:

  • Financing costs for the Holiday Loans start at just 11.25% per year.
  • You can do profit a measure of up to Rs 20 Lakhs without much of a stretch so that you won’t spoil your fantasy excursion due to a monetary crunch.
  • Streamlined and Minimal documentation promises that financing the chosen get-away is basic and straightforward.
  • Brisk preparation and disbursal of advance, which is attributed efficiently to your record.

Fresher Funding

A crucial part of unstable individual credits is concentrated on people with customary pay anyway. Jharkhand Gramin Bank’s Fresher Funding is extraordinary.

Some vital highlights of the Jharkhand Gramin Bank Fresher Funding individual credit are the following:

  • Credit sums up to Rs 1.5 lakhs.
  • The candidate by all means should be 21 years of age.
  • The pace of interest for Fresher Funding depends upon the profile of the candidate, their financial record, age, and the area of the candidate.

NRI Personal Loan

Understanding these necessities and dreams of NRIs, Jharkhand Gramin Bank offers any individual advance explicitly for NRIs.

The essential advanced candidates must be an Indian inhabitant, and the

co-candidate NRI must be a nearby or blood-related family member. Particular Loan for NRIs incorporate the accompanying highlights as stated below:

  • NRIs individual advances up to Rs. 10 lakhs with an adaptable end-use.
  • The financing costs and additional charges for NRI Personal Loan starts at 15.49% er year.
  • The credit includes a residence of as long as three years.

The Personal Loan Verification Process

The following are essential strides of the individual credit check after online convenience of one’s advance application with the Bank.

  • Step 1: This will advance your advance application to your picked Bank, and within 48 hours, you will get a call from the moneylender’s agent.
  • Step 2: The imminent loan specialist schedules a pickup of your KYC, pay, and henceforth reports or gives a choice to transfer them on the web. We will utilize these reports to confirm your application.
  • Step 3: When the moneylender’s check is finished and advance is recommended, you will get another call to verify the credit offer and request your disbursal.
  • Step 4: After credit endorsement and fruitful check, the advance is generally dispensed within 48 hours.

Note: The turnaround time for personal loan verification or disbursal may vary based on the lender’s internal demands and other criteria.

How to apply for a Personal Loan?

You can avail of a personal loan in simple three easy steps:

  1. Visit the website of Dialabank.
  2. Fill in the simple form online, and our representative will call you back.
  3. Share your documents and get fast approval.

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