C. S. Executive Tax Law Dec 09 Solved Questionnaire

C.S. Executive Tax Law Dec.09 Solved Ans.

1

Qn. 1. (A) Choose the most appropriate answer from the given options in respect of the following having regard to the provisions of the relevant direct, tax laws
(i) Income-tax in India is charged at the rate(s) prescribed by —
(a) The Finance Act
(b) The Income-tax Act
(c) The Central Board of Direct Taxes
(d) The Ministry of Finance
Solution: (a)The Finance Act
(ii) Under the Income-tax Act, 1961, depreciation on machinery is charged on —
(a) Purchase price of the machinery
(b) Market price of the machinery
(c) Written down value of the machinery
(d) All of the above.
Solution: (c) Written down Value of the machinery
(iii) Income accruing in India in previous year is taxable for —
(a) Resident
(b) Not ordinarily resident
(c) Non-resident
(d) All of the above.
Solution (d) All of the above
(iv) Sandeep purchased a house for his residential purpose after taking a loan in January, 2007. During the previous year 2008-09, he paid interest on loan Rs, 1,67,000. While computing income from house property, the deduction is allowable to the extent of —
(a) Rs.30,000
(b) Rs, 1,00,000
(c) Rs.1,67,000
(d) Rs.1,50,000.
Solution: (d) Rs. 1,50,000
(v) Which of the following is an 'asset' under section 2(ea) of the Wealth-tax Act, 1957 —
(a) Equity shares in a company
(b) Balance in provident fund
(c) Motor car held as stock-in-trade –
(d) Jewellery for personal use.
Solution: (d) Jewellary for personal use

(B) Re-write the following sentences after Filling-in the blank spaces with appropriate word(s)/figure(s) :
(i) Deduction for bad debt is allowed to an assessee carrying on business in the year in which the debt is ________ as bad.
(ii) Deduction available under section 80GG towards rent paid shall not exceed Rs.,______ per month.
(iii) It is obligatory for an assessee to pay advance tax where the amount of tax payable is Rs. ________ or more.
(iv) A belated return of income can be