TAX SCANNER

Income Tax &

GST
Relevant for:

CS EXECUTIVE JUNE & DEC 2021 & CA INTER MAY & NOV 2021

Authored & Compilation

By

CA VIVEK GABA
 Basic Concept CS EXECUTIVE CA VIVEK GABA

Chapter One
Basic Concept of Tax Laws
OBJECTIVE QUESTIONS [ Set – 1]

Amended by Finance Act 2020

1. Health & Education cess is payable on
a) Income-tax only b) Income-tax plus surcharge
b) Income Tax minus rebate d) any of the above, depends on
question
2. The General rates of income tax are mentioned in -
a) Income-tax Act, 1961 b) Annual Finance Acts
c) both Income-tax Act, 1961 and Annual Finance Acts d) None of the above
3. Which statement is Ture in case of surcharge applicable in the case of an individual is -
a) 2% of tax payable if total income exceeds 100 lakh
b) 10% of tax payable if total income exceeds 100 lakh
c) 25% of tax payable if total income exceeds ` 200 lakh
d) Surcharge not levied on individual
4. As per section 115BAC newly inserted, In respect of a Resident Individual, who is of the age of 60
years or more at any time during the previous year 2020-21
a) Higher basic exemption of ` 2,00,000 is available
b) Higher basic exemption of ` 2,50,000 is available
c) Higher basic exemption of ` 3,00,000 is available.
d) Higher basic exemption of ` 5,00,000 is available.
5. The surcharge applicable to a domestic company for A.Y. 2021-22 is -
a) 2% always irrespective of level of income
b) 10% if total income exceeds ` 1 crore.
c) 5% if total income exceeds ` 1 crore
d) 7% if the total income exceeds ` 1 crore but upto` 10 crore.
6. The surcharge applicable to a foreign company for A.Y. 2021-22 is -
a) Nil
b) 2% if the total income exceeds ` 1crore upto` 10 crore
c) 2.5% if the total income exceeds ` 1 crore upto` 10 crore
d) 5% in all cases
7. A non-resident individual having taxable income in India of ` 5,00,000 shall be allowed rebate of how
much under section 87A
a) 2,000 b) 3,000 c) 5,000 d) Nil
8. ABC Inc, a foreign company has a total income of 1 crore. What would be the amount of surcharge
applicable?
a) 10% b) 2% c) 5% d) Nil
9. Direct tax is a kind of tax where burden of tax is …………....... on payer.
a) directly b) indirectly

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 Basic Concept CS EXECUTIVE CA VIVEK GABA
c) either a) or b) d) none of these
10. The provision of income tax is governed under which act`
a) Income tax Act, 1961 b) Income tax Act, 1922
c) Direct tax code d) All of the above
11. Decisions pronounced by ...... becomes law.
a) Supreme Court b) High Court
c) Income tax Appellate Tribunal d) None of the above
12. ............. capital is that capital which is turned over in business and results in profit or loss
a) fixed b) circulating c) any d) none
13. ...... capital is not directly involved in business
a) fixed b) circulating c) any d) none
14. A newly set up business coming into existence, the first previous year will commence from
a) Date of set up of business b) 1st April of previous year
c) Any date after set up of business d) one day before date of set up of business
15. Exemption limit of ` 3,00,000 or ` 5,00,000 is applicable for
a) Resident Individual b) Non-resident Individual
c) Both resident and non-resident Individual d) none of them
16. A resident individual aged 70 year shall be allowed exemption of
a) ` 2,50,000 b) ` 3,00,000 c) ` 5,00,000 d) Nil
17. A non-resident individual who is 85 years of age shall be allowed exemption of ........ from taxable
income
a) ` 5,00,000 b) ` 2,00,000 c) ` 2,50,000 d) Nil
18. Which of the following is not an example of capital receipt?
a) money received on issue of shares b) money received on sale of land
c) money received on sale of goods d) none of the above
19. Income tax is charged on the basis of rate prescribed by
a) Income tax Act b) Finance Act
c) Central Board of Direct Taxes d) Ministry of Law
20. Income includes
a) only legal income b) Illegal income
c) both legal and illegal d) None of them
21. Charging section of income tax is
a) Section 4 b) Section 9 c) Section 15 d) Section
28
22. Rebate under section 87A is allowed to
a) Resident individual b) any individual (resident or non-resident)
c) Resident individual and HUF d) all assessee
23. Rebate under section 87A shall be allowed to the maximum extent of
a) ` 2,500 b) ` 12,500 c) ` 5,000 d) tax payable
24. Any rent or revenue derived from land may be treated as agricultural income if
a) It is derived from land b) the land is used for agricultural purposes
c) the land is situated in India d) All of the above condition shall be satisfied
25. Which of the following income is an agricultural income
a) Income from brick making
b) Income from agricultural land situated in Pakistan
c) Prize from Government on account of higher crop yield
d) Compensation received from insurance company on account of loss of crop
26. Which of the following income is not included in term income under the Income tax Act, 1961
a) Profit and gains b) Dividend from foreign company
c) Profit in lieu of Salary d) Reimbursement of travelling expenses
27. A person includes:
a) Only Individual
b) Only Individual and HUF

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 Basic Concept CS EXECUTIVE CA VIVEK GABA
c) Individuals, HUF, Firm, Company only
d) Individuals, HUF, Company, Firm, AOP/ BOI, Local Authority, Every Artificial Juridical Person
28. Every assesse is a person, and
a) every person is also an assessee b) every person need not be an assessee
c) an individual is always an assessee d) A HUF is always an assessee
29. Describe the status of the following person, X and Y are legal heirs of Z. Z died in 2019 and X and Y
carryon his business without entering into a partnership.
a) Firm b) Limited Liability Partnership
c) Company d) Body of Individual
30. Assessment year is a period of
a) more than 12 months b)12 months and less than 12 months
c) 12 months only d)12 months and more than 12 months
31. All assessee are required to follow
a) uniform previous year which must be calendar year only
b) uniform previous year which must be financial year only
c) any period of12 months
d) Period starting from 1st July to 30th June only
32. First previous year in case of a business/ profession newly set up on 31.3.2021 would:
a) Start from 1st April, 2020 and end on 31st March, 2021
b) Start from 31st March, 2021 and will end on 31st March, 2021
c) Start from 1st January, 2021 and end on 31st December, 2021
d) Start from1st January, 2021 and will end on 31st March, 2021
33. A person follows Calendar year for accounting. For taxation, he has to follow:
a) Calendar year only-1st January to 31st December
b) Financial year only-1st April to 31st March
c) Any of the Calendar or Financial year as per his choice
d) He will have to follow extended year from 1 January to next 31 March (period of15 months)
34. In which of the following cases, income of previous year is assessable in previous year itself:
a) Assessment of persons leaving India
b) A person in employment in India
c) A person who is into illegal business
d) A person who is running a charitable institution
35. As per section 115BAC, In case of female individual, who is of 65 years of age, what is the maximum
exemption limit for AY 2021-22
a) ` 2,50,000 b) ` 3,00,000 c) ` 5,00,000 d) Nil
36. Calculate Income-tax payable by an Individual (aged 30 years) for AY 2021-22 if his total income is `
1,01,00,000 (not opt out 115BAC):
a) ` 33,21,500 b) ` 28,42,500 c) 30,93750 d) ` None
37. Out of the following, which capital receipt is not taxable?
a) Capital gains of ` 10,00,000
b) Amount of` 5,00,000 won by way of lottery, games, puzzles
c) Amount of` 2,00,000 received by way of gift from relatives
d) Amount of` 1,00,000 received by way of gift from a friend on marriage anniversary
38. Total income is to be rounded off to nearest multiple of....... and taxis to be rounded off to nearest
multiple of.........
a) Ten, Rupee b) Hundred, Ten c) Ten,Ten d)Rupee,
Rupee
39. Assessee is always a person but a person may or may not be an assessee.
a) True b) False c) Partly true d) None of the
above
40. A person may not have assessable income but may still be assessee

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 Basic Concept CS EXECUTIVE CA VIVEK GABA
a) True b) False c) Partly true d) None of the
above
41. A new business was set up on 15-11-2020 and commenced business from 1-12-2020. The first
previous year in this case shall be:
a) 15-11-2020 to 31-3-2021 b) 1-12-2020 to 31-3-2021
c) 2021-2022 d) 2020-21
42. Surcharge in case of an individual or HUF for assessment year 2021-22 is payable at rate of:
a) 12% of the income-tax payable provided the total income exceed ` 6,00,000.
b) 10% of the income-tax payable provided the total income exceeds ` 50,00,000
c) 5% of the income-tax payable if the total income exceeds ` 1,80,50,000
d) 15% of the income-tax payable provided the total income exceeds ` 90,00,000
43. The maximum amount on which income-tax is not chargeable in case of firm is:
a) ` 2,00,000 b) ` 2,50,000 c) ` 5,00,000 d) Nil
44. A co-operative society is taxable at flat rate of 30% on Total Income
a) True b) False c) Partly true d) None of the
above
45. Health & Education cess is leviable in case of
a) An individual and HUF b) A company assessee only
c) All assesses d) Only Individual
46. In case of an individual and HUF, H & EC is leviable only when total income of such assessee
a) exceeds ` 10,00,000 b) always levied, irrespective of level of income
c) exceeds ` 7,00,000 d) exceeds ` 1,00,00,000
47. The total Income of the assessee has been computed as ` 2,53,494.90. After rounding off, total
Income will be taken as ……….
a) ` 2,53,500 b) ` 2,53,490 c) ` 2,53,495 d) `
2,54,000
48. A circular of the CBDT u/s 119 of the Income tax Act 1961
a) can override or detract from the Act b) cannot override or detract from the Act
c) may override the entire act d) None of the above
49. The circulars issued by CBDT are binding on:
a) Assessee b) Income-tax Authorities i.e. Assessing Officers
c) Both the above d) None of the above
50. Decision passed by Supreme Court is binding on
a) All courts and tribunal b) Income tax authorities
c) Assessee d) All of the above
51. The amount of Health & Education cess to be collected along with income tax for the assessment
year 2021-22 is
a) 2% b) 1% c) 4% d) Nil
52. Calculate rebate available u/s 87A to resident HUF having total income of` 3,00,000.
a) ` 3,000 b) ` 1,500 c) ` 2,000 d) Nil
53. Calculate rebate available u/s 87A to a resident individual having total income of` 6,00,000.
a) ` 3,000 b) ` 1,500 c) ` 12,500 d) Nil
54. Rebate under section 87A is allowed only on fulfillment of which condition
i) Assessee should be resident individual
ii) the Total Income of assessee is upto` 5,00,000
iii) All assessee
a) (i) and (ii) b) only (ii) c) (ii) and (iii) d) (iii)
55. Income of a business commenced & Set-up on 1stMarch, 2021 will be assessed during the
assessment year…………………….?

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a) 2021-2022 b) 2020-2021 c) 2019-2020 d) 2018-
2019
56. The maximum exemption limit under the income Tax Act ,1961 in case of a women who is 65 year of
age and who is non-resident in India is ` …………………………?
a) 2,00,000 b) 2,50,000 c) 3,00,000 d)
5,00,000
57. The tax payable or refund due to an assessee is to be rounded off to the nearest…………?
a) 10 b) 1 c) 100 d) None of the
above
58. Accounting standard notified under section 145 is applicable for ………… system of accounting?
a) Cash b) mercantile c) Hybrid d) None of the
above
59. AOP should consist of :
a) Individual only b) Persons other than individual only
c) Both the above d) None of the above
60. Body of individual should consist of:
a) Individual only b) Persons other than individual only
c) Both the above d) None of the above
61. From which entry does Central Government get power to levy Income tax
a) Entry 97 of Union List b) Entry 92C of Concurrent List
c) Entry 82 of Union List d) Entry 92C of State List
62. In case of partnership firm Surcharge is applicable when:
a) if its total income exceeds ` 1 crore
b) if total income exceeds ` 2 crore
c) Surcharge is not applicable on firm
d) its total income exceeds ` 50 lakhs
63. Finance Act is ……………
a) white paper presented for introduction of Income tax act
b) an act containing notifications, circulars issued by CBDT
c) an annual act in which amendment of Income tax, service tax etc. is contained
d) none of the above
64. Aggregate of incomes computed under five heads of income after applying clubbing provisions and
making adjustments of set off, carry forward and set off the losses is known as ………
a) Taxable income b) Gross Total income
c) Total Income d) Net Income
65. Hindu undivided family (HUF) includes:
a) Family of Muslims, Christians b) family of Jains, Sikhs, Buddhist
c) Both of the above d) None of the above
66. Surcharge is calculated as a % of ……….
a) Gross Total income b) Basic Tax
c) Total Income d) Tax + Total income
67. A joint family of Mr. Ravi, Mrs. Ravi and their son Raj and daughter Simmy is a
a) HUF b) Firm c) BOI d) Artificial judicial
person

68. Rates of tax on ‘Special income’ is:

a) remains same for all type of person b) vary from person to person
c) Any of the above d) None of the above
69. A person leaves India permanently on 15-11-2020. The assessment year for income earned till 15-
11-2020 in this case shall be:
a) 2019-20 b) 2020-21 c) 2021-22 d) None of the
above
70. A local authority is taxable at flat rate of income-tax

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 Basic Concept CS EXECUTIVE CA VIVEK GABA
a) True b) False c) Partly true d) None of the
above
71. Income tax is a form of
a) Direct tax b) Indirect tax
c) Either a) or b) d) none of them
72. Which of the following are deducted to compute tax payable
a) Tax deducted and collected at source b) Advance tax
c) Double Taxation relief d) All of the above
73. Light Ltd., a domestic company has income of 10 crore, what rate of surcharge is applicable on
same
a) 10% b) 2% c) 7% d) Nil
74. The rate of tax applicable to a firm for A.Y. 2021-22 is -
a) 30% b) 35% c) 40% d)
20%
75. The rate of tax applicable to a domestic company for A.Y. 2021 -22 if company T.O in P.Y 2018-19
was 343 crore is -
a) 30% b) 25% c) 40% d)
45%
76. If a domestic company has income of ` 11 crore, surcharge at the rate of ...... is applicable
a) 12% b) 7% c) 5% d) Nil
77. Income of …......... year of an assessee is taxed during ............ year.
a) financial year, previous year b) assessment year, previous year
c) previous year, assessment year d) previous year, financial year
78. Corporate society is taxable at the flat rate of 22% under section 115BAD. Is the statement valid
a) valid b) invalid c) Partially valid d) none of
them
79. Surcharge @..... shall be levied if total income of Individual exceeds ` 5 crore.
a) 25% b) 37% c) 15% d) Nil
80. Assessment of person leaving India under section 174 is done in relevant …………………..
a) Assessment Year b) Previous Year c) Financial Year d)
Exempt
81. Salary received from member of parliament is taxable under the head
a) PGBP b) Salary
c) Other Sources d) None of the above
82. Year in which income is taxable is known as …… & year in which it is earned is known as ......
a) Previous year, Assessment year b) Assessment year, Previous year
c) Assessment year, financial year d) financial year, Previous year
83. Mrs. V (Age 82 year) is resident in India for the assessment year 2021-22. For the previous year
2020-21, her income chargeable to tax in India is ` 8,30,000. Find out Tax liability as per section
115BAC.
a) 81,640 b)49,500 c) 51,480 d)
78,500
84. Mr. V, resident in India for the assessment year 2021-22. For the previous year 2020-21, his income
chargeable to tax in India is ` 15,00,000. Find out Tax liability as per section 115BAC if born on (i) 15th
th
Jan, 1941 (ii) 15 Jan, 1961 (without cess)
a) 187500 both case b) 195000 both case
c) 2,70,400 / 2,60,000 d) None of the above
85. Income-Tax Act Extends to:
a) Whole of India b) Whole of India except J&K
c) Whole of India except Sikkim d) Whole of India except J&K and Sikkim
86. Surcharge on Income-Tax is payable by:
a) All Assessee subject to total income b) Indian Company
c) Foreign company d) Firm & Company Only

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87. The maximum amount on which income tax is not chargeable in case of HUF for assessment year
2021-22.
a) 2,00,000 b) 2,20,000 c) 2,50,000 d)
1,80,000
88. The maximum amount on which income tax is not chargeable in case of AOP/BOI for assessment
year 2021-22.
a) 1,00,000 b) 2,50,000 c) 2,00,000 d) Nil
89. The Total Income of the assessee has been computed as ` 2,53,435.80. For rounding off, the total
income will be taken as:
a) 2,53,430 b) 2,53,433 c) 2,53,432 d)
2,53,440
90. Rebate u/s 87 is not available to:
a) All Individual & HUF b) Firm
c) Resident Individual d) A & B
91. Tax computed is 8,256.12. After rounding off tax payable is:
a) 8,250 b) 8,256 c) 8,257 d)
8,260
92. Marginal relief is allowed in case of individual if Total Income exceeds:
a) 10 Lakhs b) 50 Lakh c) 10 Crore d) 100
Crore
93. Special rate (Flat rate) of Income Tax prescribed by –
a) Finance Act b) Income Tax Act d) Both of the above d) None
94. Newly inserted Special Rate / Specific Rate of Income Tax prescribed ubder –
a) Section 115BAA b) Section 115BAC d) Section 115BAB d) None

95. The tax liability of Mr. Saral, who attained the age of 60 years on 01.04.2021 and does not opt for
the provisions of section 115BAC for the P.Y. 2020-21, on the total income of ` 5,60,000,
comprising of salary income and interest on fixed deposits, would be -
(a) 9,880 (b) ` 22,880 (c) ` 25,480 (d) Nil
96. The tax liability of Nirlep Co-operative Society (does not opt to pay tax under section 115BAD) on
the total income of ` 90,000 for P.Y. 2020- 21, is -
(a) ` 24,000 (b) ` 28,080 (c) Nil (d) ` 24,960
97. What is the amount of marginal relief available to Sadvichar Ltd., a domestic company on the total
income of ` 10,03,50,000 for P.Y. 2020- 21 (comprising only of business income) whose turnover
in P.Y. 2018- 19 is ` 450 crore, paying tax as per regular provisions of Income-tax Act? Assume
that the company does not exercise option under section 115BAA.
(a) ` 9,98,000 (b) ` 12,67,600 (c) ` 3,50,000 (d) `
13,32,304
98. The tax payable by Dharma LLP on total income of ` 1,01,00,000 for P.Y. 2020-21, is -

(a) ` 35,29,340 (b) ` 32,24,000 (c) ` 33,21,500 (d) ` 31,51,200

99. whether Health & education cess are applicable when tax calculate as per section 115BAC ?
a) Yes @ 4% b) Not applicable c)Yes @ 3% d) None of the above

100. The tax liability of Nirlep Co-operative Society (opt to pay tax under section 115BAD) on the
total income of ` 80,000 for P.Y. 2020- 21, is –

a) 20,130 b) 18,300 c) 17,600 d) 20,134

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 Basic Concept CS EXECUTIVE CA VIVEK GABA

Chapter One
Basic Concept of Tax Laws
OBJECTIVE QUESTIONS [ Set – 1]

Amended by Finance Act 2020

1. Health & Education cess is payable on
a) Income-tax only b) Income-tax plus surcharge
b) Income Tax minus rebate d) any of the above, depends on
question
2. The General rates of income tax are mentioned in -
a) Income-tax Act, 1961 b) Annual Finance Acts
c) both Income-tax Act, 1961 and Annual Finance Acts d) None of the above
3. Which statement is Ture in case of surcharge applicable in the case of an individual is -
a) 2% of tax payable if total income exceeds 100 lakh
b) 10% of tax payable if total income exceeds 100 lakh
c) 25% of tax payable if total income exceeds ` 200 lakh
d) Surcharge not levied on individual
4. As per section 115BAC newly inserted, In respect of a Resident Individual, who is of the age of 60
years or more at any time during the previous year 2020-21
a) Higher basic exemption of ` 2,00,000 is available
b) Higher basic exemption of ` 2,50,000 is available
c) Higher basic exemption of ` 3,00,000 is available.
d) Higher basic exemption of ` 5,00,000 is available.
5. The surcharge applicable to a domestic company for A.Y. 2021-22 is -
a) 2% always irrespective of level of income
b) 10% if total income exceeds ` 1 crore.
c) 5% if total income exceeds ` 1 crore
d) 7% if the total income exceeds ` 1 crore but upto` 10 crore.
6. The surcharge applicable to a foreign company for A.Y. 2021-22 is -
a) Nil
b) 2% if the total income exceeds ` 1crore upto` 10 crore
c) 2.5% if the total income exceeds ` 1 crore upto` 10 crore
d) 5% in all cases
7. A non-resident individual having taxable income in India of ` 5,00,000 shall be allowed rebate of how
much under section 87A
a) 2,000 b) 3,000 c) 5,000 d) Nil
8. ABC Inc, a foreign company has a total income of 1 crore. What would be the amount of surcharge
applicable?
a) 10% b) 2% c) 5% d) Nil
9. Direct tax is a kind of tax where burden of tax is …………....... on payer.
a) directly b) indirectly

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 Basic Concept CS EXECUTIVE CA VIVEK GABA
c) either a) or b) d) none of these
10. The provision of income tax is governed under which act`
a) Income tax Act, 1961 b) Income tax Act, 1922
c) Direct tax code d) All of the above
11. Decisions pronounced by ...... becomes law.
a) Supreme Court b) High Court
c) Income tax Appellate Tribunal d) None of the above
12. ............. capital is that capital which is turned over in business and results in profit or loss
a) fixed b) circulating c) any d) none
13. ...... capital is not directly involved in business
a) fixed b) circulating c) any d) none
14. A newly set up business coming into existence, the first previous year will commence from
a) Date of set up of business b) 1st April of previous year
c) Any date after set up of business d) one day before date of set up of business
15. Exemption limit of ` 3,00,000 or ` 5,00,000 is applicable for
a) Resident Individual b) Non-resident Individual
c) Both resident and non-resident Individual d) none of them
16. A resident individual aged 70 year shall be allowed exemption of
a) ` 2,50,000 b) ` 3,00,000 c) ` 5,00,000 d) Nil
17. A non-resident individual who is 85 years of age shall be allowed exemption of ........ from taxable
income
a) ` 5,00,000 b) ` 2,00,000 c) ` 2,50,000 d) Nil
18. Which of the following is not an example of capital receipt?
a) money received on issue of shares b) money received on sale of land
c) money received on sale of goods d) none of the above
19. Income tax is charged on the basis of rate prescribed by
a) Income tax Act b) Finance Act
c) Central Board of Direct Taxes d) Ministry of Law
20. Income includes
a) only legal income b) Illegal income
c) both legal and illegal d) None of them
21. Charging section of income tax is
a) Section 4 b) Section 9 c) Section 15 d) Section
28
22. Rebate under section 87A is allowed to
a) Resident individual b) any individual (resident or non-resident)
c) Resident individual and HUF d) all assessee
23. Rebate under section 87A shall be allowed to the maximum extent of
a) ` 2,500 b) ` 12,500 c) ` 5,000 d) tax payable
24. Any rent or revenue derived from land may be treated as agricultural income if
a) It is derived from land b) the land is used for agricultural purposes
c) the land is situated in India d) All of the above condition shall be satisfied
25. Which of the following income is an agricultural income
a) Income from brick making
b) Income from agricultural land situated in Pakistan
c) Prize from Government on account of higher crop yield
d) Compensation received from insurance company on account of loss of crop
26. Which of the following income is not included in term income under the Income tax Act, 1961
a) Profit and gains b) Dividend from foreign company
c) Profit in lieu of Salary d) Reimbursement of travelling expenses
27. A person includes:
a) Only Individual
b) Only Individual and HUF

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 Basic Concept CS EXECUTIVE CA VIVEK GABA
c) Individuals, HUF, Firm, Company only
d) Individuals, HUF, Company, Firm, AOP/ BOI, Local Authority, Every Artificial Juridical Person
28. Every assesse is a person, and
a) every person is also an assessee b) every person need not be an assessee
c) an individual is always an assessee d) A HUF is always an assessee
29. Describe the status of the following person, X and Y are legal heirs of Z. Z died in 2019 and X and Y
carryon his business without entering into a partnership.
a) Firm b) Limited Liability Partnership
c) Company d) Body of Individual
30. Assessment year is a period of
a) more than 12 months b)12 months and less than 12 months
c) 12 months only d)12 months and more than 12 months
31. All assessee are required to follow
a) uniform previous year which must be calendar year only
b) uniform previous year which must be financial year only
c) any period of12 months
d) Period starting from 1st July to 30th June only
32. First previous year in case of a business/ profession newly set up on 31.3.2021 would:
a) Start from 1st April, 2020 and end on 31st March, 2021
b) Start from 31st March, 2021 and will end on 31st March, 2021
c) Start from 1st January, 2021 and end on 31st December, 2021
d) Start from1st January, 2021 and will end on 31st March, 2021
33. A person follows Calendar year for accounting. For taxation, he has to follow:
a) Calendar year only-1st January to 31st December
b) Financial year only-1st April to 31st March
c) Any of the Calendar or Financial year as per his choice
d) He will have to follow extended year from 1 January to next 31 March (period of15 months)
34. In which of the following cases, income of previous year is assessable in previous year itself:
a) Assessment of persons leaving India
b) A person in employment in India
c) A person who is into illegal business
d) A person who is running a charitable institution
35. As per section 115BAC, In case of female individual, who is of 65 years of age, what is the maximum
exemption limit for AY 2021-22
a) ` 2,50,000 b) ` 3,00,000 c) ` 5,00,000 d) Nil
36. Calculate Income-tax payable by an Individual (aged 30 years) for AY 2021-22 if his total income is `
1,01,00,000 (not opt out 115BAC):
a) ` 33,21,500 b) ` 28,42,500 c) 30,93750 d) ` None
37. Out of the following, which capital receipt is not taxable?
a) Capital gains of ` 10,00,000
b) Amount of` 5,00,000 won by way of lottery, games, puzzles
c) Amount of` 2,00,000 received by way of gift from relatives
d) Amount of` 1,00,000 received by way of gift from a friend on marriage anniversary
38. Total income is to be rounded off to nearest multiple of....... and taxis to be rounded off to nearest
multiple of.........
a) Ten, Rupee b) Hundred, Ten c) Ten,Ten d)Rupee,
Rupee
39. Assessee is always a person but a person may or may not be an assessee.
a) True b) False c) Partly true d) None of the
above
40. A person may not have assessable income but may still be assessee

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 Basic Concept CS EXECUTIVE CA VIVEK GABA
a) True b) False c) Partly true d) None of the
above
41. A new business was set up on 15-11-2020 and commenced business from 1-12-2020. The first
previous year in this case shall be:
a) 15-11-2020 to 31-3-2021 b) 1-12-2020 to 31-3-2021
c) 2021-2022 d) 2020-21
42. Surcharge in case of an individual or HUF for assessment year 2021-22 is payable at rate of:
a) 12% of the income-tax payable provided the total income exceed ` 6,00,000.
b) 10% of the income-tax payable provided the total income exceeds ` 50,00,000
c) 5% of the income-tax payable if the total income exceeds ` 1,80,50,000
d) 15% of the income-tax payable provided the total income exceeds ` 90,00,000
43. The maximum amount on which income-tax is not chargeable in case of firm is:
a) ` 2,00,000 b) ` 2,50,000 c) ` 5,00,000 d) Nil
44. A co-operative society is taxable at flat rate of 30% on Total Income
a) True b) False c) Partly true d) None of the
above
45. Health & Education cess is leviable in case of
a) An individual and HUF b) A company assessee only
c) All assesses d) Only Individual
46. In case of an individual and HUF, H & EC is leviable only when total income of such assessee
a) exceeds ` 10,00,000 b) always levied, irrespective of level of income
c) exceeds ` 7,00,000 d) exceeds ` 1,00,00,000
47. The total Income of the assessee has been computed as ` 2,53,494.90. After rounding off, total
Income will be taken as ……….
a) ` 2,53,500 b) ` 2,53,490 c) ` 2,53,495 d) `
2,54,000
48. A circular of the CBDT u/s 119 of the Income tax Act 1961
a) can override or detract from the Act b) cannot override or detract from the Act
c) may override the entire act d) None of the above
49. The circulars issued by CBDT are binding on:
a) Assessee b) Income-tax Authorities i.e. Assessing Officers
c) Both the above d) None of the above
50. Decision passed by Supreme Court is binding on
a) All courts and tribunal b) Income tax authorities
c) Assessee d) All of the above
51. The amount of Health & Education cess to be collected along with income tax for the assessment
year 2021-22 is
a) 2% b) 1% c) 4% d) Nil
52. Calculate rebate available u/s 87A to resident HUF having total income of` 3,00,000.
a) ` 3,000 b) ` 1,500 c) ` 2,000 d) Nil
53. Calculate rebate available u/s 87A to a resident individual having total income of` 6,00,000.
a) ` 3,000 b) ` 1,500 c) ` 12,500 d) Nil
54. Rebate under section 87A is allowed only on fulfillment of which condition
i) Assessee should be resident individual
ii) the Total Income of assessee is upto` 5,00,000
iii) All assessee
a) (i) and (ii) b) only (ii) c) (ii) and (iii) d) (iii)
55. Income of a business commenced & Set-up on 1stMarch, 2021 will be assessed during the
assessment year…………………….?

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 Basic Concept CS EXECUTIVE CA VIVEK GABA
a) 2021-2022 b) 2020-2021 c) 2019-2020 d) 2018-
2019
56. The maximum exemption limit under the income Tax Act ,1961 in case of a women who is 65 year of
age and who is non-resident in India is ` …………………………?
a) 2,00,000 b) 2,50,000 c) 3,00,000 d)
5,00,000
57. The tax payable or refund due to an assessee is to be rounded off to the nearest…………?
a) 10 b) 1 c) 100 d) None of the
above
58. Accounting standard notified under section 145 is applicable for ………… system of accounting?
a) Cash b) mercantile c) Hybrid d) None of the
above
59. AOP should consist of :
a) Individual only b) Persons other than individual only
c) Both the above d) None of the above
60. Body of individual should consist of:
a) Individual only b) Persons other than individual only
c) Both the above d) None of the above
61. From which entry does Central Government get power to levy Income tax
a) Entry 97 of Union List b) Entry 92C of Concurrent List
c) Entry 82 of Union List d) Entry 92C of State List
62. In case of partnership firm Surcharge is applicable when:
a) if its total income exceeds ` 1 crore
b) if total income exceeds ` 2 crore
c) Surcharge is not applicable on firm
d) its total income exceeds ` 50 lakhs
63. Finance Act is ……………
a) white paper presented for introduction of Income tax act
b) an act containing notifications, circulars issued by CBDT
c) an annual act in which amendment of Income tax, service tax etc. is contained
d) none of the above
64. Aggregate of incomes computed under five heads of income after applying clubbing provisions and
making adjustments of set off, carry forward and set off the losses is known as ………
a) Taxable income b) Gross Total income
c) Total Income d) Net Income
65. Hindu undivided family (HUF) includes:
a) Family of Muslims, Christians b) family of Jains, Sikhs, Buddhist
c) Both of the above d) None of the above
66. Surcharge is calculated as a % of ……….
a) Gross Total income b) Basic Tax
c) Total Income d) Tax + Total income
67. A joint family of Mr. Ravi, Mrs. Ravi and their son Raj and daughter Simmy is a
a) HUF b) Firm c) BOI d) Artificial judicial
person

68. Rates of tax on ‘Special income’ is:

a) remains same for all type of person b) vary from person to person
c) Any of the above d) None of the above
69. A person leaves India permanently on 15-11-2020. The assessment year for income earned till 15-
11-2020 in this case shall be:
a) 2019-20 b) 2020-21 c) 2021-22 d) None of the
above
70. A local authority is taxable at flat rate of income-tax

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 Basic Concept CS EXECUTIVE CA VIVEK GABA
a) True b) False c) Partly true d) None of the
above
71. Income tax is a form of
a) Direct tax b) Indirect tax
c) Either a) or b) d) none of them
72. Which of the following are deducted to compute tax payable
a) Tax deducted and collected at source b) Advance tax
c) Double Taxation relief d) All of the above
73. Light Ltd., a domestic company has income of 10 crore, what rate of surcharge is applicable on
same
a) 10% b) 2% c) 7% d) Nil
74. The rate of tax applicable to a firm for A.Y. 2021-22 is -
a) 30% b) 35% c) 40% d)
20%
75. The rate of tax applicable to a domestic company for A.Y. 2021 -22 if company T.O in P.Y 2018-19
was 343 crore is -
a) 30% b) 25% c) 40% d)
45%
76. If a domestic company has income of ` 11 crore, surcharge at the rate of ...... is applicable
a) 12% b) 7% c) 5% d) Nil
77. Income of …......... year of an assessee is taxed during ............ year.
a) financial year, previous year b) assessment year, previous year
c) previous year, assessment year d) previous year, financial year
78. Corporate society is taxable at the flat rate of 22% under section 115BAD. Is the statement valid
a) valid b) invalid c) Partially valid d) none of
them
79. Surcharge @..... shall be levied if total income of Individual exceeds ` 5 crore.
a) 25% b) 37% c) 15% d) Nil
80. Assessment of person leaving India under section 174 is done in relevant …………………..
a) Assessment Year b) Previous Year c) Financial Year d)
Exempt
81. Salary received from member of parliament is taxable under the head
a) PGBP b) Salary
c) Other Sources d) None of the above
82. Year in which income is taxable is known as …… & year in which it is earned is known as ......
a) Previous year, Assessment year b) Assessment year, Previous year
c) Assessment year, financial year d) financial year, Previous year
83. Mrs. V (Age 82 year) is resident in India for the assessment year 2021-22. For the previous year
2020-21, her income chargeable to tax in India is ` 8,30,000. Find out Tax liability as per section
115BAC.
a) 81,640 b)49,500 c) 51,480 d)
78,500
84. Mr. V, resident in India for the assessment year 2021-22. For the previous year 2020-21, his income
chargeable to tax in India is ` 15,00,000. Find out Tax liability as per section 115BAC if born on (i) 15th
th
Jan, 1941 (ii) 15 Jan, 1961 (without cess)
a) 187500 both case b) 195000 both case
c) 2,70,400 / 2,60,000 d) None of the above
85. Income-Tax Act Extends to:
a) Whole of India b) Whole of India except J&K
c) Whole of India except Sikkim d) Whole of India except J&K and Sikkim
86. Surcharge on Income-Tax is payable by:
a) All Assessee subject to total income b) Indian Company
c) Foreign company d) Firm & Company Only

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 Basic Concept CS EXECUTIVE CA VIVEK GABA
87. The maximum amount on which income tax is not chargeable in case of HUF for assessment year
2021-22.
a) 2,00,000 b) 2,20,000 c) 2,50,000 d)
1,80,000
88. The maximum amount on which income tax is not chargeable in case of AOP/BOI for assessment
year 2021-22.
a) 1,00,000 b) 2,50,000 c) 2,00,000 d) Nil
89. The Total Income of the assessee has been computed as ` 2,53,435.80. For rounding off, the total
income will be taken as:
a) 2,53,430 b) 2,53,433 c) 2,53,432 d)
2,53,440
90. Rebate u/s 87 is not available to:
a) All Individual & HUF b) Firm
c) Resident Individual d) A & B
91. Tax computed is 8,256.12. After rounding off tax payable is:
a) 8,250 b) 8,256 c) 8,257 d)
8,260
92. Marginal relief is allowed in case of individual if Total Income exceeds:
a) 10 Lakhs b) 50 Lakh c) 10 Crore d) 100
Crore
93. Special rate (Flat rate) of Income Tax prescribed by –
a) Finance Act b) Income Tax Act d) Both of the above d) None
94. Newly inserted Special Rate / Specific Rate of Income Tax prescribed ubder –
a) Section 115BAA b) Section 115BAC d) Section 115BAB d) None

95. The tax liability of Mr. Saral, who attained the age of 60 years on 01.04.2021 and does not opt for
the provisions of section 115BAC for the P.Y. 2020-21, on the total income of ` 5,60,000,
comprising of salary income and interest on fixed deposits, would be -
(a) 9,880 (b) ` 22,880 (c) ` 25,480 (d) Nil
96. The tax liability of Nirlep Co-operative Society (does not opt to pay tax under section 115BAD) on
the total income of ` 90,000 for P.Y. 2020- 21, is -
(a) ` 24,000 (b) ` 28,080 (c) Nil (d) ` 24,960
97. What is the amount of marginal relief available to Sadvichar Ltd., a domestic company on the total
income of ` 10,03,50,000 for P.Y. 2020- 21 (comprising only of business income) whose turnover
in P.Y. 2018- 19 is ` 450 crore, paying tax as per regular provisions of Income-tax Act? Assume
that the company does not exercise option under section 115BAA.
(a) ` 9,98,000 (b) ` 12,67,600 (c) ` 3,50,000 (d) `
13,32,304
98. The tax payable by Dharma LLP on total income of ` 1,01,00,000 for P.Y. 2020-21, is -

(a) ` 35,29,340 (b) ` 32,24,000 (c) ` 33,21,500 (d) ` 31,51,200

99. whether Health & education cess are applicable when tax calculate as per section 115BAC ?
a) Yes @ 4% b) Not applicable c)Yes @ 3% d) None of the above

100. The tax liability of Nirlep Co-operative Society (opt to pay tax under section 115BAD) on the
total income of ` 80,000 for P.Y. 2020- 21, is –

a) 20,130 b) 18,300 c) 17,600 d) 20,134

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 Basic Concept CS EXECUTIVE CA VIVEK GABA

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Residential Status MCQs CA VIVEK GABA CS - EXECUTIVE

Chapter Two
Residential Status
OBJECTIVE QUESTIONS

Amended by Finance Act 2020

1. Total income is based on / total income varies according to:
a) residential status of assessee b) citizenship of assessee
c) both A and B d) none of the above
2. ………………… is determined for each category of persons separately:
a) Residential status b) Citizenship c) Originship d) All the above

1. A person may be resident in ………… in any previous year:

a) more than one country b) only one country
c) only two country d) none of the above
2. A person may be a ……………………. but may not be…………….
a) citizen of India, resident of India b) resident of India, citizen of India
c) Both a) and b) d) None of the above
3. Individual is a resident in India if he is in India for a period or periods amounting in all to:
a) more than 182 days b) 182 days or more
c) less than 182 days d) 60 days or more
4. The condition of 182 days or more shall be checked in:
a) relevant previous year b) relevant assessment year
c) relevant calendar year d) relevant valuation date
5. In case of exception in basic condition, which of the following condition will be checked:
a) stay in India for 182 days or more
b) stay in India 120 days or more and 365 days or more in 4 I.P.P.Y
c) both A or B depend on case
d) None of the above
6. For an assessee to fall in exception, he should leave India:
a) for the purpose of employment
b) in the course of employment
c) for the purpose of employment or member of crew of an Indian ship
d) None of the above
7. In case when left India for the purpose of employment, the condition of 182 days or more should
be checked in the relevant previous year in which:
a) He/ she left India b) He/ she visits India
c) Both a) and b) d) None of the above
8. In case when Indian citizen visit in India, the condition of 120 days or more must be checked in
the relevant previous year in which
a) he visits India b) he left India
c) depends upon the residential status of assessee d) None of the above
9. A person merely undertakings tours abroad in connection with his employment in India would
a) avail relaxation of exception one in section 6

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Residential Status MCQs CA VIVEK GABA CS - EXECUTIVE

b) not avail relaxation of exception one in section 6

c) no provision in law
d) None of the above
10. In computing the period of stay in India it is …………………. that stay should be for a ……..
a) not necessary, continuous period b) necessary, continuous period
c) Either a) and b) d) None of the above
11. Which of the following statement is false?
a) Presence in territorial waters of India (TWI) would also be regarded as present in India
b) Place and purpose of stay is immaterial
c) Residential status shall be determined in relevant P.Y
d) In computing period stay in India, day of entry & leaving India are not considered as stay in
India
12. HUF will become Non-resident if:
a) control & management is wholly situated outside India
b) control & management is partly in India and partly outside India
c) control & management is wholly situated India
d) None of the above
13. Indian company is said to be resident in India if:
a) Control wholly or partly in India b) Always resident
c) Control wholly in India c) Control wholly outside India
14. If foreign company POEM is in India, then it is( T.O is upto Rs 50 cr.):
a) Non-resident in India b) Resident in India
c) RNOR in India d) None of the above
15. If the POEM of an Indian company is wholly outside India, then company will become:
a) Resident in India b) Non-resident in India
c) RNOR in India d) None of the above
16. An individual, resident in India, shall be resident and ordinary resident in India if he satisfies
a) Any one basic condition b) Both additional condition
c) Both basic condition d) Any one additional condition
17. In 2nd additional condition, assessee should have stayed in India for:
a) more than 730 days during 7 immediately preceding previous year
b) 730 days or more during 7 immediately preceding previous year
c) 365 days or more during 4 immediately preceding previous year
d) 182 days or during relevant immediately preceding previous year
18. HUF which is Resident India shall be said to ROR in India if:
a) any adult of HUF satisfies both additional conditions
b) Karta of HUF satisfies any one basic condition
c) Karta of HUF satisfies both additional conditions
d) Karta of HUF satisfies any one additional condition
19. Past untaxed profit of the financial year 2006-07 brought to India in 2020-21 is chargeable to tax
in the assessment year 2021-22 in hands of:
a) All the assessee b) ROR
c) Non-resident in India d) None of the above
20. A person say, Mr. X resident has been non-resident in 9 out of 10 preceding previous year; his
residential status is:
a) Resident in India b) Non-resident in India
c) ROR in India d) RNOR in India
21. Income accruing from agriculture activity in foreign country is taxable in case of an assessee
who is:
a) Resident/ Resident and ordinarily resident b) Resident and not ordinarily resident
c) Non-resident d) None of the above

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Residential Status MCQs CA VIVEK GABA CS - EXECUTIVE

22. Foreign income received in India during the previous year is taxable case of which assessee:
a) Resident b) Not-ordinarily resident
c) Non-resident d) All the above
23. Income earned and received outside India but later remitted to India, is taxable in case of:
a) All assessee b) ROR
c) Non-resident d) None of the above
24. An individual born in India left for employment from India to France on 30.10.2020. He visited
outside India for the first time. His residential status for the assessment year 2021-22 will be
a) ROR b) RNOR c) Non-resident d) None of the above
25. Income which accrue or arise outside India from business controlled from India is taxable in
case of:
a) ROR b) Non-resident
c) Both ROR & RNOR d) All of the above
26. A resident in India cannot become resident in any other country for the same previous year:
a) True b) False
c) Partly true partly false d) None of the above
27. “X” was born on 5th May, 1992 in India & later on took the citizenship of U.S.A. Neither his
parents nor his grandparents were born in divided/ undivided India. “X” in this case shall be:
a) Citizen of India b) Person of Indian origin
c) A foreign national d) None of the above
28. “X”, a foreign national visited India during the previous year 2020-21 for 180 days. He had never
visited India prior to this visit. “X” in this case shall be:
a) Resident in India b) Non-resident in India
c) RNOR d) None of the above
29. Salary payable by Government to an Indian citizen who is non-resident in India for services
rendered outside India is not taxable in India:
a) True b) False
c) Partly true partly false d) None of the above
30. Steve Waugh, the Australian cricketer comes to India for 100 days every year. Find out his
residential status for the A.Y. 2021-22.
a) Non-resident b) ROR
c) RNOR d) None of the above
31. Mr. C, a Japanese citizen left India after a stay of 10 years on 01.06.2019. During financial year
2020-21, he came to India for 46 days. Later, he returned to India for 1 year on 10.10.2020.
Determine his residential status for the A.Y. 2018-19.
a) Resident & ROR in India b) RNOR
c) Non-resident in India d) None of the above
32. Wipro Ltd., Indian company has most of its business o/s India. Determine its residential status.
a) Resident b) Non-resident c) RNOR d) None of the above
33. Mr. NishantKhurana earns the following income during the financial year 2020-21:
I. Income from house property in London, received in India 60,000
II. Profits from business in Japan and managed from there (received in Japan) 9,00,000
III. Dividend from foreign company, received in India 30,000
IV. Dividend from Indian company, received in England 50,000
Compute his income presuming that he is ROR, RNOR and NR.
a) 9,90,000 / 90,000 / 90,000 b) 10,40,000 / 1,40,000 / 1,40,000
c) 10,40,000 / 90,000 / 90,000 d) None of the above
34. Mr. Nishant Khurana earns the following income during the financial year 2020-21:
I. Past untaxed profits of UK business of 2015-16 brought into India in 2020-21 90,000
II. Interest on Government securities accrued in India but received in Paris 80,000
III. Interest on USA Government securities, received in India 20,000

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Residential Status MCQs CA VIVEK GABA CS - EXECUTIVE

Compute his income presuming that he is ROR, RNOR and NR.

a) 1,00,000 each b) 80,000 each
c) 1,90,000 each d) None of the above
35. Income accrued outside India and received outside India is taxable in case of:
a) Resident and ordinary resident(ROR) b) Resident but not ordinary resident(RNOR)
c) Non-resident d) ROR, RNOR and Non-Resident
36. An Indian company would:
a) be resident in India if its POEM is wholly situated in India
b) be resident in India if its POEM is wholly or partly situated in India
c) be resident in India if its POEM is wholly situated outside India
d) be always resident in India irrespective of POEM
37. Determine the residential status of a HUF if HUF's control and management is wholly situated in
India and Karta of HUF is a Non-resident in India for that previous year.
a) Resident and Ordinary Resident(ROR) b) Resident but not ordinary resident (RNOR)
c) Non-Resident (NR) d) Either ROR or RNOR
38. Profits of ` 2,00,000 is earned from a business in USA which is controlled in India, half of the
profits being received in India. How much amount is taxable in India for a Non- resident
individual?
a) ` 2,00,000 b) Nil c) ` 1,00,000 d) ` 3,00,000
39. Foreign income received in India during the previous year is taxable in the case of
a) Resident b) Not ordinarily resident
c) Non-resident d) All of the above
40. If Anirudh has stayed in India in the P.Y. 2020-21 for 181 days, and he is non-resident in 9 out
of 10 years immediately preceding current previous year and stayed in India for 365 days in all
in 4 years immediately preceding current previous year and 420 days in all in 7 years
immediately preceding current previous year, his residential status for AY 2021-22 would be
a) Resident and ordinarily resident b) Resident but not ordinarily resident
c) Non-resident d) None of the above
41. Incomes accruing or arising outside India but received directly into India are taxable in case of
a) Resident only b) Both ordinarily resident and NOR
c) Non-resident d) All of the above
42. Income which accrue or arise outside India and also received outside India taxable in case of:
a) ROR only b) not ordinarily resident
c) both ordinarily resident and NOR d) none of the above
43. Once a person is resident for a source of income in a particular previous year he shall be
deemed to be resident for all other sources of income in the same previous year
a) True b) False
c) Partly true d) None of the above
44. Once a person is resident for a source of income in a particular previous year he shall be
deemed to be resident for same sources of income in the all previous year
a) True b) False
c) Partly true d) None of the above
45. R Ltd. is registered in U.K. The POEM situated in India. R Ltd shall be [ T.O is 100 cr] :
a) Resident in India b) Non-resident in India
c) Not ordinarily resident in India d) None of the above
46. R, a foreign national visited India during previous year 2020-21 for 180 days. Earlier to this he
never visited India. R in this case shall be:
a) Resident in India b) Non-resident in India
c) Not ordinarily resident in India d) None of the above
47. A person is said to be resident in India if he satisfies:
a) Any one basic condition b) Both basic condition

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Residential Status MCQs CA VIVEK GABA CS - EXECUTIVE

c) Both additional conditions d) Any one additional condition

48. A company other than an Indian company would be a resident in India for the previous year
2020-21, if during that year its…………….. is situated in India?
a) Control b) Management
c) place of effective management d) Any of the above
49. The residential status of an assessee is determined in relevant…………….?
a) Previous year b) Assessment year
c) Calendar year d) None of the above
50. The incidence of tax on any assessee depends upon this………………. under this act?
a) Residential status b) Originship of country
c) Citizenship of country d) All the above
51. An Indian company is always resident in India no matter where and to what extent its place of
effective management is situated?
a) True b) False c) Partly true d) None of the above
52. Vivek ltd. is a company registered in Japan [ T.O is 60 cr]. The POEM is wholly situated in o/s
India. Vivek ltd is non-resident company in India?
a) True b) False c) Partly true d) None of the above
53. Income accruing in India in the previous year is taxable for;
a) Resident b) Not ordinary resident
c) Non-resident d) All the above
54. Profits of `1,00,000 for the year 2019-20 of business in Germany remitted to India during the
previous year 2020-21 (not taxed earlier) would be:
a) Taxable in India for ROR only b) Not taxable in India for all
c) Taxable in India for all (ROR, RNOR and NR) d) Taxable only for RNOR and NR
55. Residential status is determined for each category of person:
a) Jointly b) Separately
c) Both a) and b) d) None of the above
56. A firm, AOP, etc. is said to be resident in India in any previous year if:
a) Control & management is wholly or partly in India
b) Control & management is wholly situated outside India
c) Control & management is wholly in India
d) None of the above
57. In case of assessee being individual, if none of the basic condition is satisfied then he will be
a) Resident in India b) RNOR in India
c) Non-resident in India d) ROR in India
58. In the following cases assessee will become resident in India in previous year:
a) if his stay in India is 182 days or more in relevant previous year
b) if his stay in India is 60 days or more in relevant PY and 365 days or more in 4 I.P.P.Y
c) either of above
d) None of the above
59. No person other than individual or HUF can be RNOR in India:
a) True b) False c) Partly true d) None of the above
60. A person of Indian origin means if parents or grandparents of person were born ……… in India
a) before 1947 b) before 1857
c) before 1950 d) after 1947
61. Which of the following assessee may be ROR after being resident in India:
a) Individual b) HUF
c) Company d) Both a) and b)
62. Which of the following assessee may be “RNOR” in India:
a) Partnership firm b) Joint stock company
c) Association of persons d) Hindu undivided family

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Residential Status MCQs CA VIVEK GABA CS - EXECUTIVE

63. Mr. B, a Canadian citizen, comes to India for the first time during the P.Y.2016-17. During the
financial years 2016-17, 2017-18, 2018-19, 2019-20 and 2020-21 he was in India for 55 days,
60 days, 90 days, 150 days and 70 days respectively. Determine his residential status for the
A.Y. 2021-22.
a) Resident in India b) RNOR
c) Non-resident in India d) None of the above
64. Mr. D, an Indian citizen, leaves India on 22.11.2020 for the first time, to work as an officer of a
company in France. Determine his residential status for the A.Y. 2021-22.
a) Resident &ordinarily resident in India b) RNOR
c) Non-resident d) None of the above
65. Dividend from British Co. of ` 2,00,000 received in London will be taxable in case of:
a) Resident and ordinary resident (ROR) only b) Not ordinary resident (NOR) only
c) Non-resident (NR) only d) ROR, NOR and NR all
66. Income which accrue outside India from a business controlled from India is taxable in case of
a) Resident only b) Not ordinarily resident only
c) Both ordinarily resident and NOR d) Non-resident
67. An income of 6,00,000 from profession which is set up in India but controlled from USA. The
income neither accrues in India nor received in India. it will be taxable in India in the hands of
a) Resident and ordinarily resident b) Non ordinarily resident
c) Both of the above d) None of the above
68. “X” was born England. His parents were born in India in 1951 and his Grand Parents were born
in South Africa. “X” in this case shall be:
a) A person of Indian origin b) A foreign national
c) Both a) and b) d) None of the above
69. Mr. Akash Tanwar has following income:
 Income from business in Germany amounting to ` 3,00,000 and half of it received in India
 Interest income of ` 1,00,000 from UK Development Bond and entire interest income was
credited to a bank account in UK..
 He has a business in Bombay and entire income of ` 3,00,000 was received in UK.
 Compute his income presuming that he is ROR, RNOR and NR.
a) 7,00,000 / 4,50,000 / 4,50,000 b) 7,00,000 / 5,50,000 / 4,50,000
c) 7,00,000 / 6,00,000 / 4,50,000 d) 7,00,000 / 7,00,000 / 4,50,000
70. Vivek was born 2nd August, 1992 in India and he later on took the citizenship of U.S.A Neither
his parents nor his grandparents were born in undivided India Vivek in this case shall be a:
a) Person of Indian origin b) Foreign national
c) Citizen of India d) Resident in India
71. Vivek was born in India in 1992. His parents were born in India 1952. His grandfather was born
in Lahore in 1937 but his grand-mother was born in England in 1941. Vivek will be a:
a) Citizen of England b) Person of Indian origin
c) Citizen of pakistan d) Resident of Lahore
72. Vivek, Foreign National, but a person of India origin visited India during previous year 2020-21
for 181 days. During 4 preceding previous year he was in India for 400 days. Vivek shall be:
a) Resident in India b) RNOR
c) Non-resident d) None of the above

73. “Place of effective management” is defined in the Act to mean a place where _______ that are
necessary for the conduct of the business of an entity as a whole are, in substance, made
a) key management and commercial decisions
b) key management
c) commercial decisions

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d) key management or commercial decisions

74. A Company shall be said to be engaged in “active business outside India” if –
a) the PASSIVE INCOME is not more than 50% of its total income; and
b) less than 50% of its total assets are situated in India; and
c) less than 50% of total number of employees are situated in India or are resident in
India; and
d) the payroll expenses incurred on such employees is less than 50% of its total
payroll expenditure.
e) all the above conditions are satisfied.
75. Passive income” of a company shall be aggregate of, –
a) income from the transactions where both the purchase and sale of goods is from / to
its associated enterprises[AE]; and
b) income by way of royalty, dividend, capital gains, interest or rental income;
c) both A & B
d) None of the above
76. The guidelines for determining POEM as given in circular dated 24.01.2017 shall apply to a
company having turnover or gross receipts __________ in the financial year.
a) exceeding Rs. 50 crores
b) 50 Crores or More
c) Less than 50 Crores
d) Exact 50 Crore
77. Company A Co. is a sourcing entity, for an Indian multinational group, incorporated in
country X and is 100% subsidiary of Indian company (B Co.). The warehouses and stock in
them are the only assets of the company and are located in country X. All the employees of
the company are also in country X. The average income wise breakup of the company’s total
income for three years is, :
i. 30% of income is from transaction where purchases are made from parties which are
non-associated enterprises and sold to associated enterprises;
ii. 30% of income is from transaction where purchases are made from associated
enterprises and sold to associated enterprises;
iii. 30% of income is from transaction where purchases are made from associated
enterprises and sold to non-associated enterprises; and
iv. 10% of the income is by way of interest.
Where is the Active business?
a) Active business Situated in India
b) Active business Situated outside India
c) Active business party in India and Partly outside India
d) None of the above
78. The other facts remain same as that in Question 76 with the variation that A Co. has a total
of 50 employees. 47 employees, managing the warehouse, storekeeping and accounts of
the company, are located in country X. The Managing Director (MD), Chief Executive Officer
(CEO) and sales head are resident in India. The total annual payroll expenditure on these 50
employees is of Rs. 5 crore. The annual payroll expenditure in respect of MD, CEO and
sales head is of Rs. 3 crore. Where is the active Business ?
a) A Co. is not engaged in active business outside India.
b) A Co. is engaged in active business outside India.
c) Party in India and Partly outside India
d) None of the above

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79. The basic facts are same as in Question 76. Further facts are that all the directors of the A
Co. are Indian residents. During the relevant previous year 5 meetings of the Board of
Directors is held of which two were held in India and 3 outside India with two in country X
and one in country Y. where is the POEM situated now?
a) The POEM of A Co. shall be presumed to be outside India
b) The POEM of A Co. shall be presumed to be in India
c) Company is Resident in India irrespective of the POEM
d) None of the above

80. - Profits on sale of a building in India but received in Holland – Rs. 20,000
- Pension from former employer in India received in Holland – Rs. 14,000
- Interest on U.K. Development Bonds (1/4 being received in India) – Rs. 20,000
Compute taxable Income in hands of ROR/RNOR/NR
a) ROR – 54,000, RNOR – 39,000, NR – 39000
b) ROR – 54,000, RNOR – 49,000, NR – 39000
c) ROR – 54,000, RNOR – 54000, NR – 39000
d) ROR – 54,000, RNOR – 39,000, NR – 34000

81. - Past untaxed foreign income brought into India during the year-Rs. 25,000
- Dividends from a German company credited to his account in Pakistan- Rs. 35,000
- Dividends declared but not received from an Indian company- Rs. 20,000
- Agricultural income from Burma not remitted to India-Rs. 40,000
Compute Taxable income in hands of ROR/RNOR & NR
a) ROR – 95,000, RNOR –20,000, NR – 20,000
b) ROR – 1,20,000, RNOR – 40,000, NR – Nil
c) ROR – 54,000, RNOR – 60000, NR – 40000
d) ROR – 75,000, RNOR – 40,000, NR – 40000

82. An individual, being an Indian citizen, having total income, other than the income from
foreign sources [i.e., income which accrues or arises outside India (except income from a
business controlled from or profession set up in India) and which is not deemed to accrue
or arise in India], exceeding ` 15 lakhs during the previous year would be deemed to be
_________ in India in that previous year, if he is not liable to pay tax in any other country or
territory by reason of his domicile or residence or any other criteria of similar nature

a) Resident
b) Non Resident
c) RNOR
d) None of the above

83. If such individual is an Indian citizen who is deemed to be resident in India

under section 6(1A) [It may be noted that a deemed resident will always be a
___________].
a) ROR
b) RNOR
c) NR
d) None of the above

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84. Mr. Dey, a non-resident, residing in US since 1990, came back to India on
1.4.2019 for permanent settlement. What will be his residential status for
assessment year 2021-22?
a) RNOR
b) ROR
c) NR
d) None of the above

85. Aashish earns the following income during the P.Y. 2020-21:
 Interest on U.K. Development Bonds (1/4th being received in India): `
4,00,000
 Capital gain on sale of a building located in India but received in Holland: `
6,00,000
If Aashish is a resident but not ordinarily resident in India, then what will be amount
of income chargeable to tax in India for A.Y. 2021-22?
a) 7,00,000 b) 10,00,000 c) 6,00,000 d) 1,00,000

86. Mr. Sumit is an Indian citizen and a member of the crew of an America bound Indian
ship engaged in carriage of freight in international traffic departing from Chennai on 25th
April, 2020. From the following details for the P.Y. 2020-21, What would be the
residential status of Mr. Sumit for A.Y. 2021-22, assuming that his stay in India in the
last 4 previous years preceding P.Y. 2020-21 is 365 days and last seven previous years
preceding P.Y. 2020-21 is 730 days?
 Date entered in the Continuous Discharge Certificate in respect of joining
the ship by Mr. Sumit: 25 th April, 2020
 Date entered in the Continuous Discharge Certificate in respect of signing
off the ship by Mr. Sumit: 24th October, 2020
Mr. Sumit has been filing his income tax return in India as a Resident for the
preceding 2 previous years.
(a) Resident and ordinarily resident
(b) Resident but not-ordinarily resident
(c) Non-resident
(d) Deemed RNOR
87. Mr. Square, an Indian citizen, currently resides in Dubai. He came to India on a visit and
his total stay in India during the F.Y. 2020-21 was 135 days. He is not liable to pay any tax
in Dubai. Following is his details of stay in India in the preceding previous years:

Financial Year Days of Stay in India

2019-20 100
2018-19 125

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2017-18 106
2016-17 83
2015-16 78
2014-15 37
2013-14 40
What shall be his residential status for the P.Y. 2020-21 if his income (other than
income from foreign sources) is ` 10 lakhs?
(a) Resident but Not Ordinary Resident (RNOR)
(b) Resident and Ordinary Resident
(c) Non-resident
(d) Deemed Resident but not ordinarily resident

88. Dividend income from Australian company received in Australia in the year 2019,
brought to India during the previous year 2020-21 is taxable in the A.Y.2021-22 in the case
of –
(a) resident and ordinarily resident only
(b) both resident and ordinarily resident and resident but not ordinarily resident
(c) non-resident
(d) None of the above
89. Mr. Ramesh, a citizen of India, is employed in the Indian embassy in Australia. He is a
non-resident for A.Y. 2021-22. He received salary and allowances in the Australia from the
Government of India for the year ended 31.03.2021 for services rendered by him in
Australia. In addition, he was allowed perquisites by the Government. Which of the
following statements are correct?
(a) Salary, allowances and perquisites received outside India are not taxable in
the hands of Mr. Ramesh, since he is non-resident.
(b) Salary, allowances and perquisites received outside India by Mr. Ramesh
are taxable in India since they are deemed to accrue or arise in India.
(c) Salary received by Mr. Ramesh is taxable in India but allowances and
perquisites are exempt.
(d) Salary received by Mr. Ramesh is exempt in India but allowances and
perquisites are taxable.
90. Income accruing from agriculture in a foreign country is taxable in India in case of an
assesses who is:
(a) ROR (b) RNOR (c) NR (d) ROR & RNOR

91. Which Income is taxable in India to ROR Individual?

(a) Any Income accrued or Received in India
(b) Any Income accrued outside India

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(c) Any Income received outside India
(d) All Incomes are Taxable

92. Which Income is taxable in India to RNOR Individual?

(a) Business income accruing outside India
(b) Property income accruing outside India
(c) Interest income accruing outside India
(d) Income accruing outside India if it is derived from a business controlled in India.
93. X Ltd of USA borrowed money from companies in USA for doing business in India by name P
Ltd. Mumbai. X Ltd paid interest of Rs. 5 lacs. Interest paid is.has:
(a) Deemed to Accrued in India (b) Exempt from tax
(c) Not accrue in India (d) Taxable in USA
94. Remuneration for rendering services on a foreign ship is not taxable in India in the case of:
(a) Resident (b) ROR (c) Indian Citizen (d) NR
95. Income from a business in Canada, controlled from Canada is taxable in case of .
(a) ROR (b) RNOR (c) NR (d) None

96. When an individual be regarded as “Not an ordinary resident”?

a. If he fulfils one of the basic conditions and none of the additional condition

b. If he fulfils both basic condition and both additional condition

c. If he does not fulfil any of the basic condition but fulfils one of the additional conditions

d. If he fulfils one of the basic conditions and both of the additional conditions

97. In which of the following case, as per explanation to section 6(1), the period of 60 days specified
in section 6(1) dealing with second basic condition is substituted by 182 days.

I. Person resident in India, leaves India during the previous year for employment purpose

II. Person resident in India, leaves India during the previous year as a member of crew of an Indian
ship.

III. Person resident outside India who is citizen of India comes to visit to India in Previous Year

Select the correct answer from the options given below

a. I only b. I and II only c. I, II and III d. None of the above

98. Which of the following section deals with “income deemed to accrue or arise in India?

a. Section 10 b. Section 8 c. Section 9 d. Section 11

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99. Which of the following section deals with “Income deemed to be received”?

a. Section 6 b. Section 7 c. Section 8 d. Section 9

100 In which of the following case HUF said to be resident in India?

1. If the control and management of its affairs is wholly situated in India

2. If the control and management of its affairs is wholly situated outside in India

3. If the control and management of its affairs is partly situated in India

Select the correct answer from the options given below

a. (1) or (2) b. (2) or (3) c. (1) or (3) d. None of the above

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Chapter Two
Residential Status
OBJECTIVE QUESTIONS

Amended by Finance Act 2020

1. Total income is based on / total income varies according to:
a) residential status of assessee b) citizenship of assessee
c) both A and B d) none of the above
2. ………………… is determined for each category of persons separately:
a) Residential status b) Citizenship c) Originship d) All the above

1. A person may be resident in ………… in any previous year:

a) more than one country b) only one country
c) only two country d) none of the above
2. A person may be a ……………………. but may not be…………….
a) citizen of India, resident of India b) resident of India, citizen of India
c) Both a) and b) d) None of the above
3. Individual is a resident in India if he is in India for a period or periods amounting in all to:
a) more than 182 days b) 182 days or more
c) less than 182 days d) 60 days or more
4. The condition of 182 days or more shall be checked in:
a) relevant previous year b) relevant assessment year
c) relevant calendar year d) relevant valuation date
5. In case of exception in basic condition, which of the following condition will be checked:
a) stay in India for 182 days or more
b) stay in India 120 days or more and 365 days or more in 4 I.P.P.Y
c) both A or B depend on case
d) None of the above
6. For an assessee to fall in exception, he should leave India:
a) for the purpose of employment
b) in the course of employment
c) for the purpose of employment or member of crew of an Indian ship
d) None of the above
7. In case when left India for the purpose of employment, the condition of 182 days or more should
be checked in the relevant previous year in which:
a) He/ she left India b) He/ she visits India
c) Both a) and b) d) None of the above
8. In case when Indian citizen visit in India, the condition of 120 days or more must be checked in
the relevant previous year in which
a) he visits India b) he left India
c) depends upon the residential status of assessee d) None of the above
9. A person merely undertakings tours abroad in connection with his employment in India would
a) avail relaxation of exception one in section 6

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b) not avail relaxation of exception one in section 6

c) no provision in law
d) None of the above
10. In computing the period of stay in India it is …………………. that stay should be for a ……..
a) not necessary, continuous period b) necessary, continuous period
c) Either a) and b) d) None of the above
11. Which of the following statement is false?
a) Presence in territorial waters of India (TWI) would also be regarded as present in India
b) Place and purpose of stay is immaterial
c) Residential status shall be determined in relevant P.Y
d) In computing period stay in India, day of entry & leaving India are not considered as stay in
India
12. HUF will become Non-resident if:
a) control & management is wholly situated outside India
b) control & management is partly in India and partly outside India
c) control & management is wholly situated India
d) None of the above
13. Indian company is said to be resident in India if:
a) Control wholly or partly in India b) Always resident
c) Control wholly in India c) Control wholly outside India
14. If foreign company POEM is in India, then it is( T.O is upto Rs 50 cr.):
a) Non-resident in India b) Resident in India
c) RNOR in India d) None of the above
15. If the POEM of an Indian company is wholly outside India, then company will become:
a) Resident in India b) Non-resident in India
c) RNOR in India d) None of the above
16. An individual, resident in India, shall be resident and ordinary resident in India if he satisfies
a) Any one basic condition b) Both additional condition
c) Both basic condition d) Any one additional condition
17. In 2nd additional condition, assessee should have stayed in India for:
a) more than 730 days during 7 immediately preceding previous year
b) 730 days or more during 7 immediately preceding previous year
c) 365 days or more during 4 immediately preceding previous year
d) 182 days or during relevant immediately preceding previous year
18. HUF which is Resident India shall be said to ROR in India if:
a) any adult of HUF satisfies both additional conditions
b) Karta of HUF satisfies any one basic condition
c) Karta of HUF satisfies both additional conditions
d) Karta of HUF satisfies any one additional condition
19. Past untaxed profit of the financial year 2006-07 brought to India in 2020-21 is chargeable to tax
in the assessment year 2021-22 in hands of:
a) All the assessee b) ROR
c) Non-resident in India d) None of the above
20. A person say, Mr. X resident has been non-resident in 9 out of 10 preceding previous year; his
residential status is:
a) Resident in India b) Non-resident in India
c) ROR in India d) RNOR in India
21. Income accruing from agriculture activity in foreign country is taxable in case of an assessee
who is:
a) Resident/ Resident and ordinarily resident b) Resident and not ordinarily resident
c) Non-resident d) None of the above

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22. Foreign income received in India during the previous year is taxable case of which assessee:
a) Resident b) Not-ordinarily resident
c) Non-resident d) All the above
23. Income earned and received outside India but later remitted to India, is taxable in case of:
a) All assessee b) ROR
c) Non-resident d) None of the above
24. An individual born in India left for employment from India to France on 30.10.2020. He visited
outside India for the first time. His residential status for the assessment year 2021-22 will be
a) ROR b) RNOR c) Non-resident d) None of the above
25. Income which accrue or arise outside India from business controlled from India is taxable in
case of:
a) ROR b) Non-resident
c) Both ROR & RNOR d) All of the above
26. A resident in India cannot become resident in any other country for the same previous year:
a) True b) False
c) Partly true partly false d) None of the above
27. “X” was born on 5th May, 1992 in India & later on took the citizenship of U.S.A. Neither his
parents nor his grandparents were born in divided/ undivided India. “X” in this case shall be:
a) Citizen of India b) Person of Indian origin
c) A foreign national d) None of the above
28. “X”, a foreign national visited India during the previous year 2020-21 for 180 days. He had never
visited India prior to this visit. “X” in this case shall be:
a) Resident in India b) Non-resident in India
c) RNOR d) None of the above
29. Salary payable by Government to an Indian citizen who is non-resident in India for services
rendered outside India is not taxable in India:
a) True b) False
c) Partly true partly false d) None of the above
30. Steve Waugh, the Australian cricketer comes to India for 100 days every year. Find out his
residential status for the A.Y. 2021-22.
a) Non-resident b) ROR
c) RNOR d) None of the above
31. Mr. C, a Japanese citizen left India after a stay of 10 years on 01.06.2019. During financial year
2020-21, he came to India for 46 days. Later, he returned to India for 1 year on 10.10.2020.
Determine his residential status for the A.Y. 2018-19.
a) Resident & ROR in India b) RNOR
c) Non-resident in India d) None of the above
32. Wipro Ltd., Indian company has most of its business o/s India. Determine its residential status.
a) Resident b) Non-resident c) RNOR d) None of the above
33. Mr. NishantKhurana earns the following income during the financial year 2020-21:
I. Income from house property in London, received in India 60,000
II. Profits from business in Japan and managed from there (received in Japan) 9,00,000
III. Dividend from foreign company, received in India 30,000
IV. Dividend from Indian company, received in England 50,000
Compute his income presuming that he is ROR, RNOR and NR.
a) 9,90,000 / 90,000 / 90,000 b) 10,40,000 / 1,40,000 / 1,40,000
c) 10,40,000 / 90,000 / 90,000 d) None of the above
34. Mr. Nishant Khurana earns the following income during the financial year 2020-21:
I. Past untaxed profits of UK business of 2015-16 brought into India in 2020-21 90,000
II. Interest on Government securities accrued in India but received in Paris 80,000
III. Interest on USA Government securities, received in India 20,000

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Compute his income presuming that he is ROR, RNOR and NR.

a) 1,00,000 each b) 80,000 each
c) 1,90,000 each d) None of the above
35. Income accrued outside India and received outside India is taxable in case of:
a) Resident and ordinary resident(ROR) b) Resident but not ordinary resident(RNOR)
c) Non-resident d) ROR, RNOR and Non-Resident
36. An Indian company would:
a) be resident in India if its POEM is wholly situated in India
b) be resident in India if its POEM is wholly or partly situated in India
c) be resident in India if its POEM is wholly situated outside India
d) be always resident in India irrespective of POEM
37. Determine the residential status of a HUF if HUF's control and management is wholly situated in
India and Karta of HUF is a Non-resident in India for that previous year.
a) Resident and Ordinary Resident(ROR) b) Resident but not ordinary resident (RNOR)
c) Non-Resident (NR) d) Either ROR or RNOR
38. Profits of ` 2,00,000 is earned from a business in USA which is controlled in India, half of the
profits being received in India. How much amount is taxable in India for a Non- resident
individual?
a) ` 2,00,000 b) Nil c) ` 1,00,000 d) ` 3,00,000
39. Foreign income received in India during the previous year is taxable in the case of
a) Resident b) Not ordinarily resident
c) Non-resident d) All of the above
40. If Anirudh has stayed in India in the P.Y. 2020-21 for 181 days, and he is non-resident in 9 out
of 10 years immediately preceding current previous year and stayed in India for 365 days in all
in 4 years immediately preceding current previous year and 420 days in all in 7 years
immediately preceding current previous year, his residential status for AY 2021-22 would be
a) Resident and ordinarily resident b) Resident but not ordinarily resident
c) Non-resident d) None of the above
41. Incomes accruing or arising outside India but received directly into India are taxable in case of
a) Resident only b) Both ordinarily resident and NOR
c) Non-resident d) All of the above
42. Income which accrue or arise outside India and also received outside India taxable in case of:
a) ROR only b) not ordinarily resident
c) both ordinarily resident and NOR d) none of the above
43. Once a person is resident for a source of income in a particular previous year he shall be
deemed to be resident for all other sources of income in the same previous year
a) True b) False
c) Partly true d) None of the above
44. Once a person is resident for a source of income in a particular previous year he shall be
deemed to be resident for same sources of income in the all previous year
a) True b) False
c) Partly true d) None of the above
45. R Ltd. is registered in U.K. The POEM situated in India. R Ltd shall be [ T.O is 100 cr] :
a) Resident in India b) Non-resident in India
c) Not ordinarily resident in India d) None of the above
46. R, a foreign national visited India during previous year 2020-21 for 180 days. Earlier to this he
never visited India. R in this case shall be:
a) Resident in India b) Non-resident in India
c) Not ordinarily resident in India d) None of the above
47. A person is said to be resident in India if he satisfies:
a) Any one basic condition b) Both basic condition

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c) Both additional conditions d) Any one additional condition

48. A company other than an Indian company would be a resident in India for the previous year
2020-21, if during that year its…………….. is situated in India?
a) Control b) Management
c) place of effective management d) Any of the above
49. The residential status of an assessee is determined in relevant…………….?
a) Previous year b) Assessment year
c) Calendar year d) None of the above
50. The incidence of tax on any assessee depends upon this………………. under this act?
a) Residential status b) Originship of country
c) Citizenship of country d) All the above
51. An Indian company is always resident in India no matter where and to what extent its place of
effective management is situated?
a) True b) False c) Partly true d) None of the above
52. Vivek ltd. is a company registered in Japan [ T.O is 60 cr]. The POEM is wholly situated in o/s
India. Vivek ltd is non-resident company in India?
a) True b) False c) Partly true d) None of the above
53. Income accruing in India in the previous year is taxable for;
a) Resident b) Not ordinary resident
c) Non-resident d) All the above
54. Profits of `1,00,000 for the year 2019-20 of business in Germany remitted to India during the
previous year 2020-21 (not taxed earlier) would be:
a) Taxable in India for ROR only b) Not taxable in India for all
c) Taxable in India for all (ROR, RNOR and NR) d) Taxable only for RNOR and NR
55. Residential status is determined for each category of person:
a) Jointly b) Separately
c) Both a) and b) d) None of the above
56. A firm, AOP, etc. is said to be resident in India in any previous year if:
a) Control & management is wholly or partly in India
b) Control & management is wholly situated outside India
c) Control & management is wholly in India
d) None of the above
57. In case of assessee being individual, if none of the basic condition is satisfied then he will be
a) Resident in India b) RNOR in India
c) Non-resident in India d) ROR in India
58. In the following cases assessee will become resident in India in previous year:
a) if his stay in India is 182 days or more in relevant previous year
b) if his stay in India is 60 days or more in relevant PY and 365 days or more in 4 I.P.P.Y
c) either of above
d) None of the above
59. No person other than individual or HUF can be RNOR in India:
a) True b) False c) Partly true d) None of the above
60. A person of Indian origin means if parents or grandparents of person were born ……… in India
a) before 1947 b) before 1857
c) before 1950 d) after 1947
61. Which of the following assessee may be ROR after being resident in India:
a) Individual b) HUF
c) Company d) Both a) and b)
62. Which of the following assessee may be “RNOR” in India:
a) Partnership firm b) Joint stock company
c) Association of persons d) Hindu undivided family

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63. Mr. B, a Canadian citizen, comes to India for the first time during the P.Y.2016-17. During the
financial years 2016-17, 2017-18, 2018-19, 2019-20 and 2020-21 he was in India for 55 days,
60 days, 90 days, 150 days and 70 days respectively. Determine his residential status for the
A.Y. 2021-22.
a) Resident in India b) RNOR
c) Non-resident in India d) None of the above
64. Mr. D, an Indian citizen, leaves India on 22.11.2020 for the first time, to work as an officer of a
company in France. Determine his residential status for the A.Y. 2021-22.
a) Resident &ordinarily resident in India b) RNOR
c) Non-resident d) None of the above
65. Dividend from British Co. of ` 2,00,000 received in London will be taxable in case of:
a) Resident and ordinary resident (ROR) only b) Not ordinary resident (NOR) only
c) Non-resident (NR) only d) ROR, NOR and NR all
66. Income which accrue outside India from a business controlled from India is taxable in case of
a) Resident only b) Not ordinarily resident only
c) Both ordinarily resident and NOR d) Non-resident
67. An income of 6,00,000 from profession which is set up in India but controlled from USA. The
income neither accrues in India nor received in India. it will be taxable in India in the hands of
a) Resident and ordinarily resident b) Non ordinarily resident
c) Both of the above d) None of the above
68. “X” was born England. His parents were born in India in 1951 and his Grand Parents were born
in South Africa. “X” in this case shall be:
a) A person of Indian origin b) A foreign national
c) Both a) and b) d) None of the above
69. Mr. Akash Tanwar has following income:
 Income from business in Germany amounting to ` 3,00,000 and half of it received in India
 Interest income of ` 1,00,000 from UK Development Bond and entire interest income was
credited to a bank account in UK..
 He has a business in Bombay and entire income of ` 3,00,000 was received in UK.
 Compute his income presuming that he is ROR, RNOR and NR.
a) 7,00,000 / 4,50,000 / 4,50,000 b) 7,00,000 / 5,50,000 / 4,50,000
c) 7,00,000 / 6,00,000 / 4,50,000 d) 7,00,000 / 7,00,000 / 4,50,000
70. Vivek was born 2nd August, 1992 in India and he later on took the citizenship of U.S.A Neither
his parents nor his grandparents were born in undivided India Vivek in this case shall be a:
a) Person of Indian origin b) Foreign national
c) Citizen of India d) Resident in India
71. Vivek was born in India in 1992. His parents were born in India 1952. His grandfather was born
in Lahore in 1937 but his grand-mother was born in England in 1941. Vivek will be a:
a) Citizen of England b) Person of Indian origin
c) Citizen of pakistan d) Resident of Lahore
72. Vivek, Foreign National, but a person of India origin visited India during previous year 2020-21
for 181 days. During 4 preceding previous year he was in India for 400 days. Vivek shall be:
a) Resident in India b) RNOR
c) Non-resident d) None of the above

73. “Place of effective management” is defined in the Act to mean a place where _______ that are
necessary for the conduct of the business of an entity as a whole are, in substance, made
a) key management and commercial decisions
b) key management
c) commercial decisions

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Residential Status MCQs CA VIVEK GABA CS - EXECUTIVE

d) key management or commercial decisions

74. A Company shall be said to be engaged in “active business outside India” if –
a) the PASSIVE INCOME is not more than 50% of its total income; and
b) less than 50% of its total assets are situated in India; and
c) less than 50% of total number of employees are situated in India or are resident in
India; and
d) the payroll expenses incurred on such employees is less than 50% of its total
payroll expenditure.
e) all the above conditions are satisfied.
75. Passive income” of a company shall be aggregate of, –
a) income from the transactions where both the purchase and sale of goods is from / to
its associated enterprises[AE]; and
b) income by way of royalty, dividend, capital gains, interest or rental income;
c) both A & B
d) None of the above
76. The guidelines for determining POEM as given in circular dated 24.01.2017 shall apply to a
company having turnover or gross receipts __________ in the financial year.
a) exceeding Rs. 50 crores
b) 50 Crores or More
c) Less than 50 Crores
d) Exact 50 Crore
77. Company A Co. is a sourcing entity, for an Indian multinational group, incorporated in
country X and is 100% subsidiary of Indian company (B Co.). The warehouses and stock in
them are the only assets of the company and are located in country X. All the employees of
the company are also in country X. The average income wise breakup of the company’s total
income for three years is, :
i. 30% of income is from transaction where purchases are made from parties which are
non-associated enterprises and sold to associated enterprises;
ii. 30% of income is from transaction where purchases are made from associated
enterprises and sold to associated enterprises;
iii. 30% of income is from transaction where purchases are made from associated
enterprises and sold to non-associated enterprises; and
iv. 10% of the income is by way of interest.
Where is the Active business?
a) Active business Situated in India
b) Active business Situated outside India
c) Active business party in India and Partly outside India
d) None of the above
78. The other facts remain same as that in Question 76 with the variation that A Co. has a total
of 50 employees. 47 employees, managing the warehouse, storekeeping and accounts of
the company, are located in country X. The Managing Director (MD), Chief Executive Officer
(CEO) and sales head are resident in India. The total annual payroll expenditure on these 50
employees is of Rs. 5 crore. The annual payroll expenditure in respect of MD, CEO and
sales head is of Rs. 3 crore. Where is the active Business ?
a) A Co. is not engaged in active business outside India.
b) A Co. is engaged in active business outside India.
c) Party in India and Partly outside India
d) None of the above

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79. The basic facts are same as in Question 76. Further facts are that all the directors of the A
Co. are Indian residents. During the relevant previous year 5 meetings of the Board of
Directors is held of which two were held in India and 3 outside India with two in country X
and one in country Y. where is the POEM situated now?
a) The POEM of A Co. shall be presumed to be outside India
b) The POEM of A Co. shall be presumed to be in India
c) Company is Resident in India irrespective of the POEM
d) None of the above

80. - Profits on sale of a building in India but received in Holland – Rs. 20,000
- Pension from former employer in India received in Holland – Rs. 14,000
- Interest on U.K. Development Bonds (1/4 being received in India) – Rs. 20,000
Compute taxable Income in hands of ROR/RNOR/NR
a) ROR – 54,000, RNOR – 39,000, NR – 39000
b) ROR – 54,000, RNOR – 49,000, NR – 39000
c) ROR – 54,000, RNOR – 54000, NR – 39000
d) ROR – 54,000, RNOR – 39,000, NR – 34000

81. - Past untaxed foreign income brought into India during the year-Rs. 25,000
- Dividends from a German company credited to his account in Pakistan- Rs. 35,000
- Dividends declared but not received from an Indian company- Rs. 20,000
- Agricultural income from Burma not remitted to India-Rs. 40,000
Compute Taxable income in hands of ROR/RNOR & NR
a) ROR – 95,000, RNOR –20,000, NR – 20,000
b) ROR – 1,20,000, RNOR – 40,000, NR – Nil
c) ROR – 54,000, RNOR – 60000, NR – 40000
d) ROR – 75,000, RNOR – 40,000, NR – 40000

82. An individual, being an Indian citizen, having total income, other than the income from
foreign sources [i.e., income which accrues or arises outside India (except income from a
business controlled from or profession set up in India) and which is not deemed to accrue
or arise in India], exceeding ` 15 lakhs during the previous year would be deemed to be
_________ in India in that previous year, if he is not liable to pay tax in any other country or
territory by reason of his domicile or residence or any other criteria of similar nature

a) Resident
b) Non Resident
c) RNOR
d) None of the above

83. If such individual is an Indian citizen who is deemed to be resident in India

under section 6(1A) [It may be noted that a deemed resident will always be a
___________].
a) ROR
b) RNOR
c) NR
d) None of the above

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84. Mr. Dey, a non-resident, residing in US since 1990, came back to India on
1.4.2019 for permanent settlement. What will be his residential status for
assessment year 2021-22?
a) RNOR
b) ROR
c) NR
d) None of the above

85. Aashish earns the following income during the P.Y. 2020-21:
 Interest on U.K. Development Bonds (1/4th being received in India): `
4,00,000
 Capital gain on sale of a building located in India but received in Holland: `
6,00,000
If Aashish is a resident but not ordinarily resident in India, then what will be amount
of income chargeable to tax in India for A.Y. 2021-22?
a) 7,00,000 b) 10,00,000 c) 6,00,000 d) 1,00,000

86. Mr. Sumit is an Indian citizen and a member of the crew of an America bound Indian
ship engaged in carriage of freight in international traffic departing from Chennai on 25th
April, 2020. From the following details for the P.Y. 2020-21, What would be the
residential status of Mr. Sumit for A.Y. 2021-22, assuming that his stay in India in the
last 4 previous years preceding P.Y. 2020-21 is 365 days and last seven previous years
preceding P.Y. 2020-21 is 730 days?
 Date entered in the Continuous Discharge Certificate in respect of joining
the ship by Mr. Sumit: 25 th April, 2020
 Date entered in the Continuous Discharge Certificate in respect of signing
off the ship by Mr. Sumit: 24th October, 2020
Mr. Sumit has been filing his income tax return in India as a Resident for the
preceding 2 previous years.
(a) Resident and ordinarily resident
(b) Resident but not-ordinarily resident
(c) Non-resident
(d) Deemed RNOR
87. Mr. Square, an Indian citizen, currently resides in Dubai. He came to India on a visit and
his total stay in India during the F.Y. 2020-21 was 135 days. He is not liable to pay any tax
in Dubai. Following is his details of stay in India in the preceding previous years:

Financial Year Days of Stay in India

2019-20 100
2018-19 125

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Residential Status MCQs CA VIVEK GABA CS - EXECUTIVE

2017-18 106
2016-17 83
2015-16 78
2014-15 37
2013-14 40
What shall be his residential status for the P.Y. 2020-21 if his income (other than
income from foreign sources) is ` 10 lakhs?
(a) Resident but Not Ordinary Resident (RNOR)
(b) Resident and Ordinary Resident
(c) Non-resident
(d) Deemed Resident but not ordinarily resident

88. Dividend income from Australian company received in Australia in the year 2019,
brought to India during the previous year 2020-21 is taxable in the A.Y.2021-22 in the case
of –
(a) resident and ordinarily resident only
(b) both resident and ordinarily resident and resident but not ordinarily resident
(c) non-resident
(d) None of the above
89. Mr. Ramesh, a citizen of India, is employed in the Indian embassy in Australia. He is a
non-resident for A.Y. 2021-22. He received salary and allowances in the Australia from the
Government of India for the year ended 31.03.2021 for services rendered by him in
Australia. In addition, he was allowed perquisites by the Government. Which of the
following statements are correct?
(a) Salary, allowances and perquisites received outside India are not taxable in
the hands of Mr. Ramesh, since he is non-resident.
(b) Salary, allowances and perquisites received outside India by Mr. Ramesh
are taxable in India since they are deemed to accrue or arise in India.
(c) Salary received by Mr. Ramesh is taxable in India but allowances and
perquisites are exempt.
(d) Salary received by Mr. Ramesh is exempt in India but allowances and
perquisites are taxable.
90. Income accruing from agriculture in a foreign country is taxable in India in case of an
assesses who is:
(a) ROR (b) RNOR (c) NR (d) ROR & RNOR

91. Which Income is taxable in India to ROR Individual?

(a) Any Income accrued or Received in India
(b) Any Income accrued outside India

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Residential Status MCQs CA VIVEK GABA CS - EXECUTIVE
(c) Any Income received outside India
(d) All Incomes are Taxable

92. Which Income is taxable in India to RNOR Individual?

(a) Business income accruing outside India
(b) Property income accruing outside India
(c) Interest income accruing outside India
(d) Income accruing outside India if it is derived from a business controlled in India.
93. X Ltd of USA borrowed money from companies in USA for doing business in India by name P
Ltd. Mumbai. X Ltd paid interest of Rs. 5 lacs. Interest paid is.has:
(a) Deemed to Accrued in India (b) Exempt from tax
(c) Not accrue in India (d) Taxable in USA
94. Remuneration for rendering services on a foreign ship is not taxable in India in the case of:
(a) Resident (b) ROR (c) Indian Citizen (d) NR
95. Income from a business in Canada, controlled from Canada is taxable in case of .
(a) ROR (b) RNOR (c) NR (d) None

96. When an individual be regarded as “Not an ordinary resident”?

a. If he fulfils one of the basic conditions and none of the additional condition

b. If he fulfils both basic condition and both additional condition

c. If he does not fulfil any of the basic condition but fulfils one of the additional conditions

d. If he fulfils one of the basic conditions and both of the additional conditions

97. In which of the following case, as per explanation to section 6(1), the period of 60 days specified
in section 6(1) dealing with second basic condition is substituted by 182 days.

I. Person resident in India, leaves India during the previous year for employment purpose

II. Person resident in India, leaves India during the previous year as a member of crew of an Indian
ship.

III. Person resident outside India who is citizen of India comes to visit to India in Previous Year

Select the correct answer from the options given below

a. I only b. I and II only c. I, II and III d. None of the above

98. Which of the following section deals with “income deemed to accrue or arise in India?

a. Section 10 b. Section 8 c. Section 9 d. Section 11

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Residential Status MCQs CA VIVEK GABA CS - EXECUTIVE

99. Which of the following section deals with “Income deemed to be received”?

a. Section 6 b. Section 7 c. Section 8 d. Section 9

100 In which of the following case HUF said to be resident in India?

1. If the control and management of its affairs is wholly situated in India

2. If the control and management of its affairs is wholly situated outside in India

3. If the control and management of its affairs is partly situated in India

Select the correct answer from the options given below

a. (1) or (2) b. (2) or (3) c. (1) or (3) d. None of the above

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 Salary MCQ’s CA VIVEK GABA MOCK - TEST

Salary MCQ’s [ Set – 1]

Finance Act, 2019
1. Salary is chargeable to tax on ……………… basis
a) due basis b) receipt basis
c) due or receipt, whichever is earlier d) due or receipt, whichever is later
2. If S draws salary in advance of April 2020 in March 2020 itself, the same is taxable on receipt basis
and be assessed as income of the P.Y. …………………
a) 2019-20 b) 2018-19 c) 2020-21 d) None of the above
3. If S draws salary in advance of April 2020 in March 2020 itself, the same is taxable on receipt basis
and be assessed as income of the assessment year …………………
a) 2020-21 b) 2019-20 c) 2018-19 d) None of the above
4. If salary due for March 2020 is received by P later in April 2020, it is chargeable as income of the P.Y.
……….
a) 2019-20 b) 2020-21 c) 2018-19 d) None of the above
5. Every payment by an employer to his employee for service rendered would be taxable as ………….
a) income from salaries b) income from PGBP
c) income from house property d) income from other sources
6. Salary under section 17(1) includes
a) Leave encashment
b) fees, commission, perquisite or profits in lieu of or addition to any salary or wages
c) transferred balance in recognized provident fund to the extent it is taxable
d) all of the above
7. When is control said to exist?
a) payer can direct what has to be done
b) payer can direct when and how it has to be done
c) payer can direct who has to do it and receiver is bound to follow all the instruction
d) all of the above
8. Which of the following allowance is Partly Taxable
a) Allowances from UNO
b) House Rent Allowance
c) Allowance granted to Government employees outside India.
d) Fixed Medical Allowance
9. Fixed Medical Allowance is
a) Fully Taxable b) Fully Exempt
c) Partly Taxable d) Partly exempt
10. An assessee received uniform allowance of ` 1,200. However, the amount spent by him is ` 1,000.
What amount of exemption can be availed by assessee?
a) ` 1,200 b) ` 1,000 c) ` 600 d) ` 500
11. An assessee received uniform allowance of ` 1,500. However, the amount spent by him is ` 2,000.
What amount of exemption can be availed by assessee?
a) ` 1,500 b) ` 2,000 c) ` 1,000 d) ` 1,250
12. Children education Allowance received by assessee is exempt upto
a) amount received
b) ` 100 p.m. per child up to a maximum of 2 children
c) Lower of a) and b)
d) None of the above
 Salary MCQ’s CA VIVEK GABA MOCK - TEST

13. An assessee received ` 200 per month/per child for 3 children as children education allowance. What
shall be the amount exempt in his hands for such allowance?
a) ` 7,200 b) ` 3,600 c) ` 2,400 d) Nil
14. An assessee received ` 300 per month for 3 children as Hostel Expenditure allowance. What shall be
the amount exempt in his hands for such allowance?
a) ` 10,800 b) ` 7,200 c) ` 4,800 d)
Nil
15. Transport Allowance received by assessee (Handicapped) is exempt upto
a) amount received
b) 3200 p.m. for blind/handicapped employee
c) Lower of a) and b)
d) None of the above
16. Allowance allowed to transport employees shall be exempt upto
a) 70% of such allowance b) ` 10,000
c) Lower of a) and b) d) None of the above
17. An assessee, transport employee received allowance allowed to them of ` 20,000. The amount spent
by him is ` 12,000. What amount would be exempt on account of allowance?
a) ` 12,000 b) ` 10,000 c) ` 14,000 d) Nil
18. Raju is in receipt of following allowance.
Transport allowance: ` 1,800 p.m. (amount spent ` 600 p.m.)
Tribal area allowance: ` 500 p.m.
Compute his taxable allowances.
a) ` 2,400 b) 25,300 c) ` 6,000 d) Nil
19. What is the amount of HRA exempt when assessee is residing in a city other than Metro City?
a) HRA actually received
b) Rent paid - 10% of salary for the relevant period
c) 40% of salary for the relevant period
d) Least of above
20. Exemption of HRA received …………… to an assessee who lives in his own house.
a) is available b) is not available
b) shall be available d) None of the above
21. Mr. Arvind has the following receipts from his employer:
Particulars `
(1) Basic pay 3,000 p.m.
(2) Dearness allowance (D.A.) 600 p.m.
(3) Commission 6,000 p.a.
(4) Motor car for personal use (expenditure met by the employer) 500 p.m.
(5) House rent allowance 900 p.m.
Find out the amount of HRA eligible for exemption to him assuming that he paid a rent of ` 1,000 p.m.
for his accommodation at Kanpur. DA forms part of salary for retirement benefits.
a) ` 7,680 b) ` 10,800 c) ` 17,280 d) Nil
22. What is the amount of Rent free accommodation taxable when accommodation has been provided to
employee by government employer?
a) 15% of salary b) 10% of salary
c) licence fees as per Government rules d) None of the above
23. When accommodation is provided by an employer other than Government employer to his employee
in a city where the population exceeds 25 lakh, what amount shall be taxable in the hands of
employee?
a) 15% of salary b) 10% of salary
 Salary MCQ’s CA VIVEK GABA MOCK - TEST
c) 7½% of salary d) None of the above
24. When accommodation is provided by an employer other than Government employer to his employee
in a city where the population is less than 10 lakh, what amount shall be taxable in the hands of
employee?
a) 15% of salary b) 10% of salary
c) 7½% of salary d) None of the above
25. When accommodation not owned by the employer other than Government employer is provided to
the employee, what amount shall be taxable in the hands of employee?
a) Actual Rent b) 15% of Salary
c) lower of a) and b) d) none of the above
26. For an employee other than Government employee, when RFA given to employee is not owned by
employer, what amount shall be taxable in the hands of employee?
a) Actual Rent or 20 % of Salary, whichever is less
b) Actual Rent or 15 % of Salary, whichever is less
c) Actual Rent or 10 % of Salary, whichever is less
d) None of the above
27. When an accommodation has been provided in a hotel by a government employer, what amount shall
be taxable in the hands of employee?
a) 24% of salary b) actual charges
c) least of a) and b) d) licence fees as per Government rules
28. When an accommodation has been provided in a hotel by an employer other than government
employer, what amount shall be taxable in the hands of employee?
a) 24 % of salary or actual charges, whichever is lower
b) 20 % of salary or actual charges, whichever is lower
c) 15 % of salary or actual charges, whichever is lower
d) None of the above
29. If furniture is also provided along with RFA, then what amount shall be taxable in the hands of
employee if Furniture owned by employer?
a) 10% p.a. of actual cost of furniture b) actual hire charges
c) either of above d) None of the above
30. If commission for the year is ` 24,000 but RFA is given for 6 months, how much commission shall be
included in salary for the purpose of computation of taxable value of RFA?
a) ` 24,000 b) ` 12,000 c) ` 8,000 d)
Nil
31. Ram, Finance Manager in ABC Ltd. The company has provided him rent-free unfurnished
accommodation in Mumbai. He gives you the following particulars:
Particulars `
Basic salary ` 6,000 p.m.
Advance salary for April 2019
Dearness Allowance ` 5,000
Bonus ` 2,000 p.m. (30% for retirement benefits)
` 1,500 p.m.
Even though the company allotted house to him on 01.04.2017, he occupied the same only from
01.11.2019. Calculate the taxable value of perquisite for A.Y. 2018-19.
a) ` 6,075 b) ` 6,000 c) ` 4,500 d) Nil
32. Ram is Finance Manager in ABC Ltd. The company has provided him rent-free unfurnished
accommodation in Mumbai. He gives you the following particulars:
Particulars `
Basic salary ` 6,000 p.m.
Advance salary for April 2019
Dearness Allowance ` 5,000
Bonus
 Salary MCQ’s CA VIVEK GABA MOCK - TEST

` 2,000 p.m. (30% for retirement benefits)

` 1,500 p.m.
Even though the company allotted house to him on 01.04.2019, he occupied the same only from
01.11.2019. He paid ` 500 per month for the said accommodation. Calculate the taxable value of
perquisite for A.Y. 2018-19.
a) ` 3,575 b) ` 3,500 c) ` 2,000 d) Nil
33. Rahul is an employee in a Government company. The company has provided him rent-free
unfurnished accommodation in Mumbai. He gives you the following particulars:
Particulars `
Basic salary ` 6,000 p.m.
Advance salary for April 2017
Dearness Allowance ` 5,000
Bonus ` 2,000 p.m. (30% for retirement benefits)
` 1,500 p.m.
Even though the company allotted house to him on 01.04.2017, he occupied the same only from
01.11.2017. Calculate the taxable value of perquisite for A.Y. 2018-19. The license fee of the house
is ` 700 per month.
a) ` 6,075 b) ` 6,000 c) ` 4,500 d) 3,500
34. Interest on loan granted by the employer to the employee
a) shall have no treatment in hands of employee b) shall be taxable in hands of employee
c) shall not be taxable in the hands of employee d) None of the above
35. Interest on loan shall not be taxable in which case?
a) Loans as on the last day of the month does not exceed ` 20,000
b) Loan is provided for the treatment of specified disease
c) Any of the above
d) None of the above
36. Interest on loan shall not be taxable in which case?
a) Loans as on the last day of the month does not exceed ` 20,000
b) Loan is provided for the construction of house
c) Any of the above
d) None of the above
37. A loan is provided by the employer to his employee, amounting to ` 35,000 (outstanding balance as
st
on last day). Interest of SBI as on last day of previous year is 15% whereas as on 1 day of previous
year is 16%. On what amount shall interest be calculated and at what rate?
a) ` 35,000, 15% b) ` 15,000, 15%
c) ` 35,000, 16% d) ` 15,000, 16%
38. An employer provided his employee a sofa set whose actual cost is ` 70,000. Employee pays ` 2,000
to his employee towards this sofa set. What amount shall be taxable in the hands of the employee?
a) ` 7,000 b) ` 2,000 c) ` 5,000 d) ` 10,000
39. When an asset transferred by the employer to his employee is assets other than computer and
electronic items and Motor Car, what shall be taxable in the hands of the employee?
a) Purchase Price of employer – 50 % of other assets SLM for each incomplete year of usage
b) Purchase Price of employer – 50 % of other assets SLM for each completed year of usage
c) Purchase Price of employer – 20 % of other assets SLM for each completed year of usage
d) Purchase Price of employer - 10% of other assets SLM for each completed year of usage
40. If the value of gift in aggregate during the previous year is upto` 5,000, the same shall
a) taxable as allowance b) taxable as perquisite
 Salary MCQ’s CA VIVEK GABA MOCK - TEST
c) Not be taxable d) none of the above
41. Tea or snacks provided during office hours to the employee is
a) fully exempt without limit b) fully taxable
c) taxable beyond a limit d) none of the above
42. Free meal provided to the employee is exempt upto ……………..
a) ` 150 per meal b) ` 100 per meal c) ` 50 per meal d) No limit
43. If a free meal of ` 150 is provided to the employee. What amount shall be taxable in the hands of the
employee?
a) ` 150 per meal b) ` 100 per meal c)50permeal d) Nil
44. If Credit card and club expenditure is incurred for any purpose other than official purpose, what
amount shall be taxable?
a) Nothing is taxable
b) ` 30,000 shall be taxable
c) Actual expenditure incurred by the employer shall be taxable
d) None of the above
45. Section 10(5) exempts leave travel concession (LTC) received by employees from their employers for
proceeding to any place in India
a) either on leave b) after retirement from service
c) after termination of his service d) all of the above
46. When the employee performs journey by any mode other than air and the destination is not
connected by rail, what amount shall be exempt from tax?
a) then second class rail fare by the shortest route to the place of destination
b) then first class rail fare by the shortest route to the place of destination
c) then first class rail fare by the longest route to the place of destination
st
d) then 1 class or deluxe class fare
47. If any hospital or dispensary is maintained by any local authority and the amount is provided to the
employee for treatment in such hospital, the amount so paid shall …………
a) not be exempt b) be partly taxable
c) exempt without any limit d) none of the above
48. When the motor car is owned by the employee and used by the employee for private purpose. What
amount shall be taxable in the hands of the employee?
a) Actual expenditure incurred by employer shall be taxable
b) Nil
c) Discretion of Assessing Officer
d) None of the above
49. When the motor car is owned by the employer and used by the employee for official purpose. What
amount shall be taxable in the hands of the employee?
a) Actual expenditure incurred by employer shall be taxable
b) Nil
c) Discretion of Assessing Officer
d) None of the above
50. Commuted pension received by the non-government employee who is also in receipt of Gratuity.
What would be the treatment of such amount for tax purpose?
 1 commuted pension received 
a)  3  commutation %
 100% 
 shall be exempt
 1 commuted pension received 
b)    100% 
2 commutation %  shall be exempt
c) Any of the above
d) None of the above
51. Commuted pension received by the non-government employee who is not in receipt of gratuity. What
would be the treatment of such amount for tax purpose?
 Salary MCQ’s CA VIVEK GABA MOCK - TEST

 1 commuted pension received 

a)  3  commutation %
 100% 
 shall be exempt
 1 commuted pension received 
b)    100% 
2 commutation %  shall be exempt
c) Any of the above
d) None of the above
52. Ravi retired on 01.10.2019 receiving ` 5,000 p.m. as pension. On 01.02.2020, he commuted 60% of
his pension and received ` 3,00,000 as commuted pension. What amount of uncommuted and
commuted pension is taxable if Ravi is Government employee?
a) ` 24,000, Nil b) ` 24,000, ` 3,00,000
c) Nil, ` 3,00,000 d) Nil, Nil
53. Ravi retired on 01.10.2019 receiving ` 5,000 p.m. as pension. On 01.02.2020, he commuted 60% of
his pension and received ` 3,00,000 as commuted pension and receiving gratuity of ` 5,00,000 at the
time of retirement. What amount of uncommuted and commuted pension is taxable if he is a non-
government employee?
a) ` 24,000, ` 50,000 b) ` 24,000, ` 1,33,333
c) Nil, ` 1,33,333 d) Nil, ` 50,000
54. Ravi retired on 01.10.2019 receiving ` 5,000 p.m. as pension. On 01.02.2020, he commuted 60% of
his pension and received ` 3,00,000 as commuted pension and is in receipt of no gratuity at the time
of retirement. What amount of uncommuted and commuted pension is taxable if he is a non-
government employee?
a) ` 24,000, ` 50,000 b) ` 24,000, ` 1,33,333
c) Nil, ` 1,33,333 d) Nil, ` 50,000
55. Section 10(10) of the Income tax Act tells about
a) taxability about gratuity b) taxability about pension
c) taxability about leave encashment d) None of the above
56. Death cum retirement gratuity received by Non-Government employee who is covered by Payment of
Gratuity Act, 1972 ………………
a) ` 10,00,000
b) Gratuity actually received
c) 15 days’ salary based on last drawn salary for each completed year of service or part thereof in
excess of 6 months
d) Least of above
57. Gratuity received during the period of service ……………………..
a) Partially exempt from tax b) fully exempt from tax
c) fully taxable d) none of the above
58. Where gratuity is received in earlier year from former employer and received from another employer
in later year, the limit of ` 20,00,000 ………. by the amount of gratuity exempt earlier
a) will not be reduced b) may be reduced
c) will be reduced d) None of the above
59. Ramesh who is non-government employee and covered by the Payment of Gratuity Act 1972 retired
on 15.06.2019 after completion of 26 years 8 months of service and received gratuity of ` 6,00,000. At
the time of retirement his salary was:
Basic Salary : ` 5,000 p.m.
Dearness Allowance : ` 3,000 p.m. (60% of which is for retirement benefits)
 Salary MCQ’s CA VIVEK GABA MOCK - TEST

Commission : 1% of turnover (turnover in the last 12 months was ` 12,00,000)

Bonus : ` 12,000 p.a.
What amount of gratuity shall be taxable?
a) ` 4,75,385 b) ` 4,98,600 c) Nil d) ` 6,00,000
60. Ramesh who is a government employee retired on 15.06.2017 after completion of 26 years 8 months
of service and received gratuity of ` 6,00,000. At the time of retirement his salary was:
Basic Salary : ` 5,000 p.m.
Dearness Allowance : ` 3,000 p.m. (60% of which is for retirement benefits)
Commission : 1% of turnover (turnover in the last 12 months was ` 12,00,000)
Bonus : ` 12,000 p.a.
What amount of gratuity shall be taxable?
a) ` 4,75,385 b) ` 4,98,600 c) Nil d) ` 6,00,000
61. Leave salary received at the time of retirement by non-government employee is …………..
a) ` 3,00,000
b) Leave salary actually received
c) 10 months’ salary (on the basis of average salary of last 10 months)
d) Cash equivalent of unavailed leave salary @ 30 days for every year of service
e) Least of above
62. Where leave salary is received from 2 or more employers in the same year then aggregate amount of
leave salary exempt from tax ……..………..
a) can exceed ` 3,00,000 b) cannot exceed ` 3,00,000
c) cannot exceed ` 5,00,000 d) None of the above
63. Where leave salary is received in earlier year from former employer and received from another
employer in later year, the limit of ` 3,00,000…….. by the amount of leave salary exempt earlier
a) will not be reduced b) may be reduced
c) will be reduced d) None of the above
64. Rohit who is not a government employee retired on 01.12.2019 after 20 years 10 months of service,
receiving leave salary of ` 5,00,000. Other details of his salary income are:
Basic Salary : ` 5,000 p.m. (` 1,000 was increased w.e.f. 01.04.2019)
Dearness Allowance : ` 3,000 p.m. (60% of which is for retirement benefits)
Commission : ` 500 p.m.
Bonus : ` 1,000 p.m.
Leave availed during service : 480 days
He was entitled to 30 days leave every year. How much amount of leave salary shall be taxable?
a) Nil b) ` 4,73,600 c) ` 5,00,000 d) None of the above
65. Which section of the Income tax Act provides about exemption of amount received by way of
compensation received on Voluntary Retirement?
a) 10(10) b) 10(10A) c) 10(10AA) d) 10(10C)
66. How much amount received by way Compensation received on Voluntary Retirement is exempt?
a) ` 5,00,000
b) Amount received or receivable
c) For one completed year job done- 3 months’ salary or total months left after VRS for normal
retirement
d) Least of above
 Salary MCQ’s CA VIVEK GABA MOCK - TEST
67. Assessee (employee) can avail both exemption under section 10(10C) of compensation on Voluntary
retirement and also relief under section 89(1). Is the statement correct?
a) Assessee can avail both exemption and relief
b) Assessee can avail either exemption under section 10(10C) or relief under section 89(1)
c) On the discretion of Assessing Officer
d) None of the above
68. Which section of the Income tax Act provides about exemption of amount received by way
Retrenchment compensation?
a) 10(10) b) 10(10B) c) 10(10AA) d) 10(10C)
69. Section 10(10B) of the Income tax Act provide for
a) taxability about gratuity
b) taxability about amount received by way of retrenchment compensation
c) taxability about leave encashment
d) None of the above
70. Which deduction is allowed under section 16?
a) Professional tax b) Entertainment allowance
c) Standard Deduction d) All of the above
71. Deduction in respect of entertainment allowance is available to ………………..
a) Government employees b) Non-Government employees
c) any of the above d) None of the above
72. What amount of deduction is available for entertainment tax?
a) One-fifth of his basic salary b) ` 5,000
c) Actual entertainment allowance received d) Least of above
73. The maximum exemption under section 10(10) in case of Gratuity is
a) ` 20,00,000 b) ` 3,00,000 c) ` 10,50,000 d) ` 5,00,000
74. The maximum exemption in respect of transport allowance granted to an employee to meet his
expenditure for the purpose of commuting between the place of his residence and the place of his
duty shall be
a) ` 800 per month b) ` 1600 per month
c) ` 700 per month d) ` Nil
75. The maximum exemption in respect of transport allowance granted to an handicapped employee to
meet his expenditure for the purpose of commuting between the place of his residence and the place
of his duty shall be
a) ` 1,600 per month b) ` 3,200 per month
c) ` 800 per month d) ` 900 per month
76. Mayank receives ` 50,000 as basic salary from the Government during the financial year 2019-20 and
` 9,000 by way of entertainment allowance which he spends in full for official purpose. The allowance
of deduction in respect of allowance will be
a) ` 5,000 b) ` 9,000 c) ` 10,000 d) None of the above
77. For an employee in receipt of hostel expenditure allowance for his three children, the maximum
annual allowance exempt under section 10(14) is
a) ` 10,800 b) ` 7,200 c) ` 9,600 d) ` 3,600
78. The entertainment allowance received by a Government employee is exempt up to the lower of the
actual entertainment allowance received, 1/5th of basic salary and
a) `4,000 b) ` 6,000 c) ` 5,000. d) Nil
79. Rajesh is provided with a rent free unfurnished accommodation, which is owned by his employer, XY
Pvt. Ltd., in New Delhi. The value of perquisite in the hands of Rajesh is –
a) 20 % of salary b) 15 % of salary
c) 10 % of salary d) 7.5 % of salary
 Salary MCQ’s CA VIVEK GABA MOCK - TEST
80. The maximum ceiling limit for exemption under section 10(10) in respect of gratuity for employees
covered by the Payment of Gratuity Act, 1972 is –
a) ` 3,50,000 b) ` 20,00,000 c) ` 10,00,000 d) ` 7,00,000
81. The HRA paid to an employee residing in Patna is exempt up to the lower of actual HRA, excess of
rent paid over 10% of salary and –
a) 40 % of salary b) 50 % of salary
c) 60 % of salary d) 70 % of salary
82. Salary of S (` 40,000 per month) becomes due on the last day of the month but is paid on 7th of next
month. Also, salary of April, 2020 and May, 2020 is received in advance in March, 2020.What will be
his gross income for Assessment Year 2020-21?
a) ` 5,60,000 b) ` 4,80,000 c) ` 4,40,000 d) ` 5,20,000
83. Y received children education allowance of ` 500 pm for his 1 child. Calculate taxable amount of
children education allowance for assessment year 2020-21 if entire amount is spent by him.
a) Nil b) ` 4,800 c) ` 6,000 d) ` 3,600
84. A Ltd. has advanced an interest free loan of ` 5,00,000 to B for purchase of car on 1.5.2019. B has
been repaying loan in installments of` 20,000 p.m. on the1stof next month. Compute the value of
perquisite on account of interest assuming the interest charged by SBI is 10% p.a.
a) ` 34,833 b) ` 36,667 c) `40,000 d) ` 50,000
85. Employer provides a car (below 1.6 ltr. capacity) along with a driver to be used partly for official and
partly for personal purpose. The expenses incurred by company are: running and maintenance
expenses -` 32,000, driver's salary-` 36,000. Taxable value of perquisite is:
a) ` 21,600 b) ` 10,800 c) ` 32,400 d) ` 39,600
86. X retired on 15.4.2019 from a company. He was entitled to a pension of ` 4,000 p.m. At the time of
retirement, he got 75% of pension commuted & received ` 1,20,000 as commuted pension.
Compute the taxable portion of commuted pension if he is entitled to gratuity.
a) ` 66,667 b) ` 53,333 c) 1,20,000 d) ` 78,667
87. For an employee in receipt of hostel expenditure allowance for his one children, the maximum
annual allowance exempt under section 10(14) is
a) ` 10,800 b) ` 7,200 c) `9,600 d) ` 3,600
88. R, who is entitled to a salary of ` 10,000 p.m. took an advance of ` 20,000 against the salary in
month of April 2018. The gross salary of R for assessment year 2020-21 shall be:
a) ` 1,40,000 b) ` 1,20,000 c) ` 1,30,000 d) None of the above
89. A is entitled to children education allowance @ ` 80 p.m. per child for 3 children amounting ` 240
p.m. It will be exempt to the extent of :
a) ` 200 p.m. b) ` 160 p.m. c) ` 240 p.m. d) Nil
90. In which of the following situation is accommodation provided in hotel by the employer not taxable in
the hands of the employee?
a) When accommodation is provided for not more than 15 days
b) on transfer of employee from one place to another
c) both a) and b) together
d) none of the above
91. In case of transfer from one place to another, if employee is provided house at new place and also
allowed to retain house at old place, what shall be taxable after 90 days?
a) value of one house with lower value shall be taxable
b) value of one house with higher value shall be taxable
c) average of value of both house shall be taxable
d) value of both the house shall be taxable
 Salary MCQ’s CA VIVEK GABA MOCK - TEST
92. What is the value taxable in the hands of employee on allotment of equity shares?
a) Fair market value (FMV) of shares on date of allotment - Amount recovered from employee
b) Fair market value (FMV) of the shares on the date of allotment
c) Fair market value (FMV) of shares on date of allotment + Amount recovered from employee
d) None of the above
93. When the asset given by the employer is computer or telephone, what amount shall be taxable in the
hands of the employee?
a) Taxable in the hands of employee b) Not taxable in the hands of employee
c) Discretion of Assessing Officer d) None of the above
94. When the motor car is owned by the employee and used by the employee for private and official
purpose. What amount shall be taxable in the hands of the employee?
a) Total Actual expenditure for official and personal purpose - 1800 pm /2400 pm
+ 900 pm for chauffeur (if any)
b) Total Actual expenditure for official and personal purpose + 1800 pm /2400 pm
- 900 pm for chauffeur (if any)
c) Total Actual expenditure for official and personal purpose - 1800 pm /2400 pm
- 900 pm for chauffeur (if any)
d) Total Actual expenditure for official and personal purpose
95. What is the maximum amount upto which leave salary is exempt from tax?
a) ` 5,00,000 b) ` 3,00,000 c) ` 10,00,000 d) upto any
limit
96. Which of the following income is taxable under the head ‘income from salary’?
a) Salary received by a partner from firm
b) Salary received by a member of parliament
c) Salary of a government officer
d) None of the above
97. Vivek receive 50,000 as basic salary from the government during the financial year 2019-20 and
receives 9,000 by way of entertainment allowance which he spends in full for official purposes. The
amount deductible under section 16(ii) in respect of the allowance will be?
a) 5,000 b) 9,000 c) 10,000 d) None of the above
98. The amount of any contribution to an approved superannuation fund by the employer in respect of the
employee is exempt from tax upto?
a) 1,00,000 b) 1,50,000 c) 2,00,000 d) Nil
99. Vivek obtained interest-free loan of ` 20,000 from his employer company for purchasing a two-
wheeler. The market rate of interest on such loan is 20% p.a. The leading rate of SBI is 12.5% and
that of the private sector bank is 16%. The taxable amount of this perquisite will be computed at the
rate of?
a) 20% b) 16% c) 12.5% d) Nil
rate
100. The maximum exemption under section 10(10AA) in case of leave encashment is?
a) 3,50,000 b) 3,00,000 c) 10,00,000 d) 5,00,000
 Salary MCQ’s CA VIVEK GABA MOCK - TEST

Salary MCQ’s [ Set – 1]

Finance Act, 2019
1. Salary is chargeable to tax on ……………… basis
a) due basis b) receipt basis
c) due or receipt, whichever is earlier d) due or receipt, whichever is later
2. If S draws salary in advance of April 2020 in March 2020 itself, the same is taxable on receipt basis
and be assessed as income of the P.Y. …………………
a) 2019-20 b) 2018-19 c) 2020-21 d) None of the above
3. If S draws salary in advance of April 2020 in March 2020 itself, the same is taxable on receipt basis
and be assessed as income of the assessment year …………………
a) 2020-21 b) 2019-20 c) 2018-19 d) None of the above
4. If salary due for March 2020 is received by P later in April 2020, it is chargeable as income of the P.Y.
……….
a) 2019-20 b) 2020-21 c) 2018-19 d) None of the above
5. Every payment by an employer to his employee for service rendered would be taxable as ………….
a) income from salaries b) income from PGBP
c) income from house property d) income from other sources
6. Salary under section 17(1) includes
a) Leave encashment
b) fees, commission, perquisite or profits in lieu of or addition to any salary or wages
c) transferred balance in recognized provident fund to the extent it is taxable
d) all of the above
7. When is control said to exist?
a) payer can direct what has to be done
b) payer can direct when and how it has to be done
c) payer can direct who has to do it and receiver is bound to follow all the instruction
d) all of the above
8. Which of the following allowance is Partly Taxable
a) Allowances from UNO
b) House Rent Allowance
c) Allowance granted to Government employees outside India.
d) Fixed Medical Allowance
9. Fixed Medical Allowance is
a) Fully Taxable b) Fully Exempt
c) Partly Taxable d) Partly exempt
10. An assessee received uniform allowance of ` 1,200. However, the amount spent by him is ` 1,000.
What amount of exemption can be availed by assessee?
a) ` 1,200 b) ` 1,000 c) ` 600 d) ` 500
11. An assessee received uniform allowance of ` 1,500. However, the amount spent by him is ` 2,000.
What amount of exemption can be availed by assessee?
a) ` 1,500 b) ` 2,000 c) ` 1,000 d) ` 1,250
12. Children education Allowance received by assessee is exempt upto
a) amount received
b) ` 100 p.m. per child up to a maximum of 2 children
c) Lower of a) and b)
d) None of the above
 Salary MCQ’s CA VIVEK GABA MOCK - TEST

13. An assessee received ` 200 per month/per child for 3 children as children education allowance. What
shall be the amount exempt in his hands for such allowance?
a) ` 7,200 b) ` 3,600 c) ` 2,400 d) Nil
14. An assessee received ` 300 per month for 3 children as Hostel Expenditure allowance. What shall be
the amount exempt in his hands for such allowance?
a) ` 10,800 b) ` 7,200 c) ` 4,800 d)
Nil
15. Transport Allowance received by assessee (Handicapped) is exempt upto
a) amount received
b) 3200 p.m. for blind/handicapped employee
c) Lower of a) and b)
d) None of the above
16. Allowance allowed to transport employees shall be exempt upto
a) 70% of such allowance b) ` 10,000
c) Lower of a) and b) d) None of the above
17. An assessee, transport employee received allowance allowed to them of ` 20,000. The amount spent
by him is ` 12,000. What amount would be exempt on account of allowance?
a) ` 12,000 b) ` 10,000 c) ` 14,000 d) Nil
18. Raju is in receipt of following allowance.
Transport allowance: ` 1,800 p.m. (amount spent ` 600 p.m.)
Tribal area allowance: ` 500 p.m.
Compute his taxable allowances.
a) ` 2,400 b) 25,300 c) ` 6,000 d) Nil
19. What is the amount of HRA exempt when assessee is residing in a city other than Metro City?
a) HRA actually received
b) Rent paid - 10% of salary for the relevant period
c) 40% of salary for the relevant period
d) Least of above
20. Exemption of HRA received …………… to an assessee who lives in his own house.
a) is available b) is not available
b) shall be available d) None of the above
21. Mr. Arvind has the following receipts from his employer:
Particulars `
(1) Basic pay 3,000 p.m.
(2) Dearness allowance (D.A.) 600 p.m.
(3) Commission 6,000 p.a.
(4) Motor car for personal use (expenditure met by the employer) 500 p.m.
(5) House rent allowance 900 p.m.
Find out the amount of HRA eligible for exemption to him assuming that he paid a rent of ` 1,000 p.m.
for his accommodation at Kanpur. DA forms part of salary for retirement benefits.
a) ` 7,680 b) ` 10,800 c) ` 17,280 d) Nil
22. What is the amount of Rent free accommodation taxable when accommodation has been provided to
employee by government employer?
a) 15% of salary b) 10% of salary
c) licence fees as per Government rules d) None of the above
23. When accommodation is provided by an employer other than Government employer to his employee
in a city where the population exceeds 25 lakh, what amount shall be taxable in the hands of
employee?
a) 15% of salary b) 10% of salary
 Salary MCQ’s CA VIVEK GABA MOCK - TEST
c) 7½% of salary d) None of the above
24. When accommodation is provided by an employer other than Government employer to his employee
in a city where the population is less than 10 lakh, what amount shall be taxable in the hands of
employee?
a) 15% of salary b) 10% of salary
c) 7½% of salary d) None of the above
25. When accommodation not owned by the employer other than Government employer is provided to
the employee, what amount shall be taxable in the hands of employee?
a) Actual Rent b) 15% of Salary
c) lower of a) and b) d) none of the above
26. For an employee other than Government employee, when RFA given to employee is not owned by
employer, what amount shall be taxable in the hands of employee?
a) Actual Rent or 20 % of Salary, whichever is less
b) Actual Rent or 15 % of Salary, whichever is less
c) Actual Rent or 10 % of Salary, whichever is less
d) None of the above
27. When an accommodation has been provided in a hotel by a government employer, what amount shall
be taxable in the hands of employee?
a) 24% of salary b) actual charges
c) least of a) and b) d) licence fees as per Government rules
28. When an accommodation has been provided in a hotel by an employer other than government
employer, what amount shall be taxable in the hands of employee?
a) 24 % of salary or actual charges, whichever is lower
b) 20 % of salary or actual charges, whichever is lower
c) 15 % of salary or actual charges, whichever is lower
d) None of the above
29. If furniture is also provided along with RFA, then what amount shall be taxable in the hands of
employee if Furniture owned by employer?
a) 10% p.a. of actual cost of furniture b) actual hire charges
c) either of above d) None of the above
30. If commission for the year is ` 24,000 but RFA is given for 6 months, how much commission shall be
included in salary for the purpose of computation of taxable value of RFA?
a) ` 24,000 b) ` 12,000 c) ` 8,000 d)
Nil
31. Ram, Finance Manager in ABC Ltd. The company has provided him rent-free unfurnished
accommodation in Mumbai. He gives you the following particulars:
Particulars `
Basic salary ` 6,000 p.m.
Advance salary for April 2019
Dearness Allowance ` 5,000
Bonus ` 2,000 p.m. (30% for retirement benefits)
` 1,500 p.m.
Even though the company allotted house to him on 01.04.2017, he occupied the same only from
01.11.2019. Calculate the taxable value of perquisite for A.Y. 2018-19.
a) ` 6,075 b) ` 6,000 c) ` 4,500 d) Nil
32. Ram is Finance Manager in ABC Ltd. The company has provided him rent-free unfurnished
accommodation in Mumbai. He gives you the following particulars:
Particulars `
Basic salary ` 6,000 p.m.
Advance salary for April 2019
Dearness Allowance ` 5,000
Bonus
 Salary MCQ’s CA VIVEK GABA MOCK - TEST

` 2,000 p.m. (30% for retirement benefits)

` 1,500 p.m.
Even though the company allotted house to him on 01.04.2019, he occupied the same only from
01.11.2019. He paid ` 500 per month for the said accommodation. Calculate the taxable value of
perquisite for A.Y. 2018-19.
a) ` 3,575 b) ` 3,500 c) ` 2,000 d) Nil
33. Rahul is an employee in a Government company. The company has provided him rent-free
unfurnished accommodation in Mumbai. He gives you the following particulars:
Particulars `
Basic salary ` 6,000 p.m.
Advance salary for April 2017
Dearness Allowance ` 5,000
Bonus ` 2,000 p.m. (30% for retirement benefits)
` 1,500 p.m.
Even though the company allotted house to him on 01.04.2017, he occupied the same only from
01.11.2017. Calculate the taxable value of perquisite for A.Y. 2018-19. The license fee of the house
is ` 700 per month.
a) ` 6,075 b) ` 6,000 c) ` 4,500 d) 3,500
34. Interest on loan granted by the employer to the employee
a) shall have no treatment in hands of employee b) shall be taxable in hands of employee
c) shall not be taxable in the hands of employee d) None of the above
35. Interest on loan shall not be taxable in which case?
a) Loans as on the last day of the month does not exceed ` 20,000
b) Loan is provided for the treatment of specified disease
c) Any of the above
d) None of the above
36. Interest on loan shall not be taxable in which case?
a) Loans as on the last day of the month does not exceed ` 20,000
b) Loan is provided for the construction of house
c) Any of the above
d) None of the above
37. A loan is provided by the employer to his employee, amounting to ` 35,000 (outstanding balance as
st
on last day). Interest of SBI as on last day of previous year is 15% whereas as on 1 day of previous
year is 16%. On what amount shall interest be calculated and at what rate?
a) ` 35,000, 15% b) ` 15,000, 15%
c) ` 35,000, 16% d) ` 15,000, 16%
38. An employer provided his employee a sofa set whose actual cost is ` 70,000. Employee pays ` 2,000
to his employee towards this sofa set. What amount shall be taxable in the hands of the employee?
a) ` 7,000 b) ` 2,000 c) ` 5,000 d) ` 10,000
39. When an asset transferred by the employer to his employee is assets other than computer and
electronic items and Motor Car, what shall be taxable in the hands of the employee?
a) Purchase Price of employer – 50 % of other assets SLM for each incomplete year of usage
b) Purchase Price of employer – 50 % of other assets SLM for each completed year of usage
c) Purchase Price of employer – 20 % of other assets SLM for each completed year of usage
d) Purchase Price of employer - 10% of other assets SLM for each completed year of usage
40. If the value of gift in aggregate during the previous year is upto` 5,000, the same shall
a) taxable as allowance b) taxable as perquisite
 Salary MCQ’s CA VIVEK GABA MOCK - TEST
c) Not be taxable d) none of the above
41. Tea or snacks provided during office hours to the employee is
a) fully exempt without limit b) fully taxable
c) taxable beyond a limit d) none of the above
42. Free meal provided to the employee is exempt upto ……………..
a) ` 150 per meal b) ` 100 per meal c) ` 50 per meal d) No limit
43. If a free meal of ` 150 is provided to the employee. What amount shall be taxable in the hands of the
employee?
a) ` 150 per meal b) ` 100 per meal c)50permeal d) Nil
44. If Credit card and club expenditure is incurred for any purpose other than official purpose, what
amount shall be taxable?
a) Nothing is taxable
b) ` 30,000 shall be taxable
c) Actual expenditure incurred by the employer shall be taxable
d) None of the above
45. Section 10(5) exempts leave travel concession (LTC) received by employees from their employers for
proceeding to any place in India
a) either on leave b) after retirement from service
c) after termination of his service d) all of the above
46. When the employee performs journey by any mode other than air and the destination is not
connected by rail, what amount shall be exempt from tax?
a) then second class rail fare by the shortest route to the place of destination
b) then first class rail fare by the shortest route to the place of destination
c) then first class rail fare by the longest route to the place of destination
st
d) then 1 class or deluxe class fare
47. If any hospital or dispensary is maintained by any local authority and the amount is provided to the
employee for treatment in such hospital, the amount so paid shall …………
a) not be exempt b) be partly taxable
c) exempt without any limit d) none of the above
48. When the motor car is owned by the employee and used by the employee for private purpose. What
amount shall be taxable in the hands of the employee?
a) Actual expenditure incurred by employer shall be taxable
b) Nil
c) Discretion of Assessing Officer
d) None of the above
49. When the motor car is owned by the employer and used by the employee for official purpose. What
amount shall be taxable in the hands of the employee?
a) Actual expenditure incurred by employer shall be taxable
b) Nil
c) Discretion of Assessing Officer
d) None of the above
50. Commuted pension received by the non-government employee who is also in receipt of Gratuity.
What would be the treatment of such amount for tax purpose?
 1 commuted pension received 
a)  3  commutation %
 100% 
 shall be exempt
 1 commuted pension received 
b)    100% 
2 commutation %  shall be exempt
c) Any of the above
d) None of the above
51. Commuted pension received by the non-government employee who is not in receipt of gratuity. What
would be the treatment of such amount for tax purpose?
 Salary MCQ’s CA VIVEK GABA MOCK - TEST

 1 commuted pension received 

a)  3  commutation %
 100% 
 shall be exempt
 1 commuted pension received 
b)    100% 
2 commutation %  shall be exempt
c) Any of the above
d) None of the above
52. Ravi retired on 01.10.2019 receiving ` 5,000 p.m. as pension. On 01.02.2020, he commuted 60% of
his pension and received ` 3,00,000 as commuted pension. What amount of uncommuted and
commuted pension is taxable if Ravi is Government employee?
a) ` 24,000, Nil b) ` 24,000, ` 3,00,000
c) Nil, ` 3,00,000 d) Nil, Nil
53. Ravi retired on 01.10.2019 receiving ` 5,000 p.m. as pension. On 01.02.2020, he commuted 60% of
his pension and received ` 3,00,000 as commuted pension and receiving gratuity of ` 5,00,000 at the
time of retirement. What amount of uncommuted and commuted pension is taxable if he is a non-
government employee?
a) ` 24,000, ` 50,000 b) ` 24,000, ` 1,33,333
c) Nil, ` 1,33,333 d) Nil, ` 50,000
54. Ravi retired on 01.10.2019 receiving ` 5,000 p.m. as pension. On 01.02.2020, he commuted 60% of
his pension and received ` 3,00,000 as commuted pension and is in receipt of no gratuity at the time
of retirement. What amount of uncommuted and commuted pension is taxable if he is a non-
government employee?
a) ` 24,000, ` 50,000 b) ` 24,000, ` 1,33,333
c) Nil, ` 1,33,333 d) Nil, ` 50,000
55. Section 10(10) of the Income tax Act tells about
a) taxability about gratuity b) taxability about pension
c) taxability about leave encashment d) None of the above
56. Death cum retirement gratuity received by Non-Government employee who is covered by Payment of
Gratuity Act, 1972 ………………
a) ` 10,00,000
b) Gratuity actually received
c) 15 days’ salary based on last drawn salary for each completed year of service or part thereof in
excess of 6 months
d) Least of above
57. Gratuity received during the period of service ……………………..
a) Partially exempt from tax b) fully exempt from tax
c) fully taxable d) none of the above
58. Where gratuity is received in earlier year from former employer and received from another employer
in later year, the limit of ` 20,00,000 ………. by the amount of gratuity exempt earlier
a) will not be reduced b) may be reduced
c) will be reduced d) None of the above
59. Ramesh who is non-government employee and covered by the Payment of Gratuity Act 1972 retired
on 15.06.2019 after completion of 26 years 8 months of service and received gratuity of ` 6,00,000. At
the time of retirement his salary was:
Basic Salary : ` 5,000 p.m.
Dearness Allowance : ` 3,000 p.m. (60% of which is for retirement benefits)
 Salary MCQ’s CA VIVEK GABA MOCK - TEST

Commission : 1% of turnover (turnover in the last 12 months was ` 12,00,000)

Bonus : ` 12,000 p.a.
What amount of gratuity shall be taxable?
a) ` 4,75,385 b) ` 4,98,600 c) Nil d) ` 6,00,000
60. Ramesh who is a government employee retired on 15.06.2017 after completion of 26 years 8 months
of service and received gratuity of ` 6,00,000. At the time of retirement his salary was:
Basic Salary : ` 5,000 p.m.
Dearness Allowance : ` 3,000 p.m. (60% of which is for retirement benefits)
Commission : 1% of turnover (turnover in the last 12 months was ` 12,00,000)
Bonus : ` 12,000 p.a.
What amount of gratuity shall be taxable?
a) ` 4,75,385 b) ` 4,98,600 c) Nil d) ` 6,00,000
61. Leave salary received at the time of retirement by non-government employee is …………..
a) ` 3,00,000
b) Leave salary actually received
c) 10 months’ salary (on the basis of average salary of last 10 months)
d) Cash equivalent of unavailed leave salary @ 30 days for every year of service
e) Least of above
62. Where leave salary is received from 2 or more employers in the same year then aggregate amount of
leave salary exempt from tax ……..………..
a) can exceed ` 3,00,000 b) cannot exceed ` 3,00,000
c) cannot exceed ` 5,00,000 d) None of the above
63. Where leave salary is received in earlier year from former employer and received from another
employer in later year, the limit of ` 3,00,000…….. by the amount of leave salary exempt earlier
a) will not be reduced b) may be reduced
c) will be reduced d) None of the above
64. Rohit who is not a government employee retired on 01.12.2019 after 20 years 10 months of service,
receiving leave salary of ` 5,00,000. Other details of his salary income are:
Basic Salary : ` 5,000 p.m. (` 1,000 was increased w.e.f. 01.04.2019)
Dearness Allowance : ` 3,000 p.m. (60% of which is for retirement benefits)
Commission : ` 500 p.m.
Bonus : ` 1,000 p.m.
Leave availed during service : 480 days
He was entitled to 30 days leave every year. How much amount of leave salary shall be taxable?
a) Nil b) ` 4,73,600 c) ` 5,00,000 d) None of the above
65. Which section of the Income tax Act provides about exemption of amount received by way of
compensation received on Voluntary Retirement?
a) 10(10) b) 10(10A) c) 10(10AA) d) 10(10C)
66. How much amount received by way Compensation received on Voluntary Retirement is exempt?
a) ` 5,00,000
b) Amount received or receivable
c) For one completed year job done- 3 months’ salary or total months left after VRS for normal
retirement
d) Least of above
 Salary MCQ’s CA VIVEK GABA MOCK - TEST
67. Assessee (employee) can avail both exemption under section 10(10C) of compensation on Voluntary
retirement and also relief under section 89(1). Is the statement correct?
a) Assessee can avail both exemption and relief
b) Assessee can avail either exemption under section 10(10C) or relief under section 89(1)
c) On the discretion of Assessing Officer
d) None of the above
68. Which section of the Income tax Act provides about exemption of amount received by way
Retrenchment compensation?
a) 10(10) b) 10(10B) c) 10(10AA) d) 10(10C)
69. Section 10(10B) of the Income tax Act provide for
a) taxability about gratuity
b) taxability about amount received by way of retrenchment compensation
c) taxability about leave encashment
d) None of the above
70. Which deduction is allowed under section 16?
a) Professional tax b) Entertainment allowance
c) Standard Deduction d) All of the above
71. Deduction in respect of entertainment allowance is available to ………………..
a) Government employees b) Non-Government employees
c) any of the above d) None of the above
72. What amount of deduction is available for entertainment tax?
a) One-fifth of his basic salary b) ` 5,000
c) Actual entertainment allowance received d) Least of above
73. The maximum exemption under section 10(10) in case of Gratuity is
a) ` 20,00,000 b) ` 3,00,000 c) ` 10,50,000 d) ` 5,00,000
74. The maximum exemption in respect of transport allowance granted to an employee to meet his
expenditure for the purpose of commuting between the place of his residence and the place of his
duty shall be
a) ` 800 per month b) ` 1600 per month
c) ` 700 per month d) ` Nil
75. The maximum exemption in respect of transport allowance granted to an handicapped employee to
meet his expenditure for the purpose of commuting between the place of his residence and the place
of his duty shall be
a) ` 1,600 per month b) ` 3,200 per month
c) ` 800 per month d) ` 900 per month
76. Mayank receives ` 50,000 as basic salary from the Government during the financial year 2019-20 and
` 9,000 by way of entertainment allowance which he spends in full for official purpose. The allowance
of deduction in respect of allowance will be
a) ` 5,000 b) ` 9,000 c) ` 10,000 d) None of the above
77. For an employee in receipt of hostel expenditure allowance for his three children, the maximum
annual allowance exempt under section 10(14) is
a) ` 10,800 b) ` 7,200 c) ` 9,600 d) ` 3,600
78. The entertainment allowance received by a Government employee is exempt up to the lower of the
actual entertainment allowance received, 1/5th of basic salary and
a) `4,000 b) ` 6,000 c) ` 5,000. d) Nil
79. Rajesh is provided with a rent free unfurnished accommodation, which is owned by his employer, XY
Pvt. Ltd., in New Delhi. The value of perquisite in the hands of Rajesh is –
a) 20 % of salary b) 15 % of salary
c) 10 % of salary d) 7.5 % of salary
 Salary MCQ’s CA VIVEK GABA MOCK - TEST
80. The maximum ceiling limit for exemption under section 10(10) in respect of gratuity for employees
covered by the Payment of Gratuity Act, 1972 is –
a) ` 3,50,000 b) ` 20,00,000 c) ` 10,00,000 d) ` 7,00,000
81. The HRA paid to an employee residing in Patna is exempt up to the lower of actual HRA, excess of
rent paid over 10% of salary and –
a) 40 % of salary b) 50 % of salary
c) 60 % of salary d) 70 % of salary
82. Salary of S (` 40,000 per month) becomes due on the last day of the month but is paid on 7th of next
month. Also, salary of April, 2020 and May, 2020 is received in advance in March, 2020.What will be
his gross income for Assessment Year 2020-21?
a) ` 5,60,000 b) ` 4,80,000 c) ` 4,40,000 d) ` 5,20,000
83. Y received children education allowance of ` 500 pm for his 1 child. Calculate taxable amount of
children education allowance for assessment year 2020-21 if entire amount is spent by him.
a) Nil b) ` 4,800 c) ` 6,000 d) ` 3,600
84. A Ltd. has advanced an interest free loan of ` 5,00,000 to B for purchase of car on 1.5.2019. B has
been repaying loan in installments of` 20,000 p.m. on the1stof next month. Compute the value of
perquisite on account of interest assuming the interest charged by SBI is 10% p.a.
a) ` 34,833 b) ` 36,667 c) `40,000 d) ` 50,000
85. Employer provides a car (below 1.6 ltr. capacity) along with a driver to be used partly for official and
partly for personal purpose. The expenses incurred by company are: running and maintenance
expenses -` 32,000, driver's salary-` 36,000. Taxable value of perquisite is:
a) ` 21,600 b) ` 10,800 c) ` 32,400 d) ` 39,600
86. X retired on 15.4.2019 from a company. He was entitled to a pension of ` 4,000 p.m. At the time of
retirement, he got 75% of pension commuted & received ` 1,20,000 as commuted pension.
Compute the taxable portion of commuted pension if he is entitled to gratuity.
a) ` 66,667 b) ` 53,333 c) 1,20,000 d) ` 78,667
87. For an employee in receipt of hostel expenditure allowance for his one children, the maximum
annual allowance exempt under section 10(14) is
a) ` 10,800 b) ` 7,200 c) `9,600 d) ` 3,600
88. R, who is entitled to a salary of ` 10,000 p.m. took an advance of ` 20,000 against the salary in
month of April 2018. The gross salary of R for assessment year 2020-21 shall be:
a) ` 1,40,000 b) ` 1,20,000 c) ` 1,30,000 d) None of the above
89. A is entitled to children education allowance @ ` 80 p.m. per child for 3 children amounting ` 240
p.m. It will be exempt to the extent of :
a) ` 200 p.m. b) ` 160 p.m. c) ` 240 p.m. d) Nil
90. In which of the following situation is accommodation provided in hotel by the employer not taxable in
the hands of the employee?
a) When accommodation is provided for not more than 15 days
b) on transfer of employee from one place to another
c) both a) and b) together
d) none of the above
91. In case of transfer from one place to another, if employee is provided house at new place and also
allowed to retain house at old place, what shall be taxable after 90 days?
a) value of one house with lower value shall be taxable
b) value of one house with higher value shall be taxable
c) average of value of both house shall be taxable
d) value of both the house shall be taxable
 Salary MCQ’s CA VIVEK GABA MOCK - TEST
92. What is the value taxable in the hands of employee on allotment of equity shares?
a) Fair market value (FMV) of shares on date of allotment - Amount recovered from employee
b) Fair market value (FMV) of the shares on the date of allotment
c) Fair market value (FMV) of shares on date of allotment + Amount recovered from employee
d) None of the above
93. When the asset given by the employer is computer or telephone, what amount shall be taxable in the
hands of the employee?
a) Taxable in the hands of employee b) Not taxable in the hands of employee
c) Discretion of Assessing Officer d) None of the above
94. When the motor car is owned by the employee and used by the employee for private and official
purpose. What amount shall be taxable in the hands of the employee?
a) Total Actual expenditure for official and personal purpose - 1800 pm /2400 pm
+ 900 pm for chauffeur (if any)
b) Total Actual expenditure for official and personal purpose + 1800 pm /2400 pm
- 900 pm for chauffeur (if any)
c) Total Actual expenditure for official and personal purpose - 1800 pm /2400 pm
- 900 pm for chauffeur (if any)
d) Total Actual expenditure for official and personal purpose
95. What is the maximum amount upto which leave salary is exempt from tax?
a) ` 5,00,000 b) ` 3,00,000 c) ` 10,00,000 d) upto any
limit
96. Which of the following income is taxable under the head ‘income from salary’?
a) Salary received by a partner from firm
b) Salary received by a member of parliament
c) Salary of a government officer
d) None of the above
97. Vivek receive 50,000 as basic salary from the government during the financial year 2019-20 and
receives 9,000 by way of entertainment allowance which he spends in full for official purposes. The
amount deductible under section 16(ii) in respect of the allowance will be?
a) 5,000 b) 9,000 c) 10,000 d) None of the above
98. The amount of any contribution to an approved superannuation fund by the employer in respect of the
employee is exempt from tax upto?
a) 1,00,000 b) 1,50,000 c) 2,00,000 d) Nil
99. Vivek obtained interest-free loan of ` 20,000 from his employer company for purchasing a two-
wheeler. The market rate of interest on such loan is 20% p.a. The leading rate of SBI is 12.5% and
that of the private sector bank is 16%. The taxable amount of this perquisite will be computed at the
rate of?
a) 20% b) 16% c) 12.5% d) Nil
rate
100. The maximum exemption under section 10(10AA) in case of leave encashment is?
a) 3,50,000 b) 3,00,000 c) 10,00,000 d) 5,00,000
CA VIVEK GABA CS EXECUTIVE SALARY HEAD

Salary MCQ’s [ Set – 2]

Finance Act, 2019
1. Service received in lieu of unavailed leave during service shall be;?
a) Fully taxable b) Fully exempted c) Partially taxable d) None of the above

2. Interest-free loan to an employee, where the amount of loan does not exceed any one of the following,
shall be treated as the tax-free perquisite in all cases under section 17(2);?
a) 10,000 b) 15,000 c) 20,000 d) 25,000

3. Leave encashment received while in service is ……………….?

a) Taxable b) Exempt c) Partly taxable d) None of the above

4. Allowance payable to Central Government employees for serving outside India are fully taxable as salary?
a) True b) False c) Partly true d) None of the above

5. When the asset given by employer is laptop, what amount is taxable in hands of employee?
a) Taxable in the hands of employee b) Not taxable in the hands of employee
c) Discretion of Assessing Officer d) None of the above
6. Mayank receives ` 50,000 as basic salary from the Government during the financial year 2019-20 and `
4,000 by way of entertainment allowance which he spends in full for official purpose. The deduction in
respect of entertainment allowance will be
a) ` 4,000 b) `9,000 c) ` 10,000 d) None of the above
7. Expenditure incurred or reimbursed on any medical treatment provided to an employee or any other
member of his family is fully exempt without limit, for treatment in any hospital, dispensary if
a) Hospital is maintained by the employer b) Hospital is maintained by the Government
c) Any of the above d) None of the above
8. Reimbursement by employer of any amount actually spent by the employee for obtaining his or his family
member’s treatment in any hospital, nursing home or clinic is …………
a) Exempt upto maximum of ` 15,000 b) fully taxable
c) taxable upto ` 15,000 d) None of the above
9. When Gas, electricity or water is provided by the employer from own sources, what amount shall be
taxable in the hands of the employee?
a) Manufacturing cost per unit plus notional profit is taxable
b) Manufacturing cost per unit is taxable
c) Any of the above
d) None of the above
10. In case of transfer from one place to another, if employee is provided house at new place and also
allowed to retain house at old place, what amount shall be taxable for the first 90 days?
a) value of one house with lower value shall be taxable
b) value of one house with higher value shall be taxable
c) average of value of both house shall be taxable
d) value of both the house shall be taxable
11. What interest rate shall be relevant for computing taxable value of interest on loan granted
a) rate charged by RBI on 1st day of relevant previous year
b) rate charged by SBI on 1st day of relevant previous year
c) rate charged by SBI on last day of relevant previous year
d) rate charged by RBI on last day of relevant previous year
CA VIVEK GABA CS EXECUTIVE SALARY HEAD
12. Interest shall be calculated on the outstanding balance for each loan as on …………
a) the first day of each month b) the last day of each month
c) average balance during the month d) none of the above
13. When accommodation is provided by an employer other than Government employer to his employee in a
city where population exceeds 10 lakh but upto 25 lakh, what amount shall be taxable in the hands of
employee?
a) 15% of salary b) 10% of salary c) 7½% of salary d) None of the above
14. Which of the following statement is true for an employee other than government employee?
a) When accommodation is owned by the employer and the population of city exceeds 25 lakhs, the
amount taxable shall be 20 % of salary
b) When accommodation is owned by the employer and the population of city exceeds 25 lakhs, the
amount taxable shall be 10 % of salary
c) When accommodation is owned by the employer and the population of city exceeds 25 lakhs, the
amount taxable shall be 15 % of salary
d) None of the above
15. When an accommodation has been provided in the hotel by the employer for a period of 14 days and on
transfer of employee from one place to another. What amount shall be taxable in hands of employee?
a) 24% of salary b) actual charges c) Lower of a) and b) d) Nil
16. Where gratuity is received from 2 or more employers in the same year then, aggregate amount of gratuity
exempt from tax ……..………..
a) can exceed ` 20,00,000 b) cannot exceed ` 20,00,000
c) cannot exceed ` 15,00,000 d) None of the above
17. Ramesh, a non-government employee who is not covered by the Payment of Gratuity Act 1972 retired on
15.06.2019 after completion of 26 years 8 months of service and received gratuity of ` 6,00,000. At the
time of retirement his salary was:
Basic Salary : ` 5,000 p.m.
Dearness Allowance : ` 3,000 p.m. (60% of which is for retirement benefits)
Commission : 1% of turnover (turnover in the last 12 months was ` 12,00,000)
Bonus : ` 12,000 p.a.
What amount of gratuity shall be taxable?
a) ` 4,75,385 b) ` 4,98,600 c) Nil d) ` 6,00,000
18. Suman, an actress, is employed in XYZ Films for a monthly remuneration of ` 3 lakh. She acts in various
films produced by various producers. The remuneration for acting in such films is directly paid to XYZ
Films by different producers. The relationship of employee and employer ……………. and the amount is
chargeable to tax under head ……………….
a) does not exist, Other Sources b) does not exist, PGBP
c) exist, Salary d) exist, PGBP
19. When salary of April 2020, received in March 2020 has been taxed in assessment year 2020-21, the
same ……….. in salary of assessment year 2021-21
a) shall be included b) may be included
c) cannot be included d) None of the above
20. If salary due for March 2020 is received by P later in April 2020, it is chargeable as income of the P.Y.
a) 2018-19 b) 2019-20 c) 2017-18 d) None of the above
21. If salary due for March 2020 is received by P later in April 2020, it is chargeable as income of the
assessment year
a) 2020-21 b) 2019-20 c) 2018-19 d) None of the above
22. Every payment by an employer to his employee for service rendered would be taxable as ………
a) income from salaries b) income from PGBP
c) income from house property d) income from other sources
23. Income from salary includes ………………………
a) monetary payments b) non-monetary facilities
CA VIVEK GABA CS EXECUTIVE SALARY HEAD
c) Both a) and b) d) none of the above
24. Anand is entitled to get pension of ` 600 per month from a private company. He gets 3/5th of pension
commuted and gets ` 36,000. He did not receive gratuity. The taxable value of commuted value of
pension is
a) ` 16,000 b) ` 6,000 c) ` 18,000 d) ` 12,000
25. Fixed Medical Allowance is
a) Fully Taxable b) Fully Exempt c) Partly Taxable d) Partly exempt
26. Hostel Expenditure allowance received by assessee is exempt upto
a) amount received b) ` 300 p.m. per child up to a maximum of 2 children
c) Lower of a) and b) d) None of the above
27. An assessee received ` 75 per month for 3 children as children education allowance. The amount spent by
him is ` 50 per month. What shall be the amount Taxable in his hands for such allowance?
a) ` 2,700 b) ` 1,800 c) 900 d) ` 1,200
28. An assessee who is blind receives transport allowance. What amount would be exempt?
a) amount received or ` 800 p.m., whichever is less
b) amount received or ` 1,600 p.m., whichever is high
c) amount received or ` 3,200 p.m., whichever is less
d) amount received or ` 800 p.m., whichever is high
29. Ravi has two sons. He is in receipt of children education allowance of ` 150 p.m. for his elder son and ` 70
p.m. for his younger son. Both his sons are going to school. Compute his taxable allowances.
a) Nil b) ` 600 c) ` 240 d) ` 360
30. Salary for the purpose of computation of HRA means
a) Basic salary, dearness allowance
b) Basic salary, commission as a fixed percentage of turnover
c) Basic salary, dearness allowance, if provided in terms of employment and commission as a fixed
percentage of turnover
d) All portions of salary
31. What is the Relevant period for the purpose of Section 10(13A)?
a) period starting from 1st day of previous year
b) period starting from 1st day of month of previous year from when the accommodation was occupied
c) period during which said accommodation was occupied by assessee during previous year
d) any of the above
32. Which of the following is specified employee?
a) Director of the company
b) Employee having 20% or more voting power in the employer company
c) Employee having a salary of more than ` 50,000
d) All of the above
33. Interest on loan shall not be taxable in which case?
a) Loans on the first day of the month does not exceed ` 20,000
b) Loan is provided for the treatment of specified disease
c) Any of the above
d) None of the above
34. Uncommuted pension It is fully taxable in the hands of …………………….
a) government employee b) non-government employee
c) both a) and b) d) none of the above
35. Rohit, a government employee retired on 01.12.2019 after 20 years 10 months of service, receiving leave
salary of ` 5,00,000. Other details of his salary income are:
CA VIVEK GABA CS EXECUTIVE SALARY HEAD

Basic Salary : ` 5,000 p.m. (` 1,000 was increased w.e.f. 01.04.2019)

Dearness Allowance : ` 3,000 p.m. (60% of which is for retirement benefits)
Commission : ` 500 p.m.
Bonus : ` 1,000 p.m.
Leave availed during service : 480 days
He was entitled to 30 days leave every year. How much amount of leave salary shall be taxable?
a) Nil b) ` 4,73,600
c) ` 5,00,000 d) None of the above
36. What is maximum exemption allowed under section 10(10C) in case of Compensation received on
Voluntary Retirement
a) ` 3,50,000 b) ` 3,00,000
c) ` 10,50,000 d) ` 5,00,000
37. What is maximum exemption allowed under section 10(10AA) in case of leave encashment is
a) ` 3,50,000 b) ` 3,00,000
c) ` 10,50,000 d) ` 5,00,000
38. Swati is an employee in a private company. In the previous year she received salary of `1,80,000 and
entertainment allowance of ` 12,000. She spent ` 6,000 on entertainment. Under section 16(ii), she is
entitled to deduction of
a) ` 12,000 b) ` 6,000 c) ` 5,000 d) Nil
39. X is entitled to a basic salary of ` 50,000 p.m. and dearness allowance of ` 10,000 p.m., 40% of which
forms part of retirement benefits. He is also entitled to HRA of ` 20,000 pm. He actually lives with his
parents in Mumbai and does not pay any rent. Market rent of that house is ` 20,000 pm in Mumbai.
Calculate the amount of exempt HRA.
a) Nil b) ` 1,75,200 c) ` 64,800 d) ` 2,40,000
40. Mr. A (65 years) submits the following information for the Assessment year 2020-21:
Gross salary-` 8,80,000
Income from other sources-` 60,000
Contribution to PPF-` 70,000
Compute the tax liability of A.
a) ` 76,960 b) ` 74,000 c) ` 89,100 d) `96,820
41. TATA Ltd. pays a salary ‘2,50,000 to his employee Ramesh and undertakes to pay the Income Tax
amounting to 10,500 during the previous year 2019-20 on behalf of Ramesh. The Gross salary of Ramesh
shall be:
a) 2,50,000 b) 2,60,500 c) 2,39,500 d) None of the above
42. Ramesh is employed with VG Ltd., at a salary of 20,000 p.m. As VG Ltd. was in financial crisis, it paid the
salary of Jan. 2020 to March 2020 to Ramesh only in July 2020. The Gross salary of Ramesh for
assessment year 2020-21 shall be:
a) 2,40,000 b) 1,80,000 c) 3,00,000 d) None of the above
43. Salary of V is 10,000 p.m. V had taken in advance for the months of April 2020 to June 2020 in march
2020 itself. The Gross Salary of V for assessment year 2020-21 shall be:
a) 2,40,000 b) 1,80,000 c) 1,50,000 d) 1,20,000
44. Salary of V becomes due on 1st of next month and it is paid on 7th of that next month. For assessment
year 2020-21 the salary of V shall be taken from:
a) April 2019 to march 2020 b) March 2019 to February 2020
c) March 2019 to march 2020 d) None of the above
CA VIVEK GABA CS EXECUTIVE SALARY HEAD
45. An Employee is covered under payment of Gratuity Act, 1972.
(i) Salary for the purpose of calculating 15 days salary for each completed year of service shall be:
a) Last drawn salary b) Average salary of last 10 months
c) Average salary of last 3 completed years d) None of the above
(ii) Salary for the above purpose shall:
a) Include Dearness Allowance b) Not include Dearness Allowance
c) Include to the extent the terms of employment d) None of the above
(iii) If the employee has completed service of 16 years 6 months and 5 days, the number of completed
year shall be taken as:
a) 16 years b) 17 years
c) 16 years 6 months and 5 days d) None of the above
(iv) If the employee has completed service of 16 years 6 months the completed year shall be taken as:
a) 16 years b) 17 years
c) 16 years 6 months d) None of the above
46. V worked with a previous employer for 3 years but was not entitled to any gratuity. He worked with the
present Employer for 8 years and 7 months. The completed year of service for calculating exemption of
gratuity shall be taken as:
a) 11 years b) 8 years c) 12 years d) 9 years
47. An Employee availed the exemption of VRS of 1,00,000 in the past. He received from the second
Employer a sum of 2,50,000 as VRS Compensation. He will be entitled to exemption to the extent of:
a) Nil b) 2,50,000 c) 2,00,000 d) 3,50,000
48. V is entitled to children Education Allowance at 80 p.m. per child for 3 children amounting 240 p.m. it will
be exempt to the extent of:
a) 200 p.m. b) 160 p.m. c) 240 p.m. d) 300 p.m.
49. V is entitled to Hostel expenditure Allowance at 600 p.m. for his 3 children amounting 200 p.m. per child it
will be exempt to the extent of:
a) 600 p.m. b) 400 p.m. c) 300 p.m. d) None of the above
50. V is entitled to Transport Allowance of 2,000 p.m. for commuting from his residence to office and back. He
spends 600 p.m. The exemption shall be:
a) 1000 p.m. b) Nil. c) 600 p.m. d) 400 p.m.
51. V is entitled to 6000 as Medical Allowance. He spends 4000 on his medical treatment and 1000 on the
medical treatment of his major son not dependent on him. The exemption shall be:
a) 4,000 b) 5,000 c) Nil d) 6,000
52. Entertainment Allowance in case of Govt. Employee is:
a) fully exempt
b) exempt upto limits mentioned in sec. 16(ii)
c) first included fully in gross salary & thereafter allowed as deduction from gross salary u/s 16(ii)
d) fully taxable
53. During the PY, the employee was reimbursed 24,000 as medical expenses incurred by him which includes
7,000 spent in Govt. hospital. The taxable perquisites in this case shall be:
a) 9,000 b) 17,000 c) Nil d) None of the above
54. Employer’s Contribution to SPF shall be:
a) Fully Exempt b) Exempt upto 12% of salary
c) Exempt upto 10% of salary d) None of the above
55. Interest credited to SPF shall be:
a) Fully Exempt b) Exempt upto 12% p.a.
c) Fully Taxable d) Exempt upto 9.5% p.a.
56. Employer’s Contribution to RPF shall be:
a) Fully Taxable b) Fully Exempt
c) Exempt upto 12% of salary d) None of the above
57. Interest credited to RPF is:
a) Fully Taxable b) Fully Exempt
c) Exempt upto 12% of salary d) Exempt upto 9.5% p.a.
58. Employer’s Contribution to URPF shall be:
a) fully taxable c) fully exempt
c) exempt upto 12% of salary d) Neither exempt nor taxable in the year of contribution
CA VIVEK GABA CS EXECUTIVE SALARY HEAD
59. Which of the following allowance is fully Exempt?
(a) Overtime allowance (b) Medical allowance
(c) Allowances paid by UNO (d) HRA

60. HRA is given u/s .

(a) 10(13A) Rule 2A (b) 10(15B) Rule 3B

(c) 20(4) Rule 8B (d) 10(14A)

61. Mr. P is entitled to a watchman allowance of Rs. 600 p.m. for the security of his residence. He pays Rs. 500
p.m. to the watchman employed by him. Taxable allowance =

(a) 500 p.m (b) 100 p.m (c) 600 p.m (d) None

62. Medical expenditure reimbursed by the employer to the employee shall be exempt upto .
(a) Rs. 15,000 pm (b) Rs. 1,00,000 pa
(c) Fully Exempt (d) Fully taxable

63. Children born out of multiple birth after the first child will be treated as .
(a) Two child & exemption will be granted only for 1 child
(b) One child only & exemption will be granted only for both child
(c) on the discretion of AO
(d) (d) None of the above

64. Mr. P employed in PC Ltd. was permitted to admit his only son in the school run by the employer. No
fee was charged on such education provided to the son of Mr. P. The cost of such education for other
children is Rs. 1,800 per month. The perquisite value of free education shall be:
(a) Rs. 1,600 (b) Rs. 12,000
(c) Rs. 36,000 (d) Rs. 9,600

65. Mr. P is entitled to Rs. 8,000 p.m as Medical Allowance. He spends Rs. 4,000 p.m on his medical
treatment & Rs. 1,000 on the medical treatment of his major son not dependent on him. Exemption =
(a) Rs. 4,000 p.m (b) Rs. 5,000 p.m
(c) Nil (d) Rs. 8,000 p.m

66. Mr. P is employed in PC Ltd. & his wife is suffering from a critical disease. The company has sent Mr. P
& Mrs. S to USA for the medical treatment of Mrs. S . The company has incurred expenses on medical
treatment of Mrs. S & stay outside India of Mrs. S & of Mr. P. amounting to Rs. 17,00,000 but RBI permitted
only Rs. 15,00,000. The travel expenses amounted to Rs. 1,50,000. Salary of Mr. P was Rs. 5,00,000. The
taxable perquisite in this case shall be.
(a) Rs. 3,50,000 (b) Rs. 8,50,000
(c) Rs. 2,00,000 (d) Rs. 1,50,000

67. During AY 2019-20, the employee was reimbursed Rs. 14,000 as medical expenses incurred by him
which includes Rs. 9,000 spent in Government hospital. The taxable perquisite in this case shall be.
(a) Rs. 9,000 (b) Rs. 5,000
(c) Rs. Nil w(d) Rs. 14,000

68. Salary of an employee is Rs. 2,00,000. Rent paid by the employer for the unfurnished house provided to
employee at Faridabad is Rs. 3,000 p.m. The employer charges Rs. 2,000 p.m. as rent from the employee.
The valuation of this perquisite shall be .
(a) Rs. 24,000 (b) Rs. 36,000 (c) Rs. 30,000 (d) Rs. 6,000
CA VIVEK GABA CS EXECUTIVE SALARY HEAD
69. Mr. P gets salary of Rs. 12,000 p.m. & is provided with rent free unfurnished accommodation at Pune
(which has population of 20 lakh). House is owned by employer, fair rental value of which is Rs. 1,400 p.m.
House was provided from 1st July, 2018. Value of the perquisite will be.
(a) Rs. 21,600 (b) Rs. 10,800 (c) Rs. 16,200 (d) Rs. 12,600

70. If any employee has been transferred & employer has provided him accommodation at the new place
also while the employee continuing to occupy the house at old place. In such cases .
(a) Both houses will be charged to tax as perquisite.
(b)Only one of the accommodation having lower perquisite value shall be taxable upto 90 days (three
months) & after 90 days, both of the accommodations shall be taxable.
(c) Depends upon the agreement between employee & employer
(d) Depends upon the discretion of AO

71. A company has provided laptop worth Rs. 50,000 to its employee for official as well as personal
purposes. The taxable amount of perquisite will be -
(a) Rs. 5,000 (b) Rs. 25,000
(c) Rs. 10,000 (d) Nil

72. Employer has given a video-camera for the personal use of the employee. The value of this perquisite
is:
(a) 10 % pa of historical cost (b) Nil
(c) 10% pa of the WDV (d) Fully Exempt

73. The employer had purchased a car for Rs. 8,00,000 2 years & 7 months ago. This car is sold to the
employee for Rs. 2,02,000. The value of this perquisite shall be
(a) Rs. 2,80,000 (b) Rs. 1,20,000
(c) Rs. 8,00,000 (d) Rs. 3,10,000

74. PC Ltd. acquired a motorcar for Rs. 8 lakh on 30th June, 2018. It sold the said motor car to its
employee, Mr. P, for Rs. 6 lakh on 10th July, 2018. The company claimed depreciation @ 15% for the year
ended 31st March, 2019. The perquisite value in the hands of Mr. P on sale of motor car would be
(a) Rs. 8,00,000 (b) Rs. 6,00,000
(c) Rs. 2,00,000 (d) Rs. 1,40,000

75. An employee was not entitled to gratuity. He got 60% of his pension commuted & received a sum of Rs.
1,20,000 as commuted pension. The exemption shall be:

(a) Rs. 1,20,000 (b) Rs. 66,667

(c) Rs. 80,000 (d) Rs. 1,00,000

76. Pension received by gallantry award winner is.

(a) Fully Taxable
(b) Fully Exempt from tax
(c) 50% Exempt & 50% taxable
(d) 80% Exempt & 20% taxable

77. Compensation received on Voluntary retirement is exempt u/s 10(10C) to the maximum extent of .
(a) Rs. 2.4 lac (b) Rs. 3.5 lac (c) Rs. 5 lac (d) Rs. 3 lac

78. Standard deduction is allowed from gross salary u/s

(a) 16(i) (b) 16(ia) (c) 16(ii) (d) 16(iii)

CA VIVEK GABA CS EXECUTIVE SALARY HEAD
79. Employee’s own contribution to RPF.PPF shall be
(a) Allowed as deduction u/s 80C
(b) Allowed as deduction u/s 80TTA
(c) Allowed as deduction u/s 10
(d) Allowed as deduction u/s 16(ia)

80. Employer’s contribution to RPF shall be.

(a) Fully Exempt (b) Exempt upto 12 % of salary
(d) Fully Taxable (c) Exempt up to 10% of salary

81. Interest credited to RPF shall be.

(a) Fully Exempt
(b) Fully Taxable
(c) Exempt up to 8.5 % p.a of total contribution
(d) Exempt up to 9.5 % p.a of total contribution

82. Payment from RPF after 5 years of continuous service of employee shall be .
(a) Fully Taxable
(b) Fully Exempt
(c) Taxable to the extent of employer’s contribution & interest thereon
(d) Exempt up to Rs. 10,00,000

83. An employee received payment from URPF on his retirement. His own contribution to URPF & Interest on his
own contribution will be.
(a) Taxable, Taxable (b) Exempt, Exempt
(c) Taxable, Exempt (d) Exempt, Taxable

84. When interest on employee’s own UPRF is received by employee, it is .

(a) Taxable u/h IFOS (b) Taxable u/h Salary
(c) Exempt (d) Taxable if interest > Rs. 10,000

Q135. For PY 2019-20, Mr. P receives a salary of Rs. 2,80,000. Mr. P’s contribution to employees’ RPF account
Rs. 59,000 & matching contribution has been made by employer. Gross Salary of Mr. P will be .
(a) Rs. 2,46,400 (b) Rs. 3,05,400
(c) Rs. 3,39,000 (d) Rs. 2,80,000
CA VIVEK GABA CS EXECUTIVE SALARY HEAD

Salary MCQ’s [ Set – 2]

Finance Act, 2019
1. Service received in lieu of unavailed leave during service shall be;?
a) Fully taxable b) Fully exempted c) Partially taxable d) None of the above

2. Interest-free loan to an employee, where the amount of loan does not exceed any one of the following,
shall be treated as the tax-free perquisite in all cases under section 17(2);?
a) 10,000 b) 15,000 c) 20,000 d) 25,000

3. Leave encashment received while in service is ……………….?

a) Taxable b) Exempt c) Partly taxable d) None of the above

4. Allowance payable to Central Government employees for serving outside India are fully taxable as salary?
a) True b) False c) Partly true d) None of the above

5. When the asset given by employer is laptop, what amount is taxable in hands of employee?
a) Taxable in the hands of employee b) Not taxable in the hands of employee
c) Discretion of Assessing Officer d) None of the above
6. Mayank receives ` 50,000 as basic salary from the Government during the financial year 2019-20 and `
4,000 by way of entertainment allowance which he spends in full for official purpose. The deduction in
respect of entertainment allowance will be
a) ` 4,000 b) `9,000 c) ` 10,000 d) None of the above
7. Expenditure incurred or reimbursed on any medical treatment provided to an employee or any other
member of his family is fully exempt without limit, for treatment in any hospital, dispensary if
a) Hospital is maintained by the employer b) Hospital is maintained by the Government
c) Any of the above d) None of the above
8. Reimbursement by employer of any amount actually spent by the employee for obtaining his or his family
member’s treatment in any hospital, nursing home or clinic is …………
a) Exempt upto maximum of ` 15,000 b) fully taxable
c) taxable upto ` 15,000 d) None of the above
9. When Gas, electricity or water is provided by the employer from own sources, what amount shall be
taxable in the hands of the employee?
a) Manufacturing cost per unit plus notional profit is taxable
b) Manufacturing cost per unit is taxable
c) Any of the above
d) None of the above
10. In case of transfer from one place to another, if employee is provided house at new place and also
allowed to retain house at old place, what amount shall be taxable for the first 90 days?
a) value of one house with lower value shall be taxable
b) value of one house with higher value shall be taxable
c) average of value of both house shall be taxable
d) value of both the house shall be taxable
11. What interest rate shall be relevant for computing taxable value of interest on loan granted
a) rate charged by RBI on 1st day of relevant previous year
b) rate charged by SBI on 1st day of relevant previous year
c) rate charged by SBI on last day of relevant previous year
d) rate charged by RBI on last day of relevant previous year
CA VIVEK GABA CS EXECUTIVE SALARY HEAD
12. Interest shall be calculated on the outstanding balance for each loan as on …………
a) the first day of each month b) the last day of each month
c) average balance during the month d) none of the above
13. When accommodation is provided by an employer other than Government employer to his employee in a
city where population exceeds 10 lakh but upto 25 lakh, what amount shall be taxable in the hands of
employee?
a) 15% of salary b) 10% of salary c) 7½% of salary d) None of the above
14. Which of the following statement is true for an employee other than government employee?
a) When accommodation is owned by the employer and the population of city exceeds 25 lakhs, the
amount taxable shall be 20 % of salary
b) When accommodation is owned by the employer and the population of city exceeds 25 lakhs, the
amount taxable shall be 10 % of salary
c) When accommodation is owned by the employer and the population of city exceeds 25 lakhs, the
amount taxable shall be 15 % of salary
d) None of the above
15. When an accommodation has been provided in the hotel by the employer for a period of 14 days and on
transfer of employee from one place to another. What amount shall be taxable in hands of employee?
a) 24% of salary b) actual charges c) Lower of a) and b) d) Nil
16. Where gratuity is received from 2 or more employers in the same year then, aggregate amount of gratuity
exempt from tax ……..………..
a) can exceed ` 20,00,000 b) cannot exceed ` 20,00,000
c) cannot exceed ` 15,00,000 d) None of the above
17. Ramesh, a non-government employee who is not covered by the Payment of Gratuity Act 1972 retired on
15.06.2019 after completion of 26 years 8 months of service and received gratuity of ` 6,00,000. At the
time of retirement his salary was:
Basic Salary : ` 5,000 p.m.
Dearness Allowance : ` 3,000 p.m. (60% of which is for retirement benefits)
Commission : 1% of turnover (turnover in the last 12 months was ` 12,00,000)
Bonus : ` 12,000 p.a.
What amount of gratuity shall be taxable?
a) ` 4,75,385 b) ` 4,98,600 c) Nil d) ` 6,00,000
18. Suman, an actress, is employed in XYZ Films for a monthly remuneration of ` 3 lakh. She acts in various
films produced by various producers. The remuneration for acting in such films is directly paid to XYZ
Films by different producers. The relationship of employee and employer ……………. and the amount is
chargeable to tax under head ……………….
a) does not exist, Other Sources b) does not exist, PGBP
c) exist, Salary d) exist, PGBP
19. When salary of April 2020, received in March 2020 has been taxed in assessment year 2020-21, the
same ……….. in salary of assessment year 2021-21
a) shall be included b) may be included
c) cannot be included d) None of the above
20. If salary due for March 2020 is received by P later in April 2020, it is chargeable as income of the P.Y.
a) 2018-19 b) 2019-20 c) 2017-18 d) None of the above
21. If salary due for March 2020 is received by P later in April 2020, it is chargeable as income of the
assessment year
a) 2020-21 b) 2019-20 c) 2018-19 d) None of the above
22. Every payment by an employer to his employee for service rendered would be taxable as ………
a) income from salaries b) income from PGBP
c) income from house property d) income from other sources
23. Income from salary includes ………………………
a) monetary payments b) non-monetary facilities
CA VIVEK GABA CS EXECUTIVE SALARY HEAD
c) Both a) and b) d) none of the above
24. Anand is entitled to get pension of ` 600 per month from a private company. He gets 3/5th of pension
commuted and gets ` 36,000. He did not receive gratuity. The taxable value of commuted value of
pension is
a) ` 16,000 b) ` 6,000 c) ` 18,000 d) ` 12,000
25. Fixed Medical Allowance is
a) Fully Taxable b) Fully Exempt c) Partly Taxable d) Partly exempt
26. Hostel Expenditure allowance received by assessee is exempt upto
a) amount received b) ` 300 p.m. per child up to a maximum of 2 children
c) Lower of a) and b) d) None of the above
27. An assessee received ` 75 per month for 3 children as children education allowance. The amount spent by
him is ` 50 per month. What shall be the amount Taxable in his hands for such allowance?
a) ` 2,700 b) ` 1,800 c) 900 d) ` 1,200
28. An assessee who is blind receives transport allowance. What amount would be exempt?
a) amount received or ` 800 p.m., whichever is less
b) amount received or ` 1,600 p.m., whichever is high
c) amount received or ` 3,200 p.m., whichever is less
d) amount received or ` 800 p.m., whichever is high
29. Ravi has two sons. He is in receipt of children education allowance of ` 150 p.m. for his elder son and ` 70
p.m. for his younger son. Both his sons are going to school. Compute his taxable allowances.
a) Nil b) ` 600 c) ` 240 d) ` 360
30. Salary for the purpose of computation of HRA means
a) Basic salary, dearness allowance
b) Basic salary, commission as a fixed percentage of turnover
c) Basic salary, dearness allowance, if provided in terms of employment and commission as a fixed
percentage of turnover
d) All portions of salary
31. What is the Relevant period for the purpose of Section 10(13A)?
a) period starting from 1st day of previous year
b) period starting from 1st day of month of previous year from when the accommodation was occupied
c) period during which said accommodation was occupied by assessee during previous year
d) any of the above
32. Which of the following is specified employee?
a) Director of the company
b) Employee having 20% or more voting power in the employer company
c) Employee having a salary of more than ` 50,000
d) All of the above
33. Interest on loan shall not be taxable in which case?
a) Loans on the first day of the month does not exceed ` 20,000
b) Loan is provided for the treatment of specified disease
c) Any of the above
d) None of the above
34. Uncommuted pension It is fully taxable in the hands of …………………….
a) government employee b) non-government employee
c) both a) and b) d) none of the above
35. Rohit, a government employee retired on 01.12.2019 after 20 years 10 months of service, receiving leave
salary of ` 5,00,000. Other details of his salary income are:
CA VIVEK GABA CS EXECUTIVE SALARY HEAD

Basic Salary : ` 5,000 p.m. (` 1,000 was increased w.e.f. 01.04.2019)

Dearness Allowance : ` 3,000 p.m. (60% of which is for retirement benefits)
Commission : ` 500 p.m.
Bonus : ` 1,000 p.m.
Leave availed during service : 480 days
He was entitled to 30 days leave every year. How much amount of leave salary shall be taxable?
a) Nil b) ` 4,73,600
c) ` 5,00,000 d) None of the above
36. What is maximum exemption allowed under section 10(10C) in case of Compensation received on
Voluntary Retirement
a) ` 3,50,000 b) ` 3,00,000
c) ` 10,50,000 d) ` 5,00,000
37. What is maximum exemption allowed under section 10(10AA) in case of leave encashment is
a) ` 3,50,000 b) ` 3,00,000
c) ` 10,50,000 d) ` 5,00,000
38. Swati is an employee in a private company. In the previous year she received salary of `1,80,000 and
entertainment allowance of ` 12,000. She spent ` 6,000 on entertainment. Under section 16(ii), she is
entitled to deduction of
a) ` 12,000 b) ` 6,000 c) ` 5,000 d) Nil
39. X is entitled to a basic salary of ` 50,000 p.m. and dearness allowance of ` 10,000 p.m., 40% of which
forms part of retirement benefits. He is also entitled to HRA of ` 20,000 pm. He actually lives with his
parents in Mumbai and does not pay any rent. Market rent of that house is ` 20,000 pm in Mumbai.
Calculate the amount of exempt HRA.
a) Nil b) ` 1,75,200 c) ` 64,800 d) ` 2,40,000
40. Mr. A (65 years) submits the following information for the Assessment year 2020-21:
Gross salary-` 8,80,000
Income from other sources-` 60,000
Contribution to PPF-` 70,000
Compute the tax liability of A.
a) ` 76,960 b) ` 74,000 c) ` 89,100 d) `96,820
41. TATA Ltd. pays a salary ‘2,50,000 to his employee Ramesh and undertakes to pay the Income Tax
amounting to 10,500 during the previous year 2019-20 on behalf of Ramesh. The Gross salary of Ramesh
shall be:
a) 2,50,000 b) 2,60,500 c) 2,39,500 d) None of the above
42. Ramesh is employed with VG Ltd., at a salary of 20,000 p.m. As VG Ltd. was in financial crisis, it paid the
salary of Jan. 2020 to March 2020 to Ramesh only in July 2020. The Gross salary of Ramesh for
assessment year 2020-21 shall be:
a) 2,40,000 b) 1,80,000 c) 3,00,000 d) None of the above
43. Salary of V is 10,000 p.m. V had taken in advance for the months of April 2020 to June 2020 in march
2020 itself. The Gross Salary of V for assessment year 2020-21 shall be:
a) 2,40,000 b) 1,80,000 c) 1,50,000 d) 1,20,000
44. Salary of V becomes due on 1st of next month and it is paid on 7th of that next month. For assessment
year 2020-21 the salary of V shall be taken from:
a) April 2019 to march 2020 b) March 2019 to February 2020
c) March 2019 to march 2020 d) None of the above
CA VIVEK GABA CS EXECUTIVE SALARY HEAD
45. An Employee is covered under payment of Gratuity Act, 1972.
(i) Salary for the purpose of calculating 15 days salary for each completed year of service shall be:
a) Last drawn salary b) Average salary of last 10 months
c) Average salary of last 3 completed years d) None of the above
(ii) Salary for the above purpose shall:
a) Include Dearness Allowance b) Not include Dearness Allowance
c) Include to the extent the terms of employment d) None of the above
(iii) If the employee has completed service of 16 years 6 months and 5 days, the number of completed
year shall be taken as:
a) 16 years b) 17 years
c) 16 years 6 months and 5 days d) None of the above
(iv) If the employee has completed service of 16 years 6 months the completed year shall be taken as:
a) 16 years b) 17 years
c) 16 years 6 months d) None of the above
46. V worked with a previous employer for 3 years but was not entitled to any gratuity. He worked with the
present Employer for 8 years and 7 months. The completed year of service for calculating exemption of
gratuity shall be taken as:
a) 11 years b) 8 years c) 12 years d) 9 years
47. An Employee availed the exemption of VRS of 1,00,000 in the past. He received from the second
Employer a sum of 2,50,000 as VRS Compensation. He will be entitled to exemption to the extent of:
a) Nil b) 2,50,000 c) 2,00,000 d) 3,50,000
48. V is entitled to children Education Allowance at 80 p.m. per child for 3 children amounting 240 p.m. it will
be exempt to the extent of:
a) 200 p.m. b) 160 p.m. c) 240 p.m. d) 300 p.m.
49. V is entitled to Hostel expenditure Allowance at 600 p.m. for his 3 children amounting 200 p.m. per child it
will be exempt to the extent of:
a) 600 p.m. b) 400 p.m. c) 300 p.m. d) None of the above
50. V is entitled to Transport Allowance of 2,000 p.m. for commuting from his residence to office and back. He
spends 600 p.m. The exemption shall be:
a) 1000 p.m. b) Nil. c) 600 p.m. d) 400 p.m.
51. V is entitled to 6000 as Medical Allowance. He spends 4000 on his medical treatment and 1000 on the
medical treatment of his major son not dependent on him. The exemption shall be:
a) 4,000 b) 5,000 c) Nil d) 6,000
52. Entertainment Allowance in case of Govt. Employee is:
a) fully exempt
b) exempt upto limits mentioned in sec. 16(ii)
c) first included fully in gross salary & thereafter allowed as deduction from gross salary u/s 16(ii)
d) fully taxable
53. During the PY, the employee was reimbursed 24,000 as medical expenses incurred by him which includes
7,000 spent in Govt. hospital. The taxable perquisites in this case shall be:
a) 9,000 b) 17,000 c) Nil d) None of the above
54. Employer’s Contribution to SPF shall be:
a) Fully Exempt b) Exempt upto 12% of salary
c) Exempt upto 10% of salary d) None of the above
55. Interest credited to SPF shall be:
a) Fully Exempt b) Exempt upto 12% p.a.
c) Fully Taxable d) Exempt upto 9.5% p.a.
56. Employer’s Contribution to RPF shall be:
a) Fully Taxable b) Fully Exempt
c) Exempt upto 12% of salary d) None of the above
57. Interest credited to RPF is:
a) Fully Taxable b) Fully Exempt
c) Exempt upto 12% of salary d) Exempt upto 9.5% p.a.
58. Employer’s Contribution to URPF shall be:
a) fully taxable c) fully exempt
c) exempt upto 12% of salary d) Neither exempt nor taxable in the year of contribution
CA VIVEK GABA CS EXECUTIVE SALARY HEAD
59. Which of the following allowance is fully Exempt?
(a) Overtime allowance (b) Medical allowance
(c) Allowances paid by UNO (d) HRA

60. HRA is given u/s .

(a) 10(13A) Rule 2A (b) 10(15B) Rule 3B

(c) 20(4) Rule 8B (d) 10(14A)

61. Mr. P is entitled to a watchman allowance of Rs. 600 p.m. for the security of his residence. He pays Rs. 500
p.m. to the watchman employed by him. Taxable allowance =

(a) 500 p.m (b) 100 p.m (c) 600 p.m (d) None

62. Medical expenditure reimbursed by the employer to the employee shall be exempt upto .
(a) Rs. 15,000 pm (b) Rs. 1,00,000 pa
(c) Fully Exempt (d) Fully taxable

63. Children born out of multiple birth after the first child will be treated as .
(a) Two child & exemption will be granted only for 1 child
(b) One child only & exemption will be granted only for both child
(c) on the discretion of AO
(d) (d) None of the above

64. Mr. P employed in PC Ltd. was permitted to admit his only son in the school run by the employer. No
fee was charged on such education provided to the son of Mr. P. The cost of such education for other
children is Rs. 1,800 per month. The perquisite value of free education shall be:
(a) Rs. 1,600 (b) Rs. 12,000
(c) Rs. 36,000 (d) Rs. 9,600

65. Mr. P is entitled to Rs. 8,000 p.m as Medical Allowance. He spends Rs. 4,000 p.m on his medical
treatment & Rs. 1,000 on the medical treatment of his major son not dependent on him. Exemption =
(a) Rs. 4,000 p.m (b) Rs. 5,000 p.m
(c) Nil (d) Rs. 8,000 p.m

66. Mr. P is employed in PC Ltd. & his wife is suffering from a critical disease. The company has sent Mr. P
& Mrs. S to USA for the medical treatment of Mrs. S . The company has incurred expenses on medical
treatment of Mrs. S & stay outside India of Mrs. S & of Mr. P. amounting to Rs. 17,00,000 but RBI permitted
only Rs. 15,00,000. The travel expenses amounted to Rs. 1,50,000. Salary of Mr. P was Rs. 5,00,000. The
taxable perquisite in this case shall be.
(a) Rs. 3,50,000 (b) Rs. 8,50,000
(c) Rs. 2,00,000 (d) Rs. 1,50,000

67. During AY 2019-20, the employee was reimbursed Rs. 14,000 as medical expenses incurred by him
which includes Rs. 9,000 spent in Government hospital. The taxable perquisite in this case shall be.
(a) Rs. 9,000 (b) Rs. 5,000
(c) Rs. Nil w(d) Rs. 14,000

68. Salary of an employee is Rs. 2,00,000. Rent paid by the employer for the unfurnished house provided to
employee at Faridabad is Rs. 3,000 p.m. The employer charges Rs. 2,000 p.m. as rent from the employee.
The valuation of this perquisite shall be .
(a) Rs. 24,000 (b) Rs. 36,000 (c) Rs. 30,000 (d) Rs. 6,000
CA VIVEK GABA CS EXECUTIVE SALARY HEAD
69. Mr. P gets salary of Rs. 12,000 p.m. & is provided with rent free unfurnished accommodation at Pune
(which has population of 20 lakh). House is owned by employer, fair rental value of which is Rs. 1,400 p.m.
House was provided from 1st July, 2018. Value of the perquisite will be.
(a) Rs. 21,600 (b) Rs. 10,800 (c) Rs. 16,200 (d) Rs. 12,600

70. If any employee has been transferred & employer has provided him accommodation at the new place
also while the employee continuing to occupy the house at old place. In such cases .
(a) Both houses will be charged to tax as perquisite.
(b)Only one of the accommodation having lower perquisite value shall be taxable upto 90 days (three
months) & after 90 days, both of the accommodations shall be taxable.
(c) Depends upon the agreement between employee & employer
(d) Depends upon the discretion of AO

71. A company has provided laptop worth Rs. 50,000 to its employee for official as well as personal
purposes. The taxable amount of perquisite will be -
(a) Rs. 5,000 (b) Rs. 25,000
(c) Rs. 10,000 (d) Nil

72. Employer has given a video-camera for the personal use of the employee. The value of this perquisite
is:
(a) 10 % pa of historical cost (b) Nil
(c) 10% pa of the WDV (d) Fully Exempt

73. The employer had purchased a car for Rs. 8,00,000 2 years & 7 months ago. This car is sold to the
employee for Rs. 2,02,000. The value of this perquisite shall be
(a) Rs. 2,80,000 (b) Rs. 1,20,000
(c) Rs. 8,00,000 (d) Rs. 3,10,000

74. PC Ltd. acquired a motorcar for Rs. 8 lakh on 30th June, 2018. It sold the said motor car to its
employee, Mr. P, for Rs. 6 lakh on 10th July, 2018. The company claimed depreciation @ 15% for the year
ended 31st March, 2019. The perquisite value in the hands of Mr. P on sale of motor car would be
(a) Rs. 8,00,000 (b) Rs. 6,00,000
(c) Rs. 2,00,000 (d) Rs. 1,40,000

75. An employee was not entitled to gratuity. He got 60% of his pension commuted & received a sum of Rs.
1,20,000 as commuted pension. The exemption shall be:

(a) Rs. 1,20,000 (b) Rs. 66,667

(c) Rs. 80,000 (d) Rs. 1,00,000

76. Pension received by gallantry award winner is.

(a) Fully Taxable
(b) Fully Exempt from tax
(c) 50% Exempt & 50% taxable
(d) 80% Exempt & 20% taxable

77. Compensation received on Voluntary retirement is exempt u/s 10(10C) to the maximum extent of .
(a) Rs. 2.4 lac (b) Rs. 3.5 lac (c) Rs. 5 lac (d) Rs. 3 lac

78. Standard deduction is allowed from gross salary u/s

(a) 16(i) (b) 16(ia) (c) 16(ii) (d) 16(iii)

CA VIVEK GABA CS EXECUTIVE SALARY HEAD
79. Employee’s own contribution to RPF.PPF shall be
(a) Allowed as deduction u/s 80C
(b) Allowed as deduction u/s 80TTA
(c) Allowed as deduction u/s 10
(d) Allowed as deduction u/s 16(ia)

80. Employer’s contribution to RPF shall be.

(a) Fully Exempt (b) Exempt upto 12 % of salary
(d) Fully Taxable (c) Exempt up to 10% of salary

81. Interest credited to RPF shall be.

(a) Fully Exempt
(b) Fully Taxable
(c) Exempt up to 8.5 % p.a of total contribution
(d) Exempt up to 9.5 % p.a of total contribution

82. Payment from RPF after 5 years of continuous service of employee shall be .
(a) Fully Taxable
(b) Fully Exempt
(c) Taxable to the extent of employer’s contribution & interest thereon
(d) Exempt up to Rs. 10,00,000

83. An employee received payment from URPF on his retirement. His own contribution to URPF & Interest on his
own contribution will be.
(a) Taxable, Taxable (b) Exempt, Exempt
(c) Taxable, Exempt (d) Exempt, Taxable

84. When interest on employee’s own UPRF is received by employee, it is .

(a) Taxable u/h IFOS (b) Taxable u/h Salary
(c) Exempt (d) Taxable if interest > Rs. 10,000

Q135. For PY 2019-20, Mr. P receives a salary of Rs. 2,80,000. Mr. P’s contribution to employees’ RPF account
Rs. 59,000 & matching contribution has been made by employer. Gross Salary of Mr. P will be .
(a) Rs. 2,46,400 (b) Rs. 3,05,400
(c) Rs. 3,39,000 (d) Rs. 2,80,000
PGBP MCQ’s Finance Act 2020 CA VIVEK GABA

PGBP MCQ’s [PART – 1] FA, 2020

Q1. Profits & Gains of any business or profession carried on ________ by the assessee is
taxable u/h PGBP.
(a) for the whole year (b) at any time during the year
(c) in the last year (d) Consistently

Q2. PGBP Losses are ________ under Income Tax Act.

(a) Taxable (b) Exempt
(c) Not Deductible (d) Deductible/Allowable

Q3 Gift received during business upto 50,000 are under Income Tax Act.
(a) Taxable (c) Exempt
(b) Taxable in certain cases only (d) Exempt in certain cases only

Q4. Export incentives received by an assessee are -

(a) Exempt
(b) Taxable u/h PGBP
(c) Exempt up to certain limits & balance is taxable u/h PGBP.
(d) Taxable u/h IFOS

Q5. Export incentives received by an assessee includes -

(a) Profit on sale of import entitlements or Cash assistance against exports from GOI.
(b) Customs duty or Excise repaid. repayable as drawback.
(c) Profit on transfer of Duty Entitlement Passbook Scheme. Duty-Free Replenishment Certificate.
(d) All of the above

Q6. Any sum received under an agreement, for not carrying out any activity in relation to any
business or profession or for not sharing any know-how, patent, copyright, trade mark likely to
assist in the manufacture or processing of goods or provision for services etc is taxable u/h
(a) IFOS (b) Salary
(c) PGBP (d) Such agreement is void since it is in restraint of trade.

Q7. Remuneration to Partners is taxable in the hands of the Partner to the extent .
(a) Always (b) Not taxable at all
(c) deductible to the firm (d) not deductible to the firm

Q8. Any payment received by the employer on the maturity of the Keyman Insurance Policy for
which premium was paid by such employer shall be considered to be income of the employer u/h
(a) PGBP (b) Salary (c) IFOS (d) None

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PGBP MCQ’s Finance Act 2020 CA VIVEK GABA
Q9. In case of conversion of SIT into capital asset, _ would be taxed u/h .
(a) SDV on the date of conversion, Capital gains
(b) FMV on the date of conversion, Capital gains
(c) FMV on the date of conversion, PGBP
(d) SDV on the date of conversion, PGBP

Q10. Perquisite received by the assessee during the course of his business/profession is taxable
u/h
(a) PGBP (b) Salary (c) IFOS (d) None

Q11. Which of the following income is not chargeable u/h PGBP?

(a) Profits & gains of business carried by an assessee at any time during the previous year
(b) Income derived by a trade, professional association from specific services performed for its members
(c) Winnings from lottery
(d) Salary received by a partner of a firm from the firm in which he is a partner

Q12. Which of the following income is taxable u/h PGBP?

(a) Cash Compensatory Support & Duty Drawback
(b) Sum received under a keyman insurance policy
(c) both of the above
(d) (d) None of the above

Q13. Computation of depreciation is given u/s

(a) 30 (b) 31 (c) 32 (d) 33

Q14. It is mandatory to claim depreciation

(a) True (b) False

Q15. Depreciation is computed on a single asset rather than group (block) of asset.
(a) True (b) False

Q16. The depreciation is allowed to .

(a) Owner of asset
(b) Owner of asset, whether fully owned or partially owned
(c) The lessee of the asset
(d) The tenant of the asset

Q17. The depreciation is allowed to .

(a) Registered owner (b) Beneficial owner
(c) Either (a) or (b) (d) Both (a) and (b)

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PGBP MCQ’s Finance Act 2020 CA VIVEK GABA
Q18. If Tenant has incurred any Capital Expenditure on construction, renovation, extension of the
building taken on lease. rent,.
(a) He is allowed the deduction of rent paid
(b) He cannot take depreciation on such capital expenditure
(c) he can take depreciation on such capital expenditure.
(d) he can take deduction of material incurred.

Q19. To claim depreciation on land, ownership of land is:

(a) Not Necessary (b) necessary
(c) depreciation can’t claim (d) None

Q20. “Put to use” mean actual use of the asset rather making on asset ready to use.
(a) True (b) False

Q21. Even if the asset is used for____during the year, shall be allowed Except for _ of use of
asset.
(a) 180; 50% depreciation; last year
(b) a single day; full depreciation; first year
(c) 180; full depreciation; last
(d) a single day; 50% depreciation; first year

Q22. When shall depreciation be restricted to 50% of depreciation allowed?

(a) If asset is put to use for less than 180 days in any year
(b) If asset is put to use for less than 180 days in the year of acquisition
(c) If asset is put to use for < 200 days in year of acquisition
(d) None of the above

Q23. An assessee purchased an asset on 21st September 2019 on which rate of depreciation is 40%.
The asset was put to use on 30.11.20. How much depreciation shall be allowed to assessee on such
asset during the period ended 31st March 20& 31st March, 2021?
(a) Nil, 40% (b) 20%, 20%
(c) 20%, Nil (d) Nil, 20%

Q24. If a new machinery is purchased on 15.4.2018 & put to use for the purpose of the business on
2.1.2021, Additional depreciation would be allowable at the rate of____ in the P.Y 18-19, 19-20 &
20-21.
(a) Nil, Nil & 20% (b) 20%, Nil & Nil (c) 10% every year (d) none

Q25. Used of asset means under Income Tax Act____ .

(a) Active use (b) Passive use

(c) Both (a) & (b) (d) Put to use

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PGBP MCQ’s Finance Act 2020 CA VIVEK GABA
Q26. If the asset is used Partly for Business & partly for Personal purposes,
then_____depreciation is allowed as deduction u/s Full depreciation
(a) Proportionate to business
(b) Proportionate to personal
(c) 50% Depreciation.

Q27. Mr. P , deriving business income, owns a car whose WDV as on 01.04.18 was 3,00,000. This
is the only asset in the block of assets with rate of 15%. It is estimated that one-third of the total
usage of the car is for personal use in both years. WDV of the block of assets as on 31.03.20 is :
(a) Rs. 2,16,750 (b) Rs. 2,55,000
(c) Rs. 2,43,000 (d) None of the above

Q28. Depreciation is allowed in case of .

(a) Tangible assets (b) Intangible assets (c) Both

Q29. Plant means any asset which is essential to carry out the business & includes .
(a) Ships, vehicles (b) Scientific apparatus & surgical
(c) books (d) All of the above

Q31. Plant means any asset which is essential to carry out the business but does not includes
(a) Tea bushes or livestock etc. (b) animal, human body
(c) Stock- in-trade; Buildings. (d) All of the above

Q32. will not form part of the block of asset.

(a) Land (b) Personal Assets
(c) Intangible assets (d) Both (a) & (b)

Q33. Mr. P acquired a building for Rs. 15 lakh in June, 2018 in addition to cost of land beneath the
building of Rs. 3 lakh. It was used for personal purposes until he commenced business in June,
2020 & since then it was used for business purposes. Eligible Depreciation eligible is:
(a) Rs. 1.5 lac (b) Rs. 75000
(c) Rs. 37500 (d) Rs. 121500

Q34. Where a part of the block of asset is sold for a price less than the opening WDV + Cost of
assets, if any, acquired during the year, the balance amount shall be treated as .
(a) Short-term capital loss
(b) Terminal depreciation
(c) WDV for purpose of charging current year depreciation
(d) None of the above

Q35. While calculating WDV for depreciation, shall be subtracted from Opening WDV in case of
sale of asset.

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PGBP MCQ’s Finance Act 2020 CA VIVEK GABA
(a) Cost of the sold asset. (b) Sale value of the sold asset
(c) FMV of the sold asset. (d) WDV of the sold asset.

Q36. Dr. Johar has surgical equipment whose WDV as on 1.4.2019 was Rs. 4,10,000. He acquired
some more equipment in December 2019 for Rs. 3,50,000. He sold equipment in March 2020 Rs.
2,00,000 whose original cost was Rs. 1,70,000. WDV of the block for depreciation is -
(a) Rs. 5,90,000 (b) Rs. 5,60,000
(c) Rs. 7,30,000 (d) Rs. 4,30,000

Q37. The W.D.V. of a block (Plant & Machinery, rate of depreciation 15%) as on 1.4.2020 is Rs.
3,20,000. A second hand ‘machinery costing Rs. 50,000 was acquired on 1.9.2020 but put to use on
1.11.2020. During Jan 2021, part of this block was sold for Rs. 2,00,000. The depreciation for AY
2021- 2022 is :
(a) Rs. 21,750 (b) Rs. 25,500
(c) Rs. 21,125 (d) Rs. 12,750

Q38. W.D.V. of block having 5 machines for which depreciation rate is 15% as on 1.4.2020 is Rs.
5,00,000. 1 new machine amounting to Rs. 1,00,000 was acquired on 1.1.2021 & put to use on
1.2.2021. During the AY 2021- 2022 i.e. PY 2020-2021, 2 old machinery are sold for Rs. 5,40,000.
Depreciation to be allowed for this block:
(a) Rs. 9,000 (b) Rs. 4,500
(c) Rs. 5,000 (d) Rs. 5,400

Q39. When an asset has been destroyed in fire & assessee has received insurance compensation
which is non- monetary. The value of such compensation
(a) Shall not be deducted from WDV
(b) Shall be deducted from WDV in the year of receipt
(c) Shall be deducted from WDV even if the same has not been actually received
(d) None of the above

Q40. J Ltd. owns machinery (rate of depreciation is 15%), WDV of which as on 1st April, 2020 is Rs.
30 lacs. Due to fire, entire assets in the block were destroyed & insurer gave a similar machinery
which has FMV of Rs. 22,00,000. The eligible depreciation in respect of this machinery is -
(a) Rs. 4.5 lac (b) Rs. 75,000 (c) Rs. 5 lac (d) Nil

Q41. J Ltd. owns machinery (rate of depreciation is 15%), WDV of which on 1st April, 2020 is Rs. 30
lacs. Due to fire, entire assets in the block were destroyed & insurer paid Rs. 25,00,000. Eligible
depreciation on this machinery is -
(a) Rs. 4,50,000 (b) Rs. 75,000
(c) Rs. 5,00,000 (d) Nil

Q42. Rate of depreciation of furniture & fitting is.

(a) 15% (b) 10% (c) 18% (d) 20%

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PGBP MCQ’s Finance Act 2020 CA VIVEK GABA
Q43. Rate of depreciation chargeable on copyright & patent is
(a) 25% (b) 10% (c) 40% (d) 100%

Q44. Rate of depreciation of intangible assets is.

(a) 15% (b) 10% (c) 25% (d) 20%

Q45. A car is imported on 1.4.20 by J ltd. for use by its employee. J ltd is allowed depreciation on
such car at:
(a) 15% (b) 20% (c) 40% (d) Nil

Q46. GGC Ltd. incurred capital expenditure of Rs. 1,50,000 on 1.4.2020 for acquisition of patents &
copyrights. Such expenditure is .
(a) Eligible for deduction in 14 years from AY 2019-2020.
(b) Eligible for deduction in 5 years from AY 2019-2020.
(c) Subject to depreciation @ 25% u/s 32
(d) Subject to depreciation @ 15% u/s 32

Q47. Any New P&M installed to Manufacture or Produce any Article by using any technology or
other know-how developed in Laboratory owned. financed by government or by public sector
company or University. recognized institution shall qualify for depreciation @ .
(a) 15 % (b) 20 % (c) 40 % (d) Nil

Q49. Additional depreciation is allowed in case of

(a) All assets acquired by the specified assessee
(b) Eligible P&M acquired by the assessee
(c) New Eligible P&M acquired by the specified assessee
(d) New eligible P&M & F&F acquired by specified assessee

Q50. If P Ltd invests Rs. 30 crore to acquire & install on 15.7.2018 specified new P&M during PY
2018 - 19. It shall be allowed additional depreciation of Rs. ?

(a) Rs. 3 cr (b) Rs. 4.5 cr (c) Nil (d) Rs. 6 cr

Q51. Additional Depreciation is available at the rate of _ of actual cost of machinery in the state of
Andhra Pradesh, Telangana, Bihar, West Bengal.

(a) 35 % (b) 15% (c) 20 (d) Nil

Q52. Additional depreciation will be normal depreciation

(a) Clubbed with (b) Over & above

(c) included (d) None of the above

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PGBP MCQ’s Finance Act 2020 CA VIVEK GABA
Q53. Additional depreciation shall be from WDV.
(a) Included (b) Added
(c) Reduced (d) Merged

Q54. GGC Ltd. is located in a backward area in Andhra Pradesh & acquired some machinery for
Rs. 20 lakhs on 10.8.2020. It was put to use from 1.1.2021. Total depreciation in respect of the said
machinery will be:
(a) Rs. 3,00,000 (b) Rs. 4,00,000
(c) Rs. 7,00,000 (d) Rs. 3,50,000

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PGBP MCQ’s Finance Act 2020 CA VIVEK GABA
Q55. Investment allowance u/s 32AD shall be allowed to
(a) Company Assesses engaged in manufacture or production on or after 1st April 2015 in specified
backward area in Telangana, West Bengal, Andhra Pradesh or Bihar.
(b) Individual & HUF
(c) All Assessees
(d) Any Assessee engaged in manufacture or production on or after the 1st April 2015 in specified
backward area in Telangana, West Bengal, Andhra Pradesh or Bihar.

Q56. Investment allowance u/s 32AD shall be allowed @

of actual cost of machinery
(a) 20% (b) 15% (c) 35% (d) Nil

Q57. Lock in period u/s 32AD is .

(a) 3 years from the date of installation
(b) 5 years from the date of installation
(c) 3 years from the date of purchase
(d) 5 years from the date of purchase

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PGBP MCQ’s Finance Act 2020 CA VIVEK GABA

PGBP MCQ’s [PART – 1] FA, 2020

Q1. Profits & Gains of any business or profession carried on ________ by the assessee is
taxable u/h PGBP.
(a) for the whole year (b) at any time during the year
(c) in the last year (d) Consistently

Q2. PGBP Losses are ________ under Income Tax Act.

(a) Taxable (b) Exempt
(c) Not Deductible (d) Deductible/Allowable

Q3 Gift received during business upto 50,000 are under Income Tax Act.
(a) Taxable (c) Exempt
(b) Taxable in certain cases only (d) Exempt in certain cases only

Q4. Export incentives received by an assessee are -

(a) Exempt
(b) Taxable u/h PGBP
(c) Exempt up to certain limits & balance is taxable u/h PGBP.
(d) Taxable u/h IFOS

Q5. Export incentives received by an assessee includes -

(a) Profit on sale of import entitlements or Cash assistance against exports from GOI.
(b) Customs duty or Excise repaid. repayable as drawback.
(c) Profit on transfer of Duty Entitlement Passbook Scheme. Duty-Free Replenishment Certificate.
(d) All of the above

Q6. Any sum received under an agreement, for not carrying out any activity in relation to any
business or profession or for not sharing any know-how, patent, copyright, trade mark likely to
assist in the manufacture or processing of goods or provision for services etc is taxable u/h
(a) IFOS (b) Salary
(c) PGBP (d) Such agreement is void since it is in restraint of trade.

Q7. Remuneration to Partners is taxable in the hands of the Partner to the extent .
(a) Always (b) Not taxable at all
(c) deductible to the firm (d) not deductible to the firm

Q8. Any payment received by the employer on the maturity of the Keyman Insurance Policy for
which premium was paid by such employer shall be considered to be income of the employer u/h
(a) PGBP (b) Salary (c) IFOS (d) None

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PGBP MCQ’s Finance Act 2020 CA VIVEK GABA
Q9. In case of conversion of SIT into capital asset, _ would be taxed u/h .
(a) SDV on the date of conversion, Capital gains
(b) FMV on the date of conversion, Capital gains
(c) FMV on the date of conversion, PGBP
(d) SDV on the date of conversion, PGBP

Q10. Perquisite received by the assessee during the course of his business/profession is taxable
u/h
(a) PGBP (b) Salary (c) IFOS (d) None

Q11. Which of the following income is not chargeable u/h PGBP?

(a) Profits & gains of business carried by an assessee at any time during the previous year
(b) Income derived by a trade, professional association from specific services performed for its members
(c) Winnings from lottery
(d) Salary received by a partner of a firm from the firm in which he is a partner

Q12. Which of the following income is taxable u/h PGBP?

(a) Cash Compensatory Support & Duty Drawback
(b) Sum received under a keyman insurance policy
(c) both of the above
(d) (d) None of the above

Q13. Computation of depreciation is given u/s

(a) 30 (b) 31 (c) 32 (d) 33

Q14. It is mandatory to claim depreciation

(a) True (b) False

Q15. Depreciation is computed on a single asset rather than group (block) of asset.
(a) True (b) False

Q16. The depreciation is allowed to .

(a) Owner of asset
(b) Owner of asset, whether fully owned or partially owned
(c) The lessee of the asset
(d) The tenant of the asset

Q17. The depreciation is allowed to .

(a) Registered owner (b) Beneficial owner
(c) Either (a) or (b) (d) Both (a) and (b)

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Q18. If Tenant has incurred any Capital Expenditure on construction, renovation, extension of the
building taken on lease. rent,.
(a) He is allowed the deduction of rent paid
(b) He cannot take depreciation on such capital expenditure
(c) he can take depreciation on such capital expenditure.
(d) he can take deduction of material incurred.

Q19. To claim depreciation on land, ownership of land is:

(a) Not Necessary (b) necessary
(c) depreciation can’t claim (d) None

Q20. “Put to use” mean actual use of the asset rather making on asset ready to use.
(a) True (b) False

Q21. Even if the asset is used for____during the year, shall be allowed Except for _ of use of
asset.
(a) 180; 50% depreciation; last year
(b) a single day; full depreciation; first year
(c) 180; full depreciation; last
(d) a single day; 50% depreciation; first year

Q22. When shall depreciation be restricted to 50% of depreciation allowed?

(a) If asset is put to use for less than 180 days in any year
(b) If asset is put to use for less than 180 days in the year of acquisition
(c) If asset is put to use for < 200 days in year of acquisition
(d) None of the above

Q23. An assessee purchased an asset on 21st September 2019 on which rate of depreciation is 40%.
The asset was put to use on 30.11.20. How much depreciation shall be allowed to assessee on such
asset during the period ended 31st March 20& 31st March, 2021?
(a) Nil, 40% (b) 20%, 20%
(c) 20%, Nil (d) Nil, 20%

Q24. If a new machinery is purchased on 15.4.2018 & put to use for the purpose of the business on
2.1.2021, Additional depreciation would be allowable at the rate of____ in the P.Y 18-19, 19-20 &
20-21.
(a) Nil, Nil & 20% (b) 20%, Nil & Nil (c) 10% every year (d) none

Q25. Used of asset means under Income Tax Act____ .

(a) Active use (b) Passive use

(c) Both (a) & (b) (d) Put to use

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Q26. If the asset is used Partly for Business & partly for Personal purposes,
then_____depreciation is allowed as deduction u/s Full depreciation
(a) Proportionate to business
(b) Proportionate to personal
(c) 50% Depreciation.

Q27. Mr. P , deriving business income, owns a car whose WDV as on 01.04.18 was 3,00,000. This
is the only asset in the block of assets with rate of 15%. It is estimated that one-third of the total
usage of the car is for personal use in both years. WDV of the block of assets as on 31.03.20 is :
(a) Rs. 2,16,750 (b) Rs. 2,55,000
(c) Rs. 2,43,000 (d) None of the above

Q28. Depreciation is allowed in case of .

(a) Tangible assets (b) Intangible assets (c) Both

Q29. Plant means any asset which is essential to carry out the business & includes .
(a) Ships, vehicles (b) Scientific apparatus & surgical
(c) books (d) All of the above

Q31. Plant means any asset which is essential to carry out the business but does not includes
(a) Tea bushes or livestock etc. (b) animal, human body
(c) Stock- in-trade; Buildings. (d) All of the above

Q32. will not form part of the block of asset.

(a) Land (b) Personal Assets
(c) Intangible assets (d) Both (a) & (b)

Q33. Mr. P acquired a building for Rs. 15 lakh in June, 2018 in addition to cost of land beneath the
building of Rs. 3 lakh. It was used for personal purposes until he commenced business in June,
2020 & since then it was used for business purposes. Eligible Depreciation eligible is:
(a) Rs. 1.5 lac (b) Rs. 75000
(c) Rs. 37500 (d) Rs. 121500

Q34. Where a part of the block of asset is sold for a price less than the opening WDV + Cost of
assets, if any, acquired during the year, the balance amount shall be treated as .
(a) Short-term capital loss
(b) Terminal depreciation
(c) WDV for purpose of charging current year depreciation
(d) None of the above

Q35. While calculating WDV for depreciation, shall be subtracted from Opening WDV in case of
sale of asset.

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PGBP MCQ’s Finance Act 2020 CA VIVEK GABA
(a) Cost of the sold asset. (b) Sale value of the sold asset
(c) FMV of the sold asset. (d) WDV of the sold asset.

Q36. Dr. Johar has surgical equipment whose WDV as on 1.4.2019 was Rs. 4,10,000. He acquired
some more equipment in December 2019 for Rs. 3,50,000. He sold equipment in March 2020 Rs.
2,00,000 whose original cost was Rs. 1,70,000. WDV of the block for depreciation is -
(a) Rs. 5,90,000 (b) Rs. 5,60,000
(c) Rs. 7,30,000 (d) Rs. 4,30,000

Q37. The W.D.V. of a block (Plant & Machinery, rate of depreciation 15%) as on 1.4.2020 is Rs.
3,20,000. A second hand ‘machinery costing Rs. 50,000 was acquired on 1.9.2020 but put to use on
1.11.2020. During Jan 2021, part of this block was sold for Rs. 2,00,000. The depreciation for AY
2021- 2022 is :
(a) Rs. 21,750 (b) Rs. 25,500
(c) Rs. 21,125 (d) Rs. 12,750

Q38. W.D.V. of block having 5 machines for which depreciation rate is 15% as on 1.4.2020 is Rs.
5,00,000. 1 new machine amounting to Rs. 1,00,000 was acquired on 1.1.2021 & put to use on
1.2.2021. During the AY 2021- 2022 i.e. PY 2020-2021, 2 old machinery are sold for Rs. 5,40,000.
Depreciation to be allowed for this block:
(a) Rs. 9,000 (b) Rs. 4,500
(c) Rs. 5,000 (d) Rs. 5,400

Q39. When an asset has been destroyed in fire & assessee has received insurance compensation
which is non- monetary. The value of such compensation
(a) Shall not be deducted from WDV
(b) Shall be deducted from WDV in the year of receipt
(c) Shall be deducted from WDV even if the same has not been actually received
(d) None of the above

Q40. J Ltd. owns machinery (rate of depreciation is 15%), WDV of which as on 1st April, 2020 is Rs.
30 lacs. Due to fire, entire assets in the block were destroyed & insurer gave a similar machinery
which has FMV of Rs. 22,00,000. The eligible depreciation in respect of this machinery is -
(a) Rs. 4.5 lac (b) Rs. 75,000 (c) Rs. 5 lac (d) Nil

Q41. J Ltd. owns machinery (rate of depreciation is 15%), WDV of which on 1st April, 2020 is Rs. 30
lacs. Due to fire, entire assets in the block were destroyed & insurer paid Rs. 25,00,000. Eligible
depreciation on this machinery is -
(a) Rs. 4,50,000 (b) Rs. 75,000
(c) Rs. 5,00,000 (d) Nil

Q42. Rate of depreciation of furniture & fitting is.

(a) 15% (b) 10% (c) 18% (d) 20%

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Q43. Rate of depreciation chargeable on copyright & patent is
(a) 25% (b) 10% (c) 40% (d) 100%

Q44. Rate of depreciation of intangible assets is.

(a) 15% (b) 10% (c) 25% (d) 20%

Q45. A car is imported on 1.4.20 by J ltd. for use by its employee. J ltd is allowed depreciation on
such car at:
(a) 15% (b) 20% (c) 40% (d) Nil

Q46. GGC Ltd. incurred capital expenditure of Rs. 1,50,000 on 1.4.2020 for acquisition of patents &
copyrights. Such expenditure is .
(a) Eligible for deduction in 14 years from AY 2019-2020.
(b) Eligible for deduction in 5 years from AY 2019-2020.
(c) Subject to depreciation @ 25% u/s 32
(d) Subject to depreciation @ 15% u/s 32

Q47. Any New P&M installed to Manufacture or Produce any Article by using any technology or
other know-how developed in Laboratory owned. financed by government or by public sector
company or University. recognized institution shall qualify for depreciation @ .
(a) 15 % (b) 20 % (c) 40 % (d) Nil

Q49. Additional depreciation is allowed in case of

(a) All assets acquired by the specified assessee
(b) Eligible P&M acquired by the assessee
(c) New Eligible P&M acquired by the specified assessee
(d) New eligible P&M & F&F acquired by specified assessee

Q50. If P Ltd invests Rs. 30 crore to acquire & install on 15.7.2018 specified new P&M during PY
2018 - 19. It shall be allowed additional depreciation of Rs. ?

(a) Rs. 3 cr (b) Rs. 4.5 cr (c) Nil (d) Rs. 6 cr

Q51. Additional Depreciation is available at the rate of _ of actual cost of machinery in the state of
Andhra Pradesh, Telangana, Bihar, West Bengal.

(a) 35 % (b) 15% (c) 20 (d) Nil

Q52. Additional depreciation will be normal depreciation

(a) Clubbed with (b) Over & above

(c) included (d) None of the above

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Q53. Additional depreciation shall be from WDV.
(a) Included (b) Added
(c) Reduced (d) Merged

Q54. GGC Ltd. is located in a backward area in Andhra Pradesh & acquired some machinery for
Rs. 20 lakhs on 10.8.2020. It was put to use from 1.1.2021. Total depreciation in respect of the said
machinery will be:
(a) Rs. 3,00,000 (b) Rs. 4,00,000
(c) Rs. 7,00,000 (d) Rs. 3,50,000

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PGBP MCQ’s Finance Act 2020 CA VIVEK GABA
Q55. Investment allowance u/s 32AD shall be allowed to
(a) Company Assesses engaged in manufacture or production on or after 1st April 2015 in specified
backward area in Telangana, West Bengal, Andhra Pradesh or Bihar.
(b) Individual & HUF
(c) All Assessees
(d) Any Assessee engaged in manufacture or production on or after the 1st April 2015 in specified
backward area in Telangana, West Bengal, Andhra Pradesh or Bihar.

Q56. Investment allowance u/s 32AD shall be allowed @

of actual cost of machinery
(a) 20% (b) 15% (c) 35% (d) Nil

Q57. Lock in period u/s 32AD is .

(a) 3 years from the date of installation
(b) 5 years from the date of installation
(c) 3 years from the date of purchase
(d) 5 years from the date of purchase

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PGBP MCQ’s [PART – 2] FA, 2020

1. Where an assessee is carrying on a specified business referred to in section 35AD, he shall be
allowed deduction :
(A) Only for revenue expenditure
(B) Both the revenue and capital expenditure
(C) Both for revenue and capital expenditure other than goodwill, land and financial instruments.
(D) Both for revenue and capital expenditure other than land, building and good will

2. Where the payment of an expenditure claimed as deduction by any assessee carrying on

business or profession other than who is in transport business exceeds Rs 10,000, it should be
paid by:
(A) Crossed Cheque/draft
(B) Account Payee cheque/account payee draft OR specified online mode
(C) Account payee cheque
(D) Any mode other than cash

3. Which of the following taxes are allowed as deduction while computing the business income
(A) Wealth Tax (B) Income Tax
(C) Sales Tax & Securities transaction tax (D) none of the above

4. In case of non-resident, who is engaged in the business of operation of aircraft, his income shall
be presumed to be:
(A) 7 ½ % of certain amount (B) 5 % of certain amount
(C) 10 % of certain amount (D) None of the above

5. As per presumptive income scheme under section 44AE, the presumed income for other than
heavy goods vehicle shall be:
(A) Rs.7500 p.m. or part of month per goods carriage
(B) Rs.1,000 per ton per vehicle and per month or part of month
(C) Rs.3,500 p.m. per heavy goods vehicle; Rs.3,150 p.m. for medium goods vehicle and
Rs.2,000 p.m. per light commercial vehicle
(D) None of the above

6. Remuneration paid to working partner shall be allowed as deduction to a firm:

(A) in full (B) subject to limits specified in section 40(b)
(C) none of these two (D) none of the above

7. The business income of a company assessee before claiming deduction of revenue and capital
expenditure is Rs.6,00,000. The revenue and capital expenditure incurred during the year are

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Rs.7,00,000 and Rs.10,00,000 respectively. The unabsorbed expenditure on family planning in this
case shall be:
(A) Rs.3,00,000 (B) Rs.11,00,000
(C) Rs.2,00,000 and Rs.1,00,000 shall be business loss (D) None of the above

8. Expenditure incurred on prospecting, etc., of minerals shall be allowed as deduction in:

(A) 5 equal instalments (B) 10 equal instalments
(C) Full (D) None of the above

9. In the case of non-company assessee, the total preliminary expenses incurred are allowed
deduction to the extent of:
(A) 2 % of the cost of the project (B) 5 % of the cost of the project
(C) 10 % of the cost of the project (D None of the above

10. Export incentives received by an assessee are:

(A) exempt (B) taxable u/h PGBP under section 28
(C) exempt up to certain limits (D) taxable under head Salary

11. W.D.V. of block of 15% as on 1.4.2020 is `5,00,000. An asset amounting to `1,00,000 was
acquired on 1.11.2020 and put to use on 1.12.2020. During the previous year 2020-21 a part of
the block is sold for `5,40,000. The depreciation to be allowed for this block is:
(A) `9,000 (B) `4,500 (C) `5,000 (D) Nil

12. If in the above case, this part of the block is sold for `4,80,000 instead of `5,40,000, the
depreciation allowed shall be:
(A) `10,500 (B) `18,000 (C) `9,000 (D) Nil

13. If the income of a business before claiming capital expenditure on scientific research is ` 50,000
and the capital expenditure incurred on scientific research related to the business of the
assessee is `80,000, then ` 30,000 shall be:
(A) business loss (B) unabsorbed capital expenditure on scientific research
(C) none of these two (D) any of the above

14. If donation is made to a National Laboratory or a University or IIT with the specific direction
that scientific research should be for an approved programme, the amount of deduction shall
be:
(A) 50 % of the donation so made (B) 150 % of the donation so made
(C) 125 % of the donation so made (D) 100 % of the donation
so made

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15. An assessee paid an amount of ` 5,00,000 to IIT for conducting scientific research, what amount
of deduction shall be allowed and under which section?
(A) ` 7,50,000, 35CCC (B) ` 7,50,000, 35(2AA)
(C) ` 5,00,000, 35(2AA) (D) ` 10,00,000, 35(2AA)

16. What is the amount of deduction available under section 35(2AB)?

(A) 175 % of the expenditure (B) 100 of the expenditure
(C) 150 % of the expenditure (D) 125 of the expenditure

17. Naveen contributed a sum of ` 30,000 to an approved institution for research in social science,
which is not related to his business. The amount of deduction eligible u/s35 would be:
a) ` 45,000 b) ` 30,000
c) ` 37,500 d) No deduction as it is unrelated to his business

18. 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

19. Under section 44AB, specified date for audit report & ROI means _______ of the assessment
year.
a) 30th Sep/31st Oct of AY b) 31st Sep of AY for both cases
c) 31st Oct of AY for both d) 30th Nov of AY

20. Depreciation allowance charged on intangibles (know-how, patent etc.) is @ ____ % of WDV
a) 15% b) 25% c) 20% d) 30%

21. Rate of depreciation charges on building for the AY 2021-22 is:

a) 5% b) 15% c) 10% d) none of the above

22. Carbon credit u/s 115BBG taxable @

(A) 10% b) 15%
c) 25% d) None of the above

23. When shall depreciation be restricted to 50% of depreciation allowed?

(A) If asset is put to use for less than 180 days in any year
(B) If asset is put to use for less than 180 days in year of acquisition
(C) If asset is put to use for less than 200 days in year of acquisition
(D) None of the above

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24. An assessee paid an amount to a research association having an object the undertaking of
scientific research. The research is related to his business. What amount of deduction shall be
allowed under section 35(1)(ii)
(A) 100% of the amount paid
(B) Nil, since research is related to the business of the assessee
(C) 125% of the amount paid
(D) None of the above

25. If assessee purchases land and building through composite agreement, cost of the land is
…………………. and that of building is ……………………..
(A) not allowable as deduction, allowed as deduction u/s 35(1)(iv)
(B) allowed as deduction u/s 35(1)(iv), allowed as deduction u/s 35(1)(iv)
(C) not allowable as deduction, not allowable as deduction
(D) allowed as deduction u/s 35(1)(iv), not allowable as deduction

26. M owns 2 machineries eligible for depreciation @ 15%. WDV of these machines as on 1.4.2020
was ` 25,000 and ` 60,000 respectively. No other asset was acquired in this block during year.
One of these machines was sold during previous year for ` 75,000. Compute capital gain.
a) Short term capital gain of ` 10,000
b) Short term capital loss of ` 10,000
c) Long-term capital gain of ` 10,000
d) No capital gain as depreciation would be allowed on one of the machines left with M

27. Assessee has an asset on which deduction is claimed under section 35AD. The asset is sold
during the previous year. The sum received shall be taxable under head
a) Capital gain since an asset is sold b) PGBP
c) Other sources d) exempt from tax

28. Depreciation under section 32(1)(ii) is allowed as per SLM method. Is the statement valid?
a) Valid, depreciation is allowed as per SLM method
b) Invalid, depreciation is allowed as per WDV method
c) Invalid, depreciation can be claimed as per any method of depreciation
d) None of the above

29. An assessee purchased a machinery and plant and the same was installed in office premises,
residential accommodation and guest house. He contends that additional depreciation shall be
allowed on same. Is the contention of assessee correct?
a) Valid b) Invalid, no additional depreciation shall be allowed
c) partly valid d) None of the above

30. To avail deduction under section 35CCC, donation must be paid to

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(A) Public sector company not carrying out eligible/ approved project or scheme
(B) Local authority carrying out not eligible/ approved project or scheme
(C) Institution approved by government carrying out eligible/ approved project or scheme
(D) None of above

31. Which of the following expenditure on scientific research is not allowed as deduction?
a) Revenue expenses incurred during the previous year
b) Revenue expenses on payment of salary to employees engaged in scientific research and
purchase of material used in scientific research incurred during three years immediately
preceding the commencement of business
c) Capital expenditure incurred on scientific research during the year related to the business
d) Expenditure incurred on acquisition of land during the year for scientific research

32. Under the head Business or Profession, the method of accounting which an assessee can follow
shall be
a) Mercantile system only b) Cash system only
c) Mercantile or cash system only d) Hybrid system

33. Income under head PGBP shall be computed as per

(A) provisions contained in Section 30 to 43D b) provisions contained in Section 30 to 36
c) provisions contained in Section 30 to 4 d) None of the above

34. Deduction of how much amount is allowed under section 35(1)(i)

(A) 100 % b) 150 % c) 125 %
d) 175 %

35. B Ltd. is getting demerged to form a new company, V Ltd. An expense of ` 5,00,000 is incurred
by B Ltd. how much deduction shall be allowed to B Ltd for this year and future year?
(A) B Ltd. shall be allowed deduction of ` 1,00,000 for this year and future years
(B) B Ltd. shall be allowed deduction of ` 1,00,000 for this year and no deduction in future year
since B Ltd. does not exist
(C) Nil during this year and future year
(D) None of the above

36. An assessee who has a block of ` 100 lakh of plant and machinery. He sold an asset of the
block for ` 120 lakh, no asset were acquired during the year. On what amount should he charge
depreciation and what shall be the amount of capital gain.
(A) Nil, 10 b) (20), Nil c) 20, Nil
d) Nil, 20

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37. M Ltd. purchased goods on credit from N Ltd. on 7th May 2020 for ` 1,06,000 for which
payment of ` 25,000 is made in cash on 12th May; ` 30,000 by bearer cheque on 30th May; & `
51,000 by account payee cheque on 13th June. The amount of disallowance u/s 40A(3) is
a) ` 55,000 b) ` 30,000 c) 25,000 d)1,06,000

38. A person carrying on business is required to get his accounts audited by a Chartered Accountant
if his gross receipts from business for the previous year exceed
a) ` 1,00,00,000 b) ` 25,00,000 c) ` 40,00,000 d) ` 60,00,000

39. Financial statement of A on 31.3.2021 reveals that the following expenses were due during year
ended 31.3.2021 but have been paid after 31.3.2021:
Employer’s contribution to provident fund: ` 75,000 (` 45,000 paid on 15.7.2021, ` 10,000 paid on
31.7.2021 and ` 20,000 paid on 15.1.2021)
The due date of filing return is 31.7.2020.What would be the deduction for AY 2020-22?
a) ` 55,000 b) ` 35,000 c) ` 10,000 d) ` 45,000

40. If an assessee carries on any Scientific Research related to his business, he shall be allowed
deduction under section 35 on account of
a) Revenue expenditure
b) Capital expenditure
c) Partially as Revenue expenditure and partially as Capital expenditure
d) Both Revenue and Capital expenditure except expenditure incurred on acquisition on land

41. Brought forward unabsorbed capital expenditure on Scientific Research can be carried forward
for
a) any number of years b) 8 years
c) 10 years d) 4 years

42. If donation is made for Scientific or Social or Statistical Research, such research
a) must be related to the business of the assessee
b) may or may not relate to business of the assessee
c) either of above
d) none of the above

43. Expenditure incurred for obtaining licence to operate Telecommunication Services shall be:
a) 10 equal installments
b) 8 equal installments
c) in equal installments over the period for which licence remains in force
d) 14 equal installments

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44. MNO Ltd. paid ` 1,10,00,000 during the P.Y. 2019-20 for acquiring the telecommunication
rights which were effective for 11 years. It commenced the business of operating the
telecommunication service with effect from previous year 2020-21. MNO Ltd. shall be entitled
to a deduction of:
a) ` 10 Lakhs w.e.f. previous year 2019-20 b) ` 10 Lakhs w.e.f. previous year 2020-21
c) ` 10.5 Lakhs w.e.f. previous year 2019-20 d) None of the above

45. Preliminary expenses incurred are allowed deduction in:

a) 10 equal installments b) 8 equal installments
c) 5 equal installments d) None of the above

46. In case of a Non-corporate assessee, the total preliminary expenses incurred are allowed as
deduction to the extent of:
a) 2% of total cost of project b) 10% of total cost of project
c) 5% of total cost of project d) None of the above

47. In case of a Corporate assesse, the total preliminary expenses incurred are allowed as
deduction to the extent of:
a) cost of the project b) aggregate capital employed
c) any of the above d) None of the above

48. Electricity companies are allowed depreciation on the basis of

a) block of assets
b) each asset separately unless the assessee opts for block of asset system in the first year of
its commencement
c) Any of the above
d) None of the above

49. The maximum deduction to be allowed under Tea/ Coffee/ Rubber Development Account shall
be:
a) Actual amount deposited in the scheme b) 20% of profits of such business
c) 20% of the amount deposited in the scheme d) 40% of profits of such business

50. An assessee is engaged in the business of growing and manufacturing tea in India, the
agricultural income in this case shall be:
a) 40% of income from such business
b) Market value of agricultural products minus expenses on cultivation of such products
c) 60% of income from such business
d) None of the above

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51. An assessee is engaged in the business of growing and curing of coffee, the agricultural
income will be:
a) 65% of income from such business
b) Market value of agricultural products minus expenses on cultivation of such products
c) 75% of income from such business
d) 60% of income from such business

52. For person carrying on profession, tax audit is compulsory, if the gross receipts of the
previous year exceeds
a) ` 50 Lakhs b) ` 10 Lakhs c) ` 25 Lakhs d) ` 40 Lakhs

53. In case an assessee is engaged in the business of plying, hiring or leasing goods carriage,
presumption income scheme u/s 44AE is applicable if the assessee is the owner maximum
of:
a) 8 goods carriage b) 12 goods carriage
c) 10 goods carriage d) any number of goods carriage

54. If the assessee opts for presumptive income scheme u/s 44AD or 44AE, the assessee shall:
a) not be entitled to any deduction u/s 30 to 37 including 40(b)
b) be entitled to any deduction u/s 30 to 37
c) both A or B option of the assessee
d) not be entitled to any deduction u/s 30 to 37 Except on account of interest on capital and
loan from a partner and remuneration to working partner as per section 40(b)

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PGBP MCQ’s [PART – 2] FA, 2020

1. Where an assessee is carrying on a specified business referred to in section 35AD, he shall be
allowed deduction :
(A) Only for revenue expenditure
(B) Both the revenue and capital expenditure
(C) Both for revenue and capital expenditure other than goodwill, land and financial instruments.
(D) Both for revenue and capital expenditure other than land, building and good will

2. Where the payment of an expenditure claimed as deduction by any assessee carrying on

business or profession other than who is in transport business exceeds Rs 10,000, it should be
paid by:
(A) Crossed Cheque/draft
(B) Account Payee cheque/account payee draft OR specified online mode
(C) Account payee cheque
(D) Any mode other than cash

3. Which of the following taxes are allowed as deduction while computing the business income
(A) Wealth Tax (B) Income Tax
(C) Sales Tax & Securities transaction tax (D) none of the above

4. In case of non-resident, who is engaged in the business of operation of aircraft, his income shall
be presumed to be:
(A) 7 ½ % of certain amount (B) 5 % of certain amount
(C) 10 % of certain amount (D) None of the above

5. As per presumptive income scheme under section 44AE, the presumed income for other than
heavy goods vehicle shall be:
(A) Rs.7500 p.m. or part of month per goods carriage
(B) Rs.1,000 per ton per vehicle and per month or part of month
(C) Rs.3,500 p.m. per heavy goods vehicle; Rs.3,150 p.m. for medium goods vehicle and
Rs.2,000 p.m. per light commercial vehicle
(D) None of the above

6. Remuneration paid to working partner shall be allowed as deduction to a firm:

(A) in full (B) subject to limits specified in section 40(b)
(C) none of these two (D) none of the above

7. The business income of a company assessee before claiming deduction of revenue and capital
expenditure is Rs.6,00,000. The revenue and capital expenditure incurred during the year are

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Rs.7,00,000 and Rs.10,00,000 respectively. The unabsorbed expenditure on family planning in this
case shall be:
(A) Rs.3,00,000 (B) Rs.11,00,000
(C) Rs.2,00,000 and Rs.1,00,000 shall be business loss (D) None of the above

8. Expenditure incurred on prospecting, etc., of minerals shall be allowed as deduction in:

(A) 5 equal instalments (B) 10 equal instalments
(C) Full (D) None of the above

9. In the case of non-company assessee, the total preliminary expenses incurred are allowed
deduction to the extent of:
(A) 2 % of the cost of the project (B) 5 % of the cost of the project
(C) 10 % of the cost of the project (D None of the above

10. Export incentives received by an assessee are:

(A) exempt (B) taxable u/h PGBP under section 28
(C) exempt up to certain limits (D) taxable under head Salary

11. W.D.V. of block of 15% as on 1.4.2020 is `5,00,000. An asset amounting to `1,00,000 was
acquired on 1.11.2020 and put to use on 1.12.2020. During the previous year 2020-21 a part of
the block is sold for `5,40,000. The depreciation to be allowed for this block is:
(A) `9,000 (B) `4,500 (C) `5,000 (D) Nil

12. If in the above case, this part of the block is sold for `4,80,000 instead of `5,40,000, the
depreciation allowed shall be:
(A) `10,500 (B) `18,000 (C) `9,000 (D) Nil

13. If the income of a business before claiming capital expenditure on scientific research is ` 50,000
and the capital expenditure incurred on scientific research related to the business of the
assessee is `80,000, then ` 30,000 shall be:
(A) business loss (B) unabsorbed capital expenditure on scientific research
(C) none of these two (D) any of the above

14. If donation is made to a National Laboratory or a University or IIT with the specific direction
that scientific research should be for an approved programme, the amount of deduction shall
be:
(A) 50 % of the donation so made (B) 150 % of the donation so made
(C) 125 % of the donation so made (D) 100 % of the donation
so made

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15. An assessee paid an amount of ` 5,00,000 to IIT for conducting scientific research, what amount
of deduction shall be allowed and under which section?
(A) ` 7,50,000, 35CCC (B) ` 7,50,000, 35(2AA)
(C) ` 5,00,000, 35(2AA) (D) ` 10,00,000, 35(2AA)

16. What is the amount of deduction available under section 35(2AB)?

(A) 175 % of the expenditure (B) 100 of the expenditure
(C) 150 % of the expenditure (D) 125 of the expenditure

17. Naveen contributed a sum of ` 30,000 to an approved institution for research in social science,
which is not related to his business. The amount of deduction eligible u/s35 would be:
a) ` 45,000 b) ` 30,000
c) ` 37,500 d) No deduction as it is unrelated to his business

18. 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

19. Under section 44AB, specified date for audit report & ROI means _______ of the assessment
year.
a) 30th Sep/31st Oct of AY b) 31st Sep of AY for both cases
c) 31st Oct of AY for both d) 30th Nov of AY

20. Depreciation allowance charged on intangibles (know-how, patent etc.) is @ ____ % of WDV
a) 15% b) 25% c) 20% d) 30%

21. Rate of depreciation charges on building for the AY 2021-22 is:

a) 5% b) 15% c) 10% d) none of the above

22. Carbon credit u/s 115BBG taxable @

(A) 10% b) 15%
c) 25% d) None of the above

23. When shall depreciation be restricted to 50% of depreciation allowed?

(A) If asset is put to use for less than 180 days in any year
(B) If asset is put to use for less than 180 days in year of acquisition
(C) If asset is put to use for less than 200 days in year of acquisition
(D) None of the above

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24. An assessee paid an amount to a research association having an object the undertaking of
scientific research. The research is related to his business. What amount of deduction shall be
allowed under section 35(1)(ii)
(A) 100% of the amount paid
(B) Nil, since research is related to the business of the assessee
(C) 125% of the amount paid
(D) None of the above

25. If assessee purchases land and building through composite agreement, cost of the land is
…………………. and that of building is ……………………..
(A) not allowable as deduction, allowed as deduction u/s 35(1)(iv)
(B) allowed as deduction u/s 35(1)(iv), allowed as deduction u/s 35(1)(iv)
(C) not allowable as deduction, not allowable as deduction
(D) allowed as deduction u/s 35(1)(iv), not allowable as deduction

26. M owns 2 machineries eligible for depreciation @ 15%. WDV of these machines as on 1.4.2020
was ` 25,000 and ` 60,000 respectively. No other asset was acquired in this block during year.
One of these machines was sold during previous year for ` 75,000. Compute capital gain.
a) Short term capital gain of ` 10,000
b) Short term capital loss of ` 10,000
c) Long-term capital gain of ` 10,000
d) No capital gain as depreciation would be allowed on one of the machines left with M

27. Assessee has an asset on which deduction is claimed under section 35AD. The asset is sold
during the previous year. The sum received shall be taxable under head
a) Capital gain since an asset is sold b) PGBP
c) Other sources d) exempt from tax

28. Depreciation under section 32(1)(ii) is allowed as per SLM method. Is the statement valid?
a) Valid, depreciation is allowed as per SLM method
b) Invalid, depreciation is allowed as per WDV method
c) Invalid, depreciation can be claimed as per any method of depreciation
d) None of the above

29. An assessee purchased a machinery and plant and the same was installed in office premises,
residential accommodation and guest house. He contends that additional depreciation shall be
allowed on same. Is the contention of assessee correct?
a) Valid b) Invalid, no additional depreciation shall be allowed
c) partly valid d) None of the above

30. To avail deduction under section 35CCC, donation must be paid to

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 PGBP MCQ’s Finance Act 2020 CA VIVEK GABA

(A) Public sector company not carrying out eligible/ approved project or scheme
(B) Local authority carrying out not eligible/ approved project or scheme
(C) Institution approved by government carrying out eligible/ approved project or scheme
(D) None of above

31. Which of the following expenditure on scientific research is not allowed as deduction?
a) Revenue expenses incurred during the previous year
b) Revenue expenses on payment of salary to employees engaged in scientific research and
purchase of material used in scientific research incurred during three years immediately
preceding the commencement of business
c) Capital expenditure incurred on scientific research during the year related to the business
d) Expenditure incurred on acquisition of land during the year for scientific research

32. Under the head Business or Profession, the method of accounting which an assessee can follow
shall be
a) Mercantile system only b) Cash system only
c) Mercantile or cash system only d) Hybrid system

33. Income under head PGBP shall be computed as per

(A) provisions contained in Section 30 to 43D b) provisions contained in Section 30 to 36
c) provisions contained in Section 30 to 4 d) None of the above

34. Deduction of how much amount is allowed under section 35(1)(i)

(A) 100 % b) 150 % c) 125 %
d) 175 %

35. B Ltd. is getting demerged to form a new company, V Ltd. An expense of ` 5,00,000 is incurred
by B Ltd. how much deduction shall be allowed to B Ltd for this year and future year?
(A) B Ltd. shall be allowed deduction of ` 1,00,000 for this year and future years
(B) B Ltd. shall be allowed deduction of ` 1,00,000 for this year and no deduction in future year
since B Ltd. does not exist
(C) Nil during this year and future year
(D) None of the above

36. An assessee who has a block of ` 100 lakh of plant and machinery. He sold an asset of the
block for ` 120 lakh, no asset were acquired during the year. On what amount should he charge
depreciation and what shall be the amount of capital gain.
(A) Nil, 10 b) (20), Nil c) 20, Nil
d) Nil, 20

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37. M Ltd. purchased goods on credit from N Ltd. on 7th May 2020 for ` 1,06,000 for which
payment of ` 25,000 is made in cash on 12th May; ` 30,000 by bearer cheque on 30th May; & `
51,000 by account payee cheque on 13th June. The amount of disallowance u/s 40A(3) is
a) ` 55,000 b) ` 30,000 c) 25,000 d)1,06,000

38. A person carrying on business is required to get his accounts audited by a Chartered Accountant
if his gross receipts from business for the previous year exceed
a) ` 1,00,00,000 b) ` 25,00,000 c) ` 40,00,000 d) ` 60,00,000

39. Financial statement of A on 31.3.2021 reveals that the following expenses were due during year
ended 31.3.2021 but have been paid after 31.3.2021:
Employer’s contribution to provident fund: ` 75,000 (` 45,000 paid on 15.7.2021, ` 10,000 paid on
31.7.2021 and ` 20,000 paid on 15.1.2021)
The due date of filing return is 31.7.2020.What would be the deduction for AY 2020-22?
a) ` 55,000 b) ` 35,000 c) ` 10,000 d) ` 45,000

40. If an assessee carries on any Scientific Research related to his business, he shall be allowed
deduction under section 35 on account of
a) Revenue expenditure
b) Capital expenditure
c) Partially as Revenue expenditure and partially as Capital expenditure
d) Both Revenue and Capital expenditure except expenditure incurred on acquisition on land

41. Brought forward unabsorbed capital expenditure on Scientific Research can be carried forward
for
a) any number of years b) 8 years
c) 10 years d) 4 years

42. If donation is made for Scientific or Social or Statistical Research, such research
a) must be related to the business of the assessee
b) may or may not relate to business of the assessee
c) either of above
d) none of the above

43. Expenditure incurred for obtaining licence to operate Telecommunication Services shall be:
a) 10 equal installments
b) 8 equal installments
c) in equal installments over the period for which licence remains in force
d) 14 equal installments

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44. MNO Ltd. paid ` 1,10,00,000 during the P.Y. 2019-20 for acquiring the telecommunication
rights which were effective for 11 years. It commenced the business of operating the
telecommunication service with effect from previous year 2020-21. MNO Ltd. shall be entitled
to a deduction of:
a) ` 10 Lakhs w.e.f. previous year 2019-20 b) ` 10 Lakhs w.e.f. previous year 2020-21
c) ` 10.5 Lakhs w.e.f. previous year 2019-20 d) None of the above

45. Preliminary expenses incurred are allowed deduction in:

a) 10 equal installments b) 8 equal installments
c) 5 equal installments d) None of the above

46. In case of a Non-corporate assessee, the total preliminary expenses incurred are allowed as
deduction to the extent of:
a) 2% of total cost of project b) 10% of total cost of project
c) 5% of total cost of project d) None of the above

47. In case of a Corporate assesse, the total preliminary expenses incurred are allowed as
deduction to the extent of:
a) cost of the project b) aggregate capital employed
c) any of the above d) None of the above

48. Electricity companies are allowed depreciation on the basis of

a) block of assets
b) each asset separately unless the assessee opts for block of asset system in the first year of
its commencement
c) Any of the above
d) None of the above

49. The maximum deduction to be allowed under Tea/ Coffee/ Rubber Development Account shall
be:
a) Actual amount deposited in the scheme b) 20% of profits of such business
c) 20% of the amount deposited in the scheme d) 40% of profits of such business

50. An assessee is engaged in the business of growing and manufacturing tea in India, the
agricultural income in this case shall be:
a) 40% of income from such business
b) Market value of agricultural products minus expenses on cultivation of such products
c) 60% of income from such business
d) None of the above

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51. An assessee is engaged in the business of growing and curing of coffee, the agricultural
income will be:
a) 65% of income from such business
b) Market value of agricultural products minus expenses on cultivation of such products
c) 75% of income from such business
d) 60% of income from such business

52. For person carrying on profession, tax audit is compulsory, if the gross receipts of the
previous year exceeds
a) ` 50 Lakhs b) ` 10 Lakhs c) ` 25 Lakhs d) ` 40 Lakhs

53. In case an assessee is engaged in the business of plying, hiring or leasing goods carriage,
presumption income scheme u/s 44AE is applicable if the assessee is the owner maximum
of:
a) 8 goods carriage b) 12 goods carriage
c) 10 goods carriage d) any number of goods carriage

54. If the assessee opts for presumptive income scheme u/s 44AD or 44AE, the assessee shall:
a) not be entitled to any deduction u/s 30 to 37 including 40(b)
b) be entitled to any deduction u/s 30 to 37
c) both A or B option of the assessee
d) not be entitled to any deduction u/s 30 to 37 Except on account of interest on capital and
loan from a partner and remuneration to working partner as per section 40(b)

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Other sources MCQs

1. Income of every kind, which is not to be excluded from the total income under this Act and not
charged to income-tax under any of the other four heads, shall be chargeable to income-tax
under the head ________
a) Income from salaries
b) Income from House Property
c) Profits and gains from business and profession
d) Income from Other Sources

2. Which is the charging section for income chargeable under the head Income from other
sources?
a) Section 15
b) Section 28
c) Section 22
d) Section 56

3. Ramesh engaged in readymade garments business received rent by sub-letting a building. This
will be taxable under the head -
a) Income from house property
b) Income from capital gains
c) Income from profits & gains of business & profession
d) Income from other sources.

4. Under the Income-tax Act, 1961, dividend derived from the shares held as stock-in-trade are
taxable under head –
a) Income from other sources
b) Income from profits and gains of business or profession
c) Capital gains
d) Either capital gains or income from profits and gains of business or profession.

5. Which of the following incomes are chargeable under the head 'Income from other sources'?
a) Dividends & Deemed Dividends
b) Winnings from lotteries, betting & gambling
c) Income from sub-letting of the house
d) All of above

6. Agriculture income received from outside India will be -

A. Taxable under the head Profit and Gains of Business or Profession
B. Taxable under the head Income from other sources
C. Exempt from tax
D. None of these

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CA VIVEK GABA CS EXECUTIVE JUNE & DEC 2021
7. Mr. R was dealing in the business of lotteries. He himself won a lottery. Income earned from
such lottery will be
A. Taxable under the head Profit and Gains of Business or Profession
B. Taxable under the head Income from other sources
C. Exempt
D. None of these

8. Salary paid to a member of parliament will be –

A. Taxable under the head Profit and Gains of Business or Profession
B. Taxable under the head Income from other sources
C. Exempt
D. None of these

9. Any sum of money received as an advance or otherwise in the course of negotiations for transfer
of a capital asset is forfeited and the negotiations do not result in transfer of such capital asset
will be taxable under the head -
A. Profit and Gains of Business or Profession
B. Income from other sources
C. Capital gains
D. Income from house property

10. Ram entered into an agreement with Shyam for sale of a building for Rs.` 20 lakh in June; 2020.
Ram received advance of Rs.` 2 lakh. Subsequently, the agreement was cancelled and Ram
forfeited the advance money. The advance money is –
A. To be reduced from the cost of acquisition
B. To be reduced from indexed cost of acquisition
C. Taxable as capital gains
D. Taxable as income under the head 'income from other sources

11. Ramesh received Rs.` 7 lakh by way of enhanced compensation in March, 2021. A further sum
of Rs.` 2 lakh decreed by the court is due but not received till 3rd March, 2021. The amount of
income chargeable to tax for A/Y 2021-22 would be --------
A. Rs.` 3,50,000
B. Rs.` 7,00,000
C. Rs.` 9,00,000
D. Rs.` 4,50,000

12. An assessee earned interest on post office savings bank account: Rs.`6,000. Such sum shall be
taxable under the head:
A. Salaries
B. Profit & Gains of Business & Profession
C. Capital Gains
D. Income from Other Sources

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13. Raju owned a machinery. He let it on hire to Kaju for Rs.`3,40,000 p.a. Such amount shall be
taxable under head:
A. Income from other sources
B. Income from house property
C. Income from Business and profession
D. Any of the above

14. Income from letting on hire of plant, machinery or furniture is chargeable under the head
(Assume not a business of assesse)-
A. Income from other sources.
B. Profits and gains of Business or Profession.
C. Capital Gains.
D. Either (a) or (b)

15. Under which head income from letting on hire of machinery etc. will be taxed if the same is
Business of assessee' ?
A. Income from Other Sources.
B. Salaries
C. Capital Gains
D. Income from PGBP

16. Income earned by an assessee from letting on hire machinery, plant or furniture belonging to him
and also buildings, and where letting of buildings is inseparable from the letting of the said
machinery, plant or furniture shall be taxable under the head:
A. Income from other sources
B. Income from house property
C. Income from Business and profession
D. Any of the above

17. Deemed dividends as given in Section 2(22), which provides" dividend" includes _
A. Distribution of accumulated profits, entailing release of assets by the company to its
shareholders.
B. Distribution of debentures/ deposit-certificates to shareholders or bonus shares to
preference shareholders to an extent to which the company possesses accumulated
profits.
C. Distribution to shareholders on liquidation to the ,extent to which the distribution is
attributable to the accumulated profits of the company immediately before its liquidation.
D. All of the above.

18. Which of the following distributions by a company to its shareholders are not considered as
deemed dividends?
A. Debentures
B. Debenture Stock
C. Shares issued for full cash consideration
D. Bonus shares

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19. A private limited company engaged in manufacturing activity had general reserve of Rs. ` 20
lakh. It granted a loan of Rs.` 5 lakh to a director who held 13 shareholding cum voting rights in
the company. The said loan was re-paid by him before the end of the year. The amount of
deemed dividend arising out of the above transaction is –
A. Rs.` 2,60,000
B. Rs.` 2,40,000
C. Rs.` 5,00,000
D. Nil.

20. Mr. X resident individual 45 years of age gives the following information pertaining to the
assessment year 2021-22 : Particulars ` Dividend from shares of Indian company Rs.12,50,000
Expenses incurred on collecting such dividends Rs.12,500 Determine the amount of Total tax
liability for the assessment year 2021-22.
A. Rs.` 1,28,750
B. Rs.` 1Nil
C. Rs.` 1,87,500
D. Rs.` 1,95,000

21. AB Ltd. reduced its share capital and for that distributed to its shareholders an amount of Rs. `
55,00,000. The company possessed accumulated profits of Rs.` 35,00.000 as on the date of
distribution. What shall be the amount to be assesseed as deemed dividend?
A. Rs.` 55,00,000
B. Rs.` 35,00,000
C. Rs.` 20,00,000
D. No deemed dividend

22. PQR Pvt. Ltd. gave a loan of Rs.` 5,00,000 to its shareholder. The shareholder was the
beneficial owner of equity shares of the company as he held 15 of the voting power of the
Company. The company possessed accumulated profits of Rs.` 3,00,000 as on the date of
advancement of loan. What shall be the amount to be assesseed as deemed dividend in the
hands of shareholder?
A. Rs.` 5,00,000
B. Rs.` 3,00,000
C. Rs.` 2,00,000
D. No deemed dividend

23. PQR Ltd. gave a loan of Rs.` 9,00,000 to its shareholder. The shareholder was the beneficial
owner of equity shares of the company as he held 13 of the voting power of the Company. The
company possessed accumulated profits of Rs.` 1,00,000 as on the date of advancement of loan.
What shall be the amount to be assesseed as deemed dividend in the hands of shareholder?
A. Rs.` 9,00,000
B. Rs.` 1,00,000
C. Rs.` 8,00,000
D. No deemed dividend

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24. As per section 2(22)(e), loan/ advances given by a private company to a concern in which its
shareholder has substantial interest, then to the extent of accumulated profits held by the private
company (capitalised accumulated profits not included), it shall be considered as deemed
dividend taxable in the hands of shareholder. A person is deemed to have a substantial interest:
A. If he holds 20 of the voting power (equity shares) in the company;
B. If he is beneficially entitled to 20 or more of the income of such concern.
C. Either (a) or (b)
D. None of these.

25. ABC Pvt. Ltd. gave a loan of Rs.` 9,00,000 to PQR & Co .. 'C', a shareholder of ABC Pvt. Ltd.
was holding 20 of the voting power (equity shares) in the concern PQR & Co. The company
possessed accumulated profits of Rs.` 10,20,000 as on the date of advancement of loan to the
PQR & Co. What shall be the amount to be assesseed as deemed dividend in the hands of
shareholder?
A. Rs.` 3,80,000
B. Rs.` 9,00,000
C. Rs.` 5,20,000
D. No deemed dividend

26. ABC Pvt. Ltd. gave a loan of Rs.` 9,00,000 to PQR & Co. The company possess nil accumulated
profits as on the date of advancement of loan to PQR & Co., then what shall be the amount to be
assesseed as deemed dividend in the hands of shareholder?
A. Rs.` 3,80,000
B. Rs.` 9,00,000
C. Rs.` 5,20,000
D. No deemed dividend

27. ABC Pvt. Ltd. gave a loan of Rs.` 9,00,000 to PQR & Co. The company possess accumulated
profits of Rs.` 11,00,000 as on the date of advancement of loan to PQR & Co., then what shall be
the amount to be assesseed as deemed dividend in the hands of shareholder?
A. Rs.` 3,80,000
B. Rs.` 9,00,000
C. Rs.` 5,20,000
D. No deemed dividend

28. The maximum limit of exemption is case of lotteries or crossword puzzles or card game is :
A. Rs.` 2,500
B. Rs.` 50,000
C. Rs.` 10,000
D. Rs.` 5,000

29. The maximum limit of exemption in case of horse races is:

A. Rs.` 2,500
B. Rs.`10,000
C. Rs.` 5,000

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CA VIVEK GABA CS EXECUTIVE JUNE & DEC 2021
D. Rs.` 1,000

30. Winnings from lotteries, crossword puzzles, races including horse races, card games and other
games of any sort or from gambling or betting of any form or nature, taxable under the head
'Income from other sources' after grossing up is taxed without allowing basic exemption limit at
flat rate of :
A. 30%
B. 20%
C. 10%
D. 15%

31. Winnings from lotteries (gross) Rs.` 90,000. Calculate the amount to be included while
computing income under the head 'Income from Other Sources'.
A. Rs.` 90,000
B. Rs.` 1,28,571
C. Rs.` 27,000
D. Rs.` 1,17,000

32. Winnings from horse race (net) Rs.` 35,000. Calculate the amount to be included while
computing income under the head 'Income from Other Sources'.
A. Rs.` 35,000
B. Rs.` 50,000
C. Rs.` 10,500
D. Rs.` 60,500

33. Kaju received an amount of Rs.` 30,760 on 1-12-2020 in connection with winning from Horse
races. Cost of race tickets purchased was Rs.` 2,000. Calculate amount to be included under the
head 'Income from Other Sources':
A. Rs.` 30,760
B. Rs.` 28,760
C. Nil
D. Rs.` 2,000

34. If interest on securities is received after deduction of tax at source then the amount to be
included in the total income is:
A. Gross interest
B. Net interest
C. No amount to be included
D. None of these

35. Sum received under a Keyman insurance policy including bonus shall be taxable under the head:
A. Income from other sources
B. Income from house property
C. Income from Business and profession
D. Any of the above

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36. Sheela received a gift of Rs.` 25,000 each on 22th May, 2020 from his three friends. The amount
chargeable to tax in this case would be _
A. Rs.` 25,000
B. Rs.`75,000
C. Nil
D. Rs.` 55,000

37. Cash gifts exceeding ___ shall be chargeable under the head income from other sources:
A. Rs.` 5,000
B. Rs.` 20,000
C. Rs.` 50,000
D. Rs.` 25,000

38. The taxability of gift shall not apply if this gift is received from:
A. Relative
B. Local authority
C. On the occasion of marriage
D. All of these

39. Mrs. X received the following gifts during the year. Which gifts shall be included in computing the
income from othe sources?
A. Gift of Rs.` 26,000 from her employer.
B. Gift of Rs.` 121,000 on December from her mother's friend.
C. Gift of Rs.` 21,000 from her husband's brother.
D. Gift of Rs.` 60,000 on 25th November from her father's brother.

40. Mrs. X received the following gifts during the year. Which gifts shall not be included in computing
the income from other sources?
A. Scholarship of Rs.` 1,20,000 from a charitable institution registered under section 12AA.
B. Gifts of Rs.` 51,000 each received from her four friends on the occasion of her marriage on
22nd Nov.
C. Gift of Rs.` 1,41,000 from her husband's brother.
D. All of the above.

41. Richa received gift of jewellery, fair market value of which is Rs.` 3,00,000 on 22nd October
from her fiancee. What will be the taxable amount?
A. Nil
B. Rs.` 3,00,000
C. Rs.` 2,50,000
D. Rs.` 50,000

42. Mohan received a watch worth Rs.` 80,000 from his cousin grandfather (brother of his
grandfather). What will be the taxable amount?
A. Nil

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CA VIVEK GABA CS EXECUTIVE JUNE & DEC 2021
B. Rs.` 60,000
C. Rs.` 10,000
D. Rs.` 50,000

43. If A receives Rs.` 31,000 from B and Rs.` 20,000 from C, then, what will be the taxable amount•?
A. Nil
B. Rs.` 1,000
C. Rs.` 51,000
D. Rs.` 50,000

44. Sohan received a share of Rs.` 80,000 from his cousin grandfather (brother of his grandfather).
What will be the taxable amount?
A. Nil
B. Rs.` 80,000
C. Rs.` 30,000
D. Rs.` 50,000

45. Palak received a gift from his sister in USA of Rs.` 2,50,000. What will be the taxable amount?
A. Exempt
B. Rs.` 2,50,000
C. Rs.` 2,00,000
D. Rs.` 50,000

46. Ram received Rs.` 70,000 from his friend on the occasion of his birthday.
A. The entire amount of Rs.` 70,000 is taxable
B. Rs.` 20,000 is taxable
C. The entire amount is exempt
D. None of the above.

47. Shiv received a cash gift of Rs. ` 100,000 from her friend on her 25th wedding anniversary.
Amount taxable is :
A. Exempt
B. Rs.` 100,000
C. Rs.` 30,000
D. Rs.` 50,000

48. Gift of Rs.` 5,00,000 received on 10th July, 2020 through account payee cheque from a non-
relative regularly assessed to income-tax, is -
A. A capital receipt not chargeable to tax
B. Chargeable to tax as income from other sources[full value]
C. Chargeable to tax as business income
D. Exempt upto ` 50,000 and balance chargeable to tax as income from other sources.

49. Mr. A received cash gift worth Rs.` 55,000 from his grandfather's brother Raja, on the occasion
of the marriage of his son. What will be the taxable amount -
A. Rs.` 55,000

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CA VIVEK GABA CS EXECUTIVE JUNE & DEC 2021
B. Nil
C. Rs.` 50,000
D. Rs.` 5,000

50. Mr. V received a Watch worth Rs.` 55,000 from his employer on the occasion of his birthday.
What will be the tax consequences?
A. Rs.` 55,000 taxable in the hand of V, as income from salaries
B. Rs.` 55,000 taxable in the hands of V, as Fringe benefit.
C. Rs.` 55,000 taxable, as income from other sources
D. None of these

51. On 7th February, 2021 Rajat gets a gift of motor car from a relative ayush. Fair market value of
the car is Rs. ` 3,60,000. The amount taxable in the hands of Rajat under section 56(2)(x) is -
A. Rs.` 3,60,000
B. Rs.` 3,10,000
C. Nil
D. Rs.` 50,000

52. A & Co. received a gift of 900 shares of RST Pvt. Ltd. at a consideration of Rs.` 1,60,000. The
aggregate fair market value of shares is Rs.` 2,30,000. What will be the taxable amount under
the head Income from Other Sources?
A. Nil
B. Rs.` 50,000
C. Rs.` 70,000
D. Rs.` 1,60,000

53. Sameer received the following income during financial year 2020-21 : Director's fees Rs.` 5,000,
income from agricultural land in Pakistan Rs.` 15,000, rent from let-out of land in [Jaipur Rs.`
20,000, interest on deposit with HDFC Bank Rs.` 1,000 and dividend from Indian company Rs.`
5,000. His income from other sources is –
A. Rs.` 46,000
B. Rs.` 41,000
C. Rs.` 31,000
D. Rs.` 26,000

54. Rohan received the following gifts during the previous year:

(i) Rs.` 50,000 from his employer (ii) Rs.` 1,00,000 from mother's sister (iii) Rs.` 10,000 from his friend on
the occasion of his marriage (iv) Rs.` 60,000 in the form of scholarship from a registered charitable trust.
The amount of taxable gift under the head 'income from other sources' is _

A. Nil
B. Rs.` 50,000
C. Rs.` 1,50,000
D. Rs.` 2,10,000

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55. Comfort (Pvt.) Ltd. issued 10,000 equity shares to Pawan at Rs.` 18 per share when the fair
market value of each share was determined at Rs.` 11 per share. The tax implication of the
transaction is -
A. Rs.` 70,000 taxable as income for Comfort (Pvt.)
B. Rs.` 20,000 taxable as income for Pawan Ltd.
C. Rs.` 10,000 taxable as income for Pawan
D. Nil

56. Interest on compensation/ enhanced compensation shall _

A. be taxable in the year of receipt.
B. be taxable in the year of accrual.
C. be taxable receipt/ accrual, whichever is earlier.
D. not be taxable.

57. Sarath has received a sum of Rs.` 3,40,000 as interest on enhanced compensation for
compulsory acquisition of land by State Government in May, 2018, of this, only Rs.` 12,000
pertains to the current year and the rest pertains to earlier years. The amount chargeable to tax
for the assessment year 2019-20 would be -
A. Rs.` 12,000
B. Rs.` 6,000
C. Rs.` 3,40,000
D. Rs.` 1,70,000

58. Ad hoc deduction available in respect of income of interest on compensation/ enhanced

compensation shall be:
A. 50 %
B. 30 %
C. Nil
D. 100 %

59. Assessee received interest on enhanced compensation of Rs.` 50,000 as per court decree in
December 2020 by Mr. Yatin. Out of the said amount a sum of Rs.` 35,000 relates to preceding
financial years. The taxable income is:
A. Rs.` 25,000
B. Rs.`15,000
C. Rs.` 17,500
D. Rs.` 35,000

60. Incomes taxable under the head of Income from Other Sources are:
A. Interest on bank deposits and loans.
B. Lottery income.
C. Agricultural income received from outside India
D. All of the above.

61. Which of the following income is not taxable under the head income from other sources?
A. Income from letting of house property.

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B. Income from sub letting.
C. Director's fees.
D. Commission received by the director on giving bank guarantee for the company.

62. Royalty received from a publisher by Nina was of Rs.` 42,700. She spent Rs.` 2,700 on books,
stationery, typing, etc. Calculate the amount of income chargeable to tax under head Income
from other sources?
A. Exempt
B. Rs.` 42,700
C. Rs.` 40,000
D. Rs.` 2,700

63. Mr. Ram was earning income from sub-letting of motor car to his friend. Such income shall be
taxable under which head of income?
A. Income from other sources
B. Income from house property
C. Income from Business and profession
D. Any of the above

64. The amount deductible from family pension is upto -

A. Rs.` 15,000 or 1/3rd of family pension whichever is less
B. Rs.` 15,000 or 1/2 of family pension whichever is less
C. Rs.` 10,000 or 1/3rd of family pension whichever is less
D. No deduction.

65. Ms. Reema is in receipt for family pension of Rs. ` 15,000 p.m. during 2020-21. Income
chargeable to tax for assessment year 2021-22 of Ms. Reema is-----------------------
A. Rs.` 1,80,000
B. Rs.` 1,20,000
C. Rs.` 165,000
D. Nil.

66. "Specified foreign company" means:

A. Foreign company in which Indian company holds 26% or more in nominal value of the
equity share capital of the company.
B. Foreign company in which Indian company holds 51 or more in nominal value of the equity
share capital of the company.
C. Company which is registered in India.
D. None of these.

67. Dividend received by an Indian company from specified foreign companies shall be taxable at :
A. 15% [Surcharge 12% + 4%HEC@. No deduction allowed in respect of any expenditure or
allowance under any provision.
B. 15% [Surcharge 12% + 4%HEC@. deduction allowed in respect of any expenditure or
allowance under any provision.

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C. 10% [Surcharge 12% + 4%HEC@. deduction allowed in respect of any expenditure or
allowance under any provision.
D. 10% [Surcharge 12% + 4%HEC@. No deduction allowed in respect of any expenditure or
allowance under any provision.

68. In order to be entitled to concessional rate of tax for dividend received from a foreign company, the
Indian company should have the following minimum shareholding in such foreign company–
A. 10%
B. 25%
C. 26%
D. 51 %

69. The deduction for family pension under section 57 can be determined as :
A. One third of the family pension
B. ` 15,000
C. Lower of (a) or (b)
D. Higher of (a) or (b)

70. Family pension received by a widow of a member of the armed forces where the death of the
member has occurred in the course of the operational duties in the circumstances and subject of
prescribed conditions,is -
A. Exempt upto `. 3,00,000
B. Exempt upto ` 3,50,000
C. Totally exempt under section 10(19)
D. Totally chargeable to tax

71. Family pension received by Mr. Ram from the Government of Madhya Pradesh was of Rs.`
15,000. Calculate the amount of income chargeable to tax under the head of income from other
sources?
A. Rs.` 15,000
B. Rs.` 10,000
C. Rs.` 5,000
D. Nil

72. Compute income taxable under head income from other sources:

Interest on bank deposits Rs.` 3,000 Winnings from lotteries (net) Rs. ` 33,936 Interest on Post office
savings bank account Rs.` 500

A. Rs.` 51,480
B. Rs.` 51,980
C. Rs.` 36,936
D. Rs.` 37,436

73. Compute income taxable under head income from other sources:

Dividend from shares of Indian company Rs.` 3,000 Winnings from lotteries (net) Rs. `70,000

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Rental Income of Plant and machinery Rs.`51,000

A. Rs.`1,51,000
B. Rs.`1,21,000
C. Rs.`1,54,000
D. Rs.`1,24,000
74. Compute income taxable under head income from other sources received by Mr. X :

Cash gift received from his brother on occasion of his marriage anniversary - Rs. `75,000

Winnings from lotteries (net) - Rs.`70,000

Forfeited advance money received on occasion of transfer of capital asset- Rs.`51,000

A. Rs.`1,96,000
B. Rs.`1,51,000
C. Rs.`1,75,000
D. Rs.` 1,00,000

75. Mrs. Gulati, 70 years old, received Rs.` 30,000 every month from SBI under reverse mortgage
scheme by mortgaging her residential house property. She also received monthly family pension
of Rs.` 15,000. Her total income for the assessment year 2021-22 is ------
A. Rs.` 5,40,000
B. Rs.` 1,80,000
C. Rs.` 1,65,000
D. Rs.` 3,60,000

76. The dividend received by an individual from an company in excess of `.............is chargeable to
tax @.......................
A. Rs.` 10,00,000, 10%
B. Rs.` 5,00,000, 20%
C. Rs.` 1,00,000, 10%
D. None of the above

77. Mr. PP has acquired a building from hid friend on 10.10.2020 for Rs. 15 Lakh. The stamp duty
value of the building on the date of purchase is Rs. 15,90,000. Income Chargeable in hand of Mr.
DS-
A. Rs.90,000
B. Rs.40,000
C. Nil
D. Rs.20,000

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Other sources MCQs

1. Income of every kind, which is not to be excluded from the total income under this Act and not
charged to income-tax under any of the other four heads, shall be chargeable to income-tax
under the head ________
a) Income from salaries
b) Income from House Property
c) Profits and gains from business and profession
d) Income from Other Sources

2. Which is the charging section for income chargeable under the head Income from other
sources?
a) Section 15
b) Section 28
c) Section 22
d) Section 56

3. Ramesh engaged in readymade garments business received rent by sub-letting a building. This
will be taxable under the head -
a) Income from house property
b) Income from capital gains
c) Income from profits & gains of business & profession
d) Income from other sources.

4. Under the Income-tax Act, 1961, dividend derived from the shares held as stock-in-trade are
taxable under head –
a) Income from other sources
b) Income from profits and gains of business or profession
c) Capital gains
d) Either capital gains or income from profits and gains of business or profession.

5. Which of the following incomes are chargeable under the head 'Income from other sources'?
a) Dividends & Deemed Dividends
b) Winnings from lotteries, betting & gambling
c) Income from sub-letting of the house
d) All of above

6. Agriculture income received from outside India will be -

A. Taxable under the head Profit and Gains of Business or Profession
B. Taxable under the head Income from other sources
C. Exempt from tax
D. None of these

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7. Mr. R was dealing in the business of lotteries. He himself won a lottery. Income earned from
such lottery will be
A. Taxable under the head Profit and Gains of Business or Profession
B. Taxable under the head Income from other sources
C. Exempt
D. None of these

8. Salary paid to a member of parliament will be –

A. Taxable under the head Profit and Gains of Business or Profession
B. Taxable under the head Income from other sources
C. Exempt
D. None of these

9. Any sum of money received as an advance or otherwise in the course of negotiations for transfer
of a capital asset is forfeited and the negotiations do not result in transfer of such capital asset
will be taxable under the head -
A. Profit and Gains of Business or Profession
B. Income from other sources
C. Capital gains
D. Income from house property

10. Ram entered into an agreement with Shyam for sale of a building for Rs.` 20 lakh in June; 2020.
Ram received advance of Rs.` 2 lakh. Subsequently, the agreement was cancelled and Ram
forfeited the advance money. The advance money is –
A. To be reduced from the cost of acquisition
B. To be reduced from indexed cost of acquisition
C. Taxable as capital gains
D. Taxable as income under the head 'income from other sources

11. Ramesh received Rs.` 7 lakh by way of enhanced compensation in March, 2021. A further sum
of Rs.` 2 lakh decreed by the court is due but not received till 3rd March, 2021. The amount of
income chargeable to tax for A/Y 2021-22 would be --------
A. Rs.` 3,50,000
B. Rs.` 7,00,000
C. Rs.` 9,00,000
D. Rs.` 4,50,000

12. An assessee earned interest on post office savings bank account: Rs.`6,000. Such sum shall be
taxable under the head:
A. Salaries
B. Profit & Gains of Business & Profession
C. Capital Gains
D. Income from Other Sources

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13. Raju owned a machinery. He let it on hire to Kaju for Rs.`3,40,000 p.a. Such amount shall be
taxable under head:
A. Income from other sources
B. Income from house property
C. Income from Business and profession
D. Any of the above

14. Income from letting on hire of plant, machinery or furniture is chargeable under the head
(Assume not a business of assesse)-
A. Income from other sources.
B. Profits and gains of Business or Profession.
C. Capital Gains.
D. Either (a) or (b)

15. Under which head income from letting on hire of machinery etc. will be taxed if the same is
Business of assessee' ?
A. Income from Other Sources.
B. Salaries
C. Capital Gains
D. Income from PGBP

16. Income earned by an assessee from letting on hire machinery, plant or furniture belonging to him
and also buildings, and where letting of buildings is inseparable from the letting of the said
machinery, plant or furniture shall be taxable under the head:
A. Income from other sources
B. Income from house property
C. Income from Business and profession
D. Any of the above

17. Deemed dividends as given in Section 2(22), which provides" dividend" includes _
A. Distribution of accumulated profits, entailing release of assets by the company to its
shareholders.
B. Distribution of debentures/ deposit-certificates to shareholders or bonus shares to
preference shareholders to an extent to which the company possesses accumulated
profits.
C. Distribution to shareholders on liquidation to the ,extent to which the distribution is
attributable to the accumulated profits of the company immediately before its liquidation.
D. All of the above.

18. Which of the following distributions by a company to its shareholders are not considered as
deemed dividends?
A. Debentures
B. Debenture Stock
C. Shares issued for full cash consideration
D. Bonus shares

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19. A private limited company engaged in manufacturing activity had general reserve of Rs. ` 20
lakh. It granted a loan of Rs.` 5 lakh to a director who held 13 shareholding cum voting rights in
the company. The said loan was re-paid by him before the end of the year. The amount of
deemed dividend arising out of the above transaction is –
A. Rs.` 2,60,000
B. Rs.` 2,40,000
C. Rs.` 5,00,000
D. Nil.

20. Mr. X resident individual 45 years of age gives the following information pertaining to the
assessment year 2021-22 : Particulars ` Dividend from shares of Indian company Rs.12,50,000
Expenses incurred on collecting such dividends Rs.12,500 Determine the amount of Total tax
liability for the assessment year 2021-22.
A. Rs.` 1,28,750
B. Rs.` 1Nil
C. Rs.` 1,87,500
D. Rs.` 1,95,000

21. AB Ltd. reduced its share capital and for that distributed to its shareholders an amount of Rs. `
55,00,000. The company possessed accumulated profits of Rs.` 35,00.000 as on the date of
distribution. What shall be the amount to be assesseed as deemed dividend?
A. Rs.` 55,00,000
B. Rs.` 35,00,000
C. Rs.` 20,00,000
D. No deemed dividend

22. PQR Pvt. Ltd. gave a loan of Rs.` 5,00,000 to its shareholder. The shareholder was the
beneficial owner of equity shares of the company as he held 15 of the voting power of the
Company. The company possessed accumulated profits of Rs.` 3,00,000 as on the date of
advancement of loan. What shall be the amount to be assesseed as deemed dividend in the
hands of shareholder?
A. Rs.` 5,00,000
B. Rs.` 3,00,000
C. Rs.` 2,00,000
D. No deemed dividend

23. PQR Ltd. gave a loan of Rs.` 9,00,000 to its shareholder. The shareholder was the beneficial
owner of equity shares of the company as he held 13 of the voting power of the Company. The
company possessed accumulated profits of Rs.` 1,00,000 as on the date of advancement of loan.
What shall be the amount to be assesseed as deemed dividend in the hands of shareholder?
A. Rs.` 9,00,000
B. Rs.` 1,00,000
C. Rs.` 8,00,000
D. No deemed dividend

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24. As per section 2(22)(e), loan/ advances given by a private company to a concern in which its
shareholder has substantial interest, then to the extent of accumulated profits held by the private
company (capitalised accumulated profits not included), it shall be considered as deemed
dividend taxable in the hands of shareholder. A person is deemed to have a substantial interest:
A. If he holds 20 of the voting power (equity shares) in the company;
B. If he is beneficially entitled to 20 or more of the income of such concern.
C. Either (a) or (b)
D. None of these.

25. ABC Pvt. Ltd. gave a loan of Rs.` 9,00,000 to PQR & Co .. 'C', a shareholder of ABC Pvt. Ltd.
was holding 20 of the voting power (equity shares) in the concern PQR & Co. The company
possessed accumulated profits of Rs.` 10,20,000 as on the date of advancement of loan to the
PQR & Co. What shall be the amount to be assesseed as deemed dividend in the hands of
shareholder?
A. Rs.` 3,80,000
B. Rs.` 9,00,000
C. Rs.` 5,20,000
D. No deemed dividend

26. ABC Pvt. Ltd. gave a loan of Rs.` 9,00,000 to PQR & Co. The company possess nil accumulated
profits as on the date of advancement of loan to PQR & Co., then what shall be the amount to be
assesseed as deemed dividend in the hands of shareholder?
A. Rs.` 3,80,000
B. Rs.` 9,00,000
C. Rs.` 5,20,000
D. No deemed dividend

27. ABC Pvt. Ltd. gave a loan of Rs.` 9,00,000 to PQR & Co. The company possess accumulated
profits of Rs.` 11,00,000 as on the date of advancement of loan to PQR & Co., then what shall be
the amount to be assesseed as deemed dividend in the hands of shareholder?
A. Rs.` 3,80,000
B. Rs.` 9,00,000
C. Rs.` 5,20,000
D. No deemed dividend

28. The maximum limit of exemption is case of lotteries or crossword puzzles or card game is :
A. Rs.` 2,500
B. Rs.` 50,000
C. Rs.` 10,000
D. Rs.` 5,000

29. The maximum limit of exemption in case of horse races is:

A. Rs.` 2,500
B. Rs.`10,000
C. Rs.` 5,000

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CA VIVEK GABA CS EXECUTIVE JUNE & DEC 2021
D. Rs.` 1,000

30. Winnings from lotteries, crossword puzzles, races including horse races, card games and other
games of any sort or from gambling or betting of any form or nature, taxable under the head
'Income from other sources' after grossing up is taxed without allowing basic exemption limit at
flat rate of :
A. 30%
B. 20%
C. 10%
D. 15%

31. Winnings from lotteries (gross) Rs.` 90,000. Calculate the amount to be included while
computing income under the head 'Income from Other Sources'.
A. Rs.` 90,000
B. Rs.` 1,28,571
C. Rs.` 27,000
D. Rs.` 1,17,000

32. Winnings from horse race (net) Rs.` 35,000. Calculate the amount to be included while
computing income under the head 'Income from Other Sources'.
A. Rs.` 35,000
B. Rs.` 50,000
C. Rs.` 10,500
D. Rs.` 60,500

33. Kaju received an amount of Rs.` 30,760 on 1-12-2020 in connection with winning from Horse
races. Cost of race tickets purchased was Rs.` 2,000. Calculate amount to be included under the
head 'Income from Other Sources':
A. Rs.` 30,760
B. Rs.` 28,760
C. Nil
D. Rs.` 2,000

34. If interest on securities is received after deduction of tax at source then the amount to be
included in the total income is:
A. Gross interest
B. Net interest
C. No amount to be included
D. None of these

35. Sum received under a Keyman insurance policy including bonus shall be taxable under the head:
A. Income from other sources
B. Income from house property
C. Income from Business and profession
D. Any of the above

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36. Sheela received a gift of Rs.` 25,000 each on 22th May, 2020 from his three friends. The amount
chargeable to tax in this case would be _
A. Rs.` 25,000
B. Rs.`75,000
C. Nil
D. Rs.` 55,000

37. Cash gifts exceeding ___ shall be chargeable under the head income from other sources:
A. Rs.` 5,000
B. Rs.` 20,000
C. Rs.` 50,000
D. Rs.` 25,000

38. The taxability of gift shall not apply if this gift is received from:
A. Relative
B. Local authority
C. On the occasion of marriage
D. All of these

39. Mrs. X received the following gifts during the year. Which gifts shall be included in computing the
income from othe sources?
A. Gift of Rs.` 26,000 from her employer.
B. Gift of Rs.` 121,000 on December from her mother's friend.
C. Gift of Rs.` 21,000 from her husband's brother.
D. Gift of Rs.` 60,000 on 25th November from her father's brother.

40. Mrs. X received the following gifts during the year. Which gifts shall not be included in computing
the income from other sources?
A. Scholarship of Rs.` 1,20,000 from a charitable institution registered under section 12AA.
B. Gifts of Rs.` 51,000 each received from her four friends on the occasion of her marriage on
22nd Nov.
C. Gift of Rs.` 1,41,000 from her husband's brother.
D. All of the above.

41. Richa received gift of jewellery, fair market value of which is Rs.` 3,00,000 on 22nd October
from her fiancee. What will be the taxable amount?
A. Nil
B. Rs.` 3,00,000
C. Rs.` 2,50,000
D. Rs.` 50,000

42. Mohan received a watch worth Rs.` 80,000 from his cousin grandfather (brother of his
grandfather). What will be the taxable amount?
A. Nil

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CA VIVEK GABA CS EXECUTIVE JUNE & DEC 2021
B. Rs.` 60,000
C. Rs.` 10,000
D. Rs.` 50,000

43. If A receives Rs.` 31,000 from B and Rs.` 20,000 from C, then, what will be the taxable amount•?
A. Nil
B. Rs.` 1,000
C. Rs.` 51,000
D. Rs.` 50,000

44. Sohan received a share of Rs.` 80,000 from his cousin grandfather (brother of his grandfather).
What will be the taxable amount?
A. Nil
B. Rs.` 80,000
C. Rs.` 30,000
D. Rs.` 50,000

45. Palak received a gift from his sister in USA of Rs.` 2,50,000. What will be the taxable amount?
A. Exempt
B. Rs.` 2,50,000
C. Rs.` 2,00,000
D. Rs.` 50,000

46. Ram received Rs.` 70,000 from his friend on the occasion of his birthday.
A. The entire amount of Rs.` 70,000 is taxable
B. Rs.` 20,000 is taxable
C. The entire amount is exempt
D. None of the above.

47. Shiv received a cash gift of Rs. ` 100,000 from her friend on her 25th wedding anniversary.
Amount taxable is :
A. Exempt
B. Rs.` 100,000
C. Rs.` 30,000
D. Rs.` 50,000

48. Gift of Rs.` 5,00,000 received on 10th July, 2020 through account payee cheque from a non-
relative regularly assessed to income-tax, is -
A. A capital receipt not chargeable to tax
B. Chargeable to tax as income from other sources[full value]
C. Chargeable to tax as business income
D. Exempt upto ` 50,000 and balance chargeable to tax as income from other sources.

49. Mr. A received cash gift worth Rs.` 55,000 from his grandfather's brother Raja, on the occasion
of the marriage of his son. What will be the taxable amount -
A. Rs.` 55,000

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CA VIVEK GABA CS EXECUTIVE JUNE & DEC 2021
B. Nil
C. Rs.` 50,000
D. Rs.` 5,000

50. Mr. V received a Watch worth Rs.` 55,000 from his employer on the occasion of his birthday.
What will be the tax consequences?
A. Rs.` 55,000 taxable in the hand of V, as income from salaries
B. Rs.` 55,000 taxable in the hands of V, as Fringe benefit.
C. Rs.` 55,000 taxable, as income from other sources
D. None of these

51. On 7th February, 2021 Rajat gets a gift of motor car from a relative ayush. Fair market value of
the car is Rs. ` 3,60,000. The amount taxable in the hands of Rajat under section 56(2)(x) is -
A. Rs.` 3,60,000
B. Rs.` 3,10,000
C. Nil
D. Rs.` 50,000

52. A & Co. received a gift of 900 shares of RST Pvt. Ltd. at a consideration of Rs.` 1,60,000. The
aggregate fair market value of shares is Rs.` 2,30,000. What will be the taxable amount under
the head Income from Other Sources?
A. Nil
B. Rs.` 50,000
C. Rs.` 70,000
D. Rs.` 1,60,000

53. Sameer received the following income during financial year 2020-21 : Director's fees Rs.` 5,000,
income from agricultural land in Pakistan Rs.` 15,000, rent from let-out of land in [Jaipur Rs.`
20,000, interest on deposit with HDFC Bank Rs.` 1,000 and dividend from Indian company Rs.`
5,000. His income from other sources is –
A. Rs.` 46,000
B. Rs.` 41,000
C. Rs.` 31,000
D. Rs.` 26,000

54. Rohan received the following gifts during the previous year:

(i) Rs.` 50,000 from his employer (ii) Rs.` 1,00,000 from mother's sister (iii) Rs.` 10,000 from his friend on
the occasion of his marriage (iv) Rs.` 60,000 in the form of scholarship from a registered charitable trust.
The amount of taxable gift under the head 'income from other sources' is _

A. Nil
B. Rs.` 50,000
C. Rs.` 1,50,000
D. Rs.` 2,10,000

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CA VIVEK GABA CS EXECUTIVE JUNE & DEC 2021
55. Comfort (Pvt.) Ltd. issued 10,000 equity shares to Pawan at Rs.` 18 per share when the fair
market value of each share was determined at Rs.` 11 per share. The tax implication of the
transaction is -
A. Rs.` 70,000 taxable as income for Comfort (Pvt.)
B. Rs.` 20,000 taxable as income for Pawan Ltd.
C. Rs.` 10,000 taxable as income for Pawan
D. Nil

56. Interest on compensation/ enhanced compensation shall _

A. be taxable in the year of receipt.
B. be taxable in the year of accrual.
C. be taxable receipt/ accrual, whichever is earlier.
D. not be taxable.

57. Sarath has received a sum of Rs.` 3,40,000 as interest on enhanced compensation for
compulsory acquisition of land by State Government in May, 2018, of this, only Rs.` 12,000
pertains to the current year and the rest pertains to earlier years. The amount chargeable to tax
for the assessment year 2019-20 would be -
A. Rs.` 12,000
B. Rs.` 6,000
C. Rs.` 3,40,000
D. Rs.` 1,70,000

58. Ad hoc deduction available in respect of income of interest on compensation/ enhanced

compensation shall be:
A. 50 %
B. 30 %
C. Nil
D. 100 %

59. Assessee received interest on enhanced compensation of Rs.` 50,000 as per court decree in
December 2020 by Mr. Yatin. Out of the said amount a sum of Rs.` 35,000 relates to preceding
financial years. The taxable income is:
A. Rs.` 25,000
B. Rs.`15,000
C. Rs.` 17,500
D. Rs.` 35,000

60. Incomes taxable under the head of Income from Other Sources are:
A. Interest on bank deposits and loans.
B. Lottery income.
C. Agricultural income received from outside India
D. All of the above.

61. Which of the following income is not taxable under the head income from other sources?
A. Income from letting of house property.

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CA VIVEK GABA CS EXECUTIVE JUNE & DEC 2021
B. Income from sub letting.
C. Director's fees.
D. Commission received by the director on giving bank guarantee for the company.

62. Royalty received from a publisher by Nina was of Rs.` 42,700. She spent Rs.` 2,700 on books,
stationery, typing, etc. Calculate the amount of income chargeable to tax under head Income
from other sources?
A. Exempt
B. Rs.` 42,700
C. Rs.` 40,000
D. Rs.` 2,700

63. Mr. Ram was earning income from sub-letting of motor car to his friend. Such income shall be
taxable under which head of income?
A. Income from other sources
B. Income from house property
C. Income from Business and profession
D. Any of the above

64. The amount deductible from family pension is upto -

A. Rs.` 15,000 or 1/3rd of family pension whichever is less
B. Rs.` 15,000 or 1/2 of family pension whichever is less
C. Rs.` 10,000 or 1/3rd of family pension whichever is less
D. No deduction.

65. Ms. Reema is in receipt for family pension of Rs. ` 15,000 p.m. during 2020-21. Income
chargeable to tax for assessment year 2021-22 of Ms. Reema is-----------------------
A. Rs.` 1,80,000
B. Rs.` 1,20,000
C. Rs.` 165,000
D. Nil.

66. "Specified foreign company" means:

A. Foreign company in which Indian company holds 26% or more in nominal value of the
equity share capital of the company.
B. Foreign company in which Indian company holds 51 or more in nominal value of the equity
share capital of the company.
C. Company which is registered in India.
D. None of these.

67. Dividend received by an Indian company from specified foreign companies shall be taxable at :
A. 15% [Surcharge 12% + 4%HEC@. No deduction allowed in respect of any expenditure or
allowance under any provision.
B. 15% [Surcharge 12% + 4%HEC@. deduction allowed in respect of any expenditure or
allowance under any provision.

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CA VIVEK GABA CS EXECUTIVE JUNE & DEC 2021
C. 10% [Surcharge 12% + 4%HEC@. deduction allowed in respect of any expenditure or
allowance under any provision.
D. 10% [Surcharge 12% + 4%HEC@. No deduction allowed in respect of any expenditure or
allowance under any provision.

68. In order to be entitled to concessional rate of tax for dividend received from a foreign company, the
Indian company should have the following minimum shareholding in such foreign company–
A. 10%
B. 25%
C. 26%
D. 51 %

69. The deduction for family pension under section 57 can be determined as :
A. One third of the family pension
B. ` 15,000
C. Lower of (a) or (b)
D. Higher of (a) or (b)

70. Family pension received by a widow of a member of the armed forces where the death of the
member has occurred in the course of the operational duties in the circumstances and subject of
prescribed conditions,is -
A. Exempt upto `. 3,00,000
B. Exempt upto ` 3,50,000
C. Totally exempt under section 10(19)
D. Totally chargeable to tax

71. Family pension received by Mr. Ram from the Government of Madhya Pradesh was of Rs.`
15,000. Calculate the amount of income chargeable to tax under the head of income from other
sources?
A. Rs.` 15,000
B. Rs.` 10,000
C. Rs.` 5,000
D. Nil

72. Compute income taxable under head income from other sources:

Interest on bank deposits Rs.` 3,000 Winnings from lotteries (net) Rs. ` 33,936 Interest on Post office
savings bank account Rs.` 500

A. Rs.` 51,480
B. Rs.` 51,980
C. Rs.` 36,936
D. Rs.` 37,436

73. Compute income taxable under head income from other sources:

Dividend from shares of Indian company Rs.` 3,000 Winnings from lotteries (net) Rs. `70,000

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CA VIVEK GABA CS EXECUTIVE JUNE & DEC 2021
Rental Income of Plant and machinery Rs.`51,000

A. Rs.`1,51,000
B. Rs.`1,21,000
C. Rs.`1,54,000
D. Rs.`1,24,000
74. Compute income taxable under head income from other sources received by Mr. X :

Cash gift received from his brother on occasion of his marriage anniversary - Rs. `75,000

Winnings from lotteries (net) - Rs.`70,000

Forfeited advance money received on occasion of transfer of capital asset- Rs.`51,000

A. Rs.`1,96,000
B. Rs.`1,51,000
C. Rs.`1,75,000
D. Rs.` 1,00,000

75. Mrs. Gulati, 70 years old, received Rs.` 30,000 every month from SBI under reverse mortgage
scheme by mortgaging her residential house property. She also received monthly family pension
of Rs.` 15,000. Her total income for the assessment year 2021-22 is ------
A. Rs.` 5,40,000
B. Rs.` 1,80,000
C. Rs.` 1,65,000
D. Rs.` 3,60,000

76. The dividend received by an individual from an company in excess of `.............is chargeable to
tax @.......................
A. Rs.` 10,00,000, 10%
B. Rs.` 5,00,000, 20%
C. Rs.` 1,00,000, 10%
D. None of the above

77. Mr. PP has acquired a building from hid friend on 10.10.2020 for Rs. 15 Lakh. The stamp duty
value of the building on the date of purchase is Rs. 15,90,000. Income Chargeable in hand of Mr.
DS-
A. Rs.90,000
B. Rs.40,000
C. Nil
D. Rs.20,000

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CA VIVEK GABA CS EXECUTIVE JUNE & DEC 2021

OBJECTIVE QUESTIONS [Set off & C/F of Losses]

1. Loss under head Salary can be set off from income under head
a) Capital Gains b) Profit & Gain of Business or Profession
c) House Property d) Loss is not possible under Salary head
2. Loss under head House property can be set off from income under head
a) Profit & Gain of Business or Profession b) House property
c) Any head no limit d) Same Head no limit but other head max 2 lakh
3. Loss under head House property can be carried forward for next ….. assessment year
a) 8 b) 4 c) Indefinite d) 0
4. Loss from owning & maintenance of race horses can be carried forward for next ….. AY
a) 8 b) 4 c) Indefinite d) 0
5. Speculative Loss can be set off from income from
a) speculative business b) capital gains
c) other sources d) owning & maintaining horse races
6. Speculative Loss can be carried forward and set off from income from
a) speculative business b) capital gains
c) house property d) owning & maintaining horse races
7. Speculative Loss can be carried forward for
a) next 8 assessment year b) next 4 assessment year
c) indefinite period d) Cannot be carried forward
8. Losses from specified business u/s 35 AD can be carried forward for
a) 8 b) 4 c) Indefinite d) 0
9. Losses from business other than speculative, owning and maintaining race horses and specified
business under section 35AD can be carried forward for
a) next 8 assessment year b) next 4 assessment year
c) indefinite period d) Cannot be carried forward
10. Losses from business other than speculative, owning and maintaining race horses and specified
business under section 35AD can be set off from income
a) any business b) capital gain
c) any source or any head except income from salary d) house property
11. Long term capital Loss can be set off from income from
a) long term capital asset b) short term capital asset
c) long term or short term capital asset d) any head
12. Long term Capital Loss can be carried forward and set off from income from
a) long term capital asset b) short term capital asset
c) long term or short term capital asset d) any head
13. Long term Capital Loss can be carried forward for
a) next 8 assessment year b) next 4 assessment year
c) indefinite period d) Cannot be carried forward
14. Short term Capital Loss can be set off from income from
a) long term capital asset b) short term capital asset
c) long term or short term capital asset d) any head
15. Short term Capital Loss can be carried forward for
a) next 8 assessment year b) next 4 assessment year
c) indefinite period d) Cannot be carried forward
16. Loss from other sources can be carried forward for
a) next 8 assessment year b) next 4 assessment year
c) indefinite period d) Cannot be carried forward
17. Compute the taxable income of Mr. A for the A.Y.2021-22.
Income from salary 4,00,000
Loss from self-occupied property (-) 70,000
a) 4,00,000 b) 3,30,000 c) 3,65,000 d) Nil

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CA VIVEK GABA CS EXECUTIVE JUNE & DEC 2021
18. During the P.Y. 2020-21, Mr. C has following income and brought forward losses:
Short term capital gains on sale of shares 1,50,000
Long term capital loss of A.Y. 2016-17 (96,000)
Short term capital loss of A.Y. 2017-18 (37,000)
What is the capital gain taxable in the hands of Mr. C and how much loss can be carried forward for
the A.Y.2021-22?
a) 1,13,000, Nil b) 17,000, Nil c) 1,13,000, 96,000 d) 54,000,
37,000
19. During the P.Y. 2020-21, Mr. C has following income and brought forward losses:
Long term capital gain 1,75,000
Long term capital loss of A.Y. 2016-17 (96,000)
Short term capital loss of A.Y. 2017-18 (37,000)
What is the capital gain taxable in the hands of Mr. C and how much loss can be carried forward for
the A.Y. 2021-22?
a) 79,000, 37,000 b) 1,38,000, 96,000 c) 42,000, Nil d) Nil,
Nil
20. What is the taxable income and losses to be carried forward of Mr. E for the A.Y. 2021-22?
Income from speculation business 60,000
Loss from non-speculation business (40,000)
Short term capital gain 80,000
Long term capital loss of A.Y.2017-18 (30,000)
a) ` 70,000, Nil b) ` 1,10,000, `40,000
c) ` 1,00,000, `30,000 d) ` 1,00,000, `40,000
21. Compute the total income and losses to be carried forward of Mr. Rahul for the AY 2021-22.
Loss from profession (1,05,000)
Capital loss on the sale of property-short term (55,000)
Capital gains on sale of shares-long term 2,05,000
Winnings from lotteries 1,00,000
Loss from owing & maintenance horse races in Mumbai 40,000
a) 2,50,000, 1,45,000 b) 1,05,000, Nil
c) 1,45,000, 40,000 d) 3,05,000, 2,00,000
22. According to section 80, no loss which has not been determined in pursuance of a return filed in
accordance with provisions of section 139(3), shall be carried forward. The exceptions are
a) Only loss under the head “Capital Gains” under section 74.
b) Loss under head “Capital Gains” and unabsorbed depreciation carried forward u/s 32(2)
c) Loss from house property and unabsorbed depreciation carried forward u/s 32(2).
d) None of the above
23. Section 70 enables set off of losses under one source of income against income from any other
source under the same head. The exceptions to this section are –
a) Loss under head “Capital Gains”, loss from speculative business and loss from activity of
owning and maintaining race horses
b) Long-term capital loss, loss from speculative business, loss from business specified under
section 35AD and loss from the activity of owning and maintaining race horses
c) Short-term capital loss, loss from business specified under section 35AD and loss from
speculative business
d) None of the above
24. Mr. A incurred short-term capital loss of `10,000 on sale of shares through the National Stock
Exchange. Such loss can be set-off –
a) only against short-term capital gains b) against both short &long-term capital gains
c) against any head of income. d) None of the above
25. Loss from house property can be carried forward and set off in subsequent 8 assessment year
a) only if return of loss is filed within due date
b) only if return of loss is filed after due date
c) It does not matter when return is filed

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CA VIVEK GABA CS EXECUTIVE JUNE & DEC 2021
d) Carry forward of loss from house property is not allowed at all.
26. Long term capital loss can be set off from which of the following
a) Short term capital gain only b) Long-term capital gain only
c) Income from business or profession d) Income from salary
27. Loss from owning and maintenance of race horses can be carried forward and set off from income
from
a) owning & maintaining horse races b) House property
c) Capital gains d) any income from any head
28. Losses from specified business u/s 35AD can be set off from income from
a) any specified business u/s 35AD b) any business
c) capital gains d) cannot be set off
29. Speculative business losses can be c/f for ………….. assessment year, immediately succeeding the
assessment year for which the loss was first computed?
a) Four b) Eight c) Unlimited d) None of the
above
30. The first item in order of priority of set off between unabsorbed depreciation, capital expenditure on
scientific research, current year depreciation, and brought forwarded business loss is?
a) Current year Dep & capital expenditure on scientific research
b) Current year depreciation only
c) Brought forwarded business loss
d) Any of the above
31. Casual losses can be C/F for ………….. assessment year, immediately succeeding the assessment
year for which the loss was first computed?
a) Four b) Eight c) Unlimited d) None of the
above
32. Unabsorbed part of the loss from house property can be C/F and set-off with in subsequent ……..
years?
a) Four b) Eight c) Unlimited d) None of the
above
33. Speculative losses may be set-off against non-speculative profits?
a) False b) True c) Partly true d) None of the
above
34. Loss on account of owing and maintaining race horses can be carried forward upto?
a) Eight b) Unlimited c) Four d) None of the
above
35. Loss in speculative as well as non-speculative business can be C/F to a maximum 4 consecutive
assessment years immediately succeeding the assessment year for which loss was first compute?
a) True b) False c) Partly true d) None of the
above
36. Short Term Capital Loss can be set off from
a) Short Term Capital Gain b) Long Term Capital Gain
c) Both Short Term and Long Term Capital Gain d) Any income of the previous year
37. Loss under head Salary can be carried forward and set off from income under head
a) Capital Gains b) Profit & Gain of Business or Profession
c) House Property d) Loss is not possible under Salary head
38. Losses from specified business u/s 35 AD can be carried forward and set off from income from
a) same business specified business u/s 35 AD b) any business u/s 35AD
c) capital gains d) cannot be set off
39. Business loss of an amalgamating company shall be:
a) carried forward and set off in the hands of amalgamated company unconditionally
b) carried forward & set off in hands of amalgamated company subject to certain conditions
c) not be carried forward
d) allowed to be carried forward only by amalgamating company
40. Loss from speculation business of a particular assessment year can be set off in same AY from:
a) Profit and gains from any business

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CA VIVEK GABA CS EXECUTIVE JUNE & DEC 2021
b) Profit and gains from any business other than speculation business
c) Income of speculation business
d) Income under any head
41. Loss from derivative trading in shares carried on in a recognized stock exchange is
a) a loss from speculative business b) a loss from non-speculative business
c) any of the above d) None of the above
42. Loss from derivative trading in shares carried on in a recognized stock exchange can carried forward
for
a) 4 years b) 8 years c) 10 years d) infinite
43. In case of amalgamation, if condition mentioned in section 72A is satisfied, the amalgamated
company is allowed to carry forward the business loss & unabsorbed depreciation of amalgamated
company for:
a) 8 years
b) fresh 8 years for business loss and indefinitely for unabsorbed depreciation
c) Indefinitely
d) balance number of years

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CA VIVEK GABA CS EXECUTIVE JUNE & DEC 2021

OBJECTIVE QUESTIONS [Set off & C/F of Losses]

1. Loss under head Salary can be set off from income under head
a) Capital Gains b) Profit & Gain of Business or Profession
c) House Property d) Loss is not possible under Salary head
2. Loss under head House property can be set off from income under head
a) Profit & Gain of Business or Profession b) House property
c) Any head no limit d) Same Head no limit but other head max 2 lakh
3. Loss under head House property can be carried forward for next ….. assessment year
a) 8 b) 4 c) Indefinite d) 0
4. Loss from owning & maintenance of race horses can be carried forward for next ….. AY
a) 8 b) 4 c) Indefinite d) 0
5. Speculative Loss can be set off from income from
a) speculative business b) capital gains
c) other sources d) owning & maintaining horse races
6. Speculative Loss can be carried forward and set off from income from
a) speculative business b) capital gains
c) house property d) owning & maintaining horse races
7. Speculative Loss can be carried forward for
a) next 8 assessment year b) next 4 assessment year
c) indefinite period d) Cannot be carried forward
8. Losses from specified business u/s 35 AD can be carried forward for
a) 8 b) 4 c) Indefinite d) 0
9. Losses from business other than speculative, owning and maintaining race horses and specified
business under section 35AD can be carried forward for
a) next 8 assessment year b) next 4 assessment year
c) indefinite period d) Cannot be carried forward
10. Losses from business other than speculative, owning and maintaining race horses and specified
business under section 35AD can be set off from income
a) any business b) capital gain
c) any source or any head except income from salary d) house property
11. Long term capital Loss can be set off from income from
a) long term capital asset b) short term capital asset
c) long term or short term capital asset d) any head
12. Long term Capital Loss can be carried forward and set off from income from
a) long term capital asset b) short term capital asset
c) long term or short term capital asset d) any head
13. Long term Capital Loss can be carried forward for
a) next 8 assessment year b) next 4 assessment year
c) indefinite period d) Cannot be carried forward
14. Short term Capital Loss can be set off from income from
a) long term capital asset b) short term capital asset
c) long term or short term capital asset d) any head
15. Short term Capital Loss can be carried forward for
a) next 8 assessment year b) next 4 assessment year
c) indefinite period d) Cannot be carried forward
16. Loss from other sources can be carried forward for
a) next 8 assessment year b) next 4 assessment year
c) indefinite period d) Cannot be carried forward
17. Compute the taxable income of Mr. A for the A.Y.2021-22.
Income from salary 4,00,000
Loss from self-occupied property (-) 70,000
a) 4,00,000 b) 3,30,000 c) 3,65,000 d) Nil

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CA VIVEK GABA CS EXECUTIVE JUNE & DEC 2021
18. During the P.Y. 2020-21, Mr. C has following income and brought forward losses:
Short term capital gains on sale of shares 1,50,000
Long term capital loss of A.Y. 2016-17 (96,000)
Short term capital loss of A.Y. 2017-18 (37,000)
What is the capital gain taxable in the hands of Mr. C and how much loss can be carried forward for
the A.Y.2021-22?
a) 1,13,000, Nil b) 17,000, Nil c) 1,13,000, 96,000 d) 54,000,
37,000
19. During the P.Y. 2020-21, Mr. C has following income and brought forward losses:
Long term capital gain 1,75,000
Long term capital loss of A.Y. 2016-17 (96,000)
Short term capital loss of A.Y. 2017-18 (37,000)
What is the capital gain taxable in the hands of Mr. C and how much loss can be carried forward for
the A.Y. 2021-22?
a) 79,000, 37,000 b) 1,38,000, 96,000 c) 42,000, Nil d) Nil,
Nil
20. What is the taxable income and losses to be carried forward of Mr. E for the A.Y. 2021-22?
Income from speculation business 60,000
Loss from non-speculation business (40,000)
Short term capital gain 80,000
Long term capital loss of A.Y.2017-18 (30,000)
a) ` 70,000, Nil b) ` 1,10,000, `40,000
c) ` 1,00,000, `30,000 d) ` 1,00,000, `40,000
21. Compute the total income and losses to be carried forward of Mr. Rahul for the AY 2021-22.
Loss from profession (1,05,000)
Capital loss on the sale of property-short term (55,000)
Capital gains on sale of shares-long term 2,05,000
Winnings from lotteries 1,00,000
Loss from owing & maintenance horse races in Mumbai 40,000
a) 2,50,000, 1,45,000 b) 1,05,000, Nil
c) 1,45,000, 40,000 d) 3,05,000, 2,00,000
22. According to section 80, no loss which has not been determined in pursuance of a return filed in
accordance with provisions of section 139(3), shall be carried forward. The exceptions are
a) Only loss under the head “Capital Gains” under section 74.
b) Loss under head “Capital Gains” and unabsorbed depreciation carried forward u/s 32(2)
c) Loss from house property and unabsorbed depreciation carried forward u/s 32(2).
d) None of the above
23. Section 70 enables set off of losses under one source of income against income from any other
source under the same head. The exceptions to this section are –
a) Loss under head “Capital Gains”, loss from speculative business and loss from activity of
owning and maintaining race horses
b) Long-term capital loss, loss from speculative business, loss from business specified under
section 35AD and loss from the activity of owning and maintaining race horses
c) Short-term capital loss, loss from business specified under section 35AD and loss from
speculative business
d) None of the above
24. Mr. A incurred short-term capital loss of `10,000 on sale of shares through the National Stock
Exchange. Such loss can be set-off –
a) only against short-term capital gains b) against both short &long-term capital gains
c) against any head of income. d) None of the above
25. Loss from house property can be carried forward and set off in subsequent 8 assessment year
a) only if return of loss is filed within due date
b) only if return of loss is filed after due date
c) It does not matter when return is filed

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CA VIVEK GABA CS EXECUTIVE JUNE & DEC 2021
d) Carry forward of loss from house property is not allowed at all.
26. Long term capital loss can be set off from which of the following
a) Short term capital gain only b) Long-term capital gain only
c) Income from business or profession d) Income from salary
27. Loss from owning and maintenance of race horses can be carried forward and set off from income
from
a) owning & maintaining horse races b) House property
c) Capital gains d) any income from any head
28. Losses from specified business u/s 35AD can be set off from income from
a) any specified business u/s 35AD b) any business
c) capital gains d) cannot be set off
29. Speculative business losses can be c/f for ………….. assessment year, immediately succeeding the
assessment year for which the loss was first computed?
a) Four b) Eight c) Unlimited d) None of the
above
30. The first item in order of priority of set off between unabsorbed depreciation, capital expenditure on
scientific research, current year depreciation, and brought forwarded business loss is?
a) Current year Dep & capital expenditure on scientific research
b) Current year depreciation only
c) Brought forwarded business loss
d) Any of the above
31. Casual losses can be C/F for ………….. assessment year, immediately succeeding the assessment
year for which the loss was first computed?
a) Four b) Eight c) Unlimited d) None of the
above
32. Unabsorbed part of the loss from house property can be C/F and set-off with in subsequent ……..
years?
a) Four b) Eight c) Unlimited d) None of the
above
33. Speculative losses may be set-off against non-speculative profits?
a) False b) True c) Partly true d) None of the
above
34. Loss on account of owing and maintaining race horses can be carried forward upto?
a) Eight b) Unlimited c) Four d) None of the
above
35. Loss in speculative as well as non-speculative business can be C/F to a maximum 4 consecutive
assessment years immediately succeeding the assessment year for which loss was first compute?
a) True b) False c) Partly true d) None of the
above
36. Short Term Capital Loss can be set off from
a) Short Term Capital Gain b) Long Term Capital Gain
c) Both Short Term and Long Term Capital Gain d) Any income of the previous year
37. Loss under head Salary can be carried forward and set off from income under head
a) Capital Gains b) Profit & Gain of Business or Profession
c) House Property d) Loss is not possible under Salary head
38. Losses from specified business u/s 35 AD can be carried forward and set off from income from
a) same business specified business u/s 35 AD b) any business u/s 35AD
c) capital gains d) cannot be set off
39. Business loss of an amalgamating company shall be:
a) carried forward and set off in the hands of amalgamated company unconditionally
b) carried forward & set off in hands of amalgamated company subject to certain conditions
c) not be carried forward
d) allowed to be carried forward only by amalgamating company
40. Loss from speculation business of a particular assessment year can be set off in same AY from:
a) Profit and gains from any business

Amended by Finance Act, 2020 Page 3

CA VIVEK GABA CS EXECUTIVE JUNE & DEC 2021
b) Profit and gains from any business other than speculation business
c) Income of speculation business
d) Income under any head
41. Loss from derivative trading in shares carried on in a recognized stock exchange is
a) a loss from speculative business b) a loss from non-speculative business
c) any of the above d) None of the above
42. Loss from derivative trading in shares carried on in a recognized stock exchange can carried forward
for
a) 4 years b) 8 years c) 10 years d) infinite
43. In case of amalgamation, if condition mentioned in section 72A is satisfied, the amalgamated
company is allowed to carry forward the business loss & unabsorbed depreciation of amalgamated
company for:
a) 8 years
b) fresh 8 years for business loss and indefinitely for unabsorbed depreciation
c) Indefinitely
d) balance number of years

Amended by Finance Act, 2020 Page 4

CA VIVEK GABA CS - EXECUTIVE JUNE 2021 EXAMS

MCQ’s for Practice

Chapter : House Property

Q1. Chargeability of House Property is given u/s

(a) 15 (b) 22 (c) 20 (d) None of the above

Q2. The basis of chargeability of House Property is .

(a) Annual Value (b) Municipal Value
(c) Standard Rent (d) Fair Rent

Q3. Under the head of house property, is taxable.

(a) Income from building only (b) Income from land only
(c)Income from building or land attached to building
(d) None of the above

Q4. House property means _ .

(a) Residential Houses (b) Shops or godowns
(c) Cinema or hotel building (d) All of the above

Q5. Mr. Raju is having a plot of land. He has let out this to earn some extra income. Rent
of such plot is taxable u/h
(a) PGBP (b) Income from house property
(c) IFOS (d) Any head at the choice of Mr. Raju.

Q6. Mr. Binod has taken a house on rent & sublet it to Mr. Raju. Income of Mr. Binod
from such house property is taxed u/h .
(a) Income from house property (b) IFOS
(c) Income from salary (d) Not taxed at all

Q7. For any income from house property to be assessed u/h “Income from house property”,
Assessee must have the ownership of such house property in .
(a) AY (b) PY (c) FY (d) None

Q8. Annual value of HP held as SIT is .

(a) Taxed u/h “PGBP”
(b) Taxed u/h “Income from House Property”

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CA VIVEK GABA CS - EXECUTIVE JUNE 2021 EXAMS

(c) Nil for 2 year from the end of FY in which completion certificate of the property is
obtained from competent authority, if such property is not LOP during such period.
(d) Both (b) & ©

Q9. AB Ltd. constructed staff quarters & let out the same during the AY 2019-20. Its
rent received Rs. 10,50,000 by way of rent from employees during the year. The rental
receipt is taxable as.
(a) Income from house property
(b) Income from business
(c)Perquisite in the hands of employees
(d) Income from other sources

Q10. Composite rent of let-out house property is taxable u/h

(a) PGBP (b) IFOS
(c) Income from HP (d) (a) or (b) above depending upon certain conditions

Q11. Mr. Rock is the owner of a house property covered under the Rent Control Act.
Municipal value Rs. 30,000, actual rent Rs. 25,000; fair rent Rs. 36,000 & standard rent
is Rs. 28,000. GAV will be.
(a) Rs. 30,000 (b) Rs. 36,000
(c) Rs. 25,000 (d) Rs. 28,000

Q12. Where SR is not applicable, GAV shall be higher of:

(a) FR & MV (b) MV & AR
(c) FR & MV & AR (d) none of the above

Q13. Mr. Jatin is owner of the flat which has municipal value Rs. 55,000; fair rent Rs.
60,000; standard rent Rs. 68,000 & actual rent is Rs. 66,000 for 11 Months. There is a
vacancy of 1 month. Calculate GAV.
(a) Rs. 60,000 (b) Rs. 40,000
(c) Rs. 66,000 (d) Rs. 68,000

Q14. If AR < ER due to vacancy, then GAV = .

(a) ARR (b) ER (c) Higher of (a) or (b) d)none of the above

Q15. In case of SOH, deduction of municipal taxes is

(a) available if paid by the owner
(b) not available if paid by the tenant
(c)available if tax is deducted at source

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CA VIVEK GABA CS - EXECUTIVE JUNE 2021 EXAMS

(d) No deduction of Municipal taxes paid.

Q16. Treatment of unrealized rent for determining income from house property
(a) To be deducted from expected rent
(b) To be deducted from actual rent
(c)To be deducted u/s 24 from annual value
(d) To be deducted from both expected rent & actual rent

Q17. Municipal Taxes are deducted from .

(a) NAV on payment basis (b) GAV on accrual basis
(c) GAV on payment basis (d) not deductible

Q18. Municipal taxes to be deducted from GAV should be

(a) Paid by tenant during PY (b) Paid by owner during PY
(c) Accrued during PY (d) None of the above

Q19. Municipal tax shall not include.

(a) House tax (b) Scavenging tax
(c) State government tax (d) Water tax

Q20. Where an assessee has two house properties for self-occupation, the benefit of NIL
annual value will be available in respect of:
(a) Both the properties
(b) Property which has been acquired.constructed first
(c) Any one house at the option of the assessee
(d) Any one of the properties & once option is exercised cannot be changed in subsequent
years

Q21. Mr. R owns a house property which has fair rent of Rs. 1,50,000, standard rent Rs.
1,20,000 & actual rent of 1,30,000. Municipal taxes paid during the AY 2021-22 for the
past 7 years is Rs. 1,40,000. NAV =
(a) Rs. 20,000 (b) Nil (c) (Rs. 10,000) (d) None

Q22. A house property whose fair rent is Rs. 1,20,000 is vacant throughout the previous
year. Municipal taxes paid for the house property are Rs. 20,000. Its NAV =
(a) Rs. 1,20,000 (b) Nil
(c) Rs. 1,00,000 (d) (Rs. 20,000)

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CA VIVEK GABA CS - EXECUTIVE JUNE 2021 EXAMS

Q23. The maximum amount of deduction of Interest on borrowed capital in case of one
house which is self- occupied shall be (loan was taken on 15.12.2009)
(a) Rs. 2 lacs (b) Rs. 30,000 (c) Rs. 3 lacs (d) Nil

Q24. Unrealized rent realized subsequently then its tax treatment is given u/s.
(a) 25C (b) 25B (c) 25A (d) 26

Q25. Mr. Vibhor is owner of a house which is let out at the Rent of Rs. 20,000 pm.
Municipal Value of the House Rs. 15,000 pm, Fair Rent Rs. 21,000 pm, Standard Rent Rs.
18,000 pm & Municipal Tax paid are Rs. 5,000 pa. Calculate NAV of the House.
(a) Rs. 2,38,000 (b) Rs. 1,80,000
(c) Rs. 2,40,000 (d) Rs. 2,35,000

Q26. Mr. Ramesh is owner of a big house which is let out at the Rent of Rs. 20,000 pm.
Municipal Value of the House Rs. 15,000 pm, Fair Rent Rs. 21,000 pm, Standard Rent Rs.
18,000 pm & Municipal Tax paid are Rs. 5,000 pa. Calculate NAV of the house assuming
that it was vacant for 2 months.
(a) Rs. 1,95,000 (b) Rs. 2,35,000
(c) Rs. 2,00,000 (d) Rs. 1,76,000

Q27. Mr. P is owner of a big house which is self-occupied for the full year. Municipal Value
of the House Rs. 15,000 pm, Fair Rent Rs. 21,000 pm, Standard Rent Rs. 18,000 pm &
Municipal Tax paid are Rs. 5,000 pa. Calculate NAV.
(a) Rs. 2,00,000 (b) Rs. 2,16,000
(c) Nil (d) None of the above

Q28. Mr. C is owner of a big house which is vacant for the full year. Municipal Value of
the House Rs. 15,000 pm, Fair Rent Rs. 21,000 pm, Standard Rent Rs. 18,000 pm &
Municipal Tax paid are Rs. 5,000 pa. Calculate NAV of the house.
(a) Rs. 1,76,000 (b) (Rs. 5,000)
(c)Nil (d) None of the above

Q29. Deduction u/s 24(a) of statutory deduction under the head House Property is %
of NAV.
(a) 35% (b) 30% (c) 25% (d) 40%

Q30. Deduction for the Interest on Capital Borrowed in covered u/s

(a) 24(a) (b) 24(c) (c) 24(b) (d) 24(d)

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CA VIVEK GABA CS - EXECUTIVE JUNE 2021 EXAMS

Q31. If NAV of Let out house property is negative, then which deduction shall be allowed
u/s 24
(a) 24(a) & 24(b) (b) Only 24(a) (c) Only 24(b)
(d) 24(a) or 24(b) at the choice of assessee.

Q32. Interest on borrowed capital accrued upto the end of PY prior to the PY of completion
of construction:
(a) allowed as a deduction in the year of completion of construction
(b) allowed in 5 equal annual instalments from the year of completion of construction
(c) allowed in the respective year in which the interest accrues
(d) Not allowed

Q33. Any person who has taken loan after 1.4.1999 for repair of the house which is self-
occupied, maximum deduction for the interest shall be.
(a) Rs. 2 lacs (b) Rs. 30,000 (c) Rs. 3 lacs (d) Nil

Q34. Municipal value is Rs. 1,20,000 whereas its annual rent received is Rs. 1,50,000.
Municipal taxes of the house property is Rs. 20,000 out of which Rs. 15,000 has been
paid during the AY 2021-22. NAV =
(a) Rs. 1,30,000 (b) Rs. 1,35,000
(c) Rs. 1,20,000 (d) Rs. 1,50,000

Q35. Any person who has taken loan before 1.4.1999 for repairs, renovation,
reconstruction, addition or alteration then interest allowed shall be.
(a) Rs. 2 lacs (b) Rs. 30,000 (c) Rs. 3 lacs (d) Nil

Q36. Deduction of unrealized rent is given if certain conditions are satisfied which are
given under.
(a) section 27 (b) rule 4
(c) section 29 (d) rule 2B

Q37. Mr. A took loan from a bank for Rs. 10,00,000 on 1.11.2017 @ 8% p.a for the
construction of the house which is self-occupied. Construction of the house got
completed on 15.3.2021. Compute interest allowed as deduction u/s 24(b) for AY
2021-22.
(a) Rs. 1,18,667 (b) Rs. 2,00,000
(c) Rs. 30,000 (d) Rs. 80,000

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CA VIVEK GABA CS - EXECUTIVE JUNE 2021 EXAMS

Q38. Mr. R borrowed Rs. 10,00,000 @ 12% p.a. on 1.4.2016 for construction of house
property which was completed on 2.4.2020. The amount of loan is still unpaid. What will
be the deduction of interest for AY 2020-21 if the house property is self-occupied?
(a) Rs. 30,000 (b) Rs. 2,16,000
(c) Rs. 1,08,000 (d) Rs. 2,00,000

Q39. Mr. X acquired a property in April, 2020 for self- residential use. The loan interest
payable to SBI for AY 2021-22 amounts to Rs. 2,10,000. The amount eligible for deduction
u/s 24(b) =
(a) Rs. 30,000 (b) Rs. 2,10,000
(c) Rs. 2,00,000 (d) Rs. 1,50,000

Q40. Mr. B borrowed Rs. 5 lacs @ 12% p.a. on 1.4.2016 for construction of house property
which was completed on 15.3.2020. The amount is still unpaid. Deduction of interest for
AY 2021-22 .
(a) Rs. 60,000 (b) Rs. 96,000
(c) Rs. 36,000 (d) Rs. 2,40,000

Q41. Interest of borrowed capital from outside India is deductible while calculating Income
from HP if condition given u/s is satisfied
(a) 25B (b) 22 (c) 25 (d) 25A

Q42. If an assessee has borrowed money for purchase of a house & interest is payable
outside India. Such interest shall be .
(a) Allowed as deduction
(b) not allowed as deduction
(c) be allowed as deduction if tax is deducted at source
(d) be allowed as deduction if the tax is deducted at source or receiver of interest has paid
tax on it in India

Q43. Which of the following interests are allowed as deduction while computing Income
from HP:
(a) Interest on unpaid interest
(b) Interest on fresh loan taken to repay original loan.
(c)Amount paid as brokerage for arrangement of loan
(d) None of the above

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CA VIVEK GABA CS - EXECUTIVE JUNE 2021 EXAMS

Q44. Mr. E received Rs. 50,000 as arrears of rent during AY 2021-22. Amount taxable u/s
25A:
(a) Rs. 30,000 (b) Rs. 35,000
(c) Rs. 20,000 (d) Rs. 15,000

Q45. Mr. Kaju received Rs. 90,000 in May, 2020 towards recovery of unrealised rent, which
was deducted from actual rent during PY 2018-19 for determining annual value. Legal
expense incurred in relation to unrealized rent is Rs. 20,000. Amount taxable u/s 25A for
AY 2019-20 is:
(a) Rs. 70,000 (b) Rs. 63,000
(c) Rs. 60,000 (d) Rs. 49,000

Q46. Mr. Kishmish was allowed deduction of unrealized rent to the extent of Rs. 40,000
in the past when unrealized rent was also Rs. 40,000. He is able to recover from the
tenant Rs. 35,000 as full & final settlement during AY 2019-20. Amount taxable u/s
25A:
(a) Rs. 35,000 (b) Rs. 24,500
(c) Rs. 40,000 (d) Fully Exempt.

Q47. Mr. Badam was allowed deduction of unrealized rent to the extent of Rs. 40,000
in the past when unrealized rent was Rs. 50,000. He is able to recover from the tenant
Rs. 30,000 as full & final settlement during the AY 20211-22. He is liable for tax on.
(a) Rs. 21,000 (b) Rs. 35,000
(c) Rs. 28,000 (d) Rs. 14,000

Q48. In case the property is owned by co-owners & it is let out, income from such property
shall be computed.
(a) separately for each co-owner
(b) it will be first computed ignoring the co-ownership & then distributed amongst
co-owners.
(c) Shall not be calculated at all
(d) None of the above

Q49. When share of each co-owner in a house property is not definite, the income from
such property shall be.
(a) Taxed equally (b) Exempt from tax
(c) Taxed as AOP (d) Taxed as BOI

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CA VIVEK GABA CS - EXECUTIVE JUNE 2021 EXAMS

Q50. Mr. AB & Mr. A are co-owners of a self- occupied property. They own 50% share
each. Total Interest paid by the co-owners being Rs. 2,10,000. The interest paid by each
co-owner during the previous year on loan (taken for acquisition of property during the
year 2004) is Rs. 1,05,000 each. The amount of allowable deduction in respect of each
co-owner is:
(a) Rs. 1,05,000 (b) Rs. 2,10,000
(c) Rs. 2,00,000 (d) Rs. 1,00,000

Q51. The concept of Deemed Ownership is given u/s _.

(a) 24 (b) 25 (c) 29 (d) 27

Q52. Mr. Pappu is owner of one self-occupied house property in Mumbai for his residence.
Fair rent of that property is Rs. 5,06,000 per annum. Municipal valuation is Rs. 5,88,000.
Municipal taxes paid are Rs. 50,000 including Rs. 1,000 for earlier year. House was
constructed in December, 2010 with a loan of Rs. 12,00,000 from SBI taken in November,
2009. During AY 2021-22 Mr. Pappu paid interest of Rs. 2,30,000 which includes Rs.
1,68,000 as current year interest. Compute Income from HP for AY 2021-22.
(a) Loss of Rs. 30,000 (b) Loss of Rs. 1,68,000
(c) Loss of Rs. 2,00,000 (d) Loss of Rs. 1,50,000

Q53. Mr. S owns two house properties. First property was used half for running his
business & the other half was let-out at Rs. 40,000 per month. The second property was
wholly used as a residence by Mr. S. Municipal value of the two properties was the same
at Rs. 7,20,000 each p.a & municipal taxes paid are 10%. Mr. S’s income from HP for AY
2021-22 will be
(a) Rs. 3,13,600 (b) Rs. 3,10,800
(c) Rs. 2,28,560 (d) Rs. 6,32,160

Q54. Mr. Y is owner the House which has two floors. The ground floor is let out at Rs.
40,000 pm & first floor is self- occupied. Municipal Taxes paid for full house are Rs.
80,000 pa & interest on borrowed capital for full house payable is Rs. 45,000 pa.
Calculate income from House Property AY 2021- 22.
(a) 2,63,000 (b) Rs. 2,85,000
(c) Rs. 2,22,500 (d) Rs. 22,500

Q55. BC Ltd. is owner of the House Property which is let out on Rent @ Rs. 60,000 pm.
PC Ltd. has paid Municipal Taxes of Rs. 80,000 pa. It took a loan from bank in Australia
for purchasing this house. It has paid interest to the bank of Rs. 1,20,000 pa. Calculate
House Property income if BC Ltd. has not done TDS on such interest & neither has

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CA VIVEK GABA CS - EXECUTIVE JUNE 2021 EXAMS

Australian bank paid tax on this.

(a) Rs. 4,98,000 (b) Rs. 7,20,000
(c) Rs. 4,48,000 (d) Rs. 6,40,000

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 CA VIVEK GABA CS EXECUTIVE MCQ’s

Chapter Three
Income from House Property
OBJECTIVE QUESTIONS

Amended by Finance Act 2020

1. If income is from sale of house property, it will be taxable under the head………
a) Capital Gains b) Business or Profession
c) Other Sources d) None of the above
2. The term house property shall include ………………………
a) buildings b) land appurtenant thereto
c) both a) and b) d) None of the above
3. If composite rent is inseparable, it shall be taxed under head
a) Other Sources b) House Property
c) Business or Profession d) PGBP or Other Sources
4. If any person has let out only land, which is not essential part of a building, income is taxable
a) Other Sources b) House Property
c) Business or Profession d) Salary
b)
5. What is Standard rent of house property?
a) the rent of similar types of buildings in the same locality
b) rental value determined by the municipality for the purpose of charging municipal tax
c) the highest possible rent as per Rent Control Act
d) none of the above
6. Which of the following step need to be followed for computation of GAV
(i) Compare the rent so selected with Standard Rent and the lower of the two shall be considered
to be Expected Rent.
(ii) Compare Expected Rent with Rent Received or Receivable and the higher shall be considered
to be Gross Annual Value
(iii) Compare Fair Rent and Municipal Valuation and select the higher.
(iv) Compare Fair Rent and Standard Rent and select the higher.
(v) Compare the rent so selected with Municipal Valuation and the lower of the two shall be
considered to be Expected Rent.
a) (iii), (v) and (ii) b) (iv), (i) and (ii)
c) (iii), (i) and (ii) d) (iii), (iv) and (i)
7. Compute the GAV of the house whose Municipal Value is ` 80,000, Fair Rent is ` 90,000 and Actual
rent received/ receivable is ` 72,000.
a) ` 72,000 b) ` 80,000 c) ` 90,000 d) None of the
above
8. Compute the GAV of the house whose Municipal Value is ` 65,000, Fair Rent is ` 65,000, Standard
Rent is ` 58,000 and Actual rent received/ receivable is ` 60,000.
a) ` 60,000 b) ` 65,000 c) ` 58,000 d)
Nil
9. Compute the GAV of the house whose Municipal Value is ` 75,000, Fair Rent is ` 80,000, standard
rent is ` 78,000 and Actual rent received/ receivable is ` 72,000.

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 CA VIVEK GABA CS EXECUTIVE MCQ’s
a) ` 72,000 b) ` 78,000 c) ` 75,000 d) `
80,000
10. The amount realized shall be taxable in the year
a) in which such rent is realised b) to which such rent pertains
c) any of the year, discretion of Assessing Officer d) not taxable at all
11. Where the assessee has incurred any expenditure on recovery, it ………………..
a) will be allowed to be deducted b) will not be allowed to be deducted
c) may be allowed as deduction d) will be added to amount recovered
12. Municipal tax shall be allowed to be deducted from gross annual value while computing net annual
value. Is the statement valid?
a) Valid b) Invalid c) Partly valid d) None of the
above
13. If the municipal tax is due but not paid, in that case deduction ………….
a) shall be allowed b) is not allowed
c) may be allowed d) may not be allowed
14. If the municipal tax has been paid by the tenant, the deduction of same
a) may be allowed b) shall be allowed
c) is not allowed d) may not be allowed
15. During the previous year 2020-21 municipality has levied taxes ` 20,000, but the assessee has paid `
15,000. What amount of deduction shall be allowed to the assessee?
a) ` 20,000 b) ` 15,000 c) ` 17,500 d)
Nil
16. Municipality has levied taxes of `45,000 but the assessee has paid ` 55,000 which includes ` 5,000
for the earlier year and ` 5,000 for the subsequent year. What amount of deduction shall be allowed
to the assessee?
a) `45,000 b) ` 55,000 c) ` 50,000 d) `
60,000
17. If municipal taxes paid are more than the amount of Gross Annual Value, there …………….
a) cannot be negative Net Annual Value b) can be negative Net Annual Value
c) any of the above d) None of the above
18. Every assessee shall be allowed deduction of notional expenditure equal to ……….. of net annual
value
a) 30 % b) 25 % c) 35 % d)
Nil
19. Actual expenditure incurred by the assessee ……… taken into consideration for the computation of
amount taxable under head House property
a) shall be b) shall not be c) may be d) may not
be
20. NAV of one house is ` 4,00,000 and actual expenditure incurred on repairs is ` 75,000. What amount
of deduction is allowed under section 24(a).
a) ` 75,000. b) ` 1,20,000 c) ` 1,00,000 d)
Nil
21. If a house has been constructed on 01.07.2020 by taking a loan on 01.11.2010, the prior period shall
be from which date to which date?
a) 01.11.2010 to 31.03.2020 b) 01.11.2010 to 1.07.2020
c) 01.11.2010 to 30.06.2020 d) None of the above
22. Aman had taken a loan of ` 5,00,000 for construction of property on 01.10.2019. Interest was
payable @ 10% p.a. The construction was completed on 30.06.2020 No principal repayment has
been made up to 31.03.2020. Compute interest allowable as deduction under section 24 where
property is let out for the A.Y.2021-22.
a) ` 5,000 b) ` 7,500 c) ` 55,000 d) `
45,000
23. Ram had taken a loan of ` 5,00,000 for construction of property on 01.10.2018. Interest was payable
@ 10% p.a. The construction was completed on 30.06.2020. No principal repayment has been made
up to 31.03.2020. Compute interest allowable as deduction under section 24 where property is let
out for the A.Y.2021-22.

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 CA VIVEK GABA CS EXECUTIVE MCQ’s
a) ` 15,000 b) ` 17,500 c) ` 55,000 d) `
65,000
24. Where the self-occupied property whose GAV is nil has been acquired, constructed, repaired,
renewed or reconstructed with borrowed capital before 01.04.1999. What is the maximum deduction
of interest that shall be allowed for the AY 2021-22?
a) ` 2,00,000 b) ` 30,000
c) ` 1,50,000 d) deduction is allowed without any limit
25. Aparna has one house property where she stays with her family. The rent of similar property in the
neighborhood is ` 25,000 p.m. The municipal valuation is ` 23,000 p.m. Municipal taxes paid are
`8,000. Loan of ` 20,00,000 was taken on 01.01.2014 from ICICI Housing Finance Ltd. The
construction was completed on 25.11.2016. The accumulated interest up to 31.3.2016 is ` 1,50,000.
During previous year 2020-21, Aparna paid ` 1,88,000 which included ` 1,44,000 as interest.
Compute Aparna’s income from house property for AY 2018-19. All conditions for higher deduction
of interest are satisfied.
a) Loss of ` 1,50,000 b) Loss of ` 1,74,000
c) Loss of ` 30,000 d) Loss of ` 2,00,000
26. Where the property consists of a house or part of a house which cannot actually be occupied by the
owner by reason of fact that owing to his employment, business or profession carried on at any other
place, he has to reside at that other place in a building not belonging to him, annual value of such
house or part of the house
a) shall be taken to be Nil
b) shall not be taken to be Nil
c) may be taken to be Nil
d) computed normally by comparing FMV, Standard rent, Actual rent
27. In which of the following case GAV of the house is taken as nil.
a) When the house is self-occupied by the assessee
b) When assessee could not occupy the house because of employment and had to reside in other
building not belonging to him
c) Both a) and b)
d) None of the above
28. In which of the following case GAV of the house is taken as nil.
a) When the house is self-occupied by the assessee
b) When assessee could not occupy the house because of employment and had to reside in other
building belonging to him
c) Any of the above
d) None of the above
29. Where the interest is payable outside India, the shall not be deducted if
a) tax has not been paid or deducted
b) there is no person in India who may be treated as his agent
c) both of the above
d) none of the above
30. An assessee who claimed deduction of unrealized rent for ` 45,000 and was allowed. Later, he
realized ` 30,000 along with arrear of rent being ` 45,000. What will be the taxable amount?
a) 75,000 b) 52,500 c) 61,500 d) 66,000
31. V is the owner of a house, the details of which are given below:
Municipal Value ` 30,000
Actual Rent ` 32,000
Fair Rent ` 36,000
Standard Rent ` 40,000
a) ` 36,000 b) ` 35,000 c) ` 30,000 d) ` 40,000
32. Sameer purchased a house for his residential purpose after taking a loan in January 2019. During
the previous year 2020-21, he paid interest on loan ` 2,67,000. While computing the income from
house property, the deduction of how much is allowed?
a) ` 30,000 b) ` 1,00,000 c) ` 1,67,000 d) ` 2,00,000
33. Calculate the Gross Annual value from the following details:
Municipal Value -` 45,000 Fair rental value-` 50,000

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 CA VIVEK GABA CS EXECUTIVE MCQ’s
Standard rent -` 48,000 Actual Rent-`42,000
a) ` 50,000 b) `48,000 c) ` 45,000 d) ` 42,000
34. M took a loan of ` 6,00,000 on 1.4.2018 from a bank for construction of a house which is occupied by
him. The loan carries an interest @ 10%p.a. The construction is completed on 15.6.2020. The entire
loan is still outstanding. Compute the interest allowable for the assessment year 2021-22.
a) ` 60,000 b) ` 1,80,000 c) ` 84,000 d) ` 24,000
35. A had oneself-occupied house property in Mumbai for residence. Fair rent of that property is`
56,000 per annum. Municipal valuation is ` 28,000. Municipal taxes paid are` 5,000 including`
1,000 for an earlier year. The house was constructed in December, 2012 with a loan of ` 12,00,000
from a bank taken in November, 2011. During previous year 2020-21, the assessee incurred `
2,30,000 which includes ` 1,68,000 as current year interest. Compute the income from house
property for assessment year 2021-22?
a) Loss of ` 30,000 b) Loss of ` 1,68,000
c) Nil d) Loss of ` 1,50,000
36. Which out of the following is not a case of deemed ownership of house property?
a) Transfer to a spouse for inadequate consideration
b) Transfer to a minor child for inadequate consideration
c) Holder of an impartible estate
d) Co-owner of a property
37. A has two house properties. Both are self-occupied. The annual value
a) of both house shall be nil b) of one house shall be nil
c) of no house shall be nil d) None of the above
38. An assessee has borrowed money for purchase of a house & Interest is payable outside India.
Such interest shall
a) be allowed as deduction
b) not to be allowed on deduction
c) be allowed as deduction if the tax is deducted at source
d) such interest shall not be considered
39. What is the maximum amount of deduction allowed in respect of income from house property in
respect of self-occupied property for which loan is taken for the repair of the property?
a) ` 30,000 b) ` 1,50,000 c) ` 2,00,000 d) Nil
40. What is maximum amount of deduction allowed in respect of income from house property in respect
of self-occupied property for which loan is taken for the construction of the property and other
condition relating to higher deduction is fulfilled?
a) ` 30,000 b) ` 1,50,000 c) ` 2,00,000 d) Nil
41. An individual owned a house property which was self-occupied. He obtained loan for construction of
same house on 1st April 2018 of ` 16,00,000 at interest rate of 10 %. The construction got completed
on 28th March 2021. No installment of loan has been paid yet. Determine Income under head House
Property for the assessment year 2021-22?
a) ` 2,00,000 b) ` 1,50,000 c) ` 30,000 d) ` 2,24,000
42. An individual owned house property which was self-occupied. Interest amounting to ` 50,000 has
been paid during the year in respect of loan obtained for repair of house. Determine amount of
deduction available in respect of house Property for assessment year 2021-22?
a) ` 50,000 b) ` 1,50,000 c) ` 30,000 d) ` 2,00,000
43. Aman had taken a loan of ` 20,00,000 for construction of property on 01.10.2019. Interest was
payable @ 10% p.a. The construction was completed on 30.06.2020. No principal repayment has
been made up to 31.03.2020. Compute interest allowable as deduction under section 24 where
property is self-occupied for the A.Y.2021-22.
a) ` 20,000 b) ` 2,20,000 c) ` 1,50,000 d) `
2,00,000
44. Ram had taken a loan of ` 15,00,000 for repair of property on 01.10.2017. Interest was payable @
10% p.a. The construction was completed on 30.06.2020. No principal repayment has been made up
to 31.03.2021. Compute interest allowable as deduction under section 24 where property is self-
occupied for the A.Y.2021-22.
a) ` 30,000 b) ` 1,50,000 c) ` 1,95,000 d) `
2,00,000

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 CA VIVEK GABA CS EXECUTIVE MCQ’s
45. The net annual value of house let-out is 1,00,000 and actual amount spent by assessee on repair and
insurance premium is 20,000, amount of deduction allowed u/s 24(a) shall be ……………
a) 30,000 b) 1,50,000 c) 1,00,000 d) 20,000
46. Vivek, after sale of his house property during August, 2018 received arrears of rent amounting to
nd
40,000 on 2 February, 2020. The said income is chargeable to tax under head …………………?
a) 28,000 under head house property b) 28,000 under head PGBP
c) 40,000 under head house property d) 40,000 under head PGBP
47. Vivek received 30,000 as arrears of rent during the previous year 2020-21. The amount taxable under
section 25A would be…………………?
a) 21,000 b) 30,000 c) 1,50,000 d) None of the
above
48. Income from vacant plot of land is taxable under the head ‘income from other sources’
a) True b) False c) Partly true d) None of the
above
49. Rent from house property let-out by an assessee to his employer when such letting is incidental to his
main business, will be taxable under head ‘Income from house property’.
a) True b) False c) Partly true d) None of the
above
50. It is not possible to have negative income under the head ‘Income from house property’.
a) True b) False c) Partly true d) None of the
above
51. What amount of deduction is available under section 24(b) for previous year 2020-21 in case of let
out property as per following detail:
Amount of loan (for construction of property) : ` 12,00,000
Date of loan : 1.01.2018
Rate of interest : 12%
Date of completion of construction : 31.1.2021
a) 2,08,800 b) 2,37,600 c) 2,00,000 d)
1,44,000
52. Where self-occupied property whose GAV is nil is repaired, renewed or reconstructed with capital
borrowed on or after 01.04.1999. What is the maximum deduction of interest that shall be allowed?
a) ` 1,50,000 b) ` 30,000
c) Nil, no deduction is allowed d) deduction is allowed without any limit
53. If Fair rent is ` 15,000 p.m. and Municipal valuation is ` 16,000 p.m. and Standard rent is ` 15,500
p.m., rent received or receivable is ` 17,000 p.m. Compute the GAV of the house
a) ` 15,500 p.m. b) ` 17,000 p.m. c) ` 16,000 p.m. d) ` 15,000
p.m.
54. Statutory deduction or standard deduction is provided under section
a) 24(b) b) 24(a) c) 22 d)
23
55. Deduction for interest on the capital borrowed is provided under section
a) 24(b) b) 24(a) c) 22 d)
23
56. Which is the charging section of Income under head House property?
a) 28 b) 22 c) 23 d)
56
57. When composite rent is separable, rent of furniture or other facilities shall be taxable under head …..
a) Other Sources b) House Property
c) Business or Profession d) PGBP or Other Sources
58. When composite rent is separable, rent relating to building shall be taxable under head …..
a) Other Sources b) House Property
c) Business or Profession d) PGBP or Other Sources
59. If any person is holding house property as stock-in-trade for the purpose of letting out, income shall
be taxable under the head ……………………
a) Other Sources b) House Property
c) Business or Profession d) Salary

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 CA VIVEK GABA CS EXECUTIVE MCQ’s
60. F Ltd is holding 700 flats for the purpose of letting out, income shall be taxable under ……..
a) Other Sources b) House Property
c) Business or Profession d) Salary
61. If any person has a hotel building which has been let out, income from such hotel building shall be
taxable under the head …………..
a) Other Sources b) House Property
c) Business or Profession d) Salary
62. How is the income under head House Property computed?
a) Gross Annual Value - Municipal Tax Paid by owner
b) Gross Annual Value - Municipal Tax Paid by owner and tenant - Deduction u/s 24
c) Gross Annual Value - Municipal Tax Paid by owner - Deduction u/s 24
d) Gross annual value - Municipal Tax borne by owner - Deduction u/s 24

63. Annual value of house property is computed under section?

a) 22 b) 24 c) 23
d) 26
64. What is fair rent of house property?
a) the rent of similar types of buildings in the same locality
b) rental value determined by the municipality for the purpose of charging municipal tax
c) rent received or receivable
d) none of the above
65. What is Municipal valuation of house property?
a) the rent of similar types of buildings in the same locality
b) rent received or receivable
c) rental value determined by the municipality for the purpose of charging municipal tax
d) none of the above
66. While computing gross annual value of a let out property, which of the following shall be deducted
from actual rent received or receivable.
a) Municipal rent b) fair rent
c) unrealized rent d) None of the above
67. Municipal taxes shall include
a) House Tax b) Fire Tax
c) Scavenging Tax d) all of the above
68. Deduction from Net annual value shall be allowed under section
a) 24 b) 26 c) 22 d)
23
69. Where property has been acquired or constructed with borrowed capital, the interest payable on
such capital borrowed for the period prior to the previous year in which the property has been
acquired or constructed, shall be deducted in equal installments ……………..
a) over a period of 3 years b) over a period of 4 years
c) over a period of 5 years d) over a period of 10 years
70. Where fresh loan has been raised to repay the original loan. Interest payable on the loan so raised to
repay original loan ……………
a) would not be allowed as a deduction u/s24
b) would also be allowed as a deduction u/s24
c) may be allowed as a deduction u/s 24
d) none of the above
71. If any person has only one house or part of house which is self wholly vacant, gross annual value of
such a house ………………
a) shall not be taken to be Nil
b) shall be taken to be Nil
c) may be taken to be Nil
d) computed normally by comparing FMV, Standard rent, Actual rent
72. When the GAV of the house is taken as nil in case of SOH, municipal taxes paid
………………………
a) shall be allowed as deduction b) shall not be allowed as deduction

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 CA VIVEK GABA CS EXECUTIVE MCQ’s
c) may be allowed as deduction d) None of the above
73. When the GAV of the house is nil, standard deduction under section 24(a) shall be allowed. Discuss
the validity of the statement.
a) Valid, standard deduction shall be allowed
b) Invalid, standard deduction shall not be allowed as deduction
c) Partly valid, in few cases standard deduction may be allowed
d) None of the above
74. When the GAV of the house is nil, interest on capital borrowed shall be allowed as deduction. is the
statement true?
a) True b) False
c) Partly true d) None of the above
75. Where a self-occupied property whose GAV is nil is acquired or constructed with capital borrowed on
or after 01.04.1999 and such acquisition or construction is completed within 5 years from end of
financial year in which capital was borrowed. What is the maximum deduction of interest that shall be
allowed?
a) ` 1,50,000 b) ` 30,000
c) ` 2,00,000 d) deduction is allowed without any limit
76. A house whose municipal value is ` 1,10,000, Fair rent is ` 1,30,000, Standard Rent is ` 1,20,000
and municipal taxes paid is ` 1,40,000 (includes arrear of 6 years). The actual rent for whole year
is ` 1,08,000. What would be the NAV?
a) 1,20,000 b) - 20,000 c) -10,000 d) -
32,000
77. A house was taken on rent by Ravi for ` 12,000 per month who lets out the property further for a
rent of ` 18,000 per month. How would it be taxed in the hands of Ravi?
a) Under head House Property, amount being 50,400
b) Under head Other Sources, amount being ` 72,000
c) Under head PGBP, amount being ` 72,000
d) None of the above since not taxable at all
78. What would be the amount of deduction available u/s24(b) for previous year 2020-21 in case of let
out property as per following detail:
Amount of loan (for repair of property) : ` 12,00,000
Date of loan : 1.01.2014
Rate of interest : 12%
Date of completion of construction : 31.1.2015
a) 1,44,000 b) 2,01,600 c) 30,000 d)
1,51,200

79. What would be the amount of deduction available u/s 24(b) for previous year 2020-21 in case of self-
occupied property as per following detail:
Amount of loan (for construction of property) : ` 12,00,000
Date of loan : 1.01.2012
Rate of interest : 12%
Date of completion of construction : 31.1.2014
a) 1,44,000 b) 2,01,600 c) 1,80,000 d) 30,000
80. What would be the amount of deduction available u/s24(b) for previous year 2020-21 in case of let
out property as per following detail:
Amount of loan (for construction of property) : ` 12,00,000
Date of loan : 1.07.2015
Rate of interest : 12%
Date of completion of construction : 31.4.2018
a) 1,44,000 b) 2,23,200 c) 2,00,000 d)
3,96,000
81. Where a let out property is acquired or constructed with capital borrowed. What is the maximum
amount of interest that shall be allowed?
a) ` 1,50,000 b) ` 30,000
c) Nil, no deduction is allowed d) deduction is allowed without any limit

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 CA VIVEK GABA CS EXECUTIVE MCQ’s
82. Where a let out property is repaired, renewed or reconstructed with capital borrowed. What is the
maximum deduction of interest that shall be allowed?
a) ` 1,50,000 b) ` 30,000
c) deduction is allowed without any limit d) Nil, no deduction is allowed
83. Sameer is engaged in running hotels. During the period, he earned rent of `4,50,000. The income will
be taxable under head
a) House property
b) Other Sources
c) PGBP
d) PGBP or Other Sources, at the option of assessee
84. When is deduction of unrealized rent allowed?
a) If the amount of unrealized rent does not exceed 15 % of rent receivable
b) If the amount of unrealized rent does not exceed 30 % of rent receivable
c) If condition mentioned in Rule 4 is satisfied
d) None of the above
85. Ram recovers ` 70,000 as outstanding which was arrear. What amount will be taxable? (Assume he
has no other income)
a) 70,000 b) 49,000 c) Nil d)
21,000
86. T is the owner of a superstructure although the land was taken by him on lease. The income from
such House property shall be taxable under the head:
a) Income from other sources b) Income from house property
c) Income from capital gain d) None of the above
87. S has taken a house on rent and sublets the same to G Income from such house property shall be
taxable under the head:
a) Income from House property b) Income from other sources
c) Income from capital gains d) None of the above
88. Municipal valuation of a house is 1,00,000 whereas the fair rent of House property is 1,20,000 and
standard rent is 1,10,000. Actual Rent received is 1,40,000. Municipal taxes paid 10%. The net
annual value in this case shall be:
a) 90,000 b) 1,40,000 c) 1,30,000 d)
1,00,000
89. Municipal valuation of a house is 1,00,000 whereas the fair rent of House property is 1,50,000 and
standard rent is 1,20,000. Actual Rent received is 1,30,000. Municipal taxes paid for 6 years in
advance 1,20,000. The net annual value in this case shall be:
a) 1,10,000 b) 10,000 c) 1,30,000 d)
1,00,000
90. If annual value of the let out property is negative, then tick the deductions which shall be allowed u/s
24:
a) All deductions b) No deductions
c) Deduction only on account of interest on money borrowed d) None of the above
91. If the property is owned by Co-owners and it is let out, Income from such property shall be:
a) computed separately for each co-owners
b) first computed ignoring Co-ownership and then distributed among Co-owners
c) at the option of the assessing officer
d) None of the above
92. If the property is owned by co-owners & it is self-occupied by all Co-owners, the annual value
a) of such House property shall be nil b) for each co-owners shall be nil
c) would be at the option of assessing officer d) None of the above
93. In the above case, interest on money borrowed shall be allowed:
a) To the extent of 30,000 / 2,00,000 as the case may be, for the property as such
b) To each co-owner to the extent of 30,000 / 2,00,000 as the case may be.
c) To each co-owner to the extent of 30,000 / 1,50,000 as the case may be.
d) None of the above
94. Unrealized rent is a deduction from:
a) Actual Rent b) Net Annual Value

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 CA VIVEK GABA CS EXECUTIVE MCQ’s
c) Income from the head House property d) None of the above
95. An Assessee was allowed deduction of unrealized rent to the extent of 40,000 in past although total
unrealized rent was 60,000. He is able to recover from tenant 45,000 during the previous year on
account of such unrealized rent. He shall be liable to pay tax on which amount?
a) 45,000 b) Nil c) 17,500 d) None of the above

96. Vidya received ` 90,000 in May, 2020 towards recovery of unrealised rent, which was deducted
from actual rent during the P.Y. 2018-19 for determining annual value. Legal expense incurred in
relation to unrealized rent is ` 20,000. The amount taxable under section 25A for A.Y. 2021-22
would be –
(a) ` 70,000
(b) ` 63,000

(c) ` 90,000
(d) ` 49,000
97. Ganesh and Rajesh are co-owners of a self-occupied property. They own 50% share each. The
interest paid by each co-owner during the previous year on loan (taken for acquisition of property
during the year 2004) is ` 2,05,000. The amount of allowable deduction in respect of each co-
owner is –
(a) ` 2,05,000
(b) ` 1,02,500
(c) ` 2,00,000

(d) ` 1,00,000
98. Mr. Raghav has three houses for self-occupation. What would be the tax treatment for A.Y.2021-
22 in respect of income from house property?

(a) One house, at the option of Mr. Raghav, would be treated as self-occupied. The
other two houses would be deemed to be let out.

(b) Two houses, at the option of Mr. Raghav, would be treated as self-occupied.
The other house would be deemed to be let out.

(c) One house, at the option of Assessing Officer, would be treated as self-
occupied. The other two houses would be deemed to be let out.

(d) Two houses, at the option of Assessing Officer, would be treated as self-
occupied. The other house would be deemed to be let out.

99. The fair rental value is 3,50,000, actual rent 3,30,000, Standard rent 3,20, 000.Municipal tax paid
during the previous year for the last 7 years is 3,40,000. The net annual value will be:
a. Loss 10,000 b. 10,000 c. 3,30,000 d. Loss 3,30,000

100. Unrealized rent is equal to ………

a. Amount of rent payable but not paid by a tenant.
b. Amount of rent payable and paid by a tenant.
c. Amount of rent payable neither payable nor paid by tenant.
d. None of the above.

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CS EXECUTIVE JUNE & DEC 2021 CA VIVEK GABA

TDS OBJECTIVE QUESTIONS

1. Tax deducted during the month of April to February should be paid to the credit of the Government on
or before from the end of the month in which the deduction is made.

(a) 5 days (b) 7 days (c) 15 days (d) 30 days

2. Tax deducted during the month of March should be paid to the credit of the Government on or before
30th day of April.

(a)True (b) False (c) Partly True (d) None of the above

3. Interest will be levied for every month or part of a month for delay in deduction and for every month or
part of a month for delay in remittance after deduction.

(a) @ 1.5%, @ 1% (b) @ 1%, @ 2% (c) @ 1%, @ 1.5% (d) @ 2%, @ 1%

4. The rate of TDS on rental payments of plant, machinery or equipment is -

(a) 2% (b) 5% (c) 10% (d) 1%
5. Advance tax will not be paid if tax payable after TDS is less than–
(a) ` 10,000 (b) `5,000 (c) `20,000 (d) `25,000
6. For deferment of advance tax -
(a) interest is payable under section 234A
(b) interest is payable under section 234B
(c) interest is payable under section 234C
(d) interest is payable under all the three sections 234A, 234B and 234C
7. Mr. V, a resident Indian, wins `10,000 in a lottery. Which of the statement is true?
(a) Tax is deductible u/s 194B @ 30%
(b) Tax is deductible u/s 194B @ 30.9%
(c) No tax is deductible at source
(d) None of the above
8. Mr. V paid fees for professional services of `80,000 to Mr. S, who is engaged only in the business of
operation of call centre, on 15.7.2020. Tax is to be deducted by Mr. X at the rate of –
(a) 1% (b) 2% (c) 10% (d) 20%
9. Mr. A, a salaried individual, pays rent of `11,000 per month to Mr. B from June,2020. Which of the
statement is true?
(a) No tax is deductible Since Total rent is less than exemption limit of non deduction on TDS.
(b) Tax is deductible at source every month @ 10% on rent paid to Mr. B.
(c) Tax is deductible at source every month @ 5% on rent paid to Mr. B.
(d) Tax is deductible at source @ 5% on annual rent from the rent paid for March 2021.
10. `2 lakh is paid to Mr. Raju, a resident individual on 10.3.2021 by the State of Haryana on

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CS EXECUTIVE JUNE & DEC 2021 CA VIVEK GABA

compulsory acquisition of his urban agricultural land.

(a) No tax is deductible at source (b) Tax is deductible@ 1%
(c) Tax is deductible @ 5% (d) Tax is deductible@ 10%
11. Two motor cars of the value of `14 lakhs and `7 lakhs was sold by a dealer to two different
customers.
(a) Tax @ 1% has to be collected on `21 lakhs
(b) Tax @ 1% has to be collected on `14 lakhs
(c) Tax @ 1% has to be collected on `7 lakhs
(d) No tax collection at source is required in this case
12. M/S Ramesh & Sons (liable to audit) paid `35,000 to Mr. Gupta on 01.05.2018 towards fee for
legal advisory services without deduction of tax at source. Another payment of `47,000 was due to Mr.
Goel on 31.07.2018 and TDS on entire amount (i.e. `35,000 plus `47,000) was deducted and then
the net amount was paid. However, the total tax deducted was deposited on 15.11.2018. The interest
chargeable under section 201 will be: [Hint: Late Deduction – 3m , Late Payment – 4m]
(a) `650
(b) `433
(c) `486
(d) `597

13. Which of the following statement is correct.

(a) As per section 192A tax shall be deducted at source @ 12% provided the amount paid or payable during
a particular year is ` 50,000 or more
(b) As per section 192A tax shall be deducted at source @ 10% provided the amount paid or payable during
a particular year is ` 1,50,000 or more
(c) As per section 192A tax shall be deducted at source @ 10% provided the amount paid or payable during
a particular year is ` 50,000 or more
(d) None of these
14. Which of the following statement is correct.
(a) As per section 193 tax shall be deducted at source @ 10% provided the amount paid or payable during a
particular year is exceeding ` 10,000
(b) As per section 193 tax shall be deducted at source @ 10% provided the amount paid or payable during a
particular year is exceeding ` 60,000
(c) As per section 193 tax shall be deducted at source @ 10% provided the amount paid or payable during a
particular year is exceeding ` 2,000
(d) None of these
15. Which of the following statement is correct.
(a) As per section 194A, in case of payment of interest on fixed deposit by a bank to a senior citizen, tax
deducted at source @ 10% provided the amount paid or payable during a particular year is exceeding
`50,000
(b) As per section 194A, in case of payment of interest on fixed deposit by a bank to a senior citizen, tax
deducted at source @ 10% provided the amount paid or payable during a particular year is exceeding
`10,000
(c) As per section 194A, in case of payment of interest on fixed deposit by a bank to a senior citizen, tax
deducted at source @ 10% provided the amount paid or payable during a particular year is exceeding

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CS EXECUTIVE JUNE & DEC 2021 CA VIVEK GABA

`1,50,000
(d) None of these
16. Which of the following statement is correct.
(a) As per section 194C, tax shall be deducted at source @ 2% in case of payment to individual or HUF and
@ 1% in case of payment to any other person provided the amount being paid is exceeding ` 1,00,000
(b) As per section 194C, tax shall be deducted at source @ 10% in case of payment to individual or HUF
and @ 1% in case of payment to any other person provided the amount being paid is exceeding ` 30,000
(c) As per section 194C, tax shall be deducted at source @ 2% in case of payment to individual or HUF and
@ 1% in case of payment to any other person provided the amount being paid is exceeding ` 30,000
(d) None of these
17. Which of the following statement is correct.
(a) As per section 194H tax shall be deducted at source @ 5% provided the amount being paid or payable to
a particular person during a particular year is ` 15,000 or more
(b) As per section 194H tax shall be deducted at source @ 5% provided the amount being paid or payable to
a particular person during a particular year is exceeding ` 15,000
(c) As per section 194H tax shall be deducted at source @ 10% provided the amount being paid or payable
to a particular person during a particular year is exceeding ` 15,000
(d) None of these
18. Deduction of Tax at source under Section 194 I is @
a) 10% b) 12% c) 15% d) 5%
19. State Government pays commission of Rs.20, 000/- to one of its agent on sale of Lottery Tickets.
a) TDS is required to be made @ 5% on any amount paid as commission for sale of lottery tickets
b) TDS is required to be made @ 5% if commission to a single person in a F.Y. exceeds 15,000/-
c) TDS is required to be made @ 5% if commission to a single person in a F.Y. exceeds 30,000/-
d) TDS shall not be deducted as payment is made by State Government

20. Miss Sony a resident received ` 3,80,000/- in the current F.Y. on maturity of her life insurance policy
taken on 01-11-2010. The policy sum assured is ` 2,00,000/- and the annual premium being ` 55,000/-.
a) Maturity of Life Insurance Policy is exempt in the hands of assessee
b) The amount is liable for TDS @ 1%
c) The amount is liable for TDS @ 5%
d) The amount is liable for TDS @ 10%

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CS EXECUTIVE JUNE & DEC 2021 CA VIVEK GABA

TDS OBJECTIVE QUESTIONS

1. Tax deducted during the month of April to February should be paid to the credit of the Government on
or before from the end of the month in which the deduction is made.

(a) 5 days (b) 7 days (c) 15 days (d) 30 days

2. Tax deducted during the month of March should be paid to the credit of the Government on or before
30th day of April.

(a)True (b) False (c) Partly True (d) None of the above

3. Interest will be levied for every month or part of a month for delay in deduction and for every month or
part of a month for delay in remittance after deduction.

(a) @ 1.5%, @ 1% (b) @ 1%, @ 2% (c) @ 1%, @ 1.5% (d) @ 2%, @ 1%

4. The rate of TDS on rental payments of plant, machinery or equipment is -

(a) 2% (b) 5% (c) 10% (d) 1%
5. Advance tax will not be paid if tax payable after TDS is less than–
(a) ` 10,000 (b) `5,000 (c) `20,000 (d) `25,000
6. For deferment of advance tax -
(a) interest is payable under section 234A
(b) interest is payable under section 234B
(c) interest is payable under section 234C
(d) interest is payable under all the three sections 234A, 234B and 234C
7. Mr. V, a resident Indian, wins `10,000 in a lottery. Which of the statement is true?
(a) Tax is deductible u/s 194B @ 30%
(b) Tax is deductible u/s 194B @ 30.9%
(c) No tax is deductible at source
(d) None of the above
8. Mr. V paid fees for professional services of `80,000 to Mr. S, who is engaged only in the business of
operation of call centre, on 15.7.2020. Tax is to be deducted by Mr. X at the rate of –
(a) 1% (b) 2% (c) 10% (d) 20%
9. Mr. A, a salaried individual, pays rent of `11,000 per month to Mr. B from June,2020. Which of the
statement is true?
(a) No tax is deductible Since Total rent is less than exemption limit of non deduction on TDS.
(b) Tax is deductible at source every month @ 10% on rent paid to Mr. B.
(c) Tax is deductible at source every month @ 5% on rent paid to Mr. B.
(d) Tax is deductible at source @ 5% on annual rent from the rent paid for March 2021.
10. `2 lakh is paid to Mr. Raju, a resident individual on 10.3.2021 by the State of Haryana on

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CS EXECUTIVE JUNE & DEC 2021 CA VIVEK GABA

compulsory acquisition of his urban agricultural land.

(a) No tax is deductible at source (b) Tax is deductible@ 1%
(c) Tax is deductible @ 5% (d) Tax is deductible@ 10%
11. Two motor cars of the value of `14 lakhs and `7 lakhs was sold by a dealer to two different
customers.
(a) Tax @ 1% has to be collected on `21 lakhs
(b) Tax @ 1% has to be collected on `14 lakhs
(c) Tax @ 1% has to be collected on `7 lakhs
(d) No tax collection at source is required in this case
12. M/S Ramesh & Sons (liable to audit) paid `35,000 to Mr. Gupta on 01.05.2018 towards fee for
legal advisory services without deduction of tax at source. Another payment of `47,000 was due to Mr.
Goel on 31.07.2018 and TDS on entire amount (i.e. `35,000 plus `47,000) was deducted and then
the net amount was paid. However, the total tax deducted was deposited on 15.11.2018. The interest
chargeable under section 201 will be: [Hint: Late Deduction – 3m , Late Payment – 4m]
(a) `650
(b) `433
(c) `486
(d) `597

13. Which of the following statement is correct.

(a) As per section 192A tax shall be deducted at source @ 12% provided the amount paid or payable during
a particular year is ` 50,000 or more
(b) As per section 192A tax shall be deducted at source @ 10% provided the amount paid or payable during
a particular year is ` 1,50,000 or more
(c) As per section 192A tax shall be deducted at source @ 10% provided the amount paid or payable during
a particular year is ` 50,000 or more
(d) None of these
14. Which of the following statement is correct.
(a) As per section 193 tax shall be deducted at source @ 10% provided the amount paid or payable during a
particular year is exceeding ` 10,000
(b) As per section 193 tax shall be deducted at source @ 10% provided the amount paid or payable during a
particular year is exceeding ` 60,000
(c) As per section 193 tax shall be deducted at source @ 10% provided the amount paid or payable during a
particular year is exceeding ` 2,000
(d) None of these
15. Which of the following statement is correct.
(a) As per section 194A, in case of payment of interest on fixed deposit by a bank to a senior citizen, tax
deducted at source @ 10% provided the amount paid or payable during a particular year is exceeding
`50,000
(b) As per section 194A, in case of payment of interest on fixed deposit by a bank to a senior citizen, tax
deducted at source @ 10% provided the amount paid or payable during a particular year is exceeding
`10,000
(c) As per section 194A, in case of payment of interest on fixed deposit by a bank to a senior citizen, tax
deducted at source @ 10% provided the amount paid or payable during a particular year is exceeding

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CS EXECUTIVE JUNE & DEC 2021 CA VIVEK GABA

`1,50,000
(d) None of these
16. Which of the following statement is correct.
(a) As per section 194C, tax shall be deducted at source @ 2% in case of payment to individual or HUF and
@ 1% in case of payment to any other person provided the amount being paid is exceeding ` 1,00,000
(b) As per section 194C, tax shall be deducted at source @ 10% in case of payment to individual or HUF
and @ 1% in case of payment to any other person provided the amount being paid is exceeding ` 30,000
(c) As per section 194C, tax shall be deducted at source @ 2% in case of payment to individual or HUF and
@ 1% in case of payment to any other person provided the amount being paid is exceeding ` 30,000
(d) None of these
17. Which of the following statement is correct.
(a) As per section 194H tax shall be deducted at source @ 5% provided the amount being paid or payable to
a particular person during a particular year is ` 15,000 or more
(b) As per section 194H tax shall be deducted at source @ 5% provided the amount being paid or payable to
a particular person during a particular year is exceeding ` 15,000
(c) As per section 194H tax shall be deducted at source @ 10% provided the amount being paid or payable
to a particular person during a particular year is exceeding ` 15,000
(d) None of these
18. Deduction of Tax at source under Section 194 I is @
a) 10% b) 12% c) 15% d) 5%
19. State Government pays commission of Rs.20, 000/- to one of its agent on sale of Lottery Tickets.
a) TDS is required to be made @ 5% on any amount paid as commission for sale of lottery tickets
b) TDS is required to be made @ 5% if commission to a single person in a F.Y. exceeds 15,000/-
c) TDS is required to be made @ 5% if commission to a single person in a F.Y. exceeds 30,000/-
d) TDS shall not be deducted as payment is made by State Government

20. Miss Sony a resident received ` 3,80,000/- in the current F.Y. on maturity of her life insurance policy
taken on 01-11-2010. The policy sum assured is ` 2,00,000/- and the annual premium being ` 55,000/-.
a) Maturity of Life Insurance Policy is exempt in the hands of assessee
b) The amount is liable for TDS @ 1%
c) The amount is liable for TDS @ 5%
d) The amount is liable for TDS @ 10%

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CA Vivek Gaba CS EXECUTIVE JUNE 20201

Mix MCQ’S
1. The charging section of the income under the head capital gains is :

A. Section 15 C. Section 10

B. Section 17 D. Section 45 (1)

2. What are the conditions to be fulfilled for charging of income under the head capital gains:

A. There must be a capital asset.

B. There must be a transfer of such capital asset.

C. The transfer of such capital asset has been affected during the previous year.

D. All of the above.

3. Which of the following is not a requisite for charging income-tax on capital gains –

A. The transfer must have been effected in the relevant assessment year

B. There must be a gain arising on transfer of capital asset

C. Capital gains should not be exempt u/s 54

D. Capital gains should not be exempt u/s 54EC

4. The following shall not be regarded as capital asset:

A. Urban Land

B. Securities held by a Foreign Institutional Investor as per SEBI Act, 1992

C. Archaeological Collections

D. Motor Car

5. The following shall be regarded as capital asset:

A. Gold Jewelry held by jeweler as SIT trade.

B. Securities held by FII as per SEBI Act, 1992, held as stock in trade.

C. Motor car held by motor car manufacturer as SIT

D. None of above

6. The following shall not be regarded as capital asset:

A. Jewellery C. Archaeological Collections

B. Rural Agricultural land D. Personal residential house

CA Vivek Gaba CS EXECUTIVE JUNE 20201

7. The following shall be regarded as capital asset:

A. Jewellery C. Archaeological Collections

B. Sculptures D. All of the above

8. Rural area means any area which is with in ---------- Kilometers from the local limits of the
jurisdiction of a municipality or a cantonment board, if the population of municipality or
cantonment board is more than 10,00,000.

A. 2 B. 4 C. 6 D. 8
9. Rural area means any area which is outside ----------------Kilometers from the local limits
of the jurisdiction of a municipality or a cantonment board, if the population of municipality
or cantonment board is more than .1,00,000 but not exceeding 10,00,000.

A. 2 B. 4 C. 6 D. 8

10. Rural area means any area which is outside ----------------- Kilometers from the local limits
of the jurisdiction of a municipality or a cantonment board, if the population of municipality
or cantonment board is more than 10,000 but not exceeding 1,00,000.

A. 2 B. 4 C. 6 D. 8

11. Capital asset excludes all except

A. Stock-in-trade C. Jewellery

B. Personal effects D. Rural Agricultural land in India

12. Transfer of which of the following assets will not be considered as capital gain -

A. Jewellery C. Paintings

B. Gold deposit bonds D. Sculpture

13. Which of the following are included in the jewellery -

A. Ornaments made of gold, silver and platinum.

CA Vivek Gaba CS EXECUTIVE JUNE 20201

B. Precious metals whether or not worked or sewn into any wearing apparel.

C. Semi-precious stones.

D. All of the above.

14. Income from transfer of self-generated goodwill of a profession:

A. is not chargeable to tax under the head 'capital gains

B. is chargeable to tax under the head 'capital gains' as short term capital gains

C. is chargeable to tax under the head 'capital gains' as long term capital gains

D. Both (b) and (c)

15. A short term capital asset means a capital asset held by the assessee for not more than:

A. 12 months immediately preceding the month of its transfer

B. 24 months immediately preceding the date of its transfer.

C. 36 months immediately preceding the date of its transfer.

D. None of the above.

16. In terms of section 2(42A), unlisted Debentures are treated as long-term capital asset, if
they are held for a period of more than-

A. 12 Months C. 24 Months

B. 36 Months D. 48 Months

17. In terms of section 2(42A), listed securities are treated as long-term capital asset, if they
are held for a period of more than –

A. 12 Months C. 24 Months

B. 36 Months D. 48 Months

18. A Long term capital asset means a capital asset held by the assessee for more than:

A. 12 months immediately preceding the month of its transfer.

B. 24 months immediately preceding the date of its transfer.

C. 36 months immediately preceding the date of its transfer.

D. None of the above.

19. In case of transfer of unlisted equity shares the asset will be treated as short-term capital
asset if they are held for not more than immediately preceding the date of transfer.

A. 12 months C. 36 months

B. 24 months D. None of the above.

CA Vivek Gaba CS EXECUTIVE JUNE 20201

20. Which of the following asset is a Short-term capital asset, if it is held for more than 12
months?

A. Securities (other than unit) listed in recognized stock exchange in India.

B. Units of mutual fund other than equity oriented fund

C. Zero coupon Bonds

D. None of these
CA Vivek Gaba CS EXECUTIVE JUNE 20201

21. Which of the following is a long term capital asset if held for more than 12 months but
less than 36 months?

A. A unit of a Mutual Fund other than equity oriented fund specified under section 10(23D).

B. Shares of a listed company

C. Shares of an unlisted company.

D. Gold Jewellery

22. Which of the following is included in the definition of transfer u/s 2(47)?

A. Sale, exchange or relinquishment of the asset.

B. Extinguishment of any rights therein.

C. Compulsory acquisition thereof under any law.

D. All of the above.

23. Section 45 of Income Tax Act, 1961 is related to .

A) Capital assets B) Assets C) Capital expenses D) Capital gain

24. Long-term Capital Loss can only be set off against .

A) Long-term capital loss B) Short-term capital loss

C) Long-term capital gain D) All of the above.

25. Loss from speculation business cannot be set off against profit from any non- speculation
business, however .
A) Loss from non-speculative business can be set off against speculation income
B) Loss from non-speculative business cannot be set off against speculation income
C) Profit from non-speculative business can be set off against speculation income
D) None of the above
26. In Income Tax Act, 1961, deduction under sections 80C to 80U cannot exceed .
A. Gross total income
B. Total income
C. Income from business or profession
D. Income from house property

27. Payment of LIC premium can be claimed as deduction u/s .

A) 80 C B) 80 CCC C) 80 D D) 80 DD

28. Clubbing of income means .

A. Addition income of two partners
CA Vivek Gaba CS EXECUTIVE JUNE 20201
B. Inclusion of income of other person in assessee income
C. Total of income of various heads
D. Collection of income
29. Minors income is clubbed to .
A. Father’s income
B. Mother ’s income
C. Father’s income or mother’s income whichever is greater
D. Both mother’s and father’s income
30. As per Section 207, not having any income from business or profession is not liable
to pay advance tax.
A. A resident individual who is of the age of below 60 years
B. A resident HUF
C. A nonresident individual
D. A resident senior citizen
31. Generally, long-term capital gain is charged to tax @ (plus surcharge and
cess as applicable).
A) 10% B) 15% C) 20% D) 30%
32. Mr. Sharma contributed to a political party, he can avail deduction under

A) Section 80G B) Section 80GGB

C) Section 80GGC D) Section 80GGD

33. Rate of Health & Education cess on total income is .

A) 2% B)3% C)4% D)0.3%

34. Section 70-79 deals with .

A) Salary B) Capital gain C) Clubbing of income D) Set off and carry forward
35. Income from horse race falls under the head .

A) Salary B) Other sources C) Profession D) Business

36. Deduction can be claimed for amount deposited under ‘SuganyaSamridhi Account’under .
A) 80 CC B) 80 C C) 80 DD D) 80 D
37. Deduction on interest on loan taken for studies fall under .

A) 80 CC B)80 C C) 80 E D) 80 D

38. The amount of total income is rounded off to the nearest multiple of

A) Rs.100 B) Rs.10 C) Rs.5 D) Rs.50

39. The highest Administrative Authority for Income Tax in India is............
a) Finance Minister. b) CBDT.
CA Vivek Gaba CS EXECUTIVE JUNE 20201

40. Must be paid according to the provisions of “ Pay As You Earn” Scheme.
A) Income Tax B) TDS C) Advance tax D) Education cess
41. Under which section interest shalle be charged to deferment of advance tax
A) 234A B) 234B C) 234C D) 234D
42. Which of the following is not a capital asset?
A) Motor car for personal use B) Jewellery
C) Shares D)Bullion

43. Contribution to RPF is deducted u/s ..................

A) 80C B) 80D C) 80E D) 80G

44. The amount of deduction under section 80DD regarding disability is .....................
A) Rs: 30,000 B) Rs: 50,000 C) Rs: 75,000 D) Actual expense.

45. Indexation is applicable to.......................

A. Sale of short term capital assets.
B. Sale of long term debentures.
C. Sale of depreciable capital assets.
D. Sale of long term capital assets which are not depreciable assets
46. Which of the following is a taxable gift?
A. Gift of RS. 75,000 from assessee's father
B. Gift of Rs. 75,000 from a friend of the assessee
C. Gift of Rs. 25, 000 from a friend on the occassion of assessee's birthday
D. Gift of Rs.1,00,000 from grandmother of the assesse

47. Which of the following is not taxable under the head ' income from other sources'?
A. Family pension
B. Sum recieved under 'key man insurance policy
C. Rent recieved on letting of building
D. Salary to a member of parliament

48. Income from subletting is charged under the head:

A. Income from other sources
B. Income from house property
C. Capital gain
D. Income from business
49. PAN stand for:
A. Private Bank Number
B. Permanent Account Number
C. Personal Account Number
D. Passive Account Number
CA Vivek Gaba CS EXECUTIVE JUNE 20201

50. The maximum amount of exemption of gift from a non relative is:
a) 50,000 b) 10,000 c) 25,000 d) 1,00,000

51. Which of the following is a taxable income ?

a) Gift not exceeding Rs. 50,000
b) Dividend from a domestic company
c) Interest on Govt. securities
d) Both A & B

52. Advance tax is payable when tax payable by an assessee is ................ or more.
A. Rs: 5,000 B. Rs: 10,000 C. Rs: 15,000 D.Rs: 1,00,000

53. The income tax payable by an individual is Rs:8,562.55. The rounded off tax payable will
be.........................
A. Rs: 8,562 B. Rs: 8,563 C. Rs: 8,560 D. Rs: 8,570
65. Donation is deductible u/s .................................
A. 80C B.80D C. 80 E D. 80 G
66. Income tax is a form of ........................tax
A. Direct tax B. Indirect tax
C. Value Added Tax D. None of these
67. The last date of filling of return of income of individual:
a) 31st July of the assessment year
b) 31st October of the assessment year
c) Any of above depend on cases
d) 31st August of the assessment year
68. Return filed after the due date is called:
a) Revised Return b) Best return c) Belated return d) Defective return
69. Section 80 C is allowed to :
a) Only individuals b) Both individual and HUF c) Firm d) Company
70. Income of a minor child is exempted up to ..........................
A. Rs: 1,000 B. Rs: 1,500 C. Rs: 1,200 D. Rs: 2,000
71. The maximum amount deductible u/s 80GG in respect of rent paid is .................. per
annum.
A. Rs: 10,000 B. Rs: 12,000 C. Rs: 50,000 D. Rs: 60,000
72. Section 80C provides for deduction in respect of tuition fee to ...................children.
A. One B. Two C.Three D. None
73. Which among the following deduction is available only to disabled persons
: A. 80 C B. 80 G C. 80 Q D. 80 U
CA Vivek Gaba CS EXECUTIVE JUNE 20201

74. The maximum tax exemption to a senior citizen for the assessment year is ......................
A. Rs: 3,00,000 B. Rs: 2,00,000 C. Rs: 1,00,000 D. Rs: 2,50,000
75. Non- Speculation Loss can be carried forward for.................
A. 8 years B. 10years C. 5years D. 4years
76. House Property Loss can be carried forward for.................
A. 8 years B. 10years C. 5years D. 4years
77. The rate of TDS from winning from lottery:

a)30% b)33% c)10% d)20%

78. Which of the following income from other sources is not taxable?
A. Income from salaries.
B. Dividend from foreign company.
C. Dividend from domestic company.
D. Winnings from lottery.
79. . Which one of the following is not an income from other sources?
A. Interest on fixed deposit in bank.
B. Winnings from cross word puzzles.
C. Gift in excess of Rs.50,000 from an unrelated person.
D. Profit on sale of building.
80. Income from other sources is a.................
A. Residuary head of income.
B. Major head of income.
C. Income from a single source.
D. Constant and regular income.
81. Short term capital gains on sale of unlisted shares are.................
A. Taxable. C. Partially Exempted.
B. Exempted D. Partially Taxable.
.
82. Long term capital gains on sale of unlisted shares are........................
A. Taxable. C. Partially Exempted.
B. Exempted. D. Partially Taxable.
C. a revenue receipt
D. None of the above.
83. Capital expenditure on scientific research which cannot be absorbed on account of
insufficiency of profit in any accounting year can be carried forward for.....................
A. 16 B. 8 C. indefinite D. 12

84. Salary received by a member of parliament is.

A. Taxable as salary income
B. Exempt from tax sources.
CA Vivek Gaba CS EXECUTIVE JUNE 20201
C. Taxable as income from other sources.
D. None of these.
85. Contribution made to an approved research association ( approved under 35(1)(ii)) is eligible
for deduction up to ...........

A. 50%. B. 80%. C. 150%. D. 125%.

86. To be a long term capital asset, a Land & building should be held more than................
A. 12 months. B. 24 months. C. 36 months. D. 60 months.
87. Cost of long term debentures are.....................
A. Eligible for indexing. C. None of these.
B. Not eligible for indexing. D. All the above.
88. What is the date on which Fair Market Value of capital assets acquired is determined?
A. 1.4.2001. B. 1.4.1971 . C. 1.4.1981 D. 1.4.1971.
89. Maximum limit for the deduction of Life insurance premium from the gross total income is
(a) 2,00,000 (b) 1,50,000 (c) 1,00,000 (d) 1,25,000
90. The deduction of life insurance premia, contribution to provident fund, etc. will is done
under of Income Tax Act, 1961.
(a) Section 80C (b) Section 80U (c) Section 80D (d) Section 80E
91. Gross Total Income is arrived after .
(a) Only adding Income under five heads of Income
(b) Adding Income under five heads of Income excluding losses
(c) Adding Income under five heads of Income, after applying clubbing provisions and
making adjustment of set off and carry forward of losses
(d) Adding Income under five heads of Income, after applying clubbing provisions and
making adjustment of set off and carry forward of losses and after allowing
deduction under sections 80C to 80U.

92. The maximum aggregate amount of deduction under sections 80C, 80CCC and 80CCD
cannot exceed .
(a) Rs.1,10,000 (b) Rs.2,00,000 (c)Rs.1,50,000 (d) Nil
93. Deduction in respect of contribution to political party will .
(a) Be allowed in respect of sum paid by way of cash
(b) Not be allowed if payment made in cash
(c) This type of deduction is not allowed whether payment is in cash or not
(d) Be allowed if payment made in cash, subject to certain conditions
94. Deduction in respect of contribution to pension scheme of central government comes under
of Income Tax Act, 1961.
(a) Section 80CCD (b) Section 80U (c) Section 80EE (d) Section 80G
95. In case of assesses other than companies, the following is advance tax rate to be
payable on or before of 15th September:
CA Vivek Gaba CS EXECUTIVE JUNE 20201
(a) 45% (b) 30% (c) 15% (d) 10%
96. Deduction under Section 80C can be claimed for fixed deposit made in any scheduled
bank, if the minimum period of deposit is
(a) 10 Years (b) 5 Years (c) 12 Years (d) 8 Years
97. Which of the following is covered under section 80D of the Income Tax Act, 1961?
(a) Medical treatment of handicapped dependent
(b) Medical insurance premium
(c) Reimbursement of medical expenses
(d) Repayment of loan taken for higher education
98. The deduction available under section 80QQB in respect of royalty income of authors shall
not exceed in previous year.
(a) Rs.1,50,000 (b) Rs.2,50,000 (c) Rs.3,00,000 (d) Rs.1,00,000
99. is a section related to clubbing of income
(a) Sections 60-63 (b) Sections 60-69
(c) Sections 60-65 (d) None of the above
100. Deduction in respect of medical insurance premium is allowed under .
(a) Section 80C (b) Section 80D
(c) Section 80DD (d) Section 80U
101. Maximum deduction allowed for senior citizen under Section 80D is .
(a) Rs.50,000 (b)Rs.15,000 (c) Rs.20,000 (d) Rs.25,000
102. Person with sever disability is allowed a fixed deduction of .
(a) Rs.50,000 (b) Rs.75,000 (c) Rs.1,25,000 (d) Rs.1,00,000
103. _ is related to self-assessment.
(a) Section 140 (b) Section 140(A)
(c) Section 140(B) (d) Section 140(C)
104. deals with PAN.
(a) Section 140 (b) Section 139A
(c) Section 139 (d) Section 154
105. Surcharge on tax on firm’s total income is .
(a) Applicable
(b) Not applicable
(c) Applicable if total income crosses Rs.1 crore
(d) Applicable if there is capital gain
106. Interest is paid to partners under .
(a) Section 40A (b) Section 40B
(c) Section 40C (d) Section 40D
107. The provision of Section 56(2)(x) is applicable to .
(a) All assesses (b) An individual and HUF
(c) an individual only (d) An HUF only
CA Vivek Gaba CS EXECUTIVE JUNE 20201
108. On the occasion of marriage of Mr. Rahul, he received a gift of ` 75,000 from a relative.
Such an amount shall be .
(a) Taxable
(b) Non-taxable
(c) Taxable subject to standard deduction of 50%
(d) None of the above
109. In case of winning from horse races, payment exceeding are subject to
tax deduction at source.
(a) Rs,2,000 (b)Rs. 3,000 (c)Rs. 5,000 (d) Rs.10,000
110. Exemption under section 10(37) is available to .
(a) An individual or an HUF (b) An individual
(c) HUF (d) None of the above
111. The exemption under section 54 shall be available .
(a) To the extent of capital gain invested in the house property
(b) Proportionate to the net consideration price invested
(c) To the extent of amount actually invested
(d)None

112. The provisions regarding TDS on Salaries are contained in .

(a) Section 190 (b) Section 191
(c) Section 192 (d) Section 193
113. If the payee does not furnish PAN and TDS under section 194, dividends shall be
made @ .
(a) 20% (b) 15% (c) 10% (d) Nil
114. Deduction of tax at source for insurance commission is @ .
(a) 10% (b) 5% (c) 20 (d) 12%
115. As per Section 207, not having any income from business or profession
is not liable to pay advance tax.
(a) A resident individual who is of the age of below 60 years
(b) A resident HUF
(c) A nonresident individual
(d) A resident senior citizen
116. If the coffee is grown and cured, then the tax liability on the agricultural income
is .
(a) 75% agricultural and 25% non-agricultural income
(b) 60% agricultural and 40% non-agricultural income
(c) 55% agricultural and 45% non-agricultural income
(d) 35% agricultural and 65% non-agricultural income
117. The coffee is grown, cured and further processed, then the tax liability for the agricultural
CA Vivek Gaba CS EXECUTIVE JUNE 20201
income is .
(a) 60% agricultural and 40% non-agricultural
(b) 50% agricultural and 50% non-agricultural
(c) 40% agricultural and 60% non-agricultural
(d) 65% agricultural and 35% non-agricultural
CA Vivek Gaba CS EXECUTIVE JUNE 20201
118. Income of every kind, which is not to be excluded from the total income under this Act
and not charged to income-tax under any of the other four heads, shall be chargeable to
income- tax under the head _
A. Income from salaries
B. Income from House Property
C. Profits and gains from business and profession
D. Income from Other Sources
119. Which is the charging section for income chargeable under the head Income from other
sources?
A. Section 15 C. Section 22
B. Section 28 D. Section 56
120. John, engaged in fertilizer trade received rent by sub-letting a building. This will be taxable
under the head -
A. Income from house property
B. Income from capital gains
C. Income from profits & gains of business & profession
D. Income from other sources.
121. Due date for II installment of advance tax is:
A. 15th September B. 15th December C. 15th march D. 15thjune
122. First installment of advance tax payable falls due on:

A. 15th September B. 15th December C.15th march D. 15thjune

CA Vivek Gaba CS EXECUTIVE JUNE 20201

123. Which of the following is not a capital asset?

A. Personal Furniture C. Shares
B. Jewellery D. Bullion
124. Which of the following is a capital asset?
A. Cash in hand C. Stock in trade
B. House property D. Household utensils
125. Where the entire block of the depreciable asset is transferred after 36 months , there will be:
A. Short-term capital gain C. Long-term capital gain
B. Short-term capital gain or loss D. Long-term capital gain or loss
126. Exemption under section 54 is available to :
A. Individual& HUF C. Company and individual
B. Individuals only D. All assesses
127. Unlisted Shares in companies will be considered as short term capital asset if they are
held for not more than________months before their transfer.
A) 10 B) 12 C) 24 D) 48
128. CII stands for
A. Capital Inflation Index C. Capital Interest Index
B. Cost Interest Index D. Cost Inflation Index
129. Third installment of advance tax payable falls due on:

A. 15th September B. 15th December

C. 15th march D. 15thjune

130. The amount deposited in ------shall be deemed to be the amount utilized for the purchase of
new house under section 54
A. Savings bank account C. Capital Gain Account Scheme
B. Fixed deposit D. Post Office time Deposit
131. Tax rate of LTCG u/s 112A is
A) Normal rate B )30% C) 20% D) 10 %
132. Which of the following is a taxable gift?
A. Gift of RS. 75,000 from assessee's father
CA Vivek Gaba CS EXECUTIVE JUNE 20201

B. Gift of Rs. 75,000 from a friend of the assesse

C. Gift of Rs. 25, 000 from a friend on the occasion of assesse’s birthday
D. Gift of Rs.1,00,000 from grandmother of the assesse
133. Dividend paid by an Indian company is:
A. Taxable in India in the hands of the recipient
B. Exempt in the hands of recipient
C. Taxable in the hands of recipient and exempt in the hands of the company
D. Taxable in the hands of the company and exempt in the hands of the recipient
134. When an individual transfers an income without transferring the asset , it is taxable in the
hands of
A) Transferee B) Individual himself
C) Both individual and transferee D) Parent of the individual
135. When income of a minor son is clubbed with income of a parent , he/she is entitled to a
deduction of Rs -------- for each such minor son
A) 500 B)1,000 C)1,200 D)1,500

136. The inclusion of income of other persons in the income of assesse is:
A) Aggregation B)Carry forward C)Clubbing D)Set off

137. The loss from speculation business can be set off against:
A. Any income C. Not any income
B. Non speculation business D. Speculation business only
138. The long term capital loss can be set off against:
A) Cannot be set off B) Short term capital gain
C) Long term capital gain D) Both short and long term capital gain
CA Vivek Gaba CS EXECUTIVE JUNE 20201

139. Loss from house property can be set off against :

A. Salary only
B. Any head of income
C. Capital gain
D. Income from other house property only
140. Loss of lottery can be set off against:
A. Any income
B. Cannot be set off
C. Winnings form lottery only
D. Any other casual income except lottery
141. Loss from house property can be carried forward:
A. 8 years
B. 6 years
C. 4 years
D. None of the above
142. Maximum deduction under section 80C is Rs:
A. 1,00,000 B. 70,000 C. 1,50,000 D. 50,000
143. 80 D deduction is allowed for:
A. Medical insurance premium C. Medical treatment of handicapped
B. Life insurance premium D. Medical treatment of disease
144. 80 G deduction is allowed for:
A. Any income C. Donation
B. Any expenditure D. Gift to poor

145. The last date of filling of return of income of individual (who required for Audit):
A. 31st July of the assessment year
B. 301st October of the assessment year
C. 31st March of the assessment year
D. 31st August of the assessment year
146. Return filed after the due date is called:
A. Revised Return C. Belated return
B. Best return D. Defective return

147. Penalty chargeable for non-filing of income tax on due date and before 31st December :
A) Rs.15000 B) Rs.5000 C) Rs10,000 D) Rs.1000
CA Vivek Gaba CS EXECUTIVE JUNE 20201

148. The rate of TDS from winning from professional fees:

A) 30% B) 33% C) 10% D) 20%
149. 187. ----------- can be carried forwarded for set off even though return of loss has not been
filed before the due date:
A. Loss from business C. Income from other sources
B. Unabsorbed depreciation D. Loss from capital gain
150. Which of the following is a taxable income?
A. Gift exceeding Rs. 50,000 C. Lottery income
D. All of the above
B. Dividend from a domestic company
CA Vivek Gaba CS EXECUTIVE JUNE 20201
CA Vivek Gaba CS EXECUTIVE JUNE 20201

Mix MCQ’S
1. The charging section of the income under the head capital gains is :

A. Section 15 C. Section 10

B. Section 17 D. Section 45 (1)

2. What are the conditions to be fulfilled for charging of income under the head capital gains:

A. There must be a capital asset.

B. There must be a transfer of such capital asset.

C. The transfer of such capital asset has been affected during the previous year.

D. All of the above.

3. Which of the following is not a requisite for charging income-tax on capital gains –

A. The transfer must have been effected in the relevant assessment year

B. There must be a gain arising on transfer of capital asset

C. Capital gains should not be exempt u/s 54

D. Capital gains should not be exempt u/s 54EC

4. The following shall not be regarded as capital asset:

A. Urban Land

B. Securities held by a Foreign Institutional Investor as per SEBI Act, 1992

C. Archaeological Collections

D. Motor Car

5. The following shall be regarded as capital asset:

A. Gold Jewelry held by jeweler as SIT trade.

B. Securities held by FII as per SEBI Act, 1992, held as stock in trade.

C. Motor car held by motor car manufacturer as SIT

D. None of above

6. The following shall not be regarded as capital asset:

A. Jewellery C. Archaeological Collections

B. Rural Agricultural land D. Personal residential house

CA Vivek Gaba CS EXECUTIVE JUNE 20201

7. The following shall be regarded as capital asset:

A. Jewellery C. Archaeological Collections

B. Sculptures D. All of the above

8. Rural area means any area which is with in ---------- Kilometers from the local limits of the
jurisdiction of a municipality or a cantonment board, if the population of municipality or
cantonment board is more than 10,00,000.

A. 2 B. 4 C. 6 D. 8
9. Rural area means any area which is outside ----------------Kilometers from the local limits
of the jurisdiction of a municipality or a cantonment board, if the population of municipality
or cantonment board is more than .1,00,000 but not exceeding 10,00,000.

A. 2 B. 4 C. 6 D. 8

10. Rural area means any area which is outside ----------------- Kilometers from the local limits
of the jurisdiction of a municipality or a cantonment board, if the population of municipality
or cantonment board is more than 10,000 but not exceeding 1,00,000.

A. 2 B. 4 C. 6 D. 8

11. Capital asset excludes all except

A. Stock-in-trade C. Jewellery

B. Personal effects D. Rural Agricultural land in India

12. Transfer of which of the following assets will not be considered as capital gain -

A. Jewellery C. Paintings

B. Gold deposit bonds D. Sculpture

13. Which of the following are included in the jewellery -

A. Ornaments made of gold, silver and platinum.

CA Vivek Gaba CS EXECUTIVE JUNE 20201

B. Precious metals whether or not worked or sewn into any wearing apparel.

C. Semi-precious stones.

D. All of the above.

14. Income from transfer of self-generated goodwill of a profession:

A. is not chargeable to tax under the head 'capital gains

B. is chargeable to tax under the head 'capital gains' as short term capital gains

C. is chargeable to tax under the head 'capital gains' as long term capital gains

D. Both (b) and (c)

15. A short term capital asset means a capital asset held by the assessee for not more than:

A. 12 months immediately preceding the month of its transfer

B. 24 months immediately preceding the date of its transfer.

C. 36 months immediately preceding the date of its transfer.

D. None of the above.

16. In terms of section 2(42A), unlisted Debentures are treated as long-term capital asset, if
they are held for a period of more than-

A. 12 Months C. 24 Months

B. 36 Months D. 48 Months

17. In terms of section 2(42A), listed securities are treated as long-term capital asset, if they
are held for a period of more than –

A. 12 Months C. 24 Months

B. 36 Months D. 48 Months

18. A Long term capital asset means a capital asset held by the assessee for more than:

A. 12 months immediately preceding the month of its transfer.

B. 24 months immediately preceding the date of its transfer.

C. 36 months immediately preceding the date of its transfer.

D. None of the above.

19. In case of transfer of unlisted equity shares the asset will be treated as short-term capital
asset if they are held for not more than immediately preceding the date of transfer.

A. 12 months C. 36 months

B. 24 months D. None of the above.

CA Vivek Gaba CS EXECUTIVE JUNE 20201

20. Which of the following asset is a Short-term capital asset, if it is held for more than 12
months?

A. Securities (other than unit) listed in recognized stock exchange in India.

B. Units of mutual fund other than equity oriented fund

C. Zero coupon Bonds

D. None of these
CA Vivek Gaba CS EXECUTIVE JUNE 20201

21. Which of the following is a long term capital asset if held for more than 12 months but
less than 36 months?

A. A unit of a Mutual Fund other than equity oriented fund specified under section 10(23D).

B. Shares of a listed company

C. Shares of an unlisted company.

D. Gold Jewellery

22. Which of the following is included in the definition of transfer u/s 2(47)?

A. Sale, exchange or relinquishment of the asset.

B. Extinguishment of any rights therein.

C. Compulsory acquisition thereof under any law.

D. All of the above.

23. Section 45 of Income Tax Act, 1961 is related to .

A) Capital assets B) Assets C) Capital expenses D) Capital gain

24. Long-term Capital Loss can only be set off against .

A) Long-term capital loss B) Short-term capital loss

C) Long-term capital gain D) All of the above.

25. Loss from speculation business cannot be set off against profit from any non- speculation
business, however .
A) Loss from non-speculative business can be set off against speculation income
B) Loss from non-speculative business cannot be set off against speculation income
C) Profit from non-speculative business can be set off against speculation income
D) None of the above
26. In Income Tax Act, 1961, deduction under sections 80C to 80U cannot exceed .
A. Gross total income
B. Total income
C. Income from business or profession
D. Income from house property

27. Payment of LIC premium can be claimed as deduction u/s .

A) 80 C B) 80 CCC C) 80 D D) 80 DD

28. Clubbing of income means .

A. Addition income of two partners
CA Vivek Gaba CS EXECUTIVE JUNE 20201
B. Inclusion of income of other person in assessee income
C. Total of income of various heads
D. Collection of income
29. Minors income is clubbed to .
A. Father’s income
B. Mother ’s income
C. Father’s income or mother’s income whichever is greater
D. Both mother’s and father’s income
30. As per Section 207, not having any income from business or profession is not liable
to pay advance tax.
A. A resident individual who is of the age of below 60 years
B. A resident HUF
C. A nonresident individual
D. A resident senior citizen
31. Generally, long-term capital gain is charged to tax @ (plus surcharge and
cess as applicable).
A) 10% B) 15% C) 20% D) 30%
32. Mr. Sharma contributed to a political party, he can avail deduction under

A) Section 80G B) Section 80GGB

C) Section 80GGC D) Section 80GGD

33. Rate of Health & Education cess on total income is .

A) 2% B)3% C)4% D)0.3%

34. Section 70-79 deals with .

A) Salary B) Capital gain C) Clubbing of income D) Set off and carry forward
35. Income from horse race falls under the head .

A) Salary B) Other sources C) Profession D) Business

36. Deduction can be claimed for amount deposited under ‘SuganyaSamridhi Account’under .
A) 80 CC B) 80 C C) 80 DD D) 80 D
37. Deduction on interest on loan taken for studies fall under .

A) 80 CC B)80 C C) 80 E D) 80 D

38. The amount of total income is rounded off to the nearest multiple of

A) Rs.100 B) Rs.10 C) Rs.5 D) Rs.50

39. The highest Administrative Authority for Income Tax in India is............
a) Finance Minister. b) CBDT.
CA Vivek Gaba CS EXECUTIVE JUNE 20201

40. Must be paid according to the provisions of “ Pay As You Earn” Scheme.
A) Income Tax B) TDS C) Advance tax D) Education cess
41. Under which section interest shalle be charged to deferment of advance tax
A) 234A B) 234B C) 234C D) 234D
42. Which of the following is not a capital asset?
A) Motor car for personal use B) Jewellery
C) Shares D)Bullion

43. Contribution to RPF is deducted u/s ..................

A) 80C B) 80D C) 80E D) 80G

44. The amount of deduction under section 80DD regarding disability is .....................
A) Rs: 30,000 B) Rs: 50,000 C) Rs: 75,000 D) Actual expense.

45. Indexation is applicable to.......................

A. Sale of short term capital assets.
B. Sale of long term debentures.
C. Sale of depreciable capital assets.
D. Sale of long term capital assets which are not depreciable assets
46. Which of the following is a taxable gift?
A. Gift of RS. 75,000 from assessee's father
B. Gift of Rs. 75,000 from a friend of the assessee
C. Gift of Rs. 25, 000 from a friend on the occassion of assessee's birthday
D. Gift of Rs.1,00,000 from grandmother of the assesse

47. Which of the following is not taxable under the head ' income from other sources'?
A. Family pension
B. Sum recieved under 'key man insurance policy
C. Rent recieved on letting of building
D. Salary to a member of parliament

48. Income from subletting is charged under the head:

A. Income from other sources
B. Income from house property
C. Capital gain
D. Income from business
49. PAN stand for:
A. Private Bank Number
B. Permanent Account Number
C. Personal Account Number
D. Passive Account Number
CA Vivek Gaba CS EXECUTIVE JUNE 20201

50. The maximum amount of exemption of gift from a non relative is:
a) 50,000 b) 10,000 c) 25,000 d) 1,00,000

51. Which of the following is a taxable income ?

a) Gift not exceeding Rs. 50,000
b) Dividend from a domestic company
c) Interest on Govt. securities
d) Both A & B

52. Advance tax is payable when tax payable by an assessee is ................ or more.
A. Rs: 5,000 B. Rs: 10,000 C. Rs: 15,000 D.Rs: 1,00,000

53. The income tax payable by an individual is Rs:8,562.55. The rounded off tax payable will
be.........................
A. Rs: 8,562 B. Rs: 8,563 C. Rs: 8,560 D. Rs: 8,570
65. Donation is deductible u/s .................................
A. 80C B.80D C. 80 E D. 80 G
66. Income tax is a form of ........................tax
A. Direct tax B. Indirect tax
C. Value Added Tax D. None of these
67. The last date of filling of return of income of individual:
a) 31st July of the assessment year
b) 31st October of the assessment year
c) Any of above depend on cases
d) 31st August of the assessment year
68. Return filed after the due date is called:
a) Revised Return b) Best return c) Belated return d) Defective return
69. Section 80 C is allowed to :
a) Only individuals b) Both individual and HUF c) Firm d) Company
70. Income of a minor child is exempted up to ..........................
A. Rs: 1,000 B. Rs: 1,500 C. Rs: 1,200 D. Rs: 2,000
71. The maximum amount deductible u/s 80GG in respect of rent paid is .................. per
annum.
A. Rs: 10,000 B. Rs: 12,000 C. Rs: 50,000 D. Rs: 60,000
72. Section 80C provides for deduction in respect of tuition fee to ...................children.
A. One B. Two C.Three D. None
73. Which among the following deduction is available only to disabled persons
: A. 80 C B. 80 G C. 80 Q D. 80 U
CA Vivek Gaba CS EXECUTIVE JUNE 20201

74. The maximum tax exemption to a senior citizen for the assessment year is ......................
A. Rs: 3,00,000 B. Rs: 2,00,000 C. Rs: 1,00,000 D. Rs: 2,50,000
75. Non- Speculation Loss can be carried forward for.................
A. 8 years B. 10years C. 5years D. 4years
76. House Property Loss can be carried forward for.................
A. 8 years B. 10years C. 5years D. 4years
77. The rate of TDS from winning from lottery:

a)30% b)33% c)10% d)20%

78. Which of the following income from other sources is not taxable?
A. Income from salaries.
B. Dividend from foreign company.
C. Dividend from domestic company.
D. Winnings from lottery.
79. . Which one of the following is not an income from other sources?
A. Interest on fixed deposit in bank.
B. Winnings from cross word puzzles.
C. Gift in excess of Rs.50,000 from an unrelated person.
D. Profit on sale of building.
80. Income from other sources is a.................
A. Residuary head of income.
B. Major head of income.
C. Income from a single source.
D. Constant and regular income.
81. Short term capital gains on sale of unlisted shares are.................
A. Taxable. C. Partially Exempted.
B. Exempted D. Partially Taxable.
.
82. Long term capital gains on sale of unlisted shares are........................
A. Taxable. C. Partially Exempted.
B. Exempted. D. Partially Taxable.
C. a revenue receipt
D. None of the above.
83. Capital expenditure on scientific research which cannot be absorbed on account of
insufficiency of profit in any accounting year can be carried forward for.....................
A. 16 B. 8 C. indefinite D. 12

84. Salary received by a member of parliament is.

A. Taxable as salary income
B. Exempt from tax sources.
CA Vivek Gaba CS EXECUTIVE JUNE 20201
C. Taxable as income from other sources.
D. None of these.
85. Contribution made to an approved research association ( approved under 35(1)(ii)) is eligible
for deduction up to ...........

A. 50%. B. 80%. C. 150%. D. 125%.

86. To be a long term capital asset, a Land & building should be held more than................
A. 12 months. B. 24 months. C. 36 months. D. 60 months.
87. Cost of long term debentures are.....................
A. Eligible for indexing. C. None of these.
B. Not eligible for indexing. D. All the above.
88. What is the date on which Fair Market Value of capital assets acquired is determined?
A. 1.4.2001. B. 1.4.1971 . C. 1.4.1981 D. 1.4.1971.
89. Maximum limit for the deduction of Life insurance premium from the gross total income is
(a) 2,00,000 (b) 1,50,000 (c) 1,00,000 (d) 1,25,000
90. The deduction of life insurance premia, contribution to provident fund, etc. will is done
under of Income Tax Act, 1961.
(a) Section 80C (b) Section 80U (c) Section 80D (d) Section 80E
91. Gross Total Income is arrived after .
(a) Only adding Income under five heads of Income
(b) Adding Income under five heads of Income excluding losses
(c) Adding Income under five heads of Income, after applying clubbing provisions and
making adjustment of set off and carry forward of losses
(d) Adding Income under five heads of Income, after applying clubbing provisions and
making adjustment of set off and carry forward of losses and after allowing
deduction under sections 80C to 80U.

92. The maximum aggregate amount of deduction under sections 80C, 80CCC and 80CCD
cannot exceed .
(a) Rs.1,10,000 (b) Rs.2,00,000 (c)Rs.1,50,000 (d) Nil
93. Deduction in respect of contribution to political party will .
(a) Be allowed in respect of sum paid by way of cash
(b) Not be allowed if payment made in cash
(c) This type of deduction is not allowed whether payment is in cash or not
(d) Be allowed if payment made in cash, subject to certain conditions
94. Deduction in respect of contribution to pension scheme of central government comes under
of Income Tax Act, 1961.
(a) Section 80CCD (b) Section 80U (c) Section 80EE (d) Section 80G
95. In case of assesses other than companies, the following is advance tax rate to be
payable on or before of 15th September:
CA Vivek Gaba CS EXECUTIVE JUNE 20201
(a) 45% (b) 30% (c) 15% (d) 10%
96. Deduction under Section 80C can be claimed for fixed deposit made in any scheduled
bank, if the minimum period of deposit is
(a) 10 Years (b) 5 Years (c) 12 Years (d) 8 Years
97. Which of the following is covered under section 80D of the Income Tax Act, 1961?
(a) Medical treatment of handicapped dependent
(b) Medical insurance premium
(c) Reimbursement of medical expenses
(d) Repayment of loan taken for higher education
98. The deduction available under section 80QQB in respect of royalty income of authors shall
not exceed in previous year.
(a) Rs.1,50,000 (b) Rs.2,50,000 (c) Rs.3,00,000 (d) Rs.1,00,000
99. is a section related to clubbing of income
(a) Sections 60-63 (b) Sections 60-69
(c) Sections 60-65 (d) None of the above
100. Deduction in respect of medical insurance premium is allowed under .
(a) Section 80C (b) Section 80D
(c) Section 80DD (d) Section 80U
101. Maximum deduction allowed for senior citizen under Section 80D is .
(a) Rs.50,000 (b)Rs.15,000 (c) Rs.20,000 (d) Rs.25,000
102. Person with sever disability is allowed a fixed deduction of .
(a) Rs.50,000 (b) Rs.75,000 (c) Rs.1,25,000 (d) Rs.1,00,000
103. _ is related to self-assessment.
(a) Section 140 (b) Section 140(A)
(c) Section 140(B) (d) Section 140(C)
104. deals with PAN.
(a) Section 140 (b) Section 139A
(c) Section 139 (d) Section 154
105. Surcharge on tax on firm’s total income is .
(a) Applicable
(b) Not applicable
(c) Applicable if total income crosses Rs.1 crore
(d) Applicable if there is capital gain
106. Interest is paid to partners under .
(a) Section 40A (b) Section 40B
(c) Section 40C (d) Section 40D
107. The provision of Section 56(2)(x) is applicable to .
(a) All assesses (b) An individual and HUF
(c) an individual only (d) An HUF only
CA Vivek Gaba CS EXECUTIVE JUNE 20201
108. On the occasion of marriage of Mr. Rahul, he received a gift of ` 75,000 from a relative.
Such an amount shall be .
(a) Taxable
(b) Non-taxable
(c) Taxable subject to standard deduction of 50%
(d) None of the above
109. In case of winning from horse races, payment exceeding are subject to
tax deduction at source.
(a) Rs,2,000 (b)Rs. 3,000 (c)Rs. 5,000 (d) Rs.10,000
110. Exemption under section 10(37) is available to .
(a) An individual or an HUF (b) An individual
(c) HUF (d) None of the above
111. The exemption under section 54 shall be available .
(a) To the extent of capital gain invested in the house property
(b) Proportionate to the net consideration price invested
(c) To the extent of amount actually invested
(d)None

112. The provisions regarding TDS on Salaries are contained in .

(a) Section 190 (b) Section 191
(c) Section 192 (d) Section 193
113. If the payee does not furnish PAN and TDS under section 194, dividends shall be
made @ .
(a) 20% (b) 15% (c) 10% (d) Nil
114. Deduction of tax at source for insurance commission is @ .
(a) 10% (b) 5% (c) 20 (d) 12%
115. As per Section 207, not having any income from business or profession
is not liable to pay advance tax.
(a) A resident individual who is of the age of below 60 years
(b) A resident HUF
(c) A nonresident individual
(d) A resident senior citizen
116. If the coffee is grown and cured, then the tax liability on the agricultural income
is .
(a) 75% agricultural and 25% non-agricultural income
(b) 60% agricultural and 40% non-agricultural income
(c) 55% agricultural and 45% non-agricultural income
(d) 35% agricultural and 65% non-agricultural income
117. The coffee is grown, cured and further processed, then the tax liability for the agricultural
CA Vivek Gaba CS EXECUTIVE JUNE 20201
income is .
(a) 60% agricultural and 40% non-agricultural
(b) 50% agricultural and 50% non-agricultural
(c) 40% agricultural and 60% non-agricultural
(d) 65% agricultural and 35% non-agricultural
CA Vivek Gaba CS EXECUTIVE JUNE 20201
118. Income of every kind, which is not to be excluded from the total income under this Act
and not charged to income-tax under any of the other four heads, shall be chargeable to
income- tax under the head _
A. Income from salaries
B. Income from House Property
C. Profits and gains from business and profession
D. Income from Other Sources
119. Which is the charging section for income chargeable under the head Income from other
sources?
A. Section 15 C. Section 22
B. Section 28 D. Section 56
120. John, engaged in fertilizer trade received rent by sub-letting a building. This will be taxable
under the head -
A. Income from house property
B. Income from capital gains
C. Income from profits & gains of business & profession
D. Income from other sources.
121. Due date for II installment of advance tax is:
A. 15th September B. 15th December C. 15th march D. 15thjune
122. First installment of advance tax payable falls due on:

A. 15th September B. 15th December C.15th march D. 15thjune

CA Vivek Gaba CS EXECUTIVE JUNE 20201

123. Which of the following is not a capital asset?

A. Personal Furniture C. Shares
B. Jewellery D. Bullion
124. Which of the following is a capital asset?
A. Cash in hand C. Stock in trade
B. House property D. Household utensils
125. Where the entire block of the depreciable asset is transferred after 36 months , there will be:
A. Short-term capital gain C. Long-term capital gain
B. Short-term capital gain or loss D. Long-term capital gain or loss
126. Exemption under section 54 is available to :
A. Individual& HUF C. Company and individual
B. Individuals only D. All assesses
127. Unlisted Shares in companies will be considered as short term capital asset if they are
held for not more than________months before their transfer.
A) 10 B) 12 C) 24 D) 48
128. CII stands for
A. Capital Inflation Index C. Capital Interest Index
B. Cost Interest Index D. Cost Inflation Index
129. Third installment of advance tax payable falls due on:

A. 15th September B. 15th December

C. 15th march D. 15thjune

130. The amount deposited in ------shall be deemed to be the amount utilized for the purchase of
new house under section 54
A. Savings bank account C. Capital Gain Account Scheme
B. Fixed deposit D. Post Office time Deposit
131. Tax rate of LTCG u/s 112A is
A) Normal rate B )30% C) 20% D) 10 %
132. Which of the following is a taxable gift?
A. Gift of RS. 75,000 from assessee's father
CA Vivek Gaba CS EXECUTIVE JUNE 20201

B. Gift of Rs. 75,000 from a friend of the assesse

C. Gift of Rs. 25, 000 from a friend on the occasion of assesse’s birthday
D. Gift of Rs.1,00,000 from grandmother of the assesse
133. Dividend paid by an Indian company is:
A. Taxable in India in the hands of the recipient
B. Exempt in the hands of recipient
C. Taxable in the hands of recipient and exempt in the hands of the company
D. Taxable in the hands of the company and exempt in the hands of the recipient
134. When an individual transfers an income without transferring the asset , it is taxable in the
hands of
A) Transferee B) Individual himself
C) Both individual and transferee D) Parent of the individual
135. When income of a minor son is clubbed with income of a parent , he/she is entitled to a
deduction of Rs -------- for each such minor son
A) 500 B)1,000 C)1,200 D)1,500

136. The inclusion of income of other persons in the income of assesse is:
A) Aggregation B)Carry forward C)Clubbing D)Set off

137. The loss from speculation business can be set off against:
A. Any income C. Not any income
B. Non speculation business D. Speculation business only
138. The long term capital loss can be set off against:
A) Cannot be set off B) Short term capital gain
C) Long term capital gain D) Both short and long term capital gain
CA Vivek Gaba CS EXECUTIVE JUNE 20201

139. Loss from house property can be set off against :

A. Salary only
B. Any head of income
C. Capital gain
D. Income from other house property only
140. Loss of lottery can be set off against:
A. Any income
B. Cannot be set off
C. Winnings form lottery only
D. Any other casual income except lottery
141. Loss from house property can be carried forward:
A. 8 years
B. 6 years
C. 4 years
D. None of the above
142. Maximum deduction under section 80C is Rs:
A. 1,00,000 B. 70,000 C. 1,50,000 D. 50,000
143. 80 D deduction is allowed for:
A. Medical insurance premium C. Medical treatment of handicapped
B. Life insurance premium D. Medical treatment of disease
144. 80 G deduction is allowed for:
A. Any income C. Donation
B. Any expenditure D. Gift to poor

145. The last date of filling of return of income of individual (who required for Audit):
A. 31st July of the assessment year
B. 301st October of the assessment year
C. 31st March of the assessment year
D. 31st August of the assessment year
146. Return filed after the due date is called:
A. Revised Return C. Belated return
B. Best return D. Defective return

147. Penalty chargeable for non-filing of income tax on due date and before 31st December :
A) Rs.15000 B) Rs.5000 C) Rs10,000 D) Rs.1000
CA Vivek Gaba CS EXECUTIVE JUNE 20201

148. The rate of TDS from winning from professional fees:

A) 30% B) 33% C) 10% D) 20%
149. 187. ----------- can be carried forwarded for set off even though return of loss has not been
filed before the due date:
A. Loss from business C. Income from other sources
B. Unabsorbed depreciation D. Loss from capital gain
150. Which of the following is a taxable income?
A. Gift exceeding Rs. 50,000 C. Lottery income
D. All of the above
B. Dividend from a domestic company
CA Vivek Gaba CS EXECUTIVE JUNE 20201
CA VIVEK GABA CS EXECUTIVE JUNE & DEC 2021

OBJECTIVE QUESTIONS [CLUBBING OF INCOME]

1. Income from asset transferred under revocable transfer shall be taxable in the hands of
a) Transferor b) Transferee
c) Transferor or transferee, whose income is higher d) None of them
2. In case of irrevocable transfer of asset, income from asset transferred shall be clubbed in the hands
of transferor
a) when power to reassume arises b) can never be taxable in hands of transferor
c) always taxable in the hands of transferor d) from the beginning itself
3. A transfer of asset made to a person, transfer is not revocable during the lifetime of the beneficiary
but the income of asset is derived by the transferor. Income from asset shall be assessed in the
hands of
a) Transferor b) Transferee
c) Equally in hands of transferor and transferee d) None of the above
4. An individual has substantial interest in a concern. The spouse of individual derives salary from such
concern. The amount of salary income shall be clubbed in hands of
a) individual b) spouse
c) equally in hands of individual and spouse d) none of them
5. Mrs. X receives salary from ABC Ltd. Mr. X has substantial interest in ABC Ltd. Mrs. X possess
professional qualification to be eligible for job. Salary so received by Mrs. X shall be assessed in
hands of
a) Mrs. X b) Mr. X c) Both of them d) Any of
them
6. When the income of the individual includes ` 20,000 as the income of the minor child in terms of
section 64(1A), taxable income in this respect will be?
a) Nil b) ` 20,000 c) ` 18,500 d) None of the above
7. Mrs. R receives salary of ` 1,00,000 from PQ Ltd., Mr. R receives salary of ` 1,50,000 from PQ Ltd.
Both of them have substantial interest in company. Other Income of Mr. A and Mrs. A excluding such
remuneration is ` 10,00,000 and ` 12,00,000 respectively. Taxable income of
Mr. A and Mrs. A shall be
a) ` 11,50,000, ` 13,50,000 b) ` 11,00,000, ` 13,50,000
c) ` 12,50,000, ` 12,00,000 d) ` 10,00,000, ` 14,50,000
8. Mr. Amit as on 1.10.2019 transferred shares without consideration to his fiancée, Ritika. They got
married on 1.4.2020. Income from share for year the end shall be assessed in hands of
a) Amit b) Ritika
c) Any of the above d) None of the above
9. Gold funds were transferred by Mr. Rahul to Mrs. Rahul under an agreement to live apart. Income
from gold funds shall be assessed in the hands of
a) Mr. Rahul b) Mrs. Rahul c) Any d) None
10. To apply clubbing provisions under section 64(1)(iv), the relation of husband and wife must exist at
the time of:
a) only at the time of transfer of asset
b) only at the time of accrual of income
c) Both at the time of transfer of asset and accrual of income
d) Shall be at the time of accrual, may be at the time of transfer
11. Section 64(1)(iv) is applicable on all assets except
a) House property b) Share c)Gold d) None of the above
12. Abhi transferred shares of Indian companies to his wife. The shares were sold by his wife and
Capital Gain was earned. The capital gains so computed shall be clubbed in the hands of Abhi. Is it
correct

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CA VIVEK GABA CS EXECUTIVE JUNE & DEC 2021
a) Correct b) Incorrect
c) Clubbing not applicable d) None of the above
13. Gold worth ` 2,00,000 was gifted by Reema to her son’s wife, Naveena. Gold was sold by Naveena
for ` 5,00,000. Capital Gains shall be taxable in the hands of
a) Naveena b) Reema
c) Equally in hands of a) and b) d) None of the above
14. Mr. Rajesh formed a trust for the benefit of his wife. The income of trust meant for the benefit of Mrs.
Rajesh shall be assessed in the hands of
a) Mrs. Rajesh b) Mr. Rajesh c) Any d) None
15. Mrs. Sharma has invested ` 5,00,000 in firm. As on 1 April 2020, out of total investment of
st

`5,00,000, ` 3,00,000 is on account of money given by her husband. During the previous year, she
earned interest of ` 50,000 and profit of ` 50,000. Amount to be clubbed in the income of
Mr. Sharma on account of interest and profit should be
a) Nil, ` 30,000 b) ` 30,000, Nil c) Nil, Nil d) ` 30,000, ` 30,000
16. Assets were transferred by A to an AOP for deferred benefit of his son’s wife. Amount of income
from assets used for benefit of his daughter in law shall be clubbed in the hands of
a) A b) A’s wife c) A’s son’s wife d) None
17. Income received by minor married daughter shall be assessed in the hands of
a) Married daughter b) her husband
c) parents, whose income is higher d) None of the above
18. When marriage of parents subsist, Income of minor child shall be included in the income of
a) Father
b) Mother
c) Parent, whose income (excluding such income) is higher
d) Parent, whose income (including such income) is higher
19. ` 1,00,000 earned by minor child from manual activity is invested in FDR. He earns ` 10,000 as
interest from FDR during the previous year. ` 1,00,000 and ` 10,000 shall be assessed in the hands
of
a) Minor, Minor b) Minor, Parents
c) Parents, Parents d) Parents, Minor
20. Securities worth ` 20,00,000 was transferred by Abhi, member of HUF to HUF. Interest income of `
2,00,000 is earned on securities so transferred. Partition of HUF took place. ¼ of securities were
transferred to Abhi, ¼ of securities were transferred to Abhi’s wife. How much amount shall be
taxable in the hands of Abhi
a) ` 2,00,000 b) 50,000 c) ` 1,00,000 d) None
21. Securities worth ` 20,00,000 was transferred by Ravi, member of HUF to HUF. Interest income of `
2,00,000 is earned on securities so transferred. Partition of HUF took place. ¼ of securities were
transferred to Ravi, ¼ of securities were transferred to Ravi’s wife and ¼ were transferred to his
daughter in law. How much amount shall be taxable in the hands of Ravi
a) ` 2,00,000 b) ` 1,50,000 c) ` 1,00,000 d) None
22. When an asset is transferred by member of HUF to HUF. Partition of HUF has taken place. ¼ of
property is given to member, ¼ to his wife, ¼ to his minor child and rest to major son. What amount
of income from property shall be clubbed with the income of member
a) ¼ of income b) ½ of income
c) whole of the income d) ¾ of income
23. When an asset is transferred by member of HUF to HUF. Partition of HUF has taken place. Property
is given to member, his wife, his minor child and major son. Whose income shall be clubbed in the
income of member
a) Wife’s share b) minor and major child’s share
c) his wife and minor child’s share d) wife, minor and major child’s share

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CA VIVEK GABA CS EXECUTIVE JUNE & DEC 2021
24. Income of a minor child suffering from any disability of the nature specified in section 80U is
a) to be assessed in the hands of the minor child
b) to be clubbed with the income of that parent whose total income, before including minor’s
income, is higher
c) completely exempt from tax
d) to be clubbed with the income of that parent whose total income, before including minor’s
income, is lower
25. Where a member of a HUF has converted or transferred his self-acquired property for inadequate
consideration into joint family property, income arising there from is taxable –
a) as the income of the transferor-member b) in the hands of the HUF
c) in the hands of the karta of the HUF d) None of the above
26. Exemption of certain amount (not exceeding income clubbed) is available u/s10(32), where a minor’s
income is clubbed with the income of the parent. The maximum exemption available is
a) Upto` 1,200 in respect of each minor child
b) upto` 1,500 in respect of each minor child
c) upto` 2,000 in respect of each minor child
d) upto` 1,000 in respect of each minor child
27. An individual has 3 minor child each having income of ` 2,000. What amount shall be taxable in the
hands of individual?
a) ` 6,000 b) ` 4,000 c) ` 1,500 d) Nil
28. An individual has 3 minor children A, B and C whose income is ` 1,200, ` 2,000 and ` 1,500. What
amount shall be taxable in the hands of individual?
a) ` 4,700 b) Nil c) ` 200 d) ` 500
29. G has 4 minor children: 2 daughters and 2 sons. Annual income of 2 daughters was `7,500 and `
5,000 and of sons was ` 5,500 and ` 1,250 respectively. The daughter having income of ` 5,000 is
suffering from a disability specified under section 80U. Work out the amount of income earned by
minor children to be clubbed in the hands of G.
a) ` 13,250 b) ` 10,000 c) ` 13,500 d) `9,750
30. Income from asset transferred to spouse will be taxable in the hands of transferor if:
a) asset has been transferred in pursuance of an agreement to live apart
b) asset was transferred for an adequate consideration
c) asset was transferred before marriage
d) asset was transferred for inadequate consideration
31. In whose total income, the income of minor child is included?
a) Father b) Mother
c) Father and mother both d) Parents whose total income is greater
32. For the purpose of clubbing of income of the specified person in the income of the individual under
section 64, the word ‘income’ includes ……………….?
a) Loss b) Expenses c) Interest d) Any of the above
33. In case the income of an individual includes any income of his minor child in terms of section 64(1A),
such individual shall be entitled to exemption of the amount of such income or
……………….,whichever is less?
a) 1500 b) 2000 c) 1000 d) 500
34. Mr. A gifts cash of 1,00,000 to his brother wife Mrs. B. Mr. B gifts cash of 1,00,000 to Mrs. A. From
the cash gifted to her, Mrs. B invests in a fixed deposit, Income there from is 10,000. Aforesaid
10,000 will be included in the total income of…………?
a) Mr. B b) Mr. A
c) equally included d) None of the above
35. The income of minor child will always be included in the income of his/her parents?
a) True b) False c) Partly true d) None of the above

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CA VIVEK GABA CS EXECUTIVE JUNE & DEC 2021
36. In which following situation, income of minor child shall be clubbed in the income of parents
a) Income of child suffering from disease mentioned in 80U
b) Income earned by child from manual work
c) Income of child from interest on FDR
d) Income earned from an activity involving skill
37. Ram has 2 minor child A and B whose income are ` 2,000 and ` 1,200 respectively. B is suffering
from disease mentioned in 80U. What amount shall be taxable in hands of Ram?
a) ` 3,200 b) Nil c) ` 200 d) ` 500
38. Transfer of income without transfer of asset would be taxable in the hands of:
a) Transferor only b) Transferee only
c) either transferor or transferee d) Both transferor and transferee
39. Mrs. Ravi received salary of ` 4,00,000 from a firm where her husband has 16 % profit share. Mrs.
Ravi does not have any qualification or experience. Apart from above amount, the income of Mrs.
Ravi is `3,50,000
a) Mr. Ravi: ` 7,50,000, Mrs. Ravi: Nil b) Mr. Ravi: Nil, Mrs. Ravi: ` 7,50,000
c) Mr. Ravi: ` 4,00,000, Mrs. Ravi: ` 3,50,000 d) None of the above
40. At the time of fixation of marriage of his son of, Mr. Sharma gifted land to his would be daughter in
law. The marriage was held in the month subsequent to the date of transfer. The income accruing on
land after marriage shall be taxable in the hands of
a) Mr. Sharma b) Daughter in law
c) equally in hands of a) and b) d) None of the above
41. An individual has 3 minor child each having income of ` 3,000. One of the child is suffering from
disease mentioned in 80U. What amount shall be taxable in the hands of individual?
a) ` 6,000 b) ` 3,000 c) ` 1,500 d) ` 4,000
42. Which of the following is not revocable transfer
a) when transferor can reassume power over income of the asset
b) if there is any provision through which income can be transferred to transferor
c) when there is no power to assume anyhow during the lifetime of beneficiary/ transferee
d) when transferor can indirectly reassume power over income of asset
43. Transfer of asset, being irrevocable during the lifetime of transferee. After death of transferee income
shall be assessed in hands of
a) transferor b) executor of transferee
c) partially in hands of a) and b) d) None of the above
44. In which of the following case, there is no substantial interest
a) holding 20% voting power of the company
b) holding 20% share of company carrying fixed rate dividend
c) holding 30% equity share in company where his share is 10% and that of relative is 20%
d) entitlement of 20% profit in a firm
45. In certain cases, income of other person is included in the income of the assessee. It is known as
a) Clubbing of income b) Increase in income
c) Addition to income d) Set off of income
46. Where both husband and wife have substantial interest in a concern and both of them are in receipt
of remuneration, it shall be assessed in the hands of
a) Total income of wife or husband, whose income excluding such income is lower
b) Total income of wife or husband, whose income excluding such income is higher
c) Total income of wife or husband, whose income including such income is higher
d) Total income of wife or husband, whose income including such income is lower
47. Roshan earns ` 2,50,000 as interest from a firm where he has made a total investment of ` 5,00,000
as on first day of previous year. Out of the total investment of ` 5,00,000, ` 3,00,000 is the amount
which was gifted to him by his wife, Teena. What is amount that shall be clubbed in the income of
Teena

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CA VIVEK GABA CS EXECUTIVE JUNE & DEC 2021

a) ` 2,50,000 b) ` 1,50,000 c) ` 1,00,000 d) Nil

48. On 1 April, 2014, Mrs. Falguni contributed ` 2,00,000 to her business. Her husband, Tiger gave her `
st

1,00,000 as on 13th April, 2014, which was invested by her in her business. A profit of ` 1,00,000 was
earned by her from the business. The income to be clubbed in hands of Tiger should be
a) ` 33,333 b) ` 50,000 c) ` 1,00,000 d) Nil
49. Under which of the following, clubbing of income of minor child shall not take place?
a) Income of child suffering from disease mentioned in 80U
b) Income earned from activity involving manual work
c) Income earned from activity involving application of skills and knowledge
d) All of the above
50. A minor child suffering from disability earned ` 2,00,000 from an activity involving skill. The amount
was invested by him to purchase securities. Interest income of ` 30,000 is earned on same during the
same previous year. It shall be taxable in the hands of
a) Minor b) Mother
c) Father d) Parents, whose income is higher
51. Income arising to a minor married daughter is –
a) to be assessed in the hands of the minor married daughter
b) to be clubbed with the income of that parent whose total income, before including minor’s
income, is higher
c) completely exempt from tax
d) to be clubbed with the income of that parent whose total income, before including minor’s
income, is lower
52. Mrs. Ravi received salary of ` 4,00,000 from a firm where her husband has 24 % profit share. Mrs.
Ravi does not have any qualification or experience. Apart from above amount, the income of Mrs.
Ravi is `3,50,000
a) Mr. Ravi: ` 7,50,000, Mrs. Ravi: Nil b) Mr. Ravi: Nil, Mrs. Ravi: ` 7,50,000
c) Mr. Ravi: ` 4,00,000, Mrs. Ravi: ` 3,50,000 d) None of the above
53. As per section 64(1)(iv), which asset shall be included in the income of individual who transfers asset
to his/ her spouse?
a) any asset b) any asset other than house property
c) any capital asset d) None of the above
54. If any income of minor child is to be clubbed under section 64, it would be clubbed under which
head?
a) Other Sources b) PGBP
c) House Property d) relevant head to which it belongs

Amended by Finance Act 2020 Page 5

CA VIVEK GABA CS EXECUTIVE JUNE & DEC 2021

OBJECTIVE QUESTIONS [CLUBBING OF INCOME]

1. Income from asset transferred under revocable transfer shall be taxable in the hands of
a) Transferor b) Transferee
c) Transferor or transferee, whose income is higher d) None of them
2. In case of irrevocable transfer of asset, income from asset transferred shall be clubbed in the hands
of transferor
a) when power to reassume arises b) can never be taxable in hands of transferor
c) always taxable in the hands of transferor d) from the beginning itself
3. A transfer of asset made to a person, transfer is not revocable during the lifetime of the beneficiary
but the income of asset is derived by the transferor. Income from asset shall be assessed in the
hands of
a) Transferor b) Transferee
c) Equally in hands of transferor and transferee d) None of the above
4. An individual has substantial interest in a concern. The spouse of individual derives salary from such
concern. The amount of salary income shall be clubbed in hands of
a) individual b) spouse
c) equally in hands of individual and spouse d) none of them
5. Mrs. X receives salary from ABC Ltd. Mr. X has substantial interest in ABC Ltd. Mrs. X possess
professional qualification to be eligible for job. Salary so received by Mrs. X shall be assessed in
hands of
a) Mrs. X b) Mr. X c) Both of them d) Any of
them
6. When the income of the individual includes ` 20,000 as the income of the minor child in terms of
section 64(1A), taxable income in this respect will be?
a) Nil b) ` 20,000 c) ` 18,500 d) None of the above
7. Mrs. R receives salary of ` 1,00,000 from PQ Ltd., Mr. R receives salary of ` 1,50,000 from PQ Ltd.
Both of them have substantial interest in company. Other Income of Mr. A and Mrs. A excluding such
remuneration is ` 10,00,000 and ` 12,00,000 respectively. Taxable income of
Mr. A and Mrs. A shall be
a) ` 11,50,000, ` 13,50,000 b) ` 11,00,000, ` 13,50,000
c) ` 12,50,000, ` 12,00,000 d) ` 10,00,000, ` 14,50,000
8. Mr. Amit as on 1.10.2019 transferred shares without consideration to his fiancée, Ritika. They got
married on 1.4.2020. Income from share for year the end shall be assessed in hands of
a) Amit b) Ritika
c) Any of the above d) None of the above
9. Gold funds were transferred by Mr. Rahul to Mrs. Rahul under an agreement to live apart. Income
from gold funds shall be assessed in the hands of
a) Mr. Rahul b) Mrs. Rahul c) Any d) None
10. To apply clubbing provisions under section 64(1)(iv), the relation of husband and wife must exist at
the time of:
a) only at the time of transfer of asset
b) only at the time of accrual of income
c) Both at the time of transfer of asset and accrual of income
d) Shall be at the time of accrual, may be at the time of transfer
11. Section 64(1)(iv) is applicable on all assets except
a) House property b) Share c)Gold d) None of the above
12. Abhi transferred shares of Indian companies to his wife. The shares were sold by his wife and
Capital Gain was earned. The capital gains so computed shall be clubbed in the hands of Abhi. Is it
correct

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CA VIVEK GABA CS EXECUTIVE JUNE & DEC 2021
a) Correct b) Incorrect
c) Clubbing not applicable d) None of the above
13. Gold worth ` 2,00,000 was gifted by Reema to her son’s wife, Naveena. Gold was sold by Naveena
for ` 5,00,000. Capital Gains shall be taxable in the hands of
a) Naveena b) Reema
c) Equally in hands of a) and b) d) None of the above
14. Mr. Rajesh formed a trust for the benefit of his wife. The income of trust meant for the benefit of Mrs.
Rajesh shall be assessed in the hands of
a) Mrs. Rajesh b) Mr. Rajesh c) Any d) None
15. Mrs. Sharma has invested ` 5,00,000 in firm. As on 1 April 2020, out of total investment of
st

`5,00,000, ` 3,00,000 is on account of money given by her husband. During the previous year, she
earned interest of ` 50,000 and profit of ` 50,000. Amount to be clubbed in the income of
Mr. Sharma on account of interest and profit should be
a) Nil, ` 30,000 b) ` 30,000, Nil c) Nil, Nil d) ` 30,000, ` 30,000
16. Assets were transferred by A to an AOP for deferred benefit of his son’s wife. Amount of income
from assets used for benefit of his daughter in law shall be clubbed in the hands of
a) A b) A’s wife c) A’s son’s wife d) None
17. Income received by minor married daughter shall be assessed in the hands of
a) Married daughter b) her husband
c) parents, whose income is higher d) None of the above
18. When marriage of parents subsist, Income of minor child shall be included in the income of
a) Father
b) Mother
c) Parent, whose income (excluding such income) is higher
d) Parent, whose income (including such income) is higher
19. ` 1,00,000 earned by minor child from manual activity is invested in FDR. He earns ` 10,000 as
interest from FDR during the previous year. ` 1,00,000 and ` 10,000 shall be assessed in the hands
of
a) Minor, Minor b) Minor, Parents
c) Parents, Parents d) Parents, Minor
20. Securities worth ` 20,00,000 was transferred by Abhi, member of HUF to HUF. Interest income of `
2,00,000 is earned on securities so transferred. Partition of HUF took place. ¼ of securities were
transferred to Abhi, ¼ of securities were transferred to Abhi’s wife. How much amount shall be
taxable in the hands of Abhi
a) ` 2,00,000 b) 50,000 c) ` 1,00,000 d) None
21. Securities worth ` 20,00,000 was transferred by Ravi, member of HUF to HUF. Interest income of `
2,00,000 is earned on securities so transferred. Partition of HUF took place. ¼ of securities were
transferred to Ravi, ¼ of securities were transferred to Ravi’s wife and ¼ were transferred to his
daughter in law. How much amount shall be taxable in the hands of Ravi
a) ` 2,00,000 b) ` 1,50,000 c) ` 1,00,000 d) None
22. When an asset is transferred by member of HUF to HUF. Partition of HUF has taken place. ¼ of
property is given to member, ¼ to his wife, ¼ to his minor child and rest to major son. What amount
of income from property shall be clubbed with the income of member
a) ¼ of income b) ½ of income
c) whole of the income d) ¾ of income
23. When an asset is transferred by member of HUF to HUF. Partition of HUF has taken place. Property
is given to member, his wife, his minor child and major son. Whose income shall be clubbed in the
income of member
a) Wife’s share b) minor and major child’s share
c) his wife and minor child’s share d) wife, minor and major child’s share

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CA VIVEK GABA CS EXECUTIVE JUNE & DEC 2021
24. Income of a minor child suffering from any disability of the nature specified in section 80U is
a) to be assessed in the hands of the minor child
b) to be clubbed with the income of that parent whose total income, before including minor’s
income, is higher
c) completely exempt from tax
d) to be clubbed with the income of that parent whose total income, before including minor’s
income, is lower
25. Where a member of a HUF has converted or transferred his self-acquired property for inadequate
consideration into joint family property, income arising there from is taxable –
a) as the income of the transferor-member b) in the hands of the HUF
c) in the hands of the karta of the HUF d) None of the above
26. Exemption of certain amount (not exceeding income clubbed) is available u/s10(32), where a minor’s
income is clubbed with the income of the parent. The maximum exemption available is
a) Upto` 1,200 in respect of each minor child
b) upto` 1,500 in respect of each minor child
c) upto` 2,000 in respect of each minor child
d) upto` 1,000 in respect of each minor child
27. An individual has 3 minor child each having income of ` 2,000. What amount shall be taxable in the
hands of individual?
a) ` 6,000 b) ` 4,000 c) ` 1,500 d) Nil
28. An individual has 3 minor children A, B and C whose income is ` 1,200, ` 2,000 and ` 1,500. What
amount shall be taxable in the hands of individual?
a) ` 4,700 b) Nil c) ` 200 d) ` 500
29. G has 4 minor children: 2 daughters and 2 sons. Annual income of 2 daughters was `7,500 and `
5,000 and of sons was ` 5,500 and ` 1,250 respectively. The daughter having income of ` 5,000 is
suffering from a disability specified under section 80U. Work out the amount of income earned by
minor children to be clubbed in the hands of G.
a) ` 13,250 b) ` 10,000 c) ` 13,500 d) `9,750
30. Income from asset transferred to spouse will be taxable in the hands of transferor if:
a) asset has been transferred in pursuance of an agreement to live apart
b) asset was transferred for an adequate consideration
c) asset was transferred before marriage
d) asset was transferred for inadequate consideration
31. In whose total income, the income of minor child is included?
a) Father b) Mother
c) Father and mother both d) Parents whose total income is greater
32. For the purpose of clubbing of income of the specified person in the income of the individual under
section 64, the word ‘income’ includes ……………….?
a) Loss b) Expenses c) Interest d) Any of the above
33. In case the income of an individual includes any income of his minor child in terms of section 64(1A),
such individual shall be entitled to exemption of the amount of such income or
……………….,whichever is less?
a) 1500 b) 2000 c) 1000 d) 500
34. Mr. A gifts cash of 1,00,000 to his brother wife Mrs. B. Mr. B gifts cash of 1,00,000 to Mrs. A. From
the cash gifted to her, Mrs. B invests in a fixed deposit, Income there from is 10,000. Aforesaid
10,000 will be included in the total income of…………?
a) Mr. B b) Mr. A
c) equally included d) None of the above
35. The income of minor child will always be included in the income of his/her parents?
a) True b) False c) Partly true d) None of the above

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CA VIVEK GABA CS EXECUTIVE JUNE & DEC 2021
36. In which following situation, income of minor child shall be clubbed in the income of parents
a) Income of child suffering from disease mentioned in 80U
b) Income earned by child from manual work
c) Income of child from interest on FDR
d) Income earned from an activity involving skill
37. Ram has 2 minor child A and B whose income are ` 2,000 and ` 1,200 respectively. B is suffering
from disease mentioned in 80U. What amount shall be taxable in hands of Ram?
a) ` 3,200 b) Nil c) ` 200 d) ` 500
38. Transfer of income without transfer of asset would be taxable in the hands of:
a) Transferor only b) Transferee only
c) either transferor or transferee d) Both transferor and transferee
39. Mrs. Ravi received salary of ` 4,00,000 from a firm where her husband has 16 % profit share. Mrs.
Ravi does not have any qualification or experience. Apart from above amount, the income of Mrs.
Ravi is `3,50,000
a) Mr. Ravi: ` 7,50,000, Mrs. Ravi: Nil b) Mr. Ravi: Nil, Mrs. Ravi: ` 7,50,000
c) Mr. Ravi: ` 4,00,000, Mrs. Ravi: ` 3,50,000 d) None of the above
40. At the time of fixation of marriage of his son of, Mr. Sharma gifted land to his would be daughter in
law. The marriage was held in the month subsequent to the date of transfer. The income accruing on
land after marriage shall be taxable in the hands of
a) Mr. Sharma b) Daughter in law
c) equally in hands of a) and b) d) None of the above
41. An individual has 3 minor child each having income of ` 3,000. One of the child is suffering from
disease mentioned in 80U. What amount shall be taxable in the hands of individual?
a) ` 6,000 b) ` 3,000 c) ` 1,500 d) ` 4,000
42. Which of the following is not revocable transfer
a) when transferor can reassume power over income of the asset
b) if there is any provision through which income can be transferred to transferor
c) when there is no power to assume anyhow during the lifetime of beneficiary/ transferee
d) when transferor can indirectly reassume power over income of asset
43. Transfer of asset, being irrevocable during the lifetime of transferee. After death of transferee income
shall be assessed in hands of
a) transferor b) executor of transferee
c) partially in hands of a) and b) d) None of the above
44. In which of the following case, there is no substantial interest
a) holding 20% voting power of the company
b) holding 20% share of company carrying fixed rate dividend
c) holding 30% equity share in company where his share is 10% and that of relative is 20%
d) entitlement of 20% profit in a firm
45. In certain cases, income of other person is included in the income of the assessee. It is known as
a) Clubbing of income b) Increase in income
c) Addition to income d) Set off of income
46. Where both husband and wife have substantial interest in a concern and both of them are in receipt
of remuneration, it shall be assessed in the hands of
a) Total income of wife or husband, whose income excluding such income is lower
b) Total income of wife or husband, whose income excluding such income is higher
c) Total income of wife or husband, whose income including such income is higher
d) Total income of wife or husband, whose income including such income is lower
47. Roshan earns ` 2,50,000 as interest from a firm where he has made a total investment of ` 5,00,000
as on first day of previous year. Out of the total investment of ` 5,00,000, ` 3,00,000 is the amount
which was gifted to him by his wife, Teena. What is amount that shall be clubbed in the income of
Teena

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CA VIVEK GABA CS EXECUTIVE JUNE & DEC 2021

a) ` 2,50,000 b) ` 1,50,000 c) ` 1,00,000 d) Nil

48. On 1 April, 2014, Mrs. Falguni contributed ` 2,00,000 to her business. Her husband, Tiger gave her `
st

1,00,000 as on 13th April, 2014, which was invested by her in her business. A profit of ` 1,00,000 was
earned by her from the business. The income to be clubbed in hands of Tiger should be
a) ` 33,333 b) ` 50,000 c) ` 1,00,000 d) Nil
49. Under which of the following, clubbing of income of minor child shall not take place?
a) Income of child suffering from disease mentioned in 80U
b) Income earned from activity involving manual work
c) Income earned from activity involving application of skills and knowledge
d) All of the above
50. A minor child suffering from disability earned ` 2,00,000 from an activity involving skill. The amount
was invested by him to purchase securities. Interest income of ` 30,000 is earned on same during the
same previous year. It shall be taxable in the hands of
a) Minor b) Mother
c) Father d) Parents, whose income is higher
51. Income arising to a minor married daughter is –
a) to be assessed in the hands of the minor married daughter
b) to be clubbed with the income of that parent whose total income, before including minor’s
income, is higher
c) completely exempt from tax
d) to be clubbed with the income of that parent whose total income, before including minor’s
income, is lower
52. Mrs. Ravi received salary of ` 4,00,000 from a firm where her husband has 24 % profit share. Mrs.
Ravi does not have any qualification or experience. Apart from above amount, the income of Mrs.
Ravi is `3,50,000
a) Mr. Ravi: ` 7,50,000, Mrs. Ravi: Nil b) Mr. Ravi: Nil, Mrs. Ravi: ` 7,50,000
c) Mr. Ravi: ` 4,00,000, Mrs. Ravi: ` 3,50,000 d) None of the above
53. As per section 64(1)(iv), which asset shall be included in the income of individual who transfers asset
to his/ her spouse?
a) any asset b) any asset other than house property
c) any capital asset d) None of the above
54. If any income of minor child is to be clubbed under section 64, it would be clubbed under which
head?
a) Other Sources b) PGBP
c) House Property d) relevant head to which it belongs

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 CA VIVEK GABA CS EXECUTIVE JUNE & DEC 2021

Chapter Four
Capital Gains
OBJECTIVE QUESTIONS [Set -1]

[Amended by Finance Act 2020]

1. As per general rule, capital gain from transfer of capital asset is taxable in which year
a) Previous year in which transfer took place b) assessment year
c) previous year next to year of transfer d) None of the above
2. Which of the following is not a capital asset as per section 2(14)
a) House b) Gold
c) Deposit Certificate d) None of the above
3. Gold utensils are ………………. and silver utensils are …………………….
a) capital asset, capital asset b) not capital asset, capital asset
c) capital asset, not capital asset d) not capital asset, not capital asset
4. Which of the following movable personal asset is not a capital asset?
a) jewellery b) drawings c) any work of art d) Car
5. As per the contention of Assessing Officer, gold bars, sovereigns etc. used for puja are capital asset
and hence, attracts capital gains. Is the contention of Assessing Officer valid?
a) Valid b) Invalid
c) Partially invalid d) None of the above
6. Agricultural land situated within 2 kilometers from municipality or cantonment board having population
of 90,000
a) is capital asset b) is not a capital asset
c) may be a capital asset d) None of the above
7. Agricultural land situated within 7 kilometers from municipality or cantonment board having population
of 1,20,000
a) is capital asset b) is not a capital asset
c) may be a capital asset d) None of the above
8. Agricultural land situated within 5 kilometers from municipality or cantonment board having population
of 11,00,000
a) is not a capital asset b) is capital asset
c) may be a capital asset d) None of the above
9. Agricultural land situated beyond 8 kilometers from municipality or cantonment board having
population of 12,00,000
a) is capital asset b) is not a capital asset
c) may be a capital asset d) None of the above
10. Which of the following is a transfer as per the provision of section 2(47)?
a) Sale of asset b) extinguishment of right in an asset
c) exchange of asset d) All of the above
11. Any transaction allowing possession of any ………………. to be taken or retained in ……………. of a
contract of the nature referred to in section 53A of the Transfer of Property Act is transfer
a) movable property, whole performance b) immovable property, part performance
c) movable property, part performance c) any property, part performance
12. As per section 48, capital gain shall be computed as
a) Sale consideration – cost of acquisition – cost of improvement + expense on transfer
b) Sale consideration + cost of acquisition – cost of improvement

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 CA VIVEK GABA CS EXECUTIVE JUNE & DEC 2021
c) Sale consideration – cost of acquisition + cost of improvement - expense on transfer
d) Sale consideration – cost of acquisition – cost of improvement - expense on transfer
13. As per first proviso to section 48, capital gain on transfer of specified asset shall be computed by
converting:
a) cost of acquisition b) expenses on transfer
c) sale consideration d) All of the above

14. The capital gains so computed in the foreign currency shall be reconverted into …………………..
a) Indian currency b) foreign currency as was initially used in purchase
c) Any currency d) None of the above
15. In computation of capital gain as per first proviso to Section 48, cost of acquisition shall be converted
at ………………………………. as on date of …………………….
a) the rate being average of telegraphic transfer buying and selling rate, date of sale
b) the telegraphic transfer buying, date of acquisition
c) the rate being average of telegraphic transfer buying and selling rate, date of acquisition
d) the telegraphic transfer selling, date of acquisition
16. In computation of capital gain as per first proviso to section 48, expenses on transfer shall be
converted at ………………………………. as on date of …………………….
a) the rate being average of telegraphic transfer buying and selling rate, date of transfer
b) the telegraphic transfer buying, date of acquisition
c) the rate being average of telegraphic transfer buying and selling rate, date of acquisition
d) the telegraphic transfer selling, date of transfer
17. Second Proviso to Section 48 is applicable while computing
a) Only on Short Term Capital Gain b) Only on Long Term Capital Gain
c) Both Short Term and long Term Capital Gain d) None of the above
18. While computing indexed cost of acquisition, it shall be divided by
a) CII for the year in which asset was held by the assessee
b) CII for the year in which asset was transferred by the assessee
c) CII for the year being 1.4.2001
d) CII for the year being later of a) or c)
19. While computing indexed cost of improvement, it shall be divided by
a) CII for the year in which improvement took place (before 1.4.2001 is to be Ignored]
b) CII for the year in which asset was transferred by the assessee
c) CII for the year being 1.4.2001
d) CII for the year being later of a) or c)
20. CII for the previous year 2020-21 is
a) 144 b) 289 c) 100 d) 301
21. STT paid on sale of share or units shall not be …………… from sales price
a) reduced b) added
c) given any treatment d) Either a) or b), depending upon situation
22. When Goodwill of business is acquired, it shall be valued at
a) Nil b) Acquisition cost
c) Any of the above d) None of the above
23. Right Shares/securities shall be valued at ……………… and period of holding shall be from ……
a) Nil, date of allotment
b) Price actually paid under the right issue, the date of allotment
c) Price actually paid under the right issue, the first day of previous year
d) None of the above
24. The option to take FMV as on 01.04.2001 ………………… in case of shares
a) is not available b) is available
c) may be available d) None of the above
25. Where capital asset is acquired by the assessee or the previous owner before 01.04.2001, cost of
acquisition shall be
a) Cost of acquisition to the assessee or previous owner b) FMV as on 01.04.2001
c) a) or b), at the option of the assessee d) None of the above
26. Where capital asset is acquired by the assessee or the previous owner on or after 01.04.2001

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 CA VIVEK GABA CS EXECUTIVE JUNE & DEC 2021
a) FMV of asset as on 01.04.2001
b) Cost of acquisition to the assessee or the previous owner
c) a) or b), at the option of the assessee
d) None of the above
27. In case of share held in listed company, short term capital asset means a capital asset held by an
assessee for ………………… immediately preceding the date of its transfer.
a) not more than 36 months b) not more than 12 months
c) not more than 24 months d) None of the above
28. In case of any security listed on a recognised stock exchange, short term capital asset means capital
asset held by an assessee for ……… immediately preceding the date of its transfer.
a) not more than 36 months b) not more than 12 months
c) not more than 24 months d) None of the above
29. The cost if improvement of which asset shall be taken as nil
a) Goodwill of Business
b) Right to manufacture, produce or process any article or thing
c) Right to carrying on any business
d) All of the above
30. The rate of taxability defined in Section 111A for Short Term Capital Gain is
a) 10 % b) 15 % c) 20 % d) Nil
31. Section 111A is applicable only if ………. is paid on the transaction of sale.
a) STT b) VAT c) tax d) None of the above
32. Benefit of slab rate is not available on short term capital gains under section 111A to
a) resident Individual b) resident HUF
c) non-resident d) None of the above
33. Chapter VI-A deduction …………………………. on STCG referred to in section 111A.
a) shall be allowed b) shall not be allowed
c) may be allowed d) None of the above
34. Section 112 is applicable only if transfer of specified assets result in
a) Short Term Capital Gain b) Long Term Capital Gain
c) Any Capital Gain d) All of the above
35. The rate of taxability defined in Section 112 for Long Term Capital Gain is
a) 10 % b) 15 % c) 20 % d)
Nil
36. Benefit of slab rate is not available on long term capital gains under section 112 to
a) resident Individual b) resident HUF
c) non-resident d) None of the above
37. Chapter VI-A deduction …………………………. on LTCG referred to in section 112.
a) shall be allowed b) shall not be allowed
c) may be allowed d) None of the above
38. For claiming exemption u/s 10(37), urban agricultural land is used for ……..by HUF or individual or a
parent of individual during the period of ……… immediately preceding date of transfer.
a) any purpose, three year b) agricultural purpose, three years
c) agricultural purpose, two years d) business purpose, two year
39. Which of following conditions should be satisfied to claim exemption under section 10(37)
(i) Asset being transferred in agricultural land in urban area
(ii) Asset being transferred in agricultural land
(iii) transfer is the one for which consideration is determined or approved by the Central
Government or the RBI.
(iv) Consideration need not be determined by Central Government or RBI
a) (i), (iii) b) (ii), (iii) c) (i), (iv) d) (ii),
(iv)
40. Which capital gain has been made exempt under section 10(37)
a) Short Term Capital Gain b) Long Term Capital Gain
c) Both Short and long term capital gain d) None of the above

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 CA VIVEK GABA CS EXECUTIVE JUNE & DEC 2021

41. A has an agricultural land (costing ` 6 lakh) in Delhi & was used for agricultural purposes since
01.04.1996 till 01.08.2019 when the Government compulsory acquired this land. A compensation of `
10 lakh was settled. The compensation was received by A on 01.07.2020. Compute the amount of
capital gains taxable in the hands of A. Ignore indexation
a) ` 4 lakh as Long Term Capital Gain b) exempt under section 10(36)
c) Exempt under section 10(37) d) None of the above
42. A has an agricultural land (costing ` 6 lakh) in Delhi & was used for agricultural purposes since
01.04.1997 till 01.08.2019. He sold the land to his friend of ` 12 Lakh. Compute the amount of capital
gains taxable in the hands of A. Ignore indexation
a) ` 6 lakh as Long Term Capital Gain b) exempt under section 10(36)
c) Exempt under section 10(37) d) None of the above
d) All of the above
43. Section 50C is applicable to which capital asset
a) All capital assets b) capital asset being, jewellery
c) land or building or both d) None of the above
44. Under which circumstance, Section 50D is applicable
a) Consideration not ascertainable b) consideration cannot be determined
c) on discretion of Assessing Officer d) either a) or b)
45. Which section deals about taxability of insurance claims received
a) Section 45(1A) b) Section 45(2) c) Section 45(2) d) Section
45(1)
46. …………………….. shall be deemed to be sales consideration for computing capital gains u/s45(1A).
a) Money received from insurance company
b) FMV of other assets received from insurance company
c) Any of the above
d) None of the above
47. If no claim is received on destruction of capital asset, …………. shall arise
a) capital gain b) no capital gain
c) capital loss having no tax treatment d) none of the above
48. For computing capital gain as per section 45(1A), date of transfer of the capital asset destroyed
should be
a) date of destruction b) date of receipt of insurance claim
c) 30 days after date of destruction d) None of the above
49. What shall be sale consideration of capital asset converted into stock in trade?
a) FMV of asset on date of conversion b) Amount recorded in books of account
c) Average of a) and b) `d) None of the above
50. A is the owner of a car. On 01.04.2017, he starts a business of purchase and sale of motor cars He
treats the above car as part of the stock-in-trade of his new business. The car was acquired for `
2,00,000 and FMV as on date of conversion is ` 2,50,000. On sale of car, held as Stock in trade, what
amount shall be taxable under head capital gains
a) ` 50,000 b) Nil c)` 2,50,000 d) None of the
above
51. X converts his capital asset (acquired on June 10, 1988 for ` 60,000) into SIT in 10.03.2018. The fair
market value on date of conversion was ` 3,00,000. He subsequently sells stock-in-trade so converted
for `4,00,000 on June 10, 2020. What is date of transfer of asset?
a) June 10, 1988 b) March 10, 2018
c) June 10, 2020 d) None of the above

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 CA VIVEK GABA CS EXECUTIVE JUNE & DEC 2021

52. X converts his capital asset (acquired on 10.06.1988 for ` 60,000) into SIT in 10.03.2018. FMV as on
date of conversion was ` 3,00,000. He subsequently sells stock-in-trade so converted for ` 4,00,000
on June 10, 2020. Capital gain shall be taxable in which previous year?
a) 2017-18 b) 2018-19 c) 2020-21 d) None of the
above
53. X converts his capital asset (acquired on June 10, 1988 for ` 60,000) into SIT in March 10, 2018. FMV
as on date of above conversion was ` 3,00,000. He subsequently sells stock-in-trade so converted for
`4,00,000 on June 10, 2020. What shall be taxable under head PGBP?
a) ` 2,40,000 b) ` 3,40,000 c) ` 1,00,000 d) Nil
54. What does section 45(3) of Income Tax Act state?
a) Any transfer of capital asset by partner to firm
b) Any transfer of capital asset by member of AOP/ BOI to AOP/BOI
c) Any of the above
d) None of the above
55. Which section provide that what shall be consideration for computation of capital gains arising from
transfer of a capital asset by a person to a firm in which he is or becomes a partner?
a) Section 45(3) b) Section 45(4)
c) Section 45(2A) d) None of the above
56. Which section provide that what shall be consideration for computation of capital gains in the hands
of the firm arising from transfer of a capital asset by way of distribution of capital assets on dissolution
of firm or otherwise?
a) Section 45(3) b) Section 45(4)
c) Section 45(2A) d) None of the above
57. For claiming exemption u/s 54EC, the amount to the extent of capital gain should be invested within
six months from the date of transfer in:
a) State Bank of India b) Notified securities
c) Notified bonds of the NHAI and RECL d) None of the above
58. When is section 45(5) attracted?
a) Transfer of capital asset by way of compulsory acquisition under any law
b) Transfer where consideration is determined or approved by Central Government or RBI
c) Both a) and b)
d) None of the above
59. When is enhanced compensation [ by final order] or part thereof received by the assessee be
taxable?
a) year in which enhanced compensation is first received
b) as and when enhanced compensation is received
c) year of compulsory acquisition of asset
d) None of the above
60. X, while computing capital gain on enhanced compensation deducted litigation expenses incurred by
him to obtain the enhanced compensation. Assessing Officer contended that litigation expenses are
non-deductible. Is the contention of Assessing Officer valid?
a) Valid b) Invalid
c) Partly valid and invalid d) None of the above
61. What amount of deduction is allowed to an assessee while taxing interest income on compensation or
enhanced compensation?
a) 50 % of interest b) 75 % of interest
c) 25 % of interest d) No deduction is allowed
62. A capital asset which was subject to negotiation and for which advance has been received on 17th
July 2014, the advance shall be treated as which of following manner?
a) Taxed under head Other Sources b) Deducted from cost of asset or FMV
c) Any of the above d) No treatment and is capital receipt

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CA VIVEK GABA CS EXECUTIVE JUNE & DEC 2021
63. When advance received for a capital asset which was subject to negotiation and negotiation did not
finalize is taxed under head Other Sources under section 56. When such capital asset is sold later,
the advance so received earlier shall
a) be deducted from cost of asset or FMV or WDV b) have no treatment
c) Any of the above d) none of the above
64. Where house is sold on 17 September 2014 for `16,00,000 for which advance of ` 2,00,000 was
received on 15 May 2013. The asset was purchased for `7,00,000 on 16 May 2012. What would be
treatment of advance so received?
a) be deducted from cost of house
b) have no treatment since taxed under head other sources
c) any of the above
d) none of the above
65. Any sum of money, received as an advance or otherwise in the course of negotiations for transfer of
a capital asset whose negotiation did not finalize shall be …………… and not ……………
a) deducted from cost or FMV as on 1.4.2001 or WDV, taxable under head Other Sources
b) taxable under head Other Sources, deducted from cost or FMV as on 1.4.2001 or WDV
c) any of the above
d) none of the above

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 CA VIVEK GABA CS EXECUTIVE JUNE & DEC 2021

Chapter Four
Capital Gains
OBJECTIVE QUESTIONS [Set -1]

[Amended by Finance Act 2020]

1. As per general rule, capital gain from transfer of capital asset is taxable in which year
a) Previous year in which transfer took place b) assessment year
c) previous year next to year of transfer d) None of the above
2. Which of the following is not a capital asset as per section 2(14)
a) House b) Gold
c) Deposit Certificate d) None of the above
3. Gold utensils are ………………. and silver utensils are …………………….
a) capital asset, capital asset b) not capital asset, capital asset
c) capital asset, not capital asset d) not capital asset, not capital asset
4. Which of the following movable personal asset is not a capital asset?
a) jewellery b) drawings c) any work of art d) Car
5. As per the contention of Assessing Officer, gold bars, sovereigns etc. used for puja are capital asset
and hence, attracts capital gains. Is the contention of Assessing Officer valid?
a) Valid b) Invalid
c) Partially invalid d) None of the above
6. Agricultural land situated within 2 kilometers from municipality or cantonment board having population
of 90,000
a) is capital asset b) is not a capital asset
c) may be a capital asset d) None of the above
7. Agricultural land situated within 7 kilometers from municipality or cantonment board having population
of 1,20,000
a) is capital asset b) is not a capital asset
c) may be a capital asset d) None of the above
8. Agricultural land situated within 5 kilometers from municipality or cantonment board having population
of 11,00,000
a) is not a capital asset b) is capital asset
c) may be a capital asset d) None of the above
9. Agricultural land situated beyond 8 kilometers from municipality or cantonment board having
population of 12,00,000
a) is capital asset b) is not a capital asset
c) may be a capital asset d) None of the above
10. Which of the following is a transfer as per the provision of section 2(47)?
a) Sale of asset b) extinguishment of right in an asset
c) exchange of asset d) All of the above
11. Any transaction allowing possession of any ………………. to be taken or retained in ……………. of a
contract of the nature referred to in section 53A of the Transfer of Property Act is transfer
a) movable property, whole performance b) immovable property, part performance
c) movable property, part performance c) any property, part performance
12. As per section 48, capital gain shall be computed as
a) Sale consideration – cost of acquisition – cost of improvement + expense on transfer
b) Sale consideration + cost of acquisition – cost of improvement

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 CA VIVEK GABA CS EXECUTIVE JUNE & DEC 2021
c) Sale consideration – cost of acquisition + cost of improvement - expense on transfer
d) Sale consideration – cost of acquisition – cost of improvement - expense on transfer
13. As per first proviso to section 48, capital gain on transfer of specified asset shall be computed by
converting:
a) cost of acquisition b) expenses on transfer
c) sale consideration d) All of the above

14. The capital gains so computed in the foreign currency shall be reconverted into …………………..
a) Indian currency b) foreign currency as was initially used in purchase
c) Any currency d) None of the above
15. In computation of capital gain as per first proviso to Section 48, cost of acquisition shall be converted
at ………………………………. as on date of …………………….
a) the rate being average of telegraphic transfer buying and selling rate, date of sale
b) the telegraphic transfer buying, date of acquisition
c) the rate being average of telegraphic transfer buying and selling rate, date of acquisition
d) the telegraphic transfer selling, date of acquisition
16. In computation of capital gain as per first proviso to section 48, expenses on transfer shall be
converted at ………………………………. as on date of …………………….
a) the rate being average of telegraphic transfer buying and selling rate, date of transfer
b) the telegraphic transfer buying, date of acquisition
c) the rate being average of telegraphic transfer buying and selling rate, date of acquisition
d) the telegraphic transfer selling, date of transfer
17. Second Proviso to Section 48 is applicable while computing
a) Only on Short Term Capital Gain b) Only on Long Term Capital Gain
c) Both Short Term and long Term Capital Gain d) None of the above
18. While computing indexed cost of acquisition, it shall be divided by
a) CII for the year in which asset was held by the assessee
b) CII for the year in which asset was transferred by the assessee
c) CII for the year being 1.4.2001
d) CII for the year being later of a) or c)
19. While computing indexed cost of improvement, it shall be divided by
a) CII for the year in which improvement took place (before 1.4.2001 is to be Ignored]
b) CII for the year in which asset was transferred by the assessee
c) CII for the year being 1.4.2001
d) CII for the year being later of a) or c)
20. CII for the previous year 2020-21 is
a) 144 b) 289 c) 100 d) 301
21. STT paid on sale of share or units shall not be …………… from sales price
a) reduced b) added
c) given any treatment d) Either a) or b), depending upon situation
22. When Goodwill of business is acquired, it shall be valued at
a) Nil b) Acquisition cost
c) Any of the above d) None of the above
23. Right Shares/securities shall be valued at ……………… and period of holding shall be from ……
a) Nil, date of allotment
b) Price actually paid under the right issue, the date of allotment
c) Price actually paid under the right issue, the first day of previous year
d) None of the above
24. The option to take FMV as on 01.04.2001 ………………… in case of shares
a) is not available b) is available
c) may be available d) None of the above
25. Where capital asset is acquired by the assessee or the previous owner before 01.04.2001, cost of
acquisition shall be
a) Cost of acquisition to the assessee or previous owner b) FMV as on 01.04.2001
c) a) or b), at the option of the assessee d) None of the above
26. Where capital asset is acquired by the assessee or the previous owner on or after 01.04.2001

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 CA VIVEK GABA CS EXECUTIVE JUNE & DEC 2021
a) FMV of asset as on 01.04.2001
b) Cost of acquisition to the assessee or the previous owner
c) a) or b), at the option of the assessee
d) None of the above
27. In case of share held in listed company, short term capital asset means a capital asset held by an
assessee for ………………… immediately preceding the date of its transfer.
a) not more than 36 months b) not more than 12 months
c) not more than 24 months d) None of the above
28. In case of any security listed on a recognised stock exchange, short term capital asset means capital
asset held by an assessee for ……… immediately preceding the date of its transfer.
a) not more than 36 months b) not more than 12 months
c) not more than 24 months d) None of the above
29. The cost if improvement of which asset shall be taken as nil
a) Goodwill of Business
b) Right to manufacture, produce or process any article or thing
c) Right to carrying on any business
d) All of the above
30. The rate of taxability defined in Section 111A for Short Term Capital Gain is
a) 10 % b) 15 % c) 20 % d) Nil
31. Section 111A is applicable only if ………. is paid on the transaction of sale.
a) STT b) VAT c) tax d) None of the above
32. Benefit of slab rate is not available on short term capital gains under section 111A to
a) resident Individual b) resident HUF
c) non-resident d) None of the above
33. Chapter VI-A deduction …………………………. on STCG referred to in section 111A.
a) shall be allowed b) shall not be allowed
c) may be allowed d) None of the above
34. Section 112 is applicable only if transfer of specified assets result in
a) Short Term Capital Gain b) Long Term Capital Gain
c) Any Capital Gain d) All of the above
35. The rate of taxability defined in Section 112 for Long Term Capital Gain is
a) 10 % b) 15 % c) 20 % d)
Nil
36. Benefit of slab rate is not available on long term capital gains under section 112 to
a) resident Individual b) resident HUF
c) non-resident d) None of the above
37. Chapter VI-A deduction …………………………. on LTCG referred to in section 112.
a) shall be allowed b) shall not be allowed
c) may be allowed d) None of the above
38. For claiming exemption u/s 10(37), urban agricultural land is used for ……..by HUF or individual or a
parent of individual during the period of ……… immediately preceding date of transfer.
a) any purpose, three year b) agricultural purpose, three years
c) agricultural purpose, two years d) business purpose, two year
39. Which of following conditions should be satisfied to claim exemption under section 10(37)
(i) Asset being transferred in agricultural land in urban area
(ii) Asset being transferred in agricultural land
(iii) transfer is the one for which consideration is determined or approved by the Central
Government or the RBI.
(iv) Consideration need not be determined by Central Government or RBI
a) (i), (iii) b) (ii), (iii) c) (i), (iv) d) (ii),
(iv)
40. Which capital gain has been made exempt under section 10(37)
a) Short Term Capital Gain b) Long Term Capital Gain
c) Both Short and long term capital gain d) None of the above

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41. A has an agricultural land (costing ` 6 lakh) in Delhi & was used for agricultural purposes since
01.04.1996 till 01.08.2019 when the Government compulsory acquired this land. A compensation of `
10 lakh was settled. The compensation was received by A on 01.07.2020. Compute the amount of
capital gains taxable in the hands of A. Ignore indexation
a) ` 4 lakh as Long Term Capital Gain b) exempt under section 10(36)
c) Exempt under section 10(37) d) None of the above
42. A has an agricultural land (costing ` 6 lakh) in Delhi & was used for agricultural purposes since
01.04.1997 till 01.08.2019. He sold the land to his friend of ` 12 Lakh. Compute the amount of capital
gains taxable in the hands of A. Ignore indexation
a) ` 6 lakh as Long Term Capital Gain b) exempt under section 10(36)
c) Exempt under section 10(37) d) None of the above
d) All of the above
43. Section 50C is applicable to which capital asset
a) All capital assets b) capital asset being, jewellery
c) land or building or both d) None of the above
44. Under which circumstance, Section 50D is applicable
a) Consideration not ascertainable b) consideration cannot be determined
c) on discretion of Assessing Officer d) either a) or b)
45. Which section deals about taxability of insurance claims received
a) Section 45(1A) b) Section 45(2) c) Section 45(2) d) Section
45(1)
46. …………………….. shall be deemed to be sales consideration for computing capital gains u/s45(1A).
a) Money received from insurance company
b) FMV of other assets received from insurance company
c) Any of the above
d) None of the above
47. If no claim is received on destruction of capital asset, …………. shall arise
a) capital gain b) no capital gain
c) capital loss having no tax treatment d) none of the above
48. For computing capital gain as per section 45(1A), date of transfer of the capital asset destroyed
should be
a) date of destruction b) date of receipt of insurance claim
c) 30 days after date of destruction d) None of the above
49. What shall be sale consideration of capital asset converted into stock in trade?
a) FMV of asset on date of conversion b) Amount recorded in books of account
c) Average of a) and b) `d) None of the above
50. A is the owner of a car. On 01.04.2017, he starts a business of purchase and sale of motor cars He
treats the above car as part of the stock-in-trade of his new business. The car was acquired for `
2,00,000 and FMV as on date of conversion is ` 2,50,000. On sale of car, held as Stock in trade, what
amount shall be taxable under head capital gains
a) ` 50,000 b) Nil c)` 2,50,000 d) None of the
above
51. X converts his capital asset (acquired on June 10, 1988 for ` 60,000) into SIT in 10.03.2018. The fair
market value on date of conversion was ` 3,00,000. He subsequently sells stock-in-trade so converted
for `4,00,000 on June 10, 2020. What is date of transfer of asset?
a) June 10, 1988 b) March 10, 2018
c) June 10, 2020 d) None of the above

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52. X converts his capital asset (acquired on 10.06.1988 for ` 60,000) into SIT in 10.03.2018. FMV as on
date of conversion was ` 3,00,000. He subsequently sells stock-in-trade so converted for ` 4,00,000
on June 10, 2020. Capital gain shall be taxable in which previous year?
a) 2017-18 b) 2018-19 c) 2020-21 d) None of the
above
53. X converts his capital asset (acquired on June 10, 1988 for ` 60,000) into SIT in March 10, 2018. FMV
as on date of above conversion was ` 3,00,000. He subsequently sells stock-in-trade so converted for
`4,00,000 on June 10, 2020. What shall be taxable under head PGBP?
a) ` 2,40,000 b) ` 3,40,000 c) ` 1,00,000 d) Nil
54. What does section 45(3) of Income Tax Act state?
a) Any transfer of capital asset by partner to firm
b) Any transfer of capital asset by member of AOP/ BOI to AOP/BOI
c) Any of the above
d) None of the above
55. Which section provide that what shall be consideration for computation of capital gains arising from
transfer of a capital asset by a person to a firm in which he is or becomes a partner?
a) Section 45(3) b) Section 45(4)
c) Section 45(2A) d) None of the above
56. Which section provide that what shall be consideration for computation of capital gains in the hands
of the firm arising from transfer of a capital asset by way of distribution of capital assets on dissolution
of firm or otherwise?
a) Section 45(3) b) Section 45(4)
c) Section 45(2A) d) None of the above
57. For claiming exemption u/s 54EC, the amount to the extent of capital gain should be invested within
six months from the date of transfer in:
a) State Bank of India b) Notified securities
c) Notified bonds of the NHAI and RECL d) None of the above
58. When is section 45(5) attracted?
a) Transfer of capital asset by way of compulsory acquisition under any law
b) Transfer where consideration is determined or approved by Central Government or RBI
c) Both a) and b)
d) None of the above
59. When is enhanced compensation [ by final order] or part thereof received by the assessee be
taxable?
a) year in which enhanced compensation is first received
b) as and when enhanced compensation is received
c) year of compulsory acquisition of asset
d) None of the above
60. X, while computing capital gain on enhanced compensation deducted litigation expenses incurred by
him to obtain the enhanced compensation. Assessing Officer contended that litigation expenses are
non-deductible. Is the contention of Assessing Officer valid?
a) Valid b) Invalid
c) Partly valid and invalid d) None of the above
61. What amount of deduction is allowed to an assessee while taxing interest income on compensation or
enhanced compensation?
a) 50 % of interest b) 75 % of interest
c) 25 % of interest d) No deduction is allowed
62. A capital asset which was subject to negotiation and for which advance has been received on 17th
July 2014, the advance shall be treated as which of following manner?
a) Taxed under head Other Sources b) Deducted from cost of asset or FMV
c) Any of the above d) No treatment and is capital receipt

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CA VIVEK GABA CS EXECUTIVE JUNE & DEC 2021
63. When advance received for a capital asset which was subject to negotiation and negotiation did not
finalize is taxed under head Other Sources under section 56. When such capital asset is sold later,
the advance so received earlier shall
a) be deducted from cost of asset or FMV or WDV b) have no treatment
c) Any of the above d) none of the above
64. Where house is sold on 17 September 2014 for `16,00,000 for which advance of ` 2,00,000 was
received on 15 May 2013. The asset was purchased for `7,00,000 on 16 May 2012. What would be
treatment of advance so received?
a) be deducted from cost of house
b) have no treatment since taxed under head other sources
c) any of the above
d) none of the above
65. Any sum of money, received as an advance or otherwise in the course of negotiations for transfer of
a capital asset whose negotiation did not finalize shall be …………… and not ……………
a) deducted from cost or FMV as on 1.4.2001 or WDV, taxable under head Other Sources
b) taxable under head Other Sources, deducted from cost or FMV as on 1.4.2001 or WDV
c) any of the above
d) none of the above

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Alternate Minimum Tax (AMT)

OBJECTIVE QUESTIONS

1. AMT is applicable on
a) All assessee b) Company
c) All assessee except company d) Individual and HUF
2. Under what circumstance assessee is liable to pay AMT
a) if tax as per normal provision is less b) if tax as per normal provision is more
c) if tax as per normal provision is in variance d) None of the above
3. AMT is not applicable on
a) Individual whose Adjusted Total Income does not exceed ` 20 lakhs
b) HUF whose Adjusted Total Income does not exceed ` 20 lakhs
c) AOP/BOI whose Adjusted Total Income does not exceed ` 20 lakhs
d) All of the above
4. Surcharge @ …. shall be levied if adjusted total income of individual liable to AMT is ` 1 crore.
a) 5% b) 15% c) 10% d) Nil
5. Deduction u/s 80C to 80GGC, 80U and 80TTA ………. be added back
a) shall b) may c) are not d) None of the above
6. Alternate Minimum Tax is computed the rate of …….. of ……..
a) 18.5 %, taxable income as per Income tax Act
b) 30 %, taxable income as per Income tax Act
c) 18.5 %, Adjusted total income
d) 30 %, Adjusted total income
7. If the amount of tax as per income tax act is 50,000 and AMT is 51,000. The credit of AMT available is
2,000. What is the amount of tax payable by the assessee and how much credit shall be carried forward by
him
a) 51,000, 2,000 b) 50,000, 1,000 c) 51,000, 3,000 d) 49,000, Nil
8. If amount payable as per normal provision of income tax act is 1,03,000 and as per the provision of AMT is
73,000. What is the amount payable
a) 1,03,000 b) 73,000 c) 88,000 d) Nil
9. If amount payable as per normal provision of Income tax act is 52,000 and AMT is 47,000. The AMT credit
available with assessee is 15,000. What is the amount payable and the AMT credit that shall be carried
forward?
a) 52,000, 10,000 b) 47,000, 10,000 c) 52,000, 15,000 d) 37,000, Nil
10. What is the maximum amount upto which AMT credit can be utilised.
a) maximum amount of credit available
b) Difference between tax payable as per income tax act and MAT
c) Lower of a) and b)
d) Average of a) and b)
11. Which is the charging section of Alternate Minimum Tax?
a) Section 115JB(1) b) Section 115B(2) c) Section 115JC d) Section 115
12. AMT is applicable on
a) Individual whose Adjusted Total Income is ` 25 lakhs
b) Individual whose Adjusted Total Income does not exceed ` 20 lakhs
c) HUF whose Adjusted Total Income does not exceed ` 20 lakhs
d) None of the above
13. AMT is not applicable on
a) Artificial juridical person whose Adjusted Total Income is ` 21 lakhs

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CA VIVEK GABA CS EXECUTIVE JUNE & DEC 2021

b) AOP whose Adjusted Total Income is ` 27 lakhs

c) BOI whose Adjusted Total Income does not exceed ` 20 lakhs
d) None of the above
14. AMT is not applicable on
a) Individual whose Adjusted Total Income does not exceed ` 20 lakhs
b) HUF whose Adjusted Total Income does not exceed ` 20 lakhs
c) Artificial juridical person whose Adjusted Total Income does not exceed ` 20 lakhs
d) All of the above
15. Surcharge at which rate shall be levied if adjusted total income of assessee liable to AMT exceeds ` 5
crore?
a) 15% b) 25% c) 37% d) Nil
16. How is adjusted total income of assessee liable to AMT computed?
a) Total Income computed as per normal provisions of IT Act + Deduction under chapter VIA (heading C)
+ Deduction under section 10AA
b) Total Income computed as per normal provisions of IT Act - Deduction under chapter VIA (heading C)
+ Deduction under section 10AA
c) Total Income computed as per normal provisions of IT Act + Deduction under chapter VIA (heading C
including deduction u/s 80P) + Deduction under section 10AA
d) Total Income computed as per normal provisions of IT Act + Deduction under chapter VIA (heading C
except deduction u/s 80P) + Deduction under section 10AA + Section 35AD – Section 32
17. Deduction u/s 80P ………. added back
a) is b) is not c) may be d) may not
18. AMT credit shall be allowed to be carried forward and set off up to ……………….
a) 15 years succeeding the year in which credit becomes available
b) 10 succeeding the year in which credit becomes available
c) 8 year in which credit becomes available
d) Infinite number of years
19. If the amount payable as per normal provision of Income tax act is 53,000 and AMT is 70,000. What is the
amount payable and amount of credit available to assessee
a) 53,000, 17,000 b) 70,000, 17,000 c) 53,000, Nil d) 70,000, 10,000
20. When can assessee utilise AMT credit?
a) when tax payable as per income tax act is less than AMT
b) when AMT is more than tax as per income tax act
c) when tax as per income tax act is more than AMT
d) all of the above
21. What is the amount payable to Government when tax as per normal provision of Income tax Act is 1,20,000
and as per the provision of AMT is 1,21,000
a) 1,20,000 b) 1,21,000 c) 1,20,500 d) None of the above
22. While calculating AMT, how is depreciation treated
a) depreciation as per Income tax Act is allowed
b) depreciation as per Companies Act is allowed
c) higher of a) or b)
d) not allowed at all
23. AMT is based on
a) accounting profit b) total income
c) adjusted Total income d) adjusted Gross Total income
24. AMT applied to a firm only if it has claimed deduction of section 80 H to 80 RRB (except 80P) or exemption
under section 10AA
a) if its ATI does not exceed ` 50,00,000 b) if its ATI does not exceed ` 20,00,000
c) if its ATI exceeds ` 20,00,000 d) always applicable

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25. During the previous year 2020-21, Mr. Rohan has income of ` 50,00,000 under head “PGBP”. Among other
business, one of his business is eligible for deduction of 100 % profits under section 80IA. Profit of such
business is ` 24,00,000 which is already included above. Compute amount payable by him as tax
a) 5,00,240 b) 4,81,000 c) 9,25,000 d) 9,62,000
26. The provision of AMT Shall not apply to a person who exercised the option referred to in section
______ or Section _______

a) 115BAC, 115BAD
b) 115BAA,115BAB
c) 115BA,115BAC
d) None of the above

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CA VIVEK GABA CS EXECUTIVE JUNE & DEC 2021

Minimum Alternate Tax (MAT)

OBJECTIVE QUESTIONS
1. When the tax on total income computed as per …….. is less than …… , such ……. shall be deemed to be
total income
a) Income tax Act, Book Profits, Book Profits
b) Companies Act, Taxable Profits, Profit
c) Income tax Act, 18.5% of Book Profits, Book Profits
d) Companies Act, 18.5% of Taxable Profits, Taxable Profit
2. Surcharge @ ……. shall be levied if book profits of domestic company exceeds` 10 crore.
a) 5% b) 7% c) 12% d) Nil
3. Surcharge @ ……. shall be levied if book profits of foreign company exceeds` 10 crore.
a) 5% b) 2% c) 10% d) Nil
4. What is the maximum amount upto which MAT credit can be utilised
a) maximum amount of credit available
b) Difference between tax payable as per income tax act and MAT
c) Lower of a) and b)
d) Average of a) and b)
5. What is the amount payable to Government, when tax as per normal provision of Income tax Act is
1,20,000 and as per the provision of MAT is 1,45,000
a) 1,20,000 b) 1,45,000 c) 1,20,500 d) none of the above
6. MAT credit shall be allowed to be carried forward and set off up to ……………….
a) 10 assessment year b) 15 assessment year
c) 10 previous year d) 15 previous year
7. If the amount of tax as per income tax act is 50,000 and MAT is 71,000. The credit of MAT available is
2,000. What is the amount of tax payable by the assessee and how much credit shall be carried forward by
him
a) 51,000, 23,000 b) 50,000, 21,000 c) 71,000, 23,000 d) 49,000, Nil
8. If amount payable as per normal provision of Income tax Act is 52,000 and MAT is 40,000. The MAT credit
available with assessee is 15,000. What is the amount payable and the amount that of MAT credit shall be
carried forward?
a) 52,000, 12,000 b) 40,000, 3,000 c) 52,000, 15,000 d) None
9. If the amount payable as per income tax act is 53,000 and MAT is 70,000. What is the amount payable and
amount of credit available to assessee
a) 53,000, 17,000 b) 70,000, 17,000 c) 53,000, Nil d) 70,000, 10,000
10. If amount payable as per normal provision of income tax act is 80,000 and as per the provision of MAT is
73,000. What is the amount payable
a) 1,03,000 b) 73,000 c) 80,000 d) Nil
11. MAT is applicable on
a) all assesses b) individual c) company d) HUF, AOP
12. When can assessee utilise MAT credit?
a) When tax payable as per income tax act is less than MAT
b) When tax as per income tax act is more than MAT
c) When MAT is more than tax as per income tax act
d) All of the above
13. Which is the charging section of Minimum Alternate Tax?
a) Section 115JB(1) b) Section 115B(2) c) Section 115JC d) Section 115
14. Surcharge @ ……. shall be levied if book profits of domestic company is 1 crore.
a) 5 % b) 2 % c) 10 % d) Nil
15. Surcharge @ ……. shall be levied if book profits of foreign company exceeds` 1 crore.
a) 5% b) 2% c) 10% d) Nil

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 CA VIVEK GABA CS EXECUTIVE JUNE & DEC 2021
16. Minimum Alternate Tax at the rate of …….. of …….. is applicable.
a) 18.5 %, taxable income as per Income tax Act
b) 30 %, taxable income as per Income tax Act
c) 15%, Book Profits
d) 18.5 %, Book Profits
17. The MAT credit available in hands of the company …………. be allowed to the LLP.
a) shall b) may not c) shall not d) may
18. In computation of book profits, which of the following shall be added?
a) Income tax paid or payable b) provision of income tax
c) Wealth tax paid or payable d) Both a) and b)
19. Provision of section 115JB is applicable on
a) company assessee b) all assessee whose total income exceeds ` 1 crore
c) company, LLP and firm d) all Company irrespective of level of income subject to exemption
20. MAT credit can be carried forward for
a) 10 years b) 15 years d) indefinite d) no carry forward
21. ABC Ltd. (a domestic company) received dividend of ` 7,00,000 from foreign company in which domestic
company holds 26 % shares. At what rate such dividend is taxable
a) taxable at 15 % b) taxable at 30 %
c) taxable at 40 % d) exempt from tax
22. ABC Ltd. (a domestic company) received dividend of ` 7,00,000 from foreign company in which domestic
company holds 24 % shares. At what rate such dividend is taxable
a) taxable at 15 % b) taxable at 30 %
c) taxable at 40 % d) exempt from tax
23. AMT/MAT rate _________ if unit/asssessee located in IFSC ?

a) 18.5%
b) 15%
c) 9%
d) 30%

24. The provisions of MAT are not applicable on:

a) The domestic companies which have opted for tax regimes under Section 115BAA or Section
115BAB;
b) Any income accruing or arising to a company from the life insurance business referred to in
Section 115B;
c) the assessee is a resident of a country or a specified territory with which India has an agreement
referred to in sub-section (1) of section 90 or the Central Government has adopted any agreement
under sub-section (1) of section 90A and the assessee does not have a permanent establishment
in India in accordance with the provisions of such agreement
d) all of the above

25. The provisions of MAT are not applicable on:

a) The domestic companies which have opted for tax regimes under Section 115BAA or Section
115BAB;
b) Foreign company, whose total income comprises of profits and gains arising from business
referred to in section 44AB, 44BB, 44BBA, or 44BBB;

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CA VIVEK GABA CS EXECUTIVE JUNE & DEC 2021
c) he assessee is a resident of a country with which India does not have an agreement under section
90 and the assessee is not required to seek registration under any law for the time being in force
relating to companies
d) all of the above

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CA VIVEK GABA CS EXECUTIVE JUNE & DEC 2021

Alternate Minimum Tax (AMT)

OBJECTIVE QUESTIONS

1. AMT is applicable on
a) All assessee b) Company
c) All assessee except company d) Individual and HUF
2. Under what circumstance assessee is liable to pay AMT
a) if tax as per normal provision is less b) if tax as per normal provision is more
c) if tax as per normal provision is in variance d) None of the above
3. AMT is not applicable on
a) Individual whose Adjusted Total Income does not exceed ` 20 lakhs
b) HUF whose Adjusted Total Income does not exceed ` 20 lakhs
c) AOP/BOI whose Adjusted Total Income does not exceed ` 20 lakhs
d) All of the above
4. Surcharge @ …. shall be levied if adjusted total income of individual liable to AMT is ` 1 crore.
a) 5% b) 15% c) 10% d) Nil
5. Deduction u/s 80C to 80GGC, 80U and 80TTA ………. be added back
a) shall b) may c) are not d) None of the above
6. Alternate Minimum Tax is computed the rate of …….. of ……..
a) 18.5 %, taxable income as per Income tax Act
b) 30 %, taxable income as per Income tax Act
c) 18.5 %, Adjusted total income
d) 30 %, Adjusted total income
7. If the amount of tax as per income tax act is 50,000 and AMT is 51,000. The credit of AMT available is
2,000. What is the amount of tax payable by the assessee and how much credit shall be carried forward by
him
a) 51,000, 2,000 b) 50,000, 1,000 c) 51,000, 3,000 d) 49,000, Nil
8. If amount payable as per normal provision of income tax act is 1,03,000 and as per the provision of AMT is
73,000. What is the amount payable
a) 1,03,000 b) 73,000 c) 88,000 d) Nil
9. If amount payable as per normal provision of Income tax act is 52,000 and AMT is 47,000. The AMT credit
available with assessee is 15,000. What is the amount payable and the AMT credit that shall be carried
forward?
a) 52,000, 10,000 b) 47,000, 10,000 c) 52,000, 15,000 d) 37,000, Nil
10. What is the maximum amount upto which AMT credit can be utilised.
a) maximum amount of credit available
b) Difference between tax payable as per income tax act and MAT
c) Lower of a) and b)
d) Average of a) and b)
11. Which is the charging section of Alternate Minimum Tax?
a) Section 115JB(1) b) Section 115B(2) c) Section 115JC d) Section 115
12. AMT is applicable on
a) Individual whose Adjusted Total Income is ` 25 lakhs
b) Individual whose Adjusted Total Income does not exceed ` 20 lakhs
c) HUF whose Adjusted Total Income does not exceed ` 20 lakhs
d) None of the above
13. AMT is not applicable on
a) Artificial juridical person whose Adjusted Total Income is ` 21 lakhs

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CA VIVEK GABA CS EXECUTIVE JUNE & DEC 2021

b) AOP whose Adjusted Total Income is ` 27 lakhs

c) BOI whose Adjusted Total Income does not exceed ` 20 lakhs
d) None of the above
14. AMT is not applicable on
a) Individual whose Adjusted Total Income does not exceed ` 20 lakhs
b) HUF whose Adjusted Total Income does not exceed ` 20 lakhs
c) Artificial juridical person whose Adjusted Total Income does not exceed ` 20 lakhs
d) All of the above
15. Surcharge at which rate shall be levied if adjusted total income of assessee liable to AMT exceeds ` 5
crore?
a) 15% b) 25% c) 37% d) Nil
16. How is adjusted total income of assessee liable to AMT computed?
a) Total Income computed as per normal provisions of IT Act + Deduction under chapter VIA (heading C)
+ Deduction under section 10AA
b) Total Income computed as per normal provisions of IT Act - Deduction under chapter VIA (heading C)
+ Deduction under section 10AA
c) Total Income computed as per normal provisions of IT Act + Deduction under chapter VIA (heading C
including deduction u/s 80P) + Deduction under section 10AA
d) Total Income computed as per normal provisions of IT Act + Deduction under chapter VIA (heading C
except deduction u/s 80P) + Deduction under section 10AA + Section 35AD – Section 32
17. Deduction u/s 80P ………. added back
a) is b) is not c) may be d) may not
18. AMT credit shall be allowed to be carried forward and set off up to ……………….
a) 15 years succeeding the year in which credit becomes available
b) 10 succeeding the year in which credit becomes available
c) 8 year in which credit becomes available
d) Infinite number of years
19. If the amount payable as per normal provision of Income tax act is 53,000 and AMT is 70,000. What is the
amount payable and amount of credit available to assessee
a) 53,000, 17,000 b) 70,000, 17,000 c) 53,000, Nil d) 70,000, 10,000
20. When can assessee utilise AMT credit?
a) when tax payable as per income tax act is less than AMT
b) when AMT is more than tax as per income tax act
c) when tax as per income tax act is more than AMT
d) all of the above
21. What is the amount payable to Government when tax as per normal provision of Income tax Act is 1,20,000
and as per the provision of AMT is 1,21,000
a) 1,20,000 b) 1,21,000 c) 1,20,500 d) None of the above
22. While calculating AMT, how is depreciation treated
a) depreciation as per Income tax Act is allowed
b) depreciation as per Companies Act is allowed
c) higher of a) or b)
d) not allowed at all
23. AMT is based on
a) accounting profit b) total income
c) adjusted Total income d) adjusted Gross Total income
24. AMT applied to a firm only if it has claimed deduction of section 80 H to 80 RRB (except 80P) or exemption
under section 10AA
a) if its ATI does not exceed ` 50,00,000 b) if its ATI does not exceed ` 20,00,000
c) if its ATI exceeds ` 20,00,000 d) always applicable

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25. During the previous year 2020-21, Mr. Rohan has income of ` 50,00,000 under head “PGBP”. Among other
business, one of his business is eligible for deduction of 100 % profits under section 80IA. Profit of such
business is ` 24,00,000 which is already included above. Compute amount payable by him as tax
a) 5,00,240 b) 4,81,000 c) 9,25,000 d) 9,62,000
26. The provision of AMT Shall not apply to a person who exercised the option referred to in section
______ or Section _______

a) 115BAC, 115BAD
b) 115BAA,115BAB
c) 115BA,115BAC
d) None of the above

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Minimum Alternate Tax (MAT)

OBJECTIVE QUESTIONS
1. When the tax on total income computed as per …….. is less than …… , such ……. shall be deemed to be
total income
a) Income tax Act, Book Profits, Book Profits
b) Companies Act, Taxable Profits, Profit
c) Income tax Act, 18.5% of Book Profits, Book Profits
d) Companies Act, 18.5% of Taxable Profits, Taxable Profit
2. Surcharge @ ……. shall be levied if book profits of domestic company exceeds` 10 crore.
a) 5% b) 7% c) 12% d) Nil
3. Surcharge @ ……. shall be levied if book profits of foreign company exceeds` 10 crore.
a) 5% b) 2% c) 10% d) Nil
4. What is the maximum amount upto which MAT credit can be utilised
a) maximum amount of credit available
b) Difference between tax payable as per income tax act and MAT
c) Lower of a) and b)
d) Average of a) and b)
5. What is the amount payable to Government, when tax as per normal provision of Income tax Act is
1,20,000 and as per the provision of MAT is 1,45,000
a) 1,20,000 b) 1,45,000 c) 1,20,500 d) none of the above
6. MAT credit shall be allowed to be carried forward and set off up to ……………….
a) 10 assessment year b) 15 assessment year
c) 10 previous year d) 15 previous year
7. If the amount of tax as per income tax act is 50,000 and MAT is 71,000. The credit of MAT available is
2,000. What is the amount of tax payable by the assessee and how much credit shall be carried forward by
him
a) 51,000, 23,000 b) 50,000, 21,000 c) 71,000, 23,000 d) 49,000, Nil
8. If amount payable as per normal provision of Income tax Act is 52,000 and MAT is 40,000. The MAT credit
available with assessee is 15,000. What is the amount payable and the amount that of MAT credit shall be
carried forward?
a) 52,000, 12,000 b) 40,000, 3,000 c) 52,000, 15,000 d) None
9. If the amount payable as per income tax act is 53,000 and MAT is 70,000. What is the amount payable and
amount of credit available to assessee
a) 53,000, 17,000 b) 70,000, 17,000 c) 53,000, Nil d) 70,000, 10,000
10. If amount payable as per normal provision of income tax act is 80,000 and as per the provision of MAT is
73,000. What is the amount payable
a) 1,03,000 b) 73,000 c) 80,000 d) Nil
11. MAT is applicable on
a) all assesses b) individual c) company d) HUF, AOP
12. When can assessee utilise MAT credit?
a) When tax payable as per income tax act is less than MAT
b) When tax as per income tax act is more than MAT
c) When MAT is more than tax as per income tax act
d) All of the above
13. Which is the charging section of Minimum Alternate Tax?
a) Section 115JB(1) b) Section 115B(2) c) Section 115JC d) Section 115
14. Surcharge @ ……. shall be levied if book profits of domestic company is 1 crore.
a) 5 % b) 2 % c) 10 % d) Nil
15. Surcharge @ ……. shall be levied if book profits of foreign company exceeds` 1 crore.
a) 5% b) 2% c) 10% d) Nil

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16. Minimum Alternate Tax at the rate of …….. of …….. is applicable.
a) 18.5 %, taxable income as per Income tax Act
b) 30 %, taxable income as per Income tax Act
c) 15%, Book Profits
d) 18.5 %, Book Profits
17. The MAT credit available in hands of the company …………. be allowed to the LLP.
a) shall b) may not c) shall not d) may
18. In computation of book profits, which of the following shall be added?
a) Income tax paid or payable b) provision of income tax
c) Wealth tax paid or payable d) Both a) and b)
19. Provision of section 115JB is applicable on
a) company assessee b) all assessee whose total income exceeds ` 1 crore
c) company, LLP and firm d) all Company irrespective of level of income subject to exemption
20. MAT credit can be carried forward for
a) 10 years b) 15 years d) indefinite d) no carry forward
21. ABC Ltd. (a domestic company) received dividend of ` 7,00,000 from foreign company in which domestic
company holds 26 % shares. At what rate such dividend is taxable
a) taxable at 15 % b) taxable at 30 %
c) taxable at 40 % d) exempt from tax
22. ABC Ltd. (a domestic company) received dividend of ` 7,00,000 from foreign company in which domestic
company holds 24 % shares. At what rate such dividend is taxable
a) taxable at 15 % b) taxable at 30 %
c) taxable at 40 % d) exempt from tax
23. AMT/MAT rate _________ if unit/asssessee located in IFSC ?

a) 18.5%
b) 15%
c) 9%
d) 30%

24. The provisions of MAT are not applicable on:

a) The domestic companies which have opted for tax regimes under Section 115BAA or Section
115BAB;
b) Any income accruing or arising to a company from the life insurance business referred to in
Section 115B;
c) the assessee is a resident of a country or a specified territory with which India has an agreement
referred to in sub-section (1) of section 90 or the Central Government has adopted any agreement
under sub-section (1) of section 90A and the assessee does not have a permanent establishment
in India in accordance with the provisions of such agreement
d) all of the above

25. The provisions of MAT are not applicable on:

a) The domestic companies which have opted for tax regimes under Section 115BAA or Section
115BAB;
b) Foreign company, whose total income comprises of profits and gains arising from business
referred to in section 44AB, 44BB, 44BBA, or 44BBB;

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c) he assessee is a resident of a country with which India does not have an agreement under section
90 and the assessee is not required to seek registration under any law for the time being in force
relating to companies
d) all of the above

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MCQ’s for Practice

Chapter : Advance Tax, Return &

Assessment
Q1. Tax shall be payable in advance during any FY on .
(a) Previous Income (b) Estimated Current Income
(c) Past Income (d) Future Income

Q2. Scheme of advance tax is known as .

(a) Step towards nation building (b) Earn more pay more
(b) Pay as much as you can (d) Pay as you earn

Q3. Obligation to pay advance tax arises when tax payable is .

(a) Rs. 10,000 or more (b) Rs. 10,000 or less
(c) Rs. 10,000 (d) Rs. 5,000 or more

Q4. Advance tax shall not be payable by resident individual having income like interest,
rent, etc. in India, who .
(a) Does not have any income taxable u/h “PGBP”
(b) Is of the age of 60 or more at any time during the PY
(c)Both (a) & (b)
d)Either (a) or (b)

Q5. How advance tax shall be computed?

(a) Tax on TI – Rebate + TDS (b) Tax on TI - Rebate - TDS
(c) Tax on TI – Rebate × TDS (d) Tax on TI/TDS

Q10. Assessee opting for presumptive taxation scheme u/s 44ADA for PY 2018-19 is liable
to pay advance tax -
(a) In one instalment on/before 15th march.

(b) In two instalments on/after 15th march.

(c)In three instalments on/before 15th September.

(d) In four instalments on/before 31st March.

Q11. Advance tax is payable in............. instalments by a non-corporate assessee

(a) 3 (b) 2 (c) 4 (d) 1

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Q12. Mr. A, whose total sales is Rs. 201 lacs declare profit of Rs. 10 lacs for PY 2020-21.
He is liable to pay advance tax in installments
(a) 1 (b) 2 (c) 3 (d) 4

Q13. First instalment of advance tax in case of company is.

(a) 15th June of relevant FY (b) 15th July of relevant FY
(c) 15th Aug of relevant FY (d) 15th Sep of relevant FY
Q14. First instalment of advance tax in case of non- company assesses should be made

(a) 15th June of relevant FY (b) 15th July of relevant FY

(c) 15th Aug of relevant FY (d) 15th Sep of relevant FY

Q15. Advance tax to be paid upto 15th Dec of FY is .

(a) 75% (b) 100% (c) 30% (d) 45%

Q16. For PY 2020-21, X Ltd has estimated its tax payable to be Rs. 2 lacs. Advance tax
payable upto 15th Dec 2020 is?

(a) 90,000 (b) 30,000 (c) 1.5 lac (d) 2 lac

Q17. Mr. A estimated his tax payable for PY 2020-21 @ Rs. 1 lac. Advance tax payable
upto 15th Sep 2020 is ?
(a) 45,000 (b) 75,000 (c) 15,000 (d) 1 lac

Q18. Where no instalment is due & any income is earned after 15th March of PY, the
entire tax is to be paid by
(a) 15th March (b) 31st March (c) 31st July (d) 15th Sep

Q19. Advance tax can be paid

(a) After 15th march of relevant FY

(b) cannot be paid after 15th March of relevant FY

(c)be paid after 15th March but by 31st March of the FY

(d) None of the above

Q20. If any person has paid income tax after expiry of last date of filing of ROI, Interest
u/s 234A shall be payable for period subsequent to last date of filing of ROI @
(a) 12% p.a (b) 1% p.m or part
(b) 10% p.m d) 7% p.m or part

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Q21. Mr. A submitted his ROI for PY 2020-21 on 15.12.2021. Due date of filing ROI was
30.9.2021. Mr. A shall have to pay interest u/s 234A for months
(a) 3 (b) 2 (c) 2.5 (d) 4

Q22. In what case, interest u/s 234B is attracted?

(a) Non-payment of advance tax
(b) Payment of advance tax of < 90% of Assessed Tax
(c)Either (a) or (b)
(d) None

Q23. Interest u/s 234B is calculate on difference b/w .

(a) Advance tax paid & assessed tax
(b) Advance tax paid & 90% of the assessed tax
(c)Assessed by tax & advance tax paid
(d) None of the above

Q24. Interest liability u/s 234B would be from 1st April following the FY up to the date
of assessment of income.
(a) 1% p.m (b) 1% p.m or part (c) 2% p.m or part

Q25. 1st installment of Advance tax of Rs. 15,000 was due on 15.9.2020. Assessee
deposited Rs. 10,000 on 14.8.2020 & balance on 16.11.2020. Interest payable @ 1% p.m
on __.
(a) Rs. 15,000 for 3 months (b) Rs. 5,000 for 3 months
(c) Rs. 5,000 for 2 months (d) Rs. 15,000 for 2 months

Q26. In case of company, if Advance tax payable in 1st installment is , no interest

u/s 234C shall be payable.
(a) 12% or less (b) 10% or more
(c) 12% or more (d) 36% or more

Q27. Interest liability u/s 234C would be for a period of for every deferment
(a) 2%, 6 months (b) 1%, 1 month
(c) 1%, 3 months (d) 2%, 3 months

Q28. For last installment of 15th March PY, interest liability u/s 234C would be
for
(a) 1%, 3 months (b) 1%, 1 month
(c) 1%, 3 months (d) 2%, 3 months

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Q29. In case of company, if advance tax payable in second installment is , no

interest u/s 234C shall be payable.
(a) 36% or less (b) 36% or more
(c) 12% or more (d) 12% or less

Q30. If a person who is required to file ROI u/s 139 does not file ROI within DD u/s 139(1),
fee payable u/s 234F shall be .
(a) Rs. 5,000 if ROI is filed on/before 31st December of AY
(b) Rs. 10,000 in any other case
(c)Both (a) & (b) (d) None of (a) or (b)

Q31. If Total Income of the person , fees payable shall not exceed .
(a) < 5 Lacs; Rs. 1,000 (b) ≤ 5 Lacs; Rs. 1,000
(b) < 10Lacs; Rs. 5,000 (d) < 10 Lacs; Rs. 10,000

Q32. Mr. P has a total income of Rs. 7 lakhs for AY 2021-22. He files his return of income
for AY 2021-22 on 13th January, 2022. He is liable to pay late fee of
(a) Rs. 1,000 u/s 234F (b) Rs. 5,000 u/s 234F
C) Rs. 10,000 u/s 234F (d) Not liable to pay any fee

Q33. Mr. P has total income of Rs. 4,90,000 for the AY 2019-20. If a return is filed after
the due date u/s 139(1) then the late fees of shall be imposed u/s 234F upto .
(a) 2,000 (b) 2,500 (c) 5,000 (d) 1,000

Q34. Mr. A has total income of Rs. 14,90,000 for the AY 2021-22. If a return is filed
after the due date u/s 139(1) but before 31/12/AY then the late fees of shall
be imposed u/s 234F.
(a) 2,000 (b) 2,500 (c) 5,000 (d) 1,000

35. As per section 139(1), filing of returns is compulsory (must) irrespective of whether
profit is earned or loss is incurred, in case of -
(a) companies only (b) firms only
(c) both companies & firms (d) All Assessees

36. As per section 139(1), an individual shall file income tax return if -
(a) his total income exceeds Rs. 2,50,000
(b) his total income exceeds Rs. 3,00,000
(c)his total income exceeds Rs. 5,00,000
(d) his total income before allowing deduction u/s 80C to 80U & Exemption u/s 54

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exceeds BEL (Rs. 2,50,000).

37. Akash, who is 32 years old, has long-term capital gains on transfer of equity shares
of Rs. 25,000 which is exempt u/s 112A & deduction of Rs. 80,000 u/s 80C. He has to
file a ROI for AY 2021-22, only if his TI exceeds:
(a) Rs. 1,70,000 (b) Rs. 1,45,000
(c) Rs. 1,50,000 (d) Rs. 2,50,000

Q38. Mr. P dies on 15.11.2020 & his total income till this date was Rs. 2,55,000. Thereafter
the business of Mr. P was inherited by his son Mr. P & his total income from such
business was Rs. 2,88,000. The son does not have any other income. In this case the son
-
(a) has to file a consolidated income tax return for the amount of Rs. 5,43,000.
(b)has to file separate income tax returns, one on behalf of his father for Rs. 2,55,000
& other in his own capacity for Rs. 2,88,000.
(c) has to file only one income tax return on behalf of his father for Rs. 2,55,000.
(d) has to file only one income tax return on behalf of his father for Rs. 5,43,000.

Q39. ROI is required to be filed by every resident & ordinarily resident if

(a) He has signing authority in any account located outside India or holds asset outside
India
(b) He is a beneficiary of any asset located outside India.
(c) Both (a) & (b)
(d) None of (a) & (b) since no asset is located in India.

Q40. ROI is required to be filed by every RNOR if

(a) He has signing authority in any account located outside India or holds asset outside
India
(b) He is a beneficiary of any asset located outside India.
(c) Both (a) & (b)
(d) This proviso is not applicable to resident but not ordinarily resident.

Q41. For filing returns of income in respect of various entities, Income-tax Act, 1961 has
prescribed
(a) Two due dates (b) Three due dates
(c) Four due dates (d) Only one due date

Q42. In case of every assessee, the ROI shall be filed:

(a) On or before due date given u/s 139(1)

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(b) Before due date given u/s 139(1)

(c) On due date given u/s 139(1)
(d) After due date given u/s 139(1)

Q43. The last date of filing ROI u/s 139(1) for AY 2021-22 in case of non-corporate
assesses who does not have any income of PGBP is:
(a) 30th September of PY ` (b) 30th September of AY
(c) 31st July of AY (d) 31st July of the PY

Q44. Last date of filing ROI u/s 139(1) for AY 2021-22 in case of a Company assesses
is:
(a) 31st October of A Y (b) 30th September of AY
(c) 31st July of AY (d) 31st July of the PY

Q45. The last date of filing ROI u/s 139(1) for AY 2021-22 in case of non-corporate
assesses whose accounts are not liable to be audited is:
(a) 31st October of PY (b) 30th September of AY
(c) 31st July of AY (d) 31st July of the PY

Q46. Due date of furnishing return of income for a working partner of a firm whose
accounts are required to be audited is:
(a) 31st July of AY (b) 31st October of AY
(c) 30th November of AY (d) 31st March of AY

Q47. Due date of furnishing ROI for a non-working partner of a firm whose accounts are
required to be audited is:
(a) 31st July of AY (b) 31st October of AY
(c) 30th November of AY (d) 31st March of AY

Q48. Due date of furnishing return of ROI for a non- working partner of a firm whose
accounts are not required to be audited is:
(a) 31st July of AY (b) 31st October of AY
(c) 30th November of AY (d) 31st March of A Y

Q49. If last date of filing of ROI/ROL is a public holiday, Assessee should/can file ROI/ROL
on
(a) Previous working day.
(b) next working day.

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(c)On the same day

(d) Assessee should ask AO for the suitable date to file ROI.

Q50. During AY 2021-22 Mr. P has business turnover of Rs. 107 Lakhs., his last date of
filing of return shall be _.
(a) 31st July, 2020 (b) 31st July 2020
(c) 31st October 2021 (d) 30th September 2021

Q51. The filling of return of loss in case of a person other than a company or firm is:
(a) mandatory (b) not mandatory
(c) mandatory if the assessee wants to carry forward loss
(d) There is no provision regarding Return of Loss for a person other than a company or
firm.

Q52. If the assessee has to carry forward the loss, the return of loss must be submitted.
(a) On or before the due date mentioned in section 139(1)
(b) at any time before the end of the relevant AY
(c) at any time before the expiry of one year from the end of the relevant of the
assessment year
(d) Time specified by AO.

Q53. If there is a loss u/h “house property”, it will be allowed to be carried forward if the
assessee:
(a) has submitted the return of loss before the due date mentioned u/s 139(1).
(b) has not submitted the return of loss.
(c) has submitted the return of loss after the due date u/s 139(1) i. e. a belated return.
(d) No set off is allowed for such loss.

Q54. For AY 2021-22 the assessee suffered the loss u/h “house property” of Rs. 1,20,000.
His business income for the same PY is Rs. 50,000. The due date of filing ROI is 31.7.2021
but he submitted his ROI on 9.9.2021. In this case the assesses :
(a) Shall be allowed to carry forward the loss of Rs. 70,000.
(b) Shall not be allowed to carry forward loss of Rs. 70,000.
(c) No set off is allowed for such loss.
(d) Depends on the discretion of AO.

Q55. Section 80 prohibits _ of losses if ROL is not filed within DD of filing ROI u/s 139(1)
but it does not prohibit
of losses.

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(a) Carry forward , Set off (b) Set off, Carry forward
(c) Carry forward, Carry forward (d) Set off, Set off

Q56. For AY 2021-22, business loss of the assessee was Rs. 1,00,000 & current year
depreciation was 1,40,000. The assessee furnished ROI on 15.12.2021 although the due
date was 30.9.2021. In this case, the assessee shall be:
(a) allowed to carry forward business loss of Rs. 1,00,000 & unabsorbed depreciation of
Rs. 1,40,000
(b) neither be allowed to carry forward business loss nor the unabsorbed depreciation
(c) not be allowed to carry forward business loss but shall be allowed to carry forward
unabsorbed depreciation.
(d) allowed to carry forward business loss but not allowed to carry forward unabsorbed
depreciation

Q57. PGBP loss of the year for which return is filed after the due date u/s 139(1) but
PGBP loss of earlier years for which return was filed within due date u/s 139(1) .
(a) Cannot be carried forward, can be carried forward.
(b) Can be carried forward, can be carried forward.
(c) Can be carried forward, cannot be carried forward.
(d) Cannot be carried forward, cannot be carried forward.

Q58. For AY 2017 - 2018, Mr. A incurred a loss of Rs. 40,000 u/h PGBP & filed return
of loss within due date. He again incurred loss of Rs. 50,000 during AY 2020 - 2021 but
for this year he did not file return. In AY 2021 - 22, he earned income of Rs. 5 lacs.
How much loss can Mr. A carry forward & set off in this year ?
(a) Rs. 90,000 (b) Rs. 50,000 (c) Rs. 40,000 (d) Nil.

Q59. Belated return can be filed by an assessee before end of or before .whichever
is earlier.
(a) Relevant AY, Completion of Assessment
(b) 1 year from the end of AY, Completion of Assessment
(c)Relevant PY, Completion of Assessment
(d) 1 year from the end of PY, Completion of Assessment

Q60. The assessee could not file his ROI for AY 2021-22 within the time allowed u/s
139(1). No assessment has so far been made. In this case, assessee can file return of
income till -
(a) 31.3.2020 (b) 31.3.2021
(c) 31.3.2022 (d) 31.3.2019

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Q61. For PY 2020-21, no ROI has been filed. AO makes a BJA u/s 144 on 1.1.2022. Upto
what date can assessee file Belated ROI u/s 139(4).
(a) 31.3.2022 (b) 1.1.2022
(c) 30.9.2021 (d) 30.9.2020

Q62. ROI is treated as detective if it is not accompanied by:

(a) Statement showing the computation of tax payable on the basis of the return.
(b) Audit Report u/s 44AB.
(c) Proof regarding the tax claimed to have been deducted or collected at source & Advance
tax & SAT claimed to have been paid.
D) Any of the above

Q63. Revised return can be filed by

(a) End of relevant assessment year
(b) Before completion of assessment year
(c) Earlier of (a) & (b)
(d) Belated return is not allowed to be filed

Q64. For AY 2021-22, Mr. P has filed original ROI on 11.11.2021 whose due date of filing
of ROI was 31.7.2021, he can file revised return of income latest upto
(a) 31.3.2022 (b) 31.3.2021 (c) 30.9.2022 (d) 31.3.2023

Q65. If AO considers that return is defective, he may intimate the defect to the assessee
& give him
(a) Opportunity to rectify the defect within 30 days
(b) Opportunity to rectify the defect within 15 days
(c) No opportunity shall be given (d) None of the above

Q66. If the defect is not rectified within 15 days or such further extended period as
allowed by AO, then the return would be treated as return & it would be deemed that
the assessee had failed to furnish the return.
(a) Valid (b) Illegal (c) Invalid (d) None

Q67. In case of company, ROI can be signed by

(b) any member (b) Managing director
(c) any manager (d) chief executive officer

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Q68. Who cannot be Tax Return Preparer?

(a) Officer of Scheduled bank in which assessee maintain current A/c or has regular
dealings.
(b) Legal practitioner who is entitled to practice in any civil court in India.
(c) Chartered Accountant & Employee of “Specified class of Person”.
(d) All of the above.

Q69. Specified class of persons under TRPs means any person other than .
(a) company;
(b) person whose accounts are required to be audited u/s 44AB & is required to furnish
ROI.
(c) both (a) & (b)
(d) None of the above

70. Time Limit for Completion of assessment u/s 143(3) & 144 is….. from the end
of the relevant A.Y. from A.Y. 2021-22
a) 6 months
b) 9 months
c) 12 months
d) 18 months

71. The time limit for rectification of matters u/s 154 when it is made by the assessee
from the
end of the month in which the application is received by the income tax authority.

e) 4 months

f) 6 months

g) 4 years

h) 6 years

72.The time limit for completion of Income Escaping assessment is........ From the
end of the previous year in which notice u/s 148 is served.
i) 12 months
j) 18 months
k) 21 months
l) 24 months

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MCQ’s for Practice

Chapter : Advance Tax, Return &

Assessment
Q1. Tax shall be payable in advance during any FY on .
(a) Previous Income (b) Estimated Current Income
(c) Past Income (d) Future Income

Q2. Scheme of advance tax is known as .

(a) Step towards nation building (b) Earn more pay more
(b) Pay as much as you can (d) Pay as you earn

Q3. Obligation to pay advance tax arises when tax payable is .

(a) Rs. 10,000 or more (b) Rs. 10,000 or less
(c) Rs. 10,000 (d) Rs. 5,000 or more

Q4. Advance tax shall not be payable by resident individual having income like interest,
rent, etc. in India, who .
(a) Does not have any income taxable u/h “PGBP”
(b) Is of the age of 60 or more at any time during the PY
(c)Both (a) & (b)
d)Either (a) or (b)

Q5. How advance tax shall be computed?

(a) Tax on TI – Rebate + TDS (b) Tax on TI - Rebate - TDS
(c) Tax on TI – Rebate × TDS (d) Tax on TI/TDS

Q10. Assessee opting for presumptive taxation scheme u/s 44ADA for PY 2018-19 is liable
to pay advance tax -
(a) In one instalment on/before 15th march.

(b) In two instalments on/after 15th march.

(c)In three instalments on/before 15th September.

(d) In four instalments on/before 31st March.

Q11. Advance tax is payable in............. instalments by a non-corporate assessee

(a) 3 (b) 2 (c) 4 (d) 1

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Q12. Mr. A, whose total sales is Rs. 201 lacs declare profit of Rs. 10 lacs for PY 2020-21.
He is liable to pay advance tax in installments
(a) 1 (b) 2 (c) 3 (d) 4

Q13. First instalment of advance tax in case of company is.

(a) 15th June of relevant FY (b) 15th July of relevant FY
(c) 15th Aug of relevant FY (d) 15th Sep of relevant FY
Q14. First instalment of advance tax in case of non- company assesses should be made

(a) 15th June of relevant FY (b) 15th July of relevant FY

(c) 15th Aug of relevant FY (d) 15th Sep of relevant FY

Q15. Advance tax to be paid upto 15th Dec of FY is .

(a) 75% (b) 100% (c) 30% (d) 45%

Q16. For PY 2020-21, X Ltd has estimated its tax payable to be Rs. 2 lacs. Advance tax
payable upto 15th Dec 2020 is?

(a) 90,000 (b) 30,000 (c) 1.5 lac (d) 2 lac

Q17. Mr. A estimated his tax payable for PY 2020-21 @ Rs. 1 lac. Advance tax payable
upto 15th Sep 2020 is ?
(a) 45,000 (b) 75,000 (c) 15,000 (d) 1 lac

Q18. Where no instalment is due & any income is earned after 15th March of PY, the
entire tax is to be paid by
(a) 15th March (b) 31st March (c) 31st July (d) 15th Sep

Q19. Advance tax can be paid

(a) After 15th march of relevant FY

(b) cannot be paid after 15th March of relevant FY

(c)be paid after 15th March but by 31st March of the FY

(d) None of the above

Q20. If any person has paid income tax after expiry of last date of filing of ROI, Interest
u/s 234A shall be payable for period subsequent to last date of filing of ROI @
(a) 12% p.a (b) 1% p.m or part
(b) 10% p.m d) 7% p.m or part

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Q21. Mr. A submitted his ROI for PY 2020-21 on 15.12.2021. Due date of filing ROI was
30.9.2021. Mr. A shall have to pay interest u/s 234A for months
(a) 3 (b) 2 (c) 2.5 (d) 4

Q22. In what case, interest u/s 234B is attracted?

(a) Non-payment of advance tax
(b) Payment of advance tax of < 90% of Assessed Tax
(c)Either (a) or (b)
(d) None

Q23. Interest u/s 234B is calculate on difference b/w .

(a) Advance tax paid & assessed tax
(b) Advance tax paid & 90% of the assessed tax
(c)Assessed by tax & advance tax paid
(d) None of the above

Q24. Interest liability u/s 234B would be from 1st April following the FY up to the date
of assessment of income.
(a) 1% p.m (b) 1% p.m or part (c) 2% p.m or part

Q25. 1st installment of Advance tax of Rs. 15,000 was due on 15.9.2020. Assessee
deposited Rs. 10,000 on 14.8.2020 & balance on 16.11.2020. Interest payable @ 1% p.m
on __.
(a) Rs. 15,000 for 3 months (b) Rs. 5,000 for 3 months
(c) Rs. 5,000 for 2 months (d) Rs. 15,000 for 2 months

Q26. In case of company, if Advance tax payable in 1st installment is , no interest

u/s 234C shall be payable.
(a) 12% or less (b) 10% or more
(c) 12% or more (d) 36% or more

Q27. Interest liability u/s 234C would be for a period of for every deferment
(a) 2%, 6 months (b) 1%, 1 month
(c) 1%, 3 months (d) 2%, 3 months

Q28. For last installment of 15th March PY, interest liability u/s 234C would be
for
(a) 1%, 3 months (b) 1%, 1 month
(c) 1%, 3 months (d) 2%, 3 months

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Q29. In case of company, if advance tax payable in second installment is , no

interest u/s 234C shall be payable.
(a) 36% or less (b) 36% or more
(c) 12% or more (d) 12% or less

Q30. If a person who is required to file ROI u/s 139 does not file ROI within DD u/s 139(1),
fee payable u/s 234F shall be .
(a) Rs. 5,000 if ROI is filed on/before 31st December of AY
(b) Rs. 10,000 in any other case
(c)Both (a) & (b) (d) None of (a) or (b)

Q31. If Total Income of the person , fees payable shall not exceed .
(a) < 5 Lacs; Rs. 1,000 (b) ≤ 5 Lacs; Rs. 1,000
(b) < 10Lacs; Rs. 5,000 (d) < 10 Lacs; Rs. 10,000

Q32. Mr. P has a total income of Rs. 7 lakhs for AY 2021-22. He files his return of income
for AY 2021-22 on 13th January, 2022. He is liable to pay late fee of
(a) Rs. 1,000 u/s 234F (b) Rs. 5,000 u/s 234F
C) Rs. 10,000 u/s 234F (d) Not liable to pay any fee

Q33. Mr. P has total income of Rs. 4,90,000 for the AY 2019-20. If a return is filed after
the due date u/s 139(1) then the late fees of shall be imposed u/s 234F upto .
(a) 2,000 (b) 2,500 (c) 5,000 (d) 1,000

Q34. Mr. A has total income of Rs. 14,90,000 for the AY 2021-22. If a return is filed
after the due date u/s 139(1) but before 31/12/AY then the late fees of shall
be imposed u/s 234F.
(a) 2,000 (b) 2,500 (c) 5,000 (d) 1,000

35. As per section 139(1), filing of returns is compulsory (must) irrespective of whether
profit is earned or loss is incurred, in case of -
(a) companies only (b) firms only
(c) both companies & firms (d) All Assessees

36. As per section 139(1), an individual shall file income tax return if -
(a) his total income exceeds Rs. 2,50,000
(b) his total income exceeds Rs. 3,00,000
(c)his total income exceeds Rs. 5,00,000
(d) his total income before allowing deduction u/s 80C to 80U & Exemption u/s 54

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exceeds BEL (Rs. 2,50,000).

37. Akash, who is 32 years old, has long-term capital gains on transfer of equity shares
of Rs. 25,000 which is exempt u/s 112A & deduction of Rs. 80,000 u/s 80C. He has to
file a ROI for AY 2021-22, only if his TI exceeds:
(a) Rs. 1,70,000 (b) Rs. 1,45,000
(c) Rs. 1,50,000 (d) Rs. 2,50,000

Q38. Mr. P dies on 15.11.2020 & his total income till this date was Rs. 2,55,000. Thereafter
the business of Mr. P was inherited by his son Mr. P & his total income from such
business was Rs. 2,88,000. The son does not have any other income. In this case the son
-
(a) has to file a consolidated income tax return for the amount of Rs. 5,43,000.
(b)has to file separate income tax returns, one on behalf of his father for Rs. 2,55,000
& other in his own capacity for Rs. 2,88,000.
(c) has to file only one income tax return on behalf of his father for Rs. 2,55,000.
(d) has to file only one income tax return on behalf of his father for Rs. 5,43,000.

Q39. ROI is required to be filed by every resident & ordinarily resident if

(a) He has signing authority in any account located outside India or holds asset outside
India
(b) He is a beneficiary of any asset located outside India.
(c) Both (a) & (b)
(d) None of (a) & (b) since no asset is located in India.

Q40. ROI is required to be filed by every RNOR if

(a) He has signing authority in any account located outside India or holds asset outside
India
(b) He is a beneficiary of any asset located outside India.
(c) Both (a) & (b)
(d) This proviso is not applicable to resident but not ordinarily resident.

Q41. For filing returns of income in respect of various entities, Income-tax Act, 1961 has
prescribed
(a) Two due dates (b) Three due dates
(c) Four due dates (d) Only one due date

Q42. In case of every assessee, the ROI shall be filed:

(a) On or before due date given u/s 139(1)

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(b) Before due date given u/s 139(1)

(c) On due date given u/s 139(1)
(d) After due date given u/s 139(1)

Q43. The last date of filing ROI u/s 139(1) for AY 2021-22 in case of non-corporate
assesses who does not have any income of PGBP is:
(a) 30th September of PY ` (b) 30th September of AY
(c) 31st July of AY (d) 31st July of the PY

Q44. Last date of filing ROI u/s 139(1) for AY 2021-22 in case of a Company assesses
is:
(a) 31st October of A Y (b) 30th September of AY
(c) 31st July of AY (d) 31st July of the PY

Q45. The last date of filing ROI u/s 139(1) for AY 2021-22 in case of non-corporate
assesses whose accounts are not liable to be audited is:
(a) 31st October of PY (b) 30th September of AY
(c) 31st July of AY (d) 31st July of the PY

Q46. Due date of furnishing return of income for a working partner of a firm whose
accounts are required to be audited is:
(a) 31st July of AY (b) 31st October of AY
(c) 30th November of AY (d) 31st March of AY

Q47. Due date of furnishing ROI for a non-working partner of a firm whose accounts are
required to be audited is:
(a) 31st July of AY (b) 31st October of AY
(c) 30th November of AY (d) 31st March of AY

Q48. Due date of furnishing return of ROI for a non- working partner of a firm whose
accounts are not required to be audited is:
(a) 31st July of AY (b) 31st October of AY
(c) 30th November of AY (d) 31st March of A Y

Q49. If last date of filing of ROI/ROL is a public holiday, Assessee should/can file ROI/ROL
on
(a) Previous working day.
(b) next working day.

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(c)On the same day

(d) Assessee should ask AO for the suitable date to file ROI.

Q50. During AY 2021-22 Mr. P has business turnover of Rs. 107 Lakhs., his last date of
filing of return shall be _.
(a) 31st July, 2020 (b) 31st July 2020
(c) 31st October 2021 (d) 30th September 2021

Q51. The filling of return of loss in case of a person other than a company or firm is:
(a) mandatory (b) not mandatory
(c) mandatory if the assessee wants to carry forward loss
(d) There is no provision regarding Return of Loss for a person other than a company or
firm.

Q52. If the assessee has to carry forward the loss, the return of loss must be submitted.
(a) On or before the due date mentioned in section 139(1)
(b) at any time before the end of the relevant AY
(c) at any time before the expiry of one year from the end of the relevant of the
assessment year
(d) Time specified by AO.

Q53. If there is a loss u/h “house property”, it will be allowed to be carried forward if the
assessee:
(a) has submitted the return of loss before the due date mentioned u/s 139(1).
(b) has not submitted the return of loss.
(c) has submitted the return of loss after the due date u/s 139(1) i. e. a belated return.
(d) No set off is allowed for such loss.

Q54. For AY 2021-22 the assessee suffered the loss u/h “house property” of Rs. 1,20,000.
His business income for the same PY is Rs. 50,000. The due date of filing ROI is 31.7.2021
but he submitted his ROI on 9.9.2021. In this case the assesses :
(a) Shall be allowed to carry forward the loss of Rs. 70,000.
(b) Shall not be allowed to carry forward loss of Rs. 70,000.
(c) No set off is allowed for such loss.
(d) Depends on the discretion of AO.

Q55. Section 80 prohibits _ of losses if ROL is not filed within DD of filing ROI u/s 139(1)
but it does not prohibit
of losses.

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(a) Carry forward , Set off (b) Set off, Carry forward
(c) Carry forward, Carry forward (d) Set off, Set off

Q56. For AY 2021-22, business loss of the assessee was Rs. 1,00,000 & current year
depreciation was 1,40,000. The assessee furnished ROI on 15.12.2021 although the due
date was 30.9.2021. In this case, the assessee shall be:
(a) allowed to carry forward business loss of Rs. 1,00,000 & unabsorbed depreciation of
Rs. 1,40,000
(b) neither be allowed to carry forward business loss nor the unabsorbed depreciation
(c) not be allowed to carry forward business loss but shall be allowed to carry forward
unabsorbed depreciation.
(d) allowed to carry forward business loss but not allowed to carry forward unabsorbed
depreciation

Q57. PGBP loss of the year for which return is filed after the due date u/s 139(1) but
PGBP loss of earlier years for which return was filed within due date u/s 139(1) .
(a) Cannot be carried forward, can be carried forward.
(b) Can be carried forward, can be carried forward.
(c) Can be carried forward, cannot be carried forward.
(d) Cannot be carried forward, cannot be carried forward.

Q58. For AY 2017 - 2018, Mr. A incurred a loss of Rs. 40,000 u/h PGBP & filed return
of loss within due date. He again incurred loss of Rs. 50,000 during AY 2020 - 2021 but
for this year he did not file return. In AY 2021 - 22, he earned income of Rs. 5 lacs.
How much loss can Mr. A carry forward & set off in this year ?
(a) Rs. 90,000 (b) Rs. 50,000 (c) Rs. 40,000 (d) Nil.

Q59. Belated return can be filed by an assessee before end of or before .whichever
is earlier.
(a) Relevant AY, Completion of Assessment
(b) 1 year from the end of AY, Completion of Assessment
(c)Relevant PY, Completion of Assessment
(d) 1 year from the end of PY, Completion of Assessment

Q60. The assessee could not file his ROI for AY 2021-22 within the time allowed u/s
139(1). No assessment has so far been made. In this case, assessee can file return of
income till -
(a) 31.3.2020 (b) 31.3.2021
(c) 31.3.2022 (d) 31.3.2019

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Q61. For PY 2020-21, no ROI has been filed. AO makes a BJA u/s 144 on 1.1.2022. Upto
what date can assessee file Belated ROI u/s 139(4).
(a) 31.3.2022 (b) 1.1.2022
(c) 30.9.2021 (d) 30.9.2020

Q62. ROI is treated as detective if it is not accompanied by:

(a) Statement showing the computation of tax payable on the basis of the return.
(b) Audit Report u/s 44AB.
(c) Proof regarding the tax claimed to have been deducted or collected at source & Advance
tax & SAT claimed to have been paid.
D) Any of the above

Q63. Revised return can be filed by

(a) End of relevant assessment year
(b) Before completion of assessment year
(c) Earlier of (a) & (b)
(d) Belated return is not allowed to be filed

Q64. For AY 2021-22, Mr. P has filed original ROI on 11.11.2021 whose due date of filing
of ROI was 31.7.2021, he can file revised return of income latest upto
(a) 31.3.2022 (b) 31.3.2021 (c) 30.9.2022 (d) 31.3.2023

Q65. If AO considers that return is defective, he may intimate the defect to the assessee
& give him
(a) Opportunity to rectify the defect within 30 days
(b) Opportunity to rectify the defect within 15 days
(c) No opportunity shall be given (d) None of the above

Q66. If the defect is not rectified within 15 days or such further extended period as
allowed by AO, then the return would be treated as return & it would be deemed that
the assessee had failed to furnish the return.
(a) Valid (b) Illegal (c) Invalid (d) None

Q67. In case of company, ROI can be signed by

(b) any member (b) Managing director
(c) any manager (d) chief executive officer

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Q68. Who cannot be Tax Return Preparer?

(a) Officer of Scheduled bank in which assessee maintain current A/c or has regular
dealings.
(b) Legal practitioner who is entitled to practice in any civil court in India.
(c) Chartered Accountant & Employee of “Specified class of Person”.
(d) All of the above.

Q69. Specified class of persons under TRPs means any person other than .
(a) company;
(b) person whose accounts are required to be audited u/s 44AB & is required to furnish
ROI.
(c) both (a) & (b)
(d) None of the above

70. Time Limit for Completion of assessment u/s 143(3) & 144 is….. from the end
of the relevant A.Y. from A.Y. 2021-22
a) 6 months
b) 9 months
c) 12 months
d) 18 months

71. The time limit for rectification of matters u/s 154 when it is made by the assessee
from the
end of the month in which the application is received by the income tax authority.

e) 4 months

f) 6 months

g) 4 years

h) 6 years

72.The time limit for completion of Income Escaping assessment is........ From the
end of the previous year in which notice u/s 148 is served.
i) 12 months
j) 18 months
k) 21 months
l) 24 months

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CA VIVEK GABA CS EXECUTIVE JUNE & DEC 2021

Section 139A Requirement of PAN

Question: What are the specified financial transactions in which quoting of PAN is
mandatory?
Ans: As per rule 114B, following are the transactions in which quoting of PAN is mandatory by every
person except the Central Government, the State Governments and the Consular Offices:
1. Sale or purchase of a motor vehicle or vehicle other than two wheeled vehicles.
2. Opening an account [other than a time-deposit referred at point No. 12 and a Basic Savings Bank
Deposit Account] with a banking company or a co-operative bank
3. Making an application for issue of a credit or debit card.
4. Opening of a demat account with a depository, participant, custodian of securities or any other
person with SEBI
5. Payment in cash of an amount exceeding Rs. 50,000 to a hotel or restaurant against bill at any one
time.
6. Payment in cash of an amount exceeding Rs. 50,000 in connection with travel to any foreign
country or payment for purchase of any foreign currency at any one time.
7. Payment of an amount exceeding Rs. 50,000 to a Mutual Fund for purchase of its units
8. Payment of an amount exceeding Rs. 50,000 to a company or an institution for acquiring
debentures or bonds issued by it.
9. Payment of an amount exceeding Rs. 50,000 to the Reserve Bank of India for acquiring bonds
issued by it.
10. Deposit with a banking company or a co-operative bank:-
i. Cash exceeding Rs. 50,000 during any one day; or
ii. Cash deposit of aggregating to more than Rs. 2,50,000 during the period 09th November, 2016 to 30th
December, 2016
11. Payment in cash for an amount exceeding Rs. 50,000 during any one day for purchase of bank
drafts or pay orders or banker’s cheques from a banking company or a co-operative bank.
12. A time deposit of amount exceeding Rs. 50,000 or aggregating to more than Rs. 5 lakh during a
financial year with –
i. a banking company or a co-operative bank
ii. a Post Office;
iii. a Nidhi referred to in section 406 of the Companies Act, 2013 or
iv. a non-banking financial company
13. Payment in cash or by way of a bank draft or pay order or banker’s cheque of an amount aggregating
to more than Rs. 50,000 in a financial year. for one or more pre-paid payment instruments, as defined in
the policy guidelines for issuance and operation of pre-paid payment instruments issued by Reserve Bank
of India under section 18 of the Payment and Settlement Systems Act, 2007 to a banking company or a
co-operative bank or to any other company or institution.
14. Payment of an amount aggregating to more than Rs. 50,000 in a financial year as life insurance
premium to an insurer
15. A contract for sale or purchase of securities (other than shares) for amount exceeding Rs. 1
lakh per transaction
CA VIVEK GABA CS EXECUTIVE JUNE & DEC 2021
16. Sale or purchase, by any person, of shares of a company not listed in a recognised stock exchange
for amount exceeding Rs. 1 lakh per transaction.
17. Sale or purchase of any immovable property for an amount exceeding Rs. 10 lakh or valued by
stamp valuation authority referred to in section 50C of the Act at an amount exceeding ten lakh rupees.
18. Sale or purchase of goods or services of any nature other than those specified above for an
amount exceeding Rs. 2 lakh per transaction.
CA VIVEK GABA SECTION 10 SUMMARY

MUST READ FOR EXAMS

Income Exempt Under Section 10 of the Income Tax Act
Under the Income Tax Act, there is a Specified list of income that are either fully or partially exempt from tax. They have
been enumerated as under:
1. Agriculture income [Section 10(1)] – FULLY EXEMPT

2. Any sum received by a coparcener from Hindu Undivided Family (HUF) [Section 10(2)] – FULLY EXEMPT in

hands of coparcener

3. Share of income from the firm [Section 10(2A)] - FULLY EXEMPT in hands of Partner

4. Interest to non-resident on non-resident (external) account [Section 10(4)(ii)] FULLY EXEMPT

5. Perquisites and allowances paid by the government to its employees serving outside India [Section 10(7)] FULLY

EXEMPT

6. Income of any member of the family of individuals working in India under co-operative technical assistance

programmes [Section 10(9)] FULLY EXEMPT

7. Gratuity [Section 10(10)] EXEMPT UPTO 20,00,000

8. Commuted value of pension received [Section 10(I0A)] EXEMPT UPTO SPECIFIED LIMIT

9. Amount received as leave encashment on retirement [Section 10(10AA)] EXEMPT UPTO 3,00,000

10. Retrenchment compensation paid to workmen [Section 10(10B)] EXEMPT UPTO 5,00,000

11. Retirement compensation from a public sector company or any other company [Section 10 (10C)]

EXEMPT UPTO 5,00,000

12. Income by way of tax on perqusites [Section 10(10CC)] FULLY EXEMPT

13. Any sum received under a life insurance policy [Section 10(10D)] EXEMPT UPTO SPECIFIED LIMIT

14. Payment from statutory provident fund [Section 10(11)] FULLY EXEMPT

15. Payment from recognised fund [Section 10(12)] EXEMPT AFTER FULLFIL SOME CONDITIONS

16. Payment from superannuation fund [Section 10(13)] EXEMPT FROM TAX

17. House rent allowance (HRA) [Section 10(13A) Read with Rule 2A] EXEMPT UPTO SPECIFIED LIMIT

18. Any allowance given for meeting business expenditure [Section 10(14)] Amount Received or Spent/Limit

whichever is less is EXEMPT

19. Interest incomes [Section 10(15)] EXEMPT UPTO SPECIFIED LIMIT

20. Scholarship [Section 10(16)] FULLY EXEMPT

21. Allowance of MP/MLA/MLC [Section 10(17)] FULLY EXEMPT

CA VIVEK GABA SECTION 10 SUMMARY
22. Awards instituted by government [Section 10(17A)] FULLY EXEMPT

23. Pension received by certain winners of gallantry awards [Section 10(18)] FULLY EXEMPT

24. Family pension received by family members of armed forces including paramilitary forces [Section 10(19)] FULLY

EXEMPT

25. Income of scientific research association [Section 10(21)] FULLY EXEMPT

26. Income of a news agency [Section 10(22B)] FULLY EXEMPT

27. Income of mutual fund [Section 10(23D)] FULLY EXEMPT

28. Income of registered trade unions [Section 10(24)] FULLY EXEMPT

29. Income of provident and superannuation funds [Section 10(25)] FULLY EXEMPT

30. mount received as subsidy from or through the tea board [Section 10(30)] FULLY EXEMPT

31. Income of child clubbed uls 64 (1A) [Section 10(32)] EXEMPT UPTO 1500 PER CHILD

32. Income by way of dividend from Indian company [Section 10(34)] EXEMPT UPTO 10,00,000

33. Income from units of UTI and other mutual funds [Section 10(35)] FULLY EXEMPT

34. Capital gain on compulsory acquisition of urban agricultural land [Section 10(37)] FULLY EXEMPT Subject to

Condition

35. Reverse mortgage [Sec. 10(43)] FULLY EXEMPT

36. New Pension System Trust [Sec. 10(44)] FULLY EXEMPT

37. Exemption of income of notified ‘infrastructure debt fund’ [Section 10(47) FULLY EXEMPT]

38. Exemption of income of a foreign company from sale of crude oil in India [Section 10 (48)] FULLY EXEMPT

For OTHER ENQUIRY – CALL AT 7703880232

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GST TEST SERIES CA VIVEK GABA CS EXECUTIVE

CHAPTER 1 to 3
[70 MCQs]
1. The definition of goods under section 2(52) of the CGST Act does not include-
(a) Grass
(b) Money and securities
(c) Actionable claims
(d) Growing crops

2. The definition of goods under section 2(52) of the CGST Act does include-
(a) Grass
(b) Money and securities
(c) Actionable claims
(d) Both A & C

3. The definition of goods under section 2(52) of the CGST Act is -

(a) Inclusive
(b) Exhaustive
(c) None of the above
(d) Both A & C

4. The definition of Services under section 2(102) of the CGST Act is -

(a) Inclusive
(b) Exhaustive
(c) None of the above
(d) Both A & C

5. The definition of Services under section 2(102) of the CGST Act means -
(a) Anything
(b) Anything other than Goods
(c) Anything other than goods and money
(d) Anything other than goods, money & securities

6. The definition of services under section 2(102) of the CGST Act includes -
(a) Movable property
(b) Immovable property
(c) Both A & B
(d) None of the above
GST TEST SERIES CA VIVEK GABA CS EXECUTIVE

7. The definition of services under section 2(102) of the CGST Act includes -
(a) Transaction in securities
(b) Facilitating or arranging transactions in securities
(c) Both A & B
(d) None of the above

8. An exempt supply includes-

(a) Supply of goods or services or both which attracts Nil rate of tax
(b) Non-taxable supply
(c) Supply of goods or services or both which are wholly exempt from tax under
Section 11 of the CGST Act or under Section 6 of IGST Act
(d) All of the above

9. ............ of the Constitution provides that no tax shall be levied or collected

except by authority of law?
(a) Article 254
(b) Article 245
(c) Article 265
(d) Article 256
10. ............ of the Constitution provides that subject matter of laws made by
parliament or Legislature of State ?
(e) Article 254
(f) Article 245
(g) Article 246
(h) Article 265
11. Capital goods include-
(a) Goods, the value of which is capitalized in the books of accounts
(b) Goods which are used or intended to be used in the course or furtherance of
business
(c) Both (a) and (b)
(d) None of the above

12. The term 'agriculturist' includes the following persons who undertake
cultivation of land:
(a) An individual
(b) A Hindu Undivided Family
(c) A co-operative society
(d) Both (a) and (b)

13. The term 'casual taxable person' includes:

(a) A person occasionally supplying goods or services or both in a State or a Union
territory where he has no fixed place of business.
(b) A person occasionally supplying goods or services or both in a State or a Union
GST TEST SERIES CA VIVEK GABA CS EXECUTIVE

territory where he has fixed place of business.

(c) Both (a) and (b)
(d) None of the above

14. Section defines ‘Job Work’.

(a) 2(78)

(b) 2(68)

(c) 2(87)

(d) 2(68)

15. For payment of IGST input tax credit can be utilised in the following manner
only :
(a) IGST, CGST & SGST/UTGST in any Manner
(b) IGST, SGST/UTGST, CGST in that order
(c) IGST, CGST, SGST/UTGST in that order
(d) Any of the above manner
16. Input tax credit of IGST an be utilised in the following manner only :
(a) IGST, CGST & SGST/UTGST in any Manner
(b) IGST, SGST/UTGST, CGST in that order
(c) IGST, CGST, SGST/UTGST in that order
(d) Any of the above manner

17. Input tax credit of CGST an be utilised in the following manner only :
(a) CGST & IGST in that order
(b) IGST, SGST/UTGST, CGST in that order
(c) IGST, CGST, SGST/UTGST in that order
(d) Any of the above manner
18. For payment of SGST input tax credit can be utilised in the following manner
only :
(a) IGST, SGST/UTGST in that order
(b) IGST, SGST/UTGST, CGST in that order
(c) IGST, CGST, SGST/UTGST in that order
(d) Any of the above manner

19. Input tax credit of SGST/UTGSTc can be utilised in the following manner only :
(a) SGST/UTGST & IGST in that order
(b) IGST, SGST/UTGST, in that order
(c) IGST, CGST, SGST/UTGST in that order
(d) Any of the above manner

20. GST is one of the widely accepted __________ system prevalent in more than _______
 GST TEST SERIES CA VIVEK GABA CS EXECUTIVE

across the globe?

a) Indirect Tax, 160 Countries
b) Direct Tax, 185 Countries
c) Indirect Tax, 170 Countries
d) Indirect Tax, 190 Countries
21. GST was first levied by ________?
a) France in 1954
b) USA in 1985
c) India in 2017
d) U.K in 1970
22. ________ is the most recent country to join the bandwagon?
a) Malaysia
b) Pakistan
c) USA
d) France

23. GST is a ________ based tax?

a) Destination
b) Origin
c) Both A & B
d) None of the above
24. Which of the following statement is correct:-
I. GST is a broad-based tax
II. GST is a destination based tax
III. GST is collected through a staged process i.e. a tax on the value added to goods or
services at every point in the supply chain
IV. GST is a tax on the consumption of products from business sources, and not on
personal or hobby activities
a) Only I.
b) I & II Both
c) I, II & III
d) I, II, III & IV all statement is correct
25. Which of the following statement is False:-
I. GST is a broad-based tax
II. GST is a Origin based tax
III. GST is collected through a staged process i.e. a tax on the value added to goods or
services at every point in the supply chain
IV. GST is a tax on the consumption of products from business sources, and not on
personal or hobby activities
a) Only I.
b) I & II Both
c) Only II
d) I, II, III & IV all are false.

26. Which of the following statement is Correct:-

 GST TEST SERIES CA VIVEK GABA CS EXECUTIVE

I. GST is a broad-based tax

II. GST is a destination based tax
III. GST is collected through a staged process i.e. a tax on the value added to goods or
services at every point in the supply chain
IV. Under GST, input tax credit is provided throughout the value chain for creditable
acquisition.
a) Only I.
b) I & II Both
c) Only II
d) I, II, III & IV all are correct.

27. Australian Model wherein, tax is collected by the ______ and distributed to the _____?
a) Centre, State
b) State, Centre
c) Both A & B
d) None of the above
28. Currently, __________ also follow dual GST model?
a) Brazil and Canada
b) USA and Canada
c) France & U.K
d) Germany & France
29. India follow _______ GST Model?
a) Single
b) Dual
c) Four
d) None of the above.
30. GST is a consumption or destination based tax levied on the basis of the “________”?
a) Destination principle
b) Origin Principle
c) Both A & B
d) None of the above
31. It is a __________ tax regime covering both goods and services, and be collected on value-
added at each stage of the supply chain?
a) Comprehensive
b) Selective
c) Positive
d) None of the above
32. Goods and Services Tax is a tax levied on goods and services imposed at each point of
________?
a) Supply
b) Manufacturing
c) Sale
d) Service
 GST TEST SERIES CA VIVEK GABA CS EXECUTIVE

33. GST is a national level tax based on _______?

a) value added principle
b) First point tax principle
c) Last point tax principle
d) None of the above
34. _________ as a well-designed value added tax on all goods and services, is the most
elegant method to eliminate distortions and to tax consumption?
a) Goods and Services Tax
b) Service Tax
c) Income Tax
d) Excise Duty
35. Which of the following Central Taxes have been subsumed under GST?
i. Central Excise Duty
ii. Duties of Excise (Medicinal and Toilet Preparations)
iii. Additional Duties of Excise (Textiles and Textile Products)
iv. Service Tax
v. Income Tax
vi. Basic Custom Duty
a) i, ii, iii & iv
b) vi, iii, ii, i & v
c) Only i, ii & iii
d) None of the above
36. Which of the following Central Taxes have not been subsumed under GST?
i. Central Excise Duty
ii. Duties of Excise (Medicinal and Toilet Preparations)
iii. Additional Duties of Excise (Textiles and Textile Products)
iv. Service Tax
v. Income Tax
vi. Basic Custom Duty
vii. Export Duty
a) v, vi & vii
b) Only v.
c) i, ii & vii.
d) Only vi & vii.
37. Which of the following Central Taxes have been subsumed under GST?
i. Central Excise Duty
ii. Duties of Excise (Medicinal and Toilet Preparations)
iii. Additional Duties of Excise (Textiles and Textile Products)
iv. Service Tax
v. Income Tax
vi. Basic Custom Duty
vii. Additional custom duties (commonly known as CVD)
viii. Special Custom duties (commonly known as SAD)
a) i, ii, iii, iv, vii & viii
b) Only vii & viii.
 GST TEST SERIES CA VIVEK GABA CS EXECUTIVE

c) Only v & vi.

d) None of the above
38. Which of the following State Taxes have been subsumed under GST?
i. State VAT [Except 5 PP & A. Liquor for HC)
ii. Central Sales Tax [Except 5 PP & A. Liquor for HC)
iii. Purchase Tax
iv. Luxury Tax
v. Entry Tax
vi. All forms Entertainment Tax (except those levied by the local bodies)
a) i, ii, iii, iv, v & vi.
b) Only iii, iv & v.
c) Only vi
d) None of the above

39. Which of the following State Taxes have not been subsumed under GST?
i. Road & passenger tax
ii. Central Sales Tax
iii. Toll tax
iv. Luxury Tax
v. Property tax
vi. Electricity duty.
a) i, iii, v & vi.
b) Only iii, iv & v.
c) Only vi
d) None of the above
40. Which of the following State Taxes have been subsumed under GST?
a) State VAT [Except 5 PP & A.Liquor for HC)
b) Taxes on advertisements
c) Taxes on lotteries, betting and gambling
d) All of the above
41. Final assent of Hon’ble President of India was given on ______?
a) 8th September,2016
b) December 19, 2016
c) 8th September,2017
d) None of the above
42. Which of the following Bills passed by parliament?
i. Central Goods and Services Tax (CGST)Bill
ii. Integrated Goods and Services Tax(IGST) Bill
iii. Union Territory Goods and Services Tax (UTGST)Bill
iv. Goods and Services Tax (Compensation to States) Bill
v. State Goods and Services Tax (SGST)Bill
a) i, ii, iii & iv
b) Only i.
c) Only i, ii & iii
d) All of the above
 GST TEST SERIES CA VIVEK GABA CS EXECUTIVE

43. ________ is the main decision-making body that has been formed to finalize the design of
GST?
a) GST Council
b) Central government
c) State government
d) Parliament
44. Who will be the chairperson in GST Council?
a) Union finance minister
b) State finance minister
c) Any minister nominated by Government
d) None of the above
45. Vice Chairperson of GST Council will be from Member from ______?
a) State Government
b) Central government
c) Any member nominated by central government
d) Any of the above
46. In the GST Council, a decision will be taken by a _______ majority with the Centre having
a _________ and the states the remaining _______?
a) three-fourth, one-third vote, two-third
b) three-fourth, Two-third vote, One-third
c) Two-third, One-third, One third
d) None of the above

47. On which of the following functions GST Council may give recommendations –
a) taxes, cesses, and surcharges levied by the Centre, States and local bodies which may
be subsumed in the GST
b) goods and services which may be subjected to or exempted from GST
c) special provision with respect to Arunachal Pradesh, Jammu and Kashmir, Manipur,
Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand
d) all of the above
48. In India GST came effective from July 1st, 2017. India has chosen ___ model of dual-GST.
a) USA
b) UK
c) Canadian
d) China

49. Which of the following country has the maximum GST tax slab?
a) Greece
b) China
c) Australia
d) India
50. Indian GST model has _________rate structure.
a) 3
b) 4
c) 5
 GST TEST SERIES CA VIVEK GABA CS EXECUTIVE

d) 6
e) 2
51. How many types of taxes will be in Indian GST?
a) 2
b) 3
c) 4
d) 6
52. What does “I” stands for in IGST?
a) International
b) Internal
c) Integrated
d) Intra
53. The tax IGST charged by _________Government.
a) Central / Parliament
b) State
c) Concerned department
d) Both a and b
e) All a, b and c
54. The maximum rate of IGST in current GST Laws is _________.
a) 5%
b) 12%
c) 18%
d) 28%
e) No such limit
55. GST comes under which amendment bill?
a) 118
b) 120
c) 122
d) 115
e) 129
56. Under which Act GST was introduced?
a) 100
b) 101
c) 102
d) 103
57. GST council formation based on Article number _________.
a) 279A
b) 289A
c) 266A
d) 255A
58. GST Definition defined under article __________
a) 366(12A)
b) 289A
c) 266A
d) 255A
 GST TEST SERIES CA VIVEK GABA CS EXECUTIVE

59. GST threshold limit of Normal States is _________ lakh

a) 12
b) 15
c) 20/40
d) 25
60. The Central Board of Excise and Customs (CBEC) announced that every year _________
will be considered as GST Day.
a) April 1
b) March 1
c) June 1
d) July 1

61. A special purpose vehicle _________ has been launched to cater the needs of GST.
a) GSTC
b) GSTN
c) GSTM
d) GSTR

62. What does N stands for in HSN?

a) Network
b) Nationalization
c) Nominee
d) Nomenclature
e) Nomination
63. Which article Introduce GST?
a) 270
b) 246A
c) 269A (1)
d) 279A
64. What is Integrated Goods and Services Tax?
a) Tax imposed on imported goods and services
b) Tax imposed on value additions to exports
c) Tax imposed on interstate trade
d) Tax on international trade
65. Who of the following will be the members of the GST Council?
i. Union Finance Minister
ii. Union Minister of State in charge of Revenue or Finance
iii. Chief Ministers of States
a) 1, 3
b) 1, 2
c) 2, 3
d) All of the above
66. Which of the following taxes leviable on an intra-State transaction?
a)CGST
b)SGST
 GST TEST SERIES CA VIVEK GABA CS EXECUTIVE

c)BOTHOFABOVE
d) IGST
67. Which of the following taxes leviable on Imports?
a) CGST
b) SGST
c) IGST
d) all of the above
68. what is the full form of GSTIN
a) Goods and service tax number
b) Goods and services tax identification number
c) Goods and services tax Import number
d) all of the above
69. Which of the following taxes leviable on Export?
a) No GST (i.e Zero rated supply)
b) IGST
c) SGST
d) all of the above
70. Who is liable to pay GST under GST?
a) Supplier
b) Receiver
c) 3rd Party (i.e ECO)
d) Any of the above

ALL THE BEST

Best Regards,
CA VIVEK GABA (TAX LOVE)
For Doubts: ividyadoubts@gmail.com
GST TEST SERIES CA VIVEK GABA CS EXECUTIVE

CHAPTER 1 to 3
[70 MCQs]
1. The definition of goods under section 2(52) of the CGST Act does not include-
(a) Grass
(b) Money and securities
(c) Actionable claims
(d) Growing crops

2. The definition of goods under section 2(52) of the CGST Act does include-
(a) Grass
(b) Money and securities
(c) Actionable claims
(d) Both A & C

3. The definition of goods under section 2(52) of the CGST Act is -

(a) Inclusive
(b) Exhaustive
(c) None of the above
(d) Both A & C

4. The definition of Services under section 2(102) of the CGST Act is -

(a) Inclusive
(b) Exhaustive
(c) None of the above
(d) Both A & C

5. The definition of Services under section 2(102) of the CGST Act means -
(a) Anything
(b) Anything other than Goods
(c) Anything other than goods and money
(d) Anything other than goods, money & securities

6. The definition of services under section 2(102) of the CGST Act includes -
(a) Movable property
(b) Immovable property
(c) Both A & B
(d) None of the above
GST TEST SERIES CA VIVEK GABA CS EXECUTIVE

7. The definition of services under section 2(102) of the CGST Act includes -
(a) Transaction in securities
(b) Facilitating or arranging transactions in securities
(c) Both A & B
(d) None of the above

8. An exempt supply includes-

(a) Supply of goods or services or both which attracts Nil rate of tax
(b) Non-taxable supply
(c) Supply of goods or services or both which are wholly exempt from tax under
Section 11 of the CGST Act or under Section 6 of IGST Act
(d) All of the above

9. ............ of the Constitution provides that no tax shall be levied or collected

except by authority of law?
(a) Article 254
(b) Article 245
(c) Article 265
(d) Article 256
10. ............ of the Constitution provides that subject matter of laws made by
parliament or Legislature of State ?
(e) Article 254
(f) Article 245
(g) Article 246
(h) Article 265
11. Capital goods include-
(a) Goods, the value of which is capitalized in the books of accounts
(b) Goods which are used or intended to be used in the course or furtherance of
business
(c) Both (a) and (b)
(d) None of the above

12. The term 'agriculturist' includes the following persons who undertake
cultivation of land:
(a) An individual
(b) A Hindu Undivided Family
(c) A co-operative society
(d) Both (a) and (b)

13. The term 'casual taxable person' includes:

(a) A person occasionally supplying goods or services or both in a State or a Union
territory where he has no fixed place of business.
(b) A person occasionally supplying goods or services or both in a State or a Union
GST TEST SERIES CA VIVEK GABA CS EXECUTIVE

territory where he has fixed place of business.

(c) Both (a) and (b)
(d) None of the above

14. Section defines ‘Job Work’.

(a) 2(78)

(b) 2(68)

(c) 2(87)

(d) 2(68)

15. For payment of IGST input tax credit can be utilised in the following manner
only :
(a) IGST, CGST & SGST/UTGST in any Manner
(b) IGST, SGST/UTGST, CGST in that order
(c) IGST, CGST, SGST/UTGST in that order
(d) Any of the above manner
16. Input tax credit of IGST an be utilised in the following manner only :
(a) IGST, CGST & SGST/UTGST in any Manner
(b) IGST, SGST/UTGST, CGST in that order
(c) IGST, CGST, SGST/UTGST in that order
(d) Any of the above manner

17. Input tax credit of CGST an be utilised in the following manner only :
(a) CGST & IGST in that order
(b) IGST, SGST/UTGST, CGST in that order
(c) IGST, CGST, SGST/UTGST in that order
(d) Any of the above manner
18. For payment of SGST input tax credit can be utilised in the following manner
only :
(a) IGST, SGST/UTGST in that order
(b) IGST, SGST/UTGST, CGST in that order
(c) IGST, CGST, SGST/UTGST in that order
(d) Any of the above manner

19. Input tax credit of SGST/UTGSTc can be utilised in the following manner only :
(a) SGST/UTGST & IGST in that order
(b) IGST, SGST/UTGST, in that order
(c) IGST, CGST, SGST/UTGST in that order
(d) Any of the above manner

20. GST is one of the widely accepted __________ system prevalent in more than _______
 GST TEST SERIES CA VIVEK GABA CS EXECUTIVE

across the globe?

a) Indirect Tax, 160 Countries
b) Direct Tax, 185 Countries
c) Indirect Tax, 170 Countries
d) Indirect Tax, 190 Countries
21. GST was first levied by ________?
a) France in 1954
b) USA in 1985
c) India in 2017
d) U.K in 1970
22. ________ is the most recent country to join the bandwagon?
a) Malaysia
b) Pakistan
c) USA
d) France

23. GST is a ________ based tax?

a) Destination
b) Origin
c) Both A & B
d) None of the above
24. Which of the following statement is correct:-
I. GST is a broad-based tax
II. GST is a destination based tax
III. GST is collected through a staged process i.e. a tax on the value added to goods or
services at every point in the supply chain
IV. GST is a tax on the consumption of products from business sources, and not on
personal or hobby activities
a) Only I.
b) I & II Both
c) I, II & III
d) I, II, III & IV all statement is correct
25. Which of the following statement is False:-
I. GST is a broad-based tax
II. GST is a Origin based tax
III. GST is collected through a staged process i.e. a tax on the value added to goods or
services at every point in the supply chain
IV. GST is a tax on the consumption of products from business sources, and not on
personal or hobby activities
a) Only I.
b) I & II Both
c) Only II
d) I, II, III & IV all are false.

26. Which of the following statement is Correct:-

 GST TEST SERIES CA VIVEK GABA CS EXECUTIVE

I. GST is a broad-based tax

II. GST is a destination based tax
III. GST is collected through a staged process i.e. a tax on the value added to goods or
services at every point in the supply chain
IV. Under GST, input tax credit is provided throughout the value chain for creditable
acquisition.
a) Only I.
b) I & II Both
c) Only II
d) I, II, III & IV all are correct.

27. Australian Model wherein, tax is collected by the ______ and distributed to the _____?
a) Centre, State
b) State, Centre
c) Both A & B
d) None of the above
28. Currently, __________ also follow dual GST model?
a) Brazil and Canada
b) USA and Canada
c) France & U.K
d) Germany & France
29. India follow _______ GST Model?
a) Single
b) Dual
c) Four
d) None of the above.
30. GST is a consumption or destination based tax levied on the basis of the “________”?
a) Destination principle
b) Origin Principle
c) Both A & B
d) None of the above
31. It is a __________ tax regime covering both goods and services, and be collected on value-
added at each stage of the supply chain?
a) Comprehensive
b) Selective
c) Positive
d) None of the above
32. Goods and Services Tax is a tax levied on goods and services imposed at each point of
________?
a) Supply
b) Manufacturing
c) Sale
d) Service
 GST TEST SERIES CA VIVEK GABA CS EXECUTIVE

33. GST is a national level tax based on _______?

a) value added principle
b) First point tax principle
c) Last point tax principle
d) None of the above
34. _________ as a well-designed value added tax on all goods and services, is the most
elegant method to eliminate distortions and to tax consumption?
a) Goods and Services Tax
b) Service Tax
c) Income Tax
d) Excise Duty
35. Which of the following Central Taxes have been subsumed under GST?
i. Central Excise Duty
ii. Duties of Excise (Medicinal and Toilet Preparations)
iii. Additional Duties of Excise (Textiles and Textile Products)
iv. Service Tax
v. Income Tax
vi. Basic Custom Duty
a) i, ii, iii & iv
b) vi, iii, ii, i & v
c) Only i, ii & iii
d) None of the above
36. Which of the following Central Taxes have not been subsumed under GST?
i. Central Excise Duty
ii. Duties of Excise (Medicinal and Toilet Preparations)
iii. Additional Duties of Excise (Textiles and Textile Products)
iv. Service Tax
v. Income Tax
vi. Basic Custom Duty
vii. Export Duty
a) v, vi & vii
b) Only v.
c) i, ii & vii.
d) Only vi & vii.
37. Which of the following Central Taxes have been subsumed under GST?
i. Central Excise Duty
ii. Duties of Excise (Medicinal and Toilet Preparations)
iii. Additional Duties of Excise (Textiles and Textile Products)
iv. Service Tax
v. Income Tax
vi. Basic Custom Duty
vii. Additional custom duties (commonly known as CVD)
viii. Special Custom duties (commonly known as SAD)
a) i, ii, iii, iv, vii & viii
b) Only vii & viii.
 GST TEST SERIES CA VIVEK GABA CS EXECUTIVE

c) Only v & vi.

d) None of the above
38. Which of the following State Taxes have been subsumed under GST?
i. State VAT [Except 5 PP & A. Liquor for HC)
ii. Central Sales Tax [Except 5 PP & A. Liquor for HC)
iii. Purchase Tax
iv. Luxury Tax
v. Entry Tax
vi. All forms Entertainment Tax (except those levied by the local bodies)
a) i, ii, iii, iv, v & vi.
b) Only iii, iv & v.
c) Only vi
d) None of the above

39. Which of the following State Taxes have not been subsumed under GST?
i. Road & passenger tax
ii. Central Sales Tax
iii. Toll tax
iv. Luxury Tax
v. Property tax
vi. Electricity duty.
a) i, iii, v & vi.
b) Only iii, iv & v.
c) Only vi
d) None of the above
40. Which of the following State Taxes have been subsumed under GST?
a) State VAT [Except 5 PP & A.Liquor for HC)
b) Taxes on advertisements
c) Taxes on lotteries, betting and gambling
d) All of the above
41. Final assent of Hon’ble President of India was given on ______?
a) 8th September,2016
b) December 19, 2016
c) 8th September,2017
d) None of the above
42. Which of the following Bills passed by parliament?
i. Central Goods and Services Tax (CGST)Bill
ii. Integrated Goods and Services Tax(IGST) Bill
iii. Union Territory Goods and Services Tax (UTGST)Bill
iv. Goods and Services Tax (Compensation to States) Bill
v. State Goods and Services Tax (SGST)Bill
a) i, ii, iii & iv
b) Only i.
c) Only i, ii & iii
d) All of the above
 GST TEST SERIES CA VIVEK GABA CS EXECUTIVE

43. ________ is the main decision-making body that has been formed to finalize the design of
GST?
a) GST Council
b) Central government
c) State government
d) Parliament
44. Who will be the chairperson in GST Council?
a) Union finance minister
b) State finance minister
c) Any minister nominated by Government
d) None of the above
45. Vice Chairperson of GST Council will be from Member from ______?
a) State Government
b) Central government
c) Any member nominated by central government
d) Any of the above
46. In the GST Council, a decision will be taken by a _______ majority with the Centre having
a _________ and the states the remaining _______?
a) three-fourth, one-third vote, two-third
b) three-fourth, Two-third vote, One-third
c) Two-third, One-third, One third
d) None of the above

47. On which of the following functions GST Council may give recommendations –
a) taxes, cesses, and surcharges levied by the Centre, States and local bodies which may
be subsumed in the GST
b) goods and services which may be subjected to or exempted from GST
c) special provision with respect to Arunachal Pradesh, Jammu and Kashmir, Manipur,
Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand
d) all of the above
48. In India GST came effective from July 1st, 2017. India has chosen ___ model of dual-GST.
a) USA
b) UK
c) Canadian
d) China

49. Which of the following country has the maximum GST tax slab?
a) Greece
b) China
c) Australia
d) India
50. Indian GST model has _________rate structure.
a) 3
b) 4
c) 5
 GST TEST SERIES CA VIVEK GABA CS EXECUTIVE

d) 6
e) 2
51. How many types of taxes will be in Indian GST?
a) 2
b) 3
c) 4
d) 6
52. What does “I” stands for in IGST?
a) International
b) Internal
c) Integrated
d) Intra
53. The tax IGST charged by _________Government.
a) Central / Parliament
b) State
c) Concerned department
d) Both a and b
e) All a, b and c
54. The maximum rate of IGST in current GST Laws is _________.
a) 5%
b) 12%
c) 18%
d) 28%
e) No such limit
55. GST comes under which amendment bill?
a) 118
b) 120
c) 122
d) 115
e) 129
56. Under which Act GST was introduced?
a) 100
b) 101
c) 102
d) 103
57. GST council formation based on Article number _________.
a) 279A
b) 289A
c) 266A
d) 255A
58. GST Definition defined under article __________
a) 366(12A)
b) 289A
c) 266A
d) 255A
 GST TEST SERIES CA VIVEK GABA CS EXECUTIVE

59. GST threshold limit of Normal States is _________ lakh

a) 12
b) 15
c) 20/40
d) 25
60. The Central Board of Excise and Customs (CBEC) announced that every year _________
will be considered as GST Day.
a) April 1
b) March 1
c) June 1
d) July 1

61. A special purpose vehicle _________ has been launched to cater the needs of GST.
a) GSTC
b) GSTN
c) GSTM
d) GSTR

62. What does N stands for in HSN?

a) Network
b) Nationalization
c) Nominee
d) Nomenclature
e) Nomination
63. Which article Introduce GST?
a) 270
b) 246A
c) 269A (1)
d) 279A
64. What is Integrated Goods and Services Tax?
a) Tax imposed on imported goods and services
b) Tax imposed on value additions to exports
c) Tax imposed on interstate trade
d) Tax on international trade
65. Who of the following will be the members of the GST Council?
i. Union Finance Minister
ii. Union Minister of State in charge of Revenue or Finance
iii. Chief Ministers of States
a) 1, 3
b) 1, 2
c) 2, 3
d) All of the above
66. Which of the following taxes leviable on an intra-State transaction?
a)CGST
b)SGST
 GST TEST SERIES CA VIVEK GABA CS EXECUTIVE

c)BOTHOFABOVE
d) IGST
67. Which of the following taxes leviable on Imports?
a) CGST
b) SGST
c) IGST
d) all of the above
68. what is the full form of GSTIN
a) Goods and service tax number
b) Goods and services tax identification number
c) Goods and services tax Import number
d) all of the above
69. Which of the following taxes leviable on Export?
a) No GST (i.e Zero rated supply)
b) IGST
c) SGST
d) all of the above
70. Who is liable to pay GST under GST?
a) Supplier
b) Receiver
c) 3rd Party (i.e ECO)
d) Any of the above

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GST MCQs CH - 4 CA VIVEK GABA CS - EXECUTIVE

CHAPTER – 4 SUPPLY MCQ’s

1. Under GST the taxable event is _____ of goods or services or both?
a) SUPPLY
b) Manufacturing
c) Sale
d) Provision of services
2. Supply defined under which of the following section –
a) Section 7 of CGST Act, 2017
b) Section 11 of CGST Act, 2017
c) Section 9 of CGST Act, 2017
d) None of the above
3. Classification of Supply ( SOG or SOS) defined under which of the following section –
a) Section 7(1A) of CGST Act, 2017
b) Section 7(1)(d) of CGST Act, 2017
c) Section 9 of CGST Act, 2017
d) Section 7(2) of CGST Act, 2017
4. Definition of Supply given under Act is –
a) Inclusive definition
b) Exhaustive definition
c) Neither A Nor B
d) Both A & B
5. Sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made
is deemed to be as Supply if –
a) Transaction enter for a consideration
b) Transaction in the course or furtherance of business
c) Both A & B must be satisfied
d) Only A Satisfied
6. Import of services for a consideration __________ is deemed as Supply?
a) whether or not in the course or furtherance of business
b) Transaction in the course or furtherance of business
c) Not a Supply
d) none of the above
7. The activities specified in _______, made or agreed to be made without a consideration is
deemed as Supply?
a) Schedule I
b) Schedule II
c) Schedule I & II
d) None of the above
8. The activities to be treated as “supply of goods” or “supply of services” as referred to in
_______?
a) Schedule II
b) Schedule I
c) Both A & B
d) None of the above
9. A Customer purchases a printer and pays Rs. 12,000 for it is called as –
a) Supply since it is sale & Cover under Sec 7(1)(a)
b) Supply since it is Exchange & Cover under Sec 7(1)(a)
c) Not a Supply since it not Cover under Sec 7(1)(a)
d) Supply since it is Barter & Cover under Sec 7(1)(a)
10. A customer purchase a printer and pays the supplier by exchanging his used computer for
printer. The market value of the used computer is Rs. 12,000 is –
a) Supply since it is Barter & Cover under Sec 7(1)(a)
b) Supply since it is Sale & Cover under Sec 7(1)(a)

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GST MCQs CH - 4 CA VIVEK GABA CS - EXECUTIVE
c) Not a Supply since it not Cover under Sec 7(1)(a)
d) Supply since it is Sale & Cover under Sec 7(1)(a)
11. A trader exchanged a new car for Rs. 2,00,000 cash and a used car (of market value of
10,00,000) –
a) Supply since it is Exchange & Cover under Sec 7(1)(a)
b) Supply since it is Sale & Cover under Sec 7(1)(a)
c) Not a Supply since it not Cover under Sec 7(1)(a)
d) Supply since it is Barter & Cover under Sec 7(1)(a)
12. Mr. A is salaried employee in A Ltd. it sells his second hand cycle for consideration of Rs.
2,000. Whether this transaction deemed as supply under section 7(1)(a) –
a) Not a supply since This supply transaction is not in the course or furtherance of business
b) It is supply since This supply transaction is not in the course or furtherance of business
c) neither A nor B
d) None of the above.
13. Mr A is a salaried employee in A Ltd. It has availed services of an foreign architect for
construction of his house. which of the following statement is correct –
a) Such supply of service is not in course or furtherance of any business in hands of Mr A. But it
will constitute supply in terms of section 7(1)(b).
b) Such supply of service is not in course or furtherance of any business in hands of Mr A & it will
not constitute supply in terms of section 7(1)(b).
c) Any of the above
d) None of the above
14. The law provides that in certain cases, even though there is no consideration, the same
would be treated as ‘Supply’. Such cases are Listed in _______?
a) Schedule I
b) Schedule II
c) Schedule I & II
d) None of the above
15. Which of the following activity deemed as Supply under Schedule I even if no consideration
exists –
a) Sale (permanent transfer) of business assets (goods) on which ITC has been availed
b) Supplies of goods and/or services between related person, except gift upto Rs. 50,000 to
employees.
c) Agent to principal of vice-versa, if agent supplies / receives goods on behalf of principal
d) All of the above
16. Which of the following activity deemed to be “Supply of Goods” –
i. Transfer of title of goods
ii. Permanent Transfer of business assets
iii. Transfer of right without transfer of title
iv. Treatment of process to another person’s goods [job-work, repair, maintenance, etc.]
v. Supply of Goods by ‘unincorporated AOP/BOI’ to its members
a) i, ii & iii
b) i, ii & v
c) Only i & ii
d) Only iii & iv
17. Which of the following activity deemed to be “Supply of Services” –
i. Transfer of title of goods
ii. Permanent Transfer of business assets
iii. Transfer of right without transfer of title
iv. Treatment of process to another person’s goods [job-work, repair, maintenance, etc.]
v. Supply of Goods by ‘unincorporated AOP/BOI’ to its members
a) i, ii & v
b) ii & iii
c) iii & iv
d) Only iii

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GST MCQs CH - 4 CA VIVEK GABA CS - EXECUTIVE
18. Transfer of title of goods is deemed to be –
a) Supply of goods
b) Supply of Services
c) Both A & B depends upon situation
d) Neither A & Nor B
19. Permanent Transfer of business assets –
a) Supply of goods
b) Supply of Services
c) Both A & B depends upon situation
d) Neither A & Nor B
20. Supply of Goods by ‘unincorporated AOP/BOI’ to its members-
a) Supply of goods
b) Supply of Services
c) Both A & B depends upon situation
d) Neither A & Nor B
21. Transfer of right without transfer of title-
a) Supply of goods
b) Supply of Services
c) Both A & B depends upon situation
d) Neither A & Nor B
22. Treatment of process to another person’s goods [job-work, repair, maintenance, etc.]
a) Supply of goods
b) Supply of Services
c) Both A & B depends upon situation
d) Neither A & Nor B
23. Motor Car purchased (ITC not availed being not admissible) Subsequent, disposed off without
consideration is –
a) Covered under Supply
b) Not a Supply
c) Neither A & nor B
d) Liable to Excise duty
24. Gift upto value of Rs 50,000 in a year to an employee __________ & Gifts in value in excess of
Rs. 50,000 _______
a) shall not be treated as “Supply”, shall be taxable as ‘Supply’
b) shall be taxable as ‘Supply’, shall not be treated as “Supply”
c) Both activity not covered under supply
d) None of the above
25. Stock Transfer/ branch transfer from Mumbai Head office to Gujarat Branch office.
[HO – GST registered in Maharastra] & [BO- GST Registration in Gujarat] –
a) It is deemed as Supply
b) It is not a supply
c) Any of the above
d) None of the above
26. Which of the following statement is correct –
a) ABC associates received legal consultancy service from its head office located in USA. The head
office has rendered such service free of cost to its branch office. Since ABC Associates and the
branch office are related persons, services received by ABC associates will qualify as supply
even though the head office has not charged anything from it
b) Gift upto value of Rs 50,000 in a year to an employee shall not be treated as “Supply”& Gifts in
value in excess of Rs. 50,000 shall be taxable as ‘Supply’
c) Both A & B
d) None of the above
27. ________ is excluded from the definition of goods as well as services
a) securities and money
b) Only Securities
c) Only Money

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GST MCQs CH - 4 CA VIVEK GABA CS - EXECUTIVE
d) None of the above
28. Characterize a transaction as supply which of the following points need to be kept in mind?
a) Supply should be a taxable supply
b) Supply should be made by a taxable person
c) Supply should be made within taxable territory
d) All of the above
29. A head office which is located out of India provides interior designing services to its branch
office in India, the service _______
a) will be a taxable Supply under GST
b) will not be taxable supply under GST
c) outside the preview of GST
d) none of the above
30. Any transfer of right or undivided share in goods Service without transfer of title is–
a) Supply of Goods
b) Supply of Services
c) Any of the above at the option of GST council
d) None of the above
31. Transfer of title in goods under an agreement where property in goods passes at a future date
on payment of full consideration –
a) Supply of Goods
b) Supply of Services
c) Any of the above
d) None of the above
32. Any lease, tenancy, easement, licence to occupy land –
a) Supply of Goods
b) Supply of Services
c) Any of the above /
d) None of the above
33. Any lease or letting out of the building including a commercial, industrial or residential
complex for business or commerce, either wholly or partly –
a) Supply of Goods
b) Supply of Services
c) Any of the above
d) None of the above
34. Renting of immovable property
a) Supply of Goods
b) Supply of Services
c) Any of the above
d) None of the above
35. Temporary transfer or permitting the use or enjoyment of any intellectual property right -
a) Supply of Goods
b) Supply of Services
c) Any of the above
d) None of the above
36. Development, design, programming, customisation, adaptation, upgradation, enhancement,
implementation of information technology software –
a) Supply of Goods
b) Supply of Services
c) Any of the above
d) None of the above
37. Agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an
act –
a) Supply of Goods
b) Supply of Services
c) Any of the above
d) None of the above

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GST MCQs CH - 4 CA VIVEK GABA CS - EXECUTIVE
38. Works Contract as defined under Section 2(119) –
a) Supply of Goods
b) Supply of Services
c) Any of the above
d) None of the above
39. Which of the followings Activities which are neither supply of goods nor supply of services –
a) Services by employee to employer
b) Services by any court or tribunal
c) Functions performed by the Members of Parliament etc
d) All of the above
40. Which of the followings Activities which are neither supply of goods nor supply of services-
a) Services of funeral, burial, crematorium or mortuary including transportation of the deceased.
b) Actionable claims, other than lottery, betting and gambling
c) Both A & B
d) Only A
41. Composite supply is similar to the concept of “_________”
a) Bundled service
b) Mixed Supply
c) Joint supply
d) None of the above
42. Composite supply is ______
a) naturally bundled
b) unnatural bundle
c) mixed supply
d) none of the above
43. Mixed supply is ______
a) naturally bundled
b) unnatural bundle
c) mixed supply
d) none of the above
44. Under __________ the goods or services can be sold separately-
a) Mixed supply
b) Composite supply
c) Both A & B
d) None of the above
45. Where goods are packed and transported with insurance, the supply of goods, packing
materials, transport and insurance is a _______ and supply of goods is a principal supply –
a) composite supply
b) Mixed Supply
c) Both A & B
d) None of the above
46. A supply of a package consisting of canned foods, sweets, chocolates, cakes, dry fruits,
aerated drinks and fruit juices when supplied for a single price is _______.
a) mixed supply
b) Composite supply
c) None of the above
d) Both A & B
47. which of the following statement is correct –
a) a composite supply comprising two or more supplies, one of which is a principal supply, shall be
treated as a supply of such principal supply
b) a mixed supply comprising two or more supplies shall be treated as a supply of that particular
supply which attracts the highest rate of tax
c) both A & B
d) only A

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GST MCQs CH - 4 CA VIVEK GABA CS - EXECUTIVE

48. Which of the followings Activities which are neither supply of goods nor supply of
services:
a) Services by employee to employer
b) Services by any court or tribunal
c) Functions performed by the Members of Parliament etc
d) All of the above
49. Which of the followings Activities which are neither supply of goods nor supply of
services:
a) Services by employer to employee
b) Services by only Supreme court or tribunal
c) Supply of goods from a place in the non-taxable territory to another place in the non-
taxable territory without such goods entering into India.
d) All of the above
50. Which of the followings Activities which are neither supply of goods nor supply of
services:
a) Services by employer to employee
b) Supply of warehoused goods to any person before clearance for home consumption;
c) Supply of goods from a place in the non-taxable territory to another place in the non-
taxable territory without such goods entering into India.
d) Both B & C
51. Which of the followings Activities which are neither supply of goods nor supply of
services:
a) Supply of goods by the consignee to any other person, by endorsement of documents
of title to the goods, after the goods have been dispatched from the port of origin
located outside India but before clearance for home consumption.
b) Supply of warehoused goods to any person before clearance for home consumption;
c) Supply of goods from a place in the non-taxable territory to another place in the non-
taxable territory without such goods entering into India.
d) All of the above
52. Supply of Actionable claim Betting, Gambling or Lottery –
a) GST Liability will arise
b) GST Liability will not arise
c) 50% GST Liability shall exempt
d) None of the above
53. Which of the following Actionable claim not taxable under GST–
a) Unsecured Debt
b) Betting
c) Gambling
d) Both B & C
54. Supply of Goods from a place in the ___________ to another place in the _______ without
such goods entering into India
a) Non – taxable territory, Non - taxable territory
b) Non – taxable territory, taxable territory
c) taxable territory, Non - taxable territory
d) Both B & C

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GST MCQs CH - 4 CA VIVEK GABA CS - EXECUTIVE

55. Supply of Goods from a place in the ___________ to another place in the _______ without
such goods entering into India
a) Non – taxable territory, Non - taxable territory
b) Non – taxable territory, taxable territory
c) taxable territory, Non - taxable territory
d) Both B & C

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GST MCQs CH - 4 CA VIVEK GABA CS - EXECUTIVE

CHAPTER – 4 SUPPLY MCQ’s

1. Under GST the taxable event is _____ of goods or services or both?
a) SUPPLY
b) Manufacturing
c) Sale
d) Provision of services
2. Supply defined under which of the following section –
a) Section 7 of CGST Act, 2017
b) Section 11 of CGST Act, 2017
c) Section 9 of CGST Act, 2017
d) None of the above
3. Classification of Supply ( SOG or SOS) defined under which of the following section –
a) Section 7(1A) of CGST Act, 2017
b) Section 7(1)(d) of CGST Act, 2017
c) Section 9 of CGST Act, 2017
d) Section 7(2) of CGST Act, 2017
4. Definition of Supply given under Act is –
a) Inclusive definition
b) Exhaustive definition
c) Neither A Nor B
d) Both A & B
5. Sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made
is deemed to be as Supply if –
a) Transaction enter for a consideration
b) Transaction in the course or furtherance of business
c) Both A & B must be satisfied
d) Only A Satisfied
6. Import of services for a consideration __________ is deemed as Supply?
a) whether or not in the course or furtherance of business
b) Transaction in the course or furtherance of business
c) Not a Supply
d) none of the above
7. The activities specified in _______, made or agreed to be made without a consideration is
deemed as Supply?
a) Schedule I
b) Schedule II
c) Schedule I & II
d) None of the above
8. The activities to be treated as “supply of goods” or “supply of services” as referred to in
_______?
a) Schedule II
b) Schedule I
c) Both A & B
d) None of the above
9. A Customer purchases a printer and pays Rs. 12,000 for it is called as –
a) Supply since it is sale & Cover under Sec 7(1)(a)
b) Supply since it is Exchange & Cover under Sec 7(1)(a)
c) Not a Supply since it not Cover under Sec 7(1)(a)
d) Supply since it is Barter & Cover under Sec 7(1)(a)
10. A customer purchase a printer and pays the supplier by exchanging his used computer for
printer. The market value of the used computer is Rs. 12,000 is –
a) Supply since it is Barter & Cover under Sec 7(1)(a)
b) Supply since it is Sale & Cover under Sec 7(1)(a)

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GST MCQs CH - 4 CA VIVEK GABA CS - EXECUTIVE
c) Not a Supply since it not Cover under Sec 7(1)(a)
d) Supply since it is Sale & Cover under Sec 7(1)(a)
11. A trader exchanged a new car for Rs. 2,00,000 cash and a used car (of market value of
10,00,000) –
a) Supply since it is Exchange & Cover under Sec 7(1)(a)
b) Supply since it is Sale & Cover under Sec 7(1)(a)
c) Not a Supply since it not Cover under Sec 7(1)(a)
d) Supply since it is Barter & Cover under Sec 7(1)(a)
12. Mr. A is salaried employee in A Ltd. it sells his second hand cycle for consideration of Rs.
2,000. Whether this transaction deemed as supply under section 7(1)(a) –
a) Not a supply since This supply transaction is not in the course or furtherance of business
b) It is supply since This supply transaction is not in the course or furtherance of business
c) neither A nor B
d) None of the above.
13. Mr A is a salaried employee in A Ltd. It has availed services of an foreign architect for
construction of his house. which of the following statement is correct –
a) Such supply of service is not in course or furtherance of any business in hands of Mr A. But it
will constitute supply in terms of section 7(1)(b).
b) Such supply of service is not in course or furtherance of any business in hands of Mr A & it will
not constitute supply in terms of section 7(1)(b).
c) Any of the above
d) None of the above
14. The law provides that in certain cases, even though there is no consideration, the same
would be treated as ‘Supply’. Such cases are Listed in _______?
a) Schedule I
b) Schedule II
c) Schedule I & II
d) None of the above
15. Which of the following activity deemed as Supply under Schedule I even if no consideration
exists –
a) Sale (permanent transfer) of business assets (goods) on which ITC has been availed
b) Supplies of goods and/or services between related person, except gift upto Rs. 50,000 to
employees.
c) Agent to principal of vice-versa, if agent supplies / receives goods on behalf of principal
d) All of the above
16. Which of the following activity deemed to be “Supply of Goods” –
i. Transfer of title of goods
ii. Permanent Transfer of business assets
iii. Transfer of right without transfer of title
iv. Treatment of process to another person’s goods [job-work, repair, maintenance, etc.]
v. Supply of Goods by ‘unincorporated AOP/BOI’ to its members
a) i, ii & iii
b) i, ii & v
c) Only i & ii
d) Only iii & iv
17. Which of the following activity deemed to be “Supply of Services” –
i. Transfer of title of goods
ii. Permanent Transfer of business assets
iii. Transfer of right without transfer of title
iv. Treatment of process to another person’s goods [job-work, repair, maintenance, etc.]
v. Supply of Goods by ‘unincorporated AOP/BOI’ to its members
a) i, ii & v
b) ii & iii
c) iii & iv
d) Only iii

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GST MCQs CH - 4 CA VIVEK GABA CS - EXECUTIVE
18. Transfer of title of goods is deemed to be –
a) Supply of goods
b) Supply of Services
c) Both A & B depends upon situation
d) Neither A & Nor B
19. Permanent Transfer of business assets –
a) Supply of goods
b) Supply of Services
c) Both A & B depends upon situation
d) Neither A & Nor B
20. Supply of Goods by ‘unincorporated AOP/BOI’ to its members-
a) Supply of goods
b) Supply of Services
c) Both A & B depends upon situation
d) Neither A & Nor B
21. Transfer of right without transfer of title-
a) Supply of goods
b) Supply of Services
c) Both A & B depends upon situation
d) Neither A & Nor B
22. Treatment of process to another person’s goods [job-work, repair, maintenance, etc.]
a) Supply of goods
b) Supply of Services
c) Both A & B depends upon situation
d) Neither A & Nor B
23. Motor Car purchased (ITC not availed being not admissible) Subsequent, disposed off without
consideration is –
a) Covered under Supply
b) Not a Supply
c) Neither A & nor B
d) Liable to Excise duty
24. Gift upto value of Rs 50,000 in a year to an employee __________ & Gifts in value in excess of
Rs. 50,000 _______
a) shall not be treated as “Supply”, shall be taxable as ‘Supply’
b) shall be taxable as ‘Supply’, shall not be treated as “Supply”
c) Both activity not covered under supply
d) None of the above
25. Stock Transfer/ branch transfer from Mumbai Head office to Gujarat Branch office.
[HO – GST registered in Maharastra] & [BO- GST Registration in Gujarat] –
a) It is deemed as Supply
b) It is not a supply
c) Any of the above
d) None of the above
26. Which of the following statement is correct –
a) ABC associates received legal consultancy service from its head office located in USA. The head
office has rendered such service free of cost to its branch office. Since ABC Associates and the
branch office are related persons, services received by ABC associates will qualify as supply
even though the head office has not charged anything from it
b) Gift upto value of Rs 50,000 in a year to an employee shall not be treated as “Supply”& Gifts in
value in excess of Rs. 50,000 shall be taxable as ‘Supply’
c) Both A & B
d) None of the above
27. ________ is excluded from the definition of goods as well as services
a) securities and money
b) Only Securities
c) Only Money

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GST MCQs CH - 4 CA VIVEK GABA CS - EXECUTIVE
d) None of the above
28. Characterize a transaction as supply which of the following points need to be kept in mind?
a) Supply should be a taxable supply
b) Supply should be made by a taxable person
c) Supply should be made within taxable territory
d) All of the above
29. A head office which is located out of India provides interior designing services to its branch
office in India, the service _______
a) will be a taxable Supply under GST
b) will not be taxable supply under GST
c) outside the preview of GST
d) none of the above
30. Any transfer of right or undivided share in goods Service without transfer of title is–
a) Supply of Goods
b) Supply of Services
c) Any of the above at the option of GST council
d) None of the above
31. Transfer of title in goods under an agreement where property in goods passes at a future date
on payment of full consideration –
a) Supply of Goods
b) Supply of Services
c) Any of the above
d) None of the above
32. Any lease, tenancy, easement, licence to occupy land –
a) Supply of Goods
b) Supply of Services
c) Any of the above /
d) None of the above
33. Any lease or letting out of the building including a commercial, industrial or residential
complex for business or commerce, either wholly or partly –
a) Supply of Goods
b) Supply of Services
c) Any of the above
d) None of the above
34. Renting of immovable property
a) Supply of Goods
b) Supply of Services
c) Any of the above
d) None of the above
35. Temporary transfer or permitting the use or enjoyment of any intellectual property right -
a) Supply of Goods
b) Supply of Services
c) Any of the above
d) None of the above
36. Development, design, programming, customisation, adaptation, upgradation, enhancement,
implementation of information technology software –
a) Supply of Goods
b) Supply of Services
c) Any of the above
d) None of the above
37. Agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an
act –
a) Supply of Goods
b) Supply of Services
c) Any of the above
d) None of the above

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GST MCQs CH - 4 CA VIVEK GABA CS - EXECUTIVE
38. Works Contract as defined under Section 2(119) –
a) Supply of Goods
b) Supply of Services
c) Any of the above
d) None of the above
39. Which of the followings Activities which are neither supply of goods nor supply of services –
a) Services by employee to employer
b) Services by any court or tribunal
c) Functions performed by the Members of Parliament etc
d) All of the above
40. Which of the followings Activities which are neither supply of goods nor supply of services-
a) Services of funeral, burial, crematorium or mortuary including transportation of the deceased.
b) Actionable claims, other than lottery, betting and gambling
c) Both A & B
d) Only A
41. Composite supply is similar to the concept of “_________”
a) Bundled service
b) Mixed Supply
c) Joint supply
d) None of the above
42. Composite supply is ______
a) naturally bundled
b) unnatural bundle
c) mixed supply
d) none of the above
43. Mixed supply is ______
a) naturally bundled
b) unnatural bundle
c) mixed supply
d) none of the above
44. Under __________ the goods or services can be sold separately-
a) Mixed supply
b) Composite supply
c) Both A & B
d) None of the above
45. Where goods are packed and transported with insurance, the supply of goods, packing
materials, transport and insurance is a _______ and supply of goods is a principal supply –
a) composite supply
b) Mixed Supply
c) Both A & B
d) None of the above
46. A supply of a package consisting of canned foods, sweets, chocolates, cakes, dry fruits,
aerated drinks and fruit juices when supplied for a single price is _______.
a) mixed supply
b) Composite supply
c) None of the above
d) Both A & B
47. which of the following statement is correct –
a) a composite supply comprising two or more supplies, one of which is a principal supply, shall be
treated as a supply of such principal supply
b) a mixed supply comprising two or more supplies shall be treated as a supply of that particular
supply which attracts the highest rate of tax
c) both A & B
d) only A

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GST MCQs CH - 4 CA VIVEK GABA CS - EXECUTIVE

48. Which of the followings Activities which are neither supply of goods nor supply of
services:
a) Services by employee to employer
b) Services by any court or tribunal
c) Functions performed by the Members of Parliament etc
d) All of the above
49. Which of the followings Activities which are neither supply of goods nor supply of
services:
a) Services by employer to employee
b) Services by only Supreme court or tribunal
c) Supply of goods from a place in the non-taxable territory to another place in the non-
taxable territory without such goods entering into India.
d) All of the above
50. Which of the followings Activities which are neither supply of goods nor supply of
services:
a) Services by employer to employee
b) Supply of warehoused goods to any person before clearance for home consumption;
c) Supply of goods from a place in the non-taxable territory to another place in the non-
taxable territory without such goods entering into India.
d) Both B & C
51. Which of the followings Activities which are neither supply of goods nor supply of
services:
a) Supply of goods by the consignee to any other person, by endorsement of documents
of title to the goods, after the goods have been dispatched from the port of origin
located outside India but before clearance for home consumption.
b) Supply of warehoused goods to any person before clearance for home consumption;
c) Supply of goods from a place in the non-taxable territory to another place in the non-
taxable territory without such goods entering into India.
d) All of the above
52. Supply of Actionable claim Betting, Gambling or Lottery –
a) GST Liability will arise
b) GST Liability will not arise
c) 50% GST Liability shall exempt
d) None of the above
53. Which of the following Actionable claim not taxable under GST–
a) Unsecured Debt
b) Betting
c) Gambling
d) Both B & C
54. Supply of Goods from a place in the ___________ to another place in the _______ without
such goods entering into India
a) Non – taxable territory, Non - taxable territory
b) Non – taxable territory, taxable territory
c) taxable territory, Non - taxable territory
d) Both B & C

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GST MCQs CH - 4 CA VIVEK GABA CS - EXECUTIVE

55. Supply of Goods from a place in the ___________ to another place in the _______ without
such goods entering into India
a) Non – taxable territory, Non - taxable territory
b) Non – taxable territory, taxable territory
c) taxable territory, Non - taxable territory
d) Both B & C

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CA VIVEK GABA CS – EXECUTIVE GST MCQs

CS – EXECUTIVE

TAX SCANNER
GST MCQs
(SET – 1)
Relevant for : JUNE & DEC 2021 EXAMS

Compilation & Authored by CA VIVEK GABA

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CA VIVEK GABA CS – EXECUTIVE GST MCQs

CS – EXECUTIVE (NEW & OLD SYLLABUS)

GST MCQ’s SET – 1 (BASIC, SUPPLY, RCM, COMPOSITION & VALUATION)
Compilation by: CA VIVEK GABA
1. Which of the following is a non–taxable supply under the CGST Act, 2017:
(a) Supply of goods not leviable to tax under the CGST Act, 2017
(b) Supply of services not leviable to tax under the CGST Act, 2017
(c) Supply which is neither a supply of good nor a supply of service.
(d) Both (a) and (b)

2. The definition of goods under section 2(52) of the CGST Act does not include-
(a) Grass
(b) Money and securities
(c) Actionable claims
(d) Growing crops

3. Agent means:
(a) A person who carries on the business of supply or receipt of goods or services or both on
behalf of another
(b) A person who arranges or facilitates the supply of goods or services or both, but does not
include a person who supplies such goods or services or both on his own account
(c) Both (a) or (b)
(d) None of the above

4. An exempt supply includes-

(a) Supply of goods or services or both which attracts Nil rate of tax
(b) Non-taxable supply
(c) Supply of goods or services or both which are wholly exempt from tax under Section 11 of the
CGST Act or under Section 6 of IGST Act
(d) All of the above

5. What are different types of supplies covered under the scope of supply?
(a) Supplies made with consideration
(b) Supplies made without consideration
(c) Both of the above
(d) None of the above

6. What are the factors differentiating composite supply & mixed supply?
(a) Nature of bundling i.e. artificial or natural
(b) Existence of principal supply
(c) Both of the above
(d) None of the above

7. What would be the tax rate applicable in case of composite supply?

(a) Tax rate as applicable on principal supply
(b) Tax rate as applicable on ancillary supply

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CA VIVEK GABA CS – EXECUTIVE GST MCQs
(c) Tax rate as applicable on respective supply
(d) None of the above

8. What would be the tax rate applicable in case of mixed supply?

(a) Tax rate as applicable on supply attracting the lowest rate of tax
(b) Tax rate as applicable on supply attracting the highest rate of tax
(c) Tax @ 28%
(d) None of the above

9. ......... of the Constitution provides that no tax shall be levied or collected except by
authority of law?
(a) Article 254
(b) Article 245
(c) Article 265
(d) Article 256

10. What are the supplies on which reverse charge mechanism would apply?
(a) Notified categories of goods or services or both under section 9(3)
(b) Inward supply of Specified goods or Specified services or both from an unregistered dealer under
section 9(4)
(c) Both the above
(d) None of the above

11. Services by a recovery agent to M/s PNB Bank Ltd., are liable for GST in the hands of:
(a) M/s PNB Bank Ltd.
(b) Recovery agent
(c) Both the above
(d) None of the above

12. In case of lottery procured from State Government by a lottery distributor, GST is payable by:
(a) Lottery distributor
(b) State Government
(c) Both the above
(d) None of the above

13. Reverse charge under section 9(3) of the CGST Act is applicable on:-
(a) Only on notified services
(b) Only on notified goods
(c) Notified goods & services
(d) None of the above

14. Which of the following services are covered under Reverse Charge Mechanism of CGST Act, 2017?
i. Legal Consultancy
ii. Goods Transport Agency
iii. Manpower Supply
iv. Rent-a-Cab

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CA VIVEK GABA CS – EXECUTIVE GST MCQs
(a) i & iii
(b) i & iv
(c) i & ii
(d) All the above

15. In case of sponsorship services provided by Mr. A to M/s BCCI Ltd., liability to pay GST is on:
(a) Mr. A
(b) M/s BCCI Ltd.
(c) Both
(d) None of the above

16. As per Section 9, which of the following would attract levy of CGST?
(a) Inter-State supplies, in respect of supplies within the State to SEZ;
(b) Intra-State supplies;
(c) Both of the above;
(d) Either of the above.

17. Which of the following forms of supply are included in Schedule I?

(a) Permanent transfer of business assets on which input tax credit has been claimed
(b) Agency transactions for services
(c) Barter
(d) None of the above

18. Who can notify a transaction to be supply of ‘goods’ or ‘services’?

(a) CBIC
(b) Central Government on the recommendation of GST Council
(c) GST Council
(d) None of the above

19. As per Section 7, which of the following would attract levy of UTGST?
(a) Inter-state supplies
(b) Intra-state supplies
(c) Any of the above
(d) None of the above

20. If Raw Cotton procured from an Agriculturist by a registered person, then: -

(a) Reverse charge is applicable
(b) Normal charge is applicable
(c) Joint charge is applicable
(d) None of the above

21. Reverse charge is applicable:

(a) Only on intra-State supplies
(b) Only on inter-State supplies
(c) Both intra-State and inter-State supplies
(d) None of the above

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CA VIVEK GABA CS – EXECUTIVE GST MCQs
22. Sitting fees received by director of VG Ltd., is liable for GST in the hands of the………
(a) Director
(b) VG Ltd
(c) Both of above
(d) None of the above

23. Can a registered person under composition scheme claim input tax credit?
(a) Yes
(b) No
(c) Input tax credit on outward supply of goods only can be claimed
(d) Input tax credit on inward supply of goods only can be claimed

24. Can a registered person opting for composition scheme collect tax on his outward supplies?
(a) Yes
(b) No
(c) Yes, if the amount of tax is prominently indicated in the invoice issued by him
(d) Yes, only on such goods as may be notified by the State Government

25. What are the taxes levied on an intra-State supply?

(a) CGST
(b) SGST
(c) CGST and SGST
(d) IGST

26. What is the maximum rate prescribed under CGST Act?

(a) 12%
(b) 28%
(c) 20%
(d) 18%

27. Which of the following taxes will be levied on imports?

(a) CGST
(b) SGST
(c) IGST
(d) CGST and SGST

28. What is the maximum rate prescribed under UTGST Act?

(a) 14%
(b) 28%
(c) 20%
(d) 30%

29. Which of the following persons can opt for composition scheme?
(a) Person making any supply of goods which are not leviable to tax under this Act;
(b) Person making any inter-State outward supplies of goods and services
(c) Person effecting supply of goods through an e-commerce operator liable to collect tax at source
(d) Person providing restaurant services and other services (Subject to Limit)

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CA VIVEK GABA CS – EXECUTIVE GST MCQs
30. Which of the following will be excluded from the computation of ‘aggregate turnover’?
(a) Value of taxable supplies
(b) Value of exempt Supplies
(c) Non-taxable supplies
(d) Value of inward supplies on which tax is paid on reverse charge basis

31. What will happen if the turnover of a registered person opting to pay taxes under
composition scheme during the year 2018-18 crosses threshold limit?
(a) He can continue under composition scheme till the end of the financial year
(b) He will be liable to pay tax at normal rates of GST on the entire turnover for the financial year
2018-19
(c) He will cease to remain under the composition scheme with immediate effect
(d) He will cease to remain under the composition scheme from the quarter following the quarter in
which the aggregate turnover exceeds threshold limit

32. What is the threshold limit of turnover in the preceding financial year for opting to pay tax under
composition scheme for States other than special category States?
(a) ₹ 20 lacs
(b) ₹ 75lacs
(c) ₹ 100 lacs
(d) ₹ 1.50 crore

33. What is the threshold limit of turnover in the preceding financial year for opting to pay tax under
composition scheme for special category states?
(a) ₹ 25 lacs
(b) ₹ 50 lacs
(c) ₹ 75 lacs
(d) ₹ 1 crore

34. What is the rate applicable under CGST to a registered person being a manufacturer
opting to pay taxes under composition scheme?
(a) 2.5%
(b) 1%
(c) 0.5%
(d) No composition for manufacturer

35. Mr. Richard, a trader in Delhi has opted for composition scheme of taxation under GST.
Determine the rate of total GST payable by him under composition scheme:
(a) 0.5% CGST & 0.5% SGST
(b) 2.5% CGST & 2.5% UTGST
(c) 5% IGST
(d) 5% UTGST

36. Capital goods include-

(a) Goods, the value of which is capitalized in the books of accounts
(b) Goods which are used or intended to be used in the course or furtherance of business
(c) Both (a) and (b)

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CA VIVEK GABA CS – EXECUTIVE GST MCQs
(d) None of the above

37. As per the CGST Act, 2017, the term "works contract" includes:
(a) Construction, fabrication, completion, erection, installation, etc. of movable property
(b) Construction, fabrication, completion, erection, installation, etc. of immovable property
(c) Both (a) and (b)
(d) None of the above

38. While repairing the factory shed, few goods were also supplied along with the labour
service. Whether it is a :
(a) Composite Supply
(b) Mixed Supply
(c) Works Contract Service
(d) None of the above

39. The term 'agriculturist' includes the following persons who undertake cultivation of land:
(a) An individual
(b) A Hindu Undivided Family
(c) A co-operative society
(d) Both (a) and (b)

40. The term 'casual taxable person' includes:

(a) A person occasionally supplying goods or services or both in a State or a Union territory where
he has no fixed place of business.
(b) A person occasionally supplying goods or services or both in a State or a Union territory where
he has fixed place of business.
(c) Both (a) and (b)
(d) None of the above

41. A person who occasionally undertakes transactions involving supply of goods or services or both,
whether as principal or agent or in any other capacity, but who has no fixed place of business or
residence in India is:
(a) Non–resident taxable person
(b) Composition dealer
(c) Registered person
(d) Casual taxable person

42. Which of the following is a non–taxable supply under the CGST Act, 2017:
(a) Supply of goods not leviable to tax under the CGST Act, 2017
(b) Supply of services not leviable to tax under the CGST Act, 2017
(c) Supply which is neither a supply of good nor a supply of service.
(d) Both (a) and (b)

43. Distribution of electricity by a distribution utility is a:

(a) Non-taxable supply
(b) Exempt Supply
(c) Nil Rated Supply

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CA VIVEK GABA CS – EXECUTIVE GST MCQs
(d) Neither supply of goods nor supply of services

44. Heer ltd. has provided following information for the month of Sep, 2018:
(i) Intra-State outward supply Rs. 8,00,000/-
(ii) Inter-State exempt outward supplyRs. 5,00,000/-
(iii) Turnover of exported goods Rs. 10,00,000/-
(iv) Payment made to GTA Rs. 80,000/-
Calculate the aggregate turnover of Heer Ltd.
(a) Rs. 8,00,000/-
(b) Rs. 23,80,000/-
(c) Rs. 23,00,000/-
(d) Rs. 18,00,000/-

45. Which one of following statements are correct?

(a) Voluntary registration is not possible under GST.
(b) Voluntarily registered person not liable to comply with all the provisions of the GST.
(c) A person may get himself registered voluntarily and shall comply with all the provisions of GST.
(d) None of the above.

46. Where the application for grant of registration has been approved, a certificate of registration in shall
be made available to the applicant on the
(a) FORM GST REG-06, Common Portal
(b) FORM GST CER-06, Common Portal
(c) FORM GST CER-06, Jurisdictional office
(d) FORM GST REG-10, Company portal

47. Whether all persons are mandatorily required to obtain registration?

(a) Yes
(b) Not required if he is an agriculturist or person exclusively engaged in supplying exempt goods or
services, if specified threshold limit does not exceed in a financial year.
(c) Not required if he is an agriculturist or person exclusively engaged in supplying exempt goods or
services.
(d) No, only if specified threshold exceeds in a financial year then only need to obtain.

48. Which one of the following is true?

(a) A person can't collect tax unless he is registered.
(b) Registered person not liable to collect tax till his aggregate turnover exceeds Rs.20 lakhs/ Rs.10
Lakhs as the case may be.
(c) A person can collect the tax during the period of his provisional registration.
(d) Both (a) and (b) are correct.

49. Which of the following forms are used for registration?

(a) Form GSTR -1
(b) Form GSTAPL–01
(c) Form GST REG-01
(d) Form GST RFD -01

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CA VIVEK GABA CS – EXECUTIVE GST MCQs
50. Within how many days a person should apply for registration?
(a) Within 60 days from the date he becomes liable for registration.
(b) Within 30 days from the date he becomes liable for registration.
(c) No Time Limit
(d) Within 90 days from the date he becomes liable for registration.

51. An Unique Identity Number will be allotted to the following persons upon submitting an
application:
(a) All the taxable persons can apply.
(b) Only unregistered persons can apply.
(c) Specialized agency of the UNO or any multilateral financial institution or consulate or
embassy of foreign countries.
(d) No such concept under CGST/SGST Act.

52. Every registered taxable person shall display his certificate of registration in a prominent location
at his principal and at every other place of business also GSTIN shall be displayed on the name
board at the entry of such places.
(a) No, certificate of registration to be displayed only at a registered place of business and
GSTIN need not be displayed on the name board.
(b) Yes, above statement is correct.
(c) No, GSTIN to be displayed only on the invoices.
(d) Above statement is correct subject to certificate of registration to be displayed only at
registered place of business.

53. An E-commerce operator should get registered?

(a) Yes, irrespective of threshold limit
(b) No, required to register only if his aggregate turnover exceeds the threshold limit.
(c) Yes, if he is located in North-western states.
(d) He is required to register if he is liable to collect tax at source and /or his aggregate turnover
exceeds the threshold limit.

54. What is the validity of the registration certificate?

(a) One year
(b) No validity
(c) Valid till it is cancelled.
(d) Five years.

55. What is the validity of the registration certificate issued to casual taxable person and non- resident
taxable person?
(a) 90 days from the effective date of registration
(b) Period specified in the application for registration
(c) Earliest of (a) or (b) above
(d) 180 days from the effective date of registration.

56. Which of the following requires amendment in the registration certificate?

(a) Change of name of the registered person
(b) Change in constitution of the registered person
(c) Addition, deletion or retirement of partners or directors, Karta, Managing Committee, Board of

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CA VIVEK GABA CS – EXECUTIVE GST MCQs
Trustees,Chief Executive Officer or equivalent, responsible for the day to day affairs of the
business
(d) All of the above

57. What are the consequences of obtaining registration by misrepresentation?

(a) Liable to cancellation of registration by proper officer.
(b) Liable to a fine not exceeding Rs. 1,000,000/-
(c) Imprisonment for a period of 6 months to 3 years.
(d) Both (b) and (c)

58. How the aggregate turnover of Rs. 20 Lakh is calculated?

(a) Aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is
payable by a person on reverse charge basis), exempt supplies, export of goods/services and
interstate supplies of a person having same PAN computed on all India basis.
(b) Aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is
payable by a person on reverse charge basis), exempt supplies, export of goods/services and
interstate supplies of a person computed for each state separately.
(c) Aggregate value of all taxable intrastate supplies, export of goods/services and exempt supplies
of a person having same PAN computed for each state separately.
(d) Aggregate value of all taxable supplies(excluding the value of inward supplies on which tax is
payable by a person on reverse charge basis), exempt supplies, export of goods/services and
interstate supplies of a person having same PAN computed on all India basis and excluding
taxes if any charged under CGST Act, SGST Act and IGST Act.

59. Does cancellation of registration under CGST affect the liability under SGST/IGST for period prior to
cancellation of registration?
(a) Cancellation of registration will immune his liability under CGST only.
(b) Cancellation of registration will immune his liability under IGST only.
(c) Cancellation of registration will immune his liability under SGST and CGST but not under IGST.
(d) Cancellation does not affect the liability of taxable person to pay tax and other dues under
CGST/SGST/IGST Act.

60. Within how many days an application for revocation of cancellation of registration can be made?
(a) Within 7 days from the date of service of the cancellation order.
(b) Within 15 days from the date of issue of the cancellation order.
(c) Within 45 days from the date of issue of the cancellation order.
(d) Within 30 days from the date of service of the cancellation order.

61. Who can submit application for registration in Form GST REG-09?
(a) Non- Resident taxable person
(b) Input service distributor
(c) Person deducting tax at source
(d) Person collecting tax at source

62. State which of the following statement is correct in respect of obtaining a separate
registration for Business verticals:
(a) Person can obtain centralized registration.
(b) Person may obtain a separate registration for each of his verticals.

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CA VIVEK GABA CS – EXECUTIVE GST MCQs
(c) He can have only two registration in a state.
(d) Either (a) or (b).

63. Business which has centralized registration under erstwhile Act.

(a) Shall obtain a centralized registration under GST Law.
(b) Shall obtain separate registration in each state from where it is making taxable supplies
(c) Shall obtain registration on temporary basis.
(d) No need to apply for registration under GST.

64. Every person registered under any of the existing laws, who is not liable to be registered under the
Act may, on or before ................................................ , at his option, submit an application in FORM
GST REG-29 for the cancellation of registration granted to him
(a) September 30,2018
(b) October 31,2018
(c) November 30,2018
(d) March 31,2019

65. Who will take registration on services in relation to transportation of goods (including used household
for personal use) if, GTA avails ITC on supplies made by him
(a) GTA, forward charge
(b) GTA, RCM
(c) Service receiver, forward charge
(d) Service receiver, RCM

66. Mr. Santa located in Nashik purchases 10,000 Hero ink pens worth Rs. 4,00,000 from Lekhana
Wholesalers located in Mumbai. Mr. Mohan's wife is an employee in Lekhana Wholesalers. The price
of each Hero pen in the open market is Rs.52. The supplier additionally charges Rs.5,000 for delivering
the goods to the recipient's place of business. The value of such supply will be:
(a) Rs. 5,20,000
(b) Rs. 5,25,000
(c) Rs. 4,00,000
(d) Rs. 4,05,000

67. What will be the value of supply if Giriyas supply Sony television set for Rs. 85000 along with the
exchange of an old TV and if the price of the Sony television set without exchange is Rs. 1,00,000, the
open market value of the Sony television set is:
(a) Rs. 85,000
(b) Rs. 1,00,000
(c) Rs. 15,000
(d) Rs. 1,15,000

68. The value of supply of goods and services shall be the

(a) Transaction value
(b) MRP
(c) Market Value
(d) None of above

69. The value of supply should include

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CA VIVEK GABA CS – EXECUTIVE GST MCQs
(a) Any non-GST taxes, duties, cesses, fees charged by supplier separately
(b) Interest, late fee or penalty for delayed payment of any consideration for any supply of goods or
services
(c) Subsidies directly linked to the price except subsidies provided by the Central and State
Government
(d) All of the above

70. As per Rule 31 of the CGST Rules, residual method for determination of value of supply of goods or
services or both will apply when:
(a) Value of supply cannot be determined under Rules 27 to 30
(b) Value of supply determined is more than the open market value of goods
(c) Value of supply determined is more than the Value of supply of like kind and quality
(d) All of the above

71. When can the transaction value be rejected for computation of value of supply
(a) When the buyer and seller are related and price is not the sole consideration
(b) When the buyer and seller are related or price is not the sole consideration
(c) It can never be rejected
(d) When the goods are sold at very low margins

72. What deductions are allowed from the transaction value

(a) Discounts offered to customers, subject to conditions
(b) Packing Charges, subject to conditions
(c) Amount paid by customer on behalf of the supplier, subject to conditions
(d) Freight charges incurred by the supplier for CIF terms of supply, subject to conditions

73. If the goods are supplied to related persons then how should the taxable person ascertain the value of
supplies?
(a) Seek the help of the GST officer
(b) Use the arm's length price as required under the Income Tax law
(c) Identify the prices at which goods are sold by the unrelated person to his customer
(d) As per Rule 28 of the CGST Rules

74. Rule 30 of the CGST Rules inter alia provides value of supply of goods or services or both based
on cost shall be ................................ % of cost of production or manufacture or the cost of
acquisition of such goods or the cost of provision of such services
(a) 100
(b) 10
(c) 110
(d) 120

75. The books and other records u/s 35 are to be maintained at

(a) Place where the books and accounts are maintained
(b) Place of address of the Proprietor/ Partner/Director/Principal Officer
(c) Principal place of business mentioned in the Certificate of Registration
(d) Any of the above

76. In case, more than one place of business situated within a state specified in the Registration

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Certificate, the books and Accounts shall be maintained at
(a) Each place of business pertaining to such place
(b) Place where the books of accounts are maintained for all places situated within a state
(c) At principal place of business covered mentioned in the Registration Certificate for all places of
business in each State
(d) Any of the above

77. The time period prescribed for maintenance of accounts and records, if the taxable person is a party
to an appeal or revision shall be-
(a) Two year after final disposal of such appeal or revision or proceeding, or until the expiry of thirty-
six months from the last date of filing of Annual Return for the year pertaining to such accounts
and records, whichever is later
(b) Two year after final disposal of such appeal or revision or proceeding, or until the expiry of sixty
months from the last date of filing of Annual Return for the year pertaining to such accounts and
records, whichever is later
(c) One year after final disposal of such appeal or revision or proceeding, or until the expiry of
seventy-two months from the last date of filing of Annual Return for the year pertaining to such
accounts and records, whichever is later
(d) One year after final disposal of such appeal or revision or proceeding, or until the expiry of forty
months from the last date of filing of Annual Return for the year pertaining to such accounts and
records, whichever is later

78. Taxable person has to maintain his records for a period of:
(a) expiry of 72 months from the due date of filing of Annual Return for the year
(b) expiry of 40 months from the due date of filing of Annual Return for the year
(c) expiry of 30 months from the due date of filing of Annual Return for the year
(d) expiry of 90 months from the due date of filing of Annual Return for the year

79. Accounts are required to be maintained in

(a) Manual form
(b) Electronic form
(c) Manual and electronic form
(d) Manual or electronic form

80. Who among the following, even if not registered, is required to maintain records
(a) Owner or operator of warehouse
(b) Owner or operator of godown
(c) Owner or operator of any other place used for storage of goods
(d) Every transporter
(e) All the above

81. If a turnover during a financial year exceeds the prescribed limit, then accounts get audited by
(a) Chartered Accountant
(b) Cost Accountant
(c) Either (a) or (b)
(d) Both (a) and (b)

82. What accounts and records are required to be maintained by every registered taxable person at his
principal place of business

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(a) account of production or manufacture of goods
(b) input tax credit availed
(c) output tax payable and paid
(d) All of the above

83. A person who has applied for registration can:

(a) Provisionally collect tax till his registration is approved, on applying for registration, if he has
applied for registration within prescribed time
(b) Neither collect tax nor claim input tax credit
(c) Issue 'revised invoice' and collect tax within 1 month of date of issuance of certificate of
registration, subject to conditions
(d) All of the above.

84. Tax invoice must be issued by

(a) Every supplier
(b) Every taxable person
(c) Registered persons not paying tax under composition scheme
(d) All the above

85. Law permits collection of tax on supplies effected prior to registration, but after applying for
registration:
(a) Yes, but only on intra-State supplies, if the revised invoice is raised within one month
(b) Yes, but only on intra-State supplies effected to unregistered persons, if the revised invoice
is raised within one month
(c) Yes, on all supplies, if the revised invoice is raised within one month
(d) No, tax can be collected only on supplies effected after registration is granted.

86. A bill of supply can be issued in case of inter-State and intra-State:

(a) Exempted supplies
(b) Supplies to unregistered persons
(c) Both of above
(d) None of the above.

87. An invoice must be issued if supply involves moment of goods:

(a) At the time of removal of goods
(b) On transfer of risks and rewards of the goods to the recipient
(c) On receipt of payment for the supply
(d) Earliest of the above dates.

88. In case of inter-State movement of goods, every registered person who causes movement of goods
of consignment value exceeding ....................................... in relation to a supply or for reasons other
than supply or due to inward supply from an unregistered person shall, before commencement of
such movement, file FORM GST EWB-01.
(a) Rs. 50,000
(b) Rs. 1,00,000
(c) Rs. 70,000
(d) None of the above

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89. When the movement of goods is caused by an unregistered person the e-way bill shall be
generated by:
(a) Unregistered person himself
(b) The Transporter
(c) Either of them
(d) Neither of them

90. When an e-way bill is not required to be generated?

(a) Where the goods being transported are specified in Annexure to Rule 138 of the CGST Rules
(b) Where the goods are being transported by a non-motorised conveyance
(c) Where the goods are being transported from the customs port, airport, air cargo complex and land
customs station to an inland container depot or a container freight station for clearance by Customs
(d) All of the above

91. The name of the State of recipient along with State code is required on the invoice where:
(a) Supplies are made to unregistered persons
(b) Supplies are made to unregistered persons where the value of supply is Rs. 50,000 or more
(c) Inter-state supplies are made to unregistered persons where the value of supply is Rs.
50,000 or more
(d) Supplies are made to registered persons

92. For an increase in the tax/ taxable value, a debit note for GST purposes:
(a) Should be issued by the supplier
(b) Should be issued by the recipient
(c) May be issued by the supplier
(d) May be issued by the recipient

93. The last date for declaring the details of a Credit Note issued on 25-Jun-2019 for a supply made
on 19-Sep-2018 is:
(a) 31-Dec-2019 – Last date for filing annual return
(b) 20-Jul-2019 – Actual date for filing annual return
(c) 20-Jan-2019 – Due Date of Filing of December Return
(d) 20-Oct-2019 – Due Date of Filing of September Return

94. The receipt voucher must contain:

(a) Details of goods or services
(b) Invoice reference
(c) Full value of supply
(d) None of the above

95. What is a valid tenure for an e-way bill for a distance upto 20 KMS?
(a) One day in case of Over Dimensional Cargo
(b) One day in cases other than Over Dimensional Cargo
(c) One additional day in case of Over Dimensional Cargo
(d) One additional day in cases other than Over Dimensional Cargo

96. Who can extend the validity of an e-way bill?

(a) Commissioner

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(b) Joint Commissioner
(c) Additional Commissioner
(d) Any one of the above

97. How should e-way bill be generated for multiple consignments intended to be transported in one
conveyance?
(a) The transporter shall generate separate e-way bills for each consignment
(b) A consolidated e-way bill in FORM GST EWB-02 maybe generated
(c) No e-way bill shall be required
(d) None of the above

98. A payment voucher need not be raised if the supplier is an unregistered person.
(a) True, as the recipient is required to issue an invoice in that case
(b) True, if the unregistered person does not require it
(c) False, a payment voucher is the only document to evidence the supply
(d) False, payment voucher should be issued in addition to raising an invoice for the inward supply
99. What is the threshold limit for supplier of services if they wants to opt for composition scheme?
(a) 1.50 crore
(b) 100 lakhs
(c) 75 lakhs
(d) 50 lakhs
100. What is the concessional rate of tax for supplier of services(other than restaurant service) if they
wants to opt for composition scheme?
(a) 3% CGST + 3% SGST
(b) 2.5% CGST + 2.5% SGST
(c) 0.5% CGST + 0.5% SGST
(d) None of the above

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CS – EXECUTIVE

TAX SCANNER
GST MCQs
(SET – 1)
Relevant for : JUNE & DEC 2021 EXAMS

Compilation & Authored by CA VIVEK GABA

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CA VIVEK GABA CS – EXECUTIVE GST MCQs

CS – EXECUTIVE (NEW & OLD SYLLABUS)

GST MCQ’s SET – 1 (BASIC, SUPPLY, RCM, COMPOSITION & VALUATION)
Compilation by: CA VIVEK GABA
1. Which of the following is a non–taxable supply under the CGST Act, 2017:
(a) Supply of goods not leviable to tax under the CGST Act, 2017
(b) Supply of services not leviable to tax under the CGST Act, 2017
(c) Supply which is neither a supply of good nor a supply of service.
(d) Both (a) and (b)

2. The definition of goods under section 2(52) of the CGST Act does not include-
(a) Grass
(b) Money and securities
(c) Actionable claims
(d) Growing crops

3. Agent means:
(a) A person who carries on the business of supply or receipt of goods or services or both on
behalf of another
(b) A person who arranges or facilitates the supply of goods or services or both, but does not
include a person who supplies such goods or services or both on his own account
(c) Both (a) or (b)
(d) None of the above

4. An exempt supply includes-

(a) Supply of goods or services or both which attracts Nil rate of tax
(b) Non-taxable supply
(c) Supply of goods or services or both which are wholly exempt from tax under Section 11 of the
CGST Act or under Section 6 of IGST Act
(d) All of the above

5. What are different types of supplies covered under the scope of supply?
(a) Supplies made with consideration
(b) Supplies made without consideration
(c) Both of the above
(d) None of the above

6. What are the factors differentiating composite supply & mixed supply?
(a) Nature of bundling i.e. artificial or natural
(b) Existence of principal supply
(c) Both of the above
(d) None of the above

7. What would be the tax rate applicable in case of composite supply?

(a) Tax rate as applicable on principal supply
(b) Tax rate as applicable on ancillary supply

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(c) Tax rate as applicable on respective supply
(d) None of the above

8. What would be the tax rate applicable in case of mixed supply?

(a) Tax rate as applicable on supply attracting the lowest rate of tax
(b) Tax rate as applicable on supply attracting the highest rate of tax
(c) Tax @ 28%
(d) None of the above

9. ......... of the Constitution provides that no tax shall be levied or collected except by
authority of law?
(a) Article 254
(b) Article 245
(c) Article 265
(d) Article 256

10. What are the supplies on which reverse charge mechanism would apply?
(a) Notified categories of goods or services or both under section 9(3)
(b) Inward supply of Specified goods or Specified services or both from an unregistered dealer under
section 9(4)
(c) Both the above
(d) None of the above

11. Services by a recovery agent to M/s PNB Bank Ltd., are liable for GST in the hands of:
(a) M/s PNB Bank Ltd.
(b) Recovery agent
(c) Both the above
(d) None of the above

12. In case of lottery procured from State Government by a lottery distributor, GST is payable by:
(a) Lottery distributor
(b) State Government
(c) Both the above
(d) None of the above

13. Reverse charge under section 9(3) of the CGST Act is applicable on:-
(a) Only on notified services
(b) Only on notified goods
(c) Notified goods & services
(d) None of the above

14. Which of the following services are covered under Reverse Charge Mechanism of CGST Act, 2017?
i. Legal Consultancy
ii. Goods Transport Agency
iii. Manpower Supply
iv. Rent-a-Cab

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(a) i & iii
(b) i & iv
(c) i & ii
(d) All the above

15. In case of sponsorship services provided by Mr. A to M/s BCCI Ltd., liability to pay GST is on:
(a) Mr. A
(b) M/s BCCI Ltd.
(c) Both
(d) None of the above

16. As per Section 9, which of the following would attract levy of CGST?
(a) Inter-State supplies, in respect of supplies within the State to SEZ;
(b) Intra-State supplies;
(c) Both of the above;
(d) Either of the above.

17. Which of the following forms of supply are included in Schedule I?

(a) Permanent transfer of business assets on which input tax credit has been claimed
(b) Agency transactions for services
(c) Barter
(d) None of the above

18. Who can notify a transaction to be supply of ‘goods’ or ‘services’?

(a) CBIC
(b) Central Government on the recommendation of GST Council
(c) GST Council
(d) None of the above

19. As per Section 7, which of the following would attract levy of UTGST?
(a) Inter-state supplies
(b) Intra-state supplies
(c) Any of the above
(d) None of the above

20. If Raw Cotton procured from an Agriculturist by a registered person, then: -

(a) Reverse charge is applicable
(b) Normal charge is applicable
(c) Joint charge is applicable
(d) None of the above

21. Reverse charge is applicable:

(a) Only on intra-State supplies
(b) Only on inter-State supplies
(c) Both intra-State and inter-State supplies
(d) None of the above

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22. Sitting fees received by director of VG Ltd., is liable for GST in the hands of the………
(a) Director
(b) VG Ltd
(c) Both of above
(d) None of the above

23. Can a registered person under composition scheme claim input tax credit?
(a) Yes
(b) No
(c) Input tax credit on outward supply of goods only can be claimed
(d) Input tax credit on inward supply of goods only can be claimed

24. Can a registered person opting for composition scheme collect tax on his outward supplies?
(a) Yes
(b) No
(c) Yes, if the amount of tax is prominently indicated in the invoice issued by him
(d) Yes, only on such goods as may be notified by the State Government

25. What are the taxes levied on an intra-State supply?

(a) CGST
(b) SGST
(c) CGST and SGST
(d) IGST

26. What is the maximum rate prescribed under CGST Act?

(a) 12%
(b) 28%
(c) 20%
(d) 18%

27. Which of the following taxes will be levied on imports?

(a) CGST
(b) SGST
(c) IGST
(d) CGST and SGST

28. What is the maximum rate prescribed under UTGST Act?

(a) 14%
(b) 28%
(c) 20%
(d) 30%

29. Which of the following persons can opt for composition scheme?
(a) Person making any supply of goods which are not leviable to tax under this Act;
(b) Person making any inter-State outward supplies of goods and services
(c) Person effecting supply of goods through an e-commerce operator liable to collect tax at source
(d) Person providing restaurant services and other services (Subject to Limit)

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30. Which of the following will be excluded from the computation of ‘aggregate turnover’?
(a) Value of taxable supplies
(b) Value of exempt Supplies
(c) Non-taxable supplies
(d) Value of inward supplies on which tax is paid on reverse charge basis

31. What will happen if the turnover of a registered person opting to pay taxes under
composition scheme during the year 2018-18 crosses threshold limit?
(a) He can continue under composition scheme till the end of the financial year
(b) He will be liable to pay tax at normal rates of GST on the entire turnover for the financial year
2018-19
(c) He will cease to remain under the composition scheme with immediate effect
(d) He will cease to remain under the composition scheme from the quarter following the quarter in
which the aggregate turnover exceeds threshold limit

32. What is the threshold limit of turnover in the preceding financial year for opting to pay tax under
composition scheme for States other than special category States?
(a) ₹ 20 lacs
(b) ₹ 75lacs
(c) ₹ 100 lacs
(d) ₹ 1.50 crore

33. What is the threshold limit of turnover in the preceding financial year for opting to pay tax under
composition scheme for special category states?
(a) ₹ 25 lacs
(b) ₹ 50 lacs
(c) ₹ 75 lacs
(d) ₹ 1 crore

34. What is the rate applicable under CGST to a registered person being a manufacturer
opting to pay taxes under composition scheme?
(a) 2.5%
(b) 1%
(c) 0.5%
(d) No composition for manufacturer

35. Mr. Richard, a trader in Delhi has opted for composition scheme of taxation under GST.
Determine the rate of total GST payable by him under composition scheme:
(a) 0.5% CGST & 0.5% SGST
(b) 2.5% CGST & 2.5% UTGST
(c) 5% IGST
(d) 5% UTGST

36. Capital goods include-

(a) Goods, the value of which is capitalized in the books of accounts
(b) Goods which are used or intended to be used in the course or furtherance of business
(c) Both (a) and (b)

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(d) None of the above

37. As per the CGST Act, 2017, the term "works contract" includes:
(a) Construction, fabrication, completion, erection, installation, etc. of movable property
(b) Construction, fabrication, completion, erection, installation, etc. of immovable property
(c) Both (a) and (b)
(d) None of the above

38. While repairing the factory shed, few goods were also supplied along with the labour
service. Whether it is a :
(a) Composite Supply
(b) Mixed Supply
(c) Works Contract Service
(d) None of the above

39. The term 'agriculturist' includes the following persons who undertake cultivation of land:
(a) An individual
(b) A Hindu Undivided Family
(c) A co-operative society
(d) Both (a) and (b)

40. The term 'casual taxable person' includes:

(a) A person occasionally supplying goods or services or both in a State or a Union territory where
he has no fixed place of business.
(b) A person occasionally supplying goods or services or both in a State or a Union territory where
he has fixed place of business.
(c) Both (a) and (b)
(d) None of the above

41. A person who occasionally undertakes transactions involving supply of goods or services or both,
whether as principal or agent or in any other capacity, but who has no fixed place of business or
residence in India is:
(a) Non–resident taxable person
(b) Composition dealer
(c) Registered person
(d) Casual taxable person

42. Which of the following is a non–taxable supply under the CGST Act, 2017:
(a) Supply of goods not leviable to tax under the CGST Act, 2017
(b) Supply of services not leviable to tax under the CGST Act, 2017
(c) Supply which is neither a supply of good nor a supply of service.
(d) Both (a) and (b)

43. Distribution of electricity by a distribution utility is a:

(a) Non-taxable supply
(b) Exempt Supply
(c) Nil Rated Supply

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(d) Neither supply of goods nor supply of services

44. Heer ltd. has provided following information for the month of Sep, 2018:
(i) Intra-State outward supply Rs. 8,00,000/-
(ii) Inter-State exempt outward supplyRs. 5,00,000/-
(iii) Turnover of exported goods Rs. 10,00,000/-
(iv) Payment made to GTA Rs. 80,000/-
Calculate the aggregate turnover of Heer Ltd.
(a) Rs. 8,00,000/-
(b) Rs. 23,80,000/-
(c) Rs. 23,00,000/-
(d) Rs. 18,00,000/-

45. Which one of following statements are correct?

(a) Voluntary registration is not possible under GST.
(b) Voluntarily registered person not liable to comply with all the provisions of the GST.
(c) A person may get himself registered voluntarily and shall comply with all the provisions of GST.
(d) None of the above.

46. Where the application for grant of registration has been approved, a certificate of registration in shall
be made available to the applicant on the
(a) FORM GST REG-06, Common Portal
(b) FORM GST CER-06, Common Portal
(c) FORM GST CER-06, Jurisdictional office
(d) FORM GST REG-10, Company portal

47. Whether all persons are mandatorily required to obtain registration?

(a) Yes
(b) Not required if he is an agriculturist or person exclusively engaged in supplying exempt goods or
services, if specified threshold limit does not exceed in a financial year.
(c) Not required if he is an agriculturist or person exclusively engaged in supplying exempt goods or
services.
(d) No, only if specified threshold exceeds in a financial year then only need to obtain.

48. Which one of the following is true?

(a) A person can't collect tax unless he is registered.
(b) Registered person not liable to collect tax till his aggregate turnover exceeds Rs.20 lakhs/ Rs.10
Lakhs as the case may be.
(c) A person can collect the tax during the period of his provisional registration.
(d) Both (a) and (b) are correct.

49. Which of the following forms are used for registration?

(a) Form GSTR -1
(b) Form GSTAPL–01
(c) Form GST REG-01
(d) Form GST RFD -01

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50. Within how many days a person should apply for registration?
(a) Within 60 days from the date he becomes liable for registration.
(b) Within 30 days from the date he becomes liable for registration.
(c) No Time Limit
(d) Within 90 days from the date he becomes liable for registration.

51. An Unique Identity Number will be allotted to the following persons upon submitting an
application:
(a) All the taxable persons can apply.
(b) Only unregistered persons can apply.
(c) Specialized agency of the UNO or any multilateral financial institution or consulate or
embassy of foreign countries.
(d) No such concept under CGST/SGST Act.

52. Every registered taxable person shall display his certificate of registration in a prominent location
at his principal and at every other place of business also GSTIN shall be displayed on the name
board at the entry of such places.
(a) No, certificate of registration to be displayed only at a registered place of business and
GSTIN need not be displayed on the name board.
(b) Yes, above statement is correct.
(c) No, GSTIN to be displayed only on the invoices.
(d) Above statement is correct subject to certificate of registration to be displayed only at
registered place of business.

53. An E-commerce operator should get registered?

(a) Yes, irrespective of threshold limit
(b) No, required to register only if his aggregate turnover exceeds the threshold limit.
(c) Yes, if he is located in North-western states.
(d) He is required to register if he is liable to collect tax at source and /or his aggregate turnover
exceeds the threshold limit.

54. What is the validity of the registration certificate?

(a) One year
(b) No validity
(c) Valid till it is cancelled.
(d) Five years.

55. What is the validity of the registration certificate issued to casual taxable person and non- resident
taxable person?
(a) 90 days from the effective date of registration
(b) Period specified in the application for registration
(c) Earliest of (a) or (b) above
(d) 180 days from the effective date of registration.

56. Which of the following requires amendment in the registration certificate?

(a) Change of name of the registered person
(b) Change in constitution of the registered person
(c) Addition, deletion or retirement of partners or directors, Karta, Managing Committee, Board of

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Trustees,Chief Executive Officer or equivalent, responsible for the day to day affairs of the
business
(d) All of the above

57. What are the consequences of obtaining registration by misrepresentation?

(a) Liable to cancellation of registration by proper officer.
(b) Liable to a fine not exceeding Rs. 1,000,000/-
(c) Imprisonment for a period of 6 months to 3 years.
(d) Both (b) and (c)

58. How the aggregate turnover of Rs. 20 Lakh is calculated?

(a) Aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is
payable by a person on reverse charge basis), exempt supplies, export of goods/services and
interstate supplies of a person having same PAN computed on all India basis.
(b) Aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is
payable by a person on reverse charge basis), exempt supplies, export of goods/services and
interstate supplies of a person computed for each state separately.
(c) Aggregate value of all taxable intrastate supplies, export of goods/services and exempt supplies
of a person having same PAN computed for each state separately.
(d) Aggregate value of all taxable supplies(excluding the value of inward supplies on which tax is
payable by a person on reverse charge basis), exempt supplies, export of goods/services and
interstate supplies of a person having same PAN computed on all India basis and excluding
taxes if any charged under CGST Act, SGST Act and IGST Act.

59. Does cancellation of registration under CGST affect the liability under SGST/IGST for period prior to
cancellation of registration?
(a) Cancellation of registration will immune his liability under CGST only.
(b) Cancellation of registration will immune his liability under IGST only.
(c) Cancellation of registration will immune his liability under SGST and CGST but not under IGST.
(d) Cancellation does not affect the liability of taxable person to pay tax and other dues under
CGST/SGST/IGST Act.

60. Within how many days an application for revocation of cancellation of registration can be made?
(a) Within 7 days from the date of service of the cancellation order.
(b) Within 15 days from the date of issue of the cancellation order.
(c) Within 45 days from the date of issue of the cancellation order.
(d) Within 30 days from the date of service of the cancellation order.

61. Who can submit application for registration in Form GST REG-09?
(a) Non- Resident taxable person
(b) Input service distributor
(c) Person deducting tax at source
(d) Person collecting tax at source

62. State which of the following statement is correct in respect of obtaining a separate
registration for Business verticals:
(a) Person can obtain centralized registration.
(b) Person may obtain a separate registration for each of his verticals.

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(c) He can have only two registration in a state.
(d) Either (a) or (b).

63. Business which has centralized registration under erstwhile Act.

(a) Shall obtain a centralized registration under GST Law.
(b) Shall obtain separate registration in each state from where it is making taxable supplies
(c) Shall obtain registration on temporary basis.
(d) No need to apply for registration under GST.

64. Every person registered under any of the existing laws, who is not liable to be registered under the
Act may, on or before ................................................ , at his option, submit an application in FORM
GST REG-29 for the cancellation of registration granted to him
(a) September 30,2018
(b) October 31,2018
(c) November 30,2018
(d) March 31,2019

65. Who will take registration on services in relation to transportation of goods (including used household
for personal use) if, GTA avails ITC on supplies made by him
(a) GTA, forward charge
(b) GTA, RCM
(c) Service receiver, forward charge
(d) Service receiver, RCM

66. Mr. Santa located in Nashik purchases 10,000 Hero ink pens worth Rs. 4,00,000 from Lekhana
Wholesalers located in Mumbai. Mr. Mohan's wife is an employee in Lekhana Wholesalers. The price
of each Hero pen in the open market is Rs.52. The supplier additionally charges Rs.5,000 for delivering
the goods to the recipient's place of business. The value of such supply will be:
(a) Rs. 5,20,000
(b) Rs. 5,25,000
(c) Rs. 4,00,000
(d) Rs. 4,05,000

67. What will be the value of supply if Giriyas supply Sony television set for Rs. 85000 along with the
exchange of an old TV and if the price of the Sony television set without exchange is Rs. 1,00,000, the
open market value of the Sony television set is:
(a) Rs. 85,000
(b) Rs. 1,00,000
(c) Rs. 15,000
(d) Rs. 1,15,000

68. The value of supply of goods and services shall be the

(a) Transaction value
(b) MRP
(c) Market Value
(d) None of above

69. The value of supply should include

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(a) Any non-GST taxes, duties, cesses, fees charged by supplier separately
(b) Interest, late fee or penalty for delayed payment of any consideration for any supply of goods or
services
(c) Subsidies directly linked to the price except subsidies provided by the Central and State
Government
(d) All of the above

70. As per Rule 31 of the CGST Rules, residual method for determination of value of supply of goods or
services or both will apply when:
(a) Value of supply cannot be determined under Rules 27 to 30
(b) Value of supply determined is more than the open market value of goods
(c) Value of supply determined is more than the Value of supply of like kind and quality
(d) All of the above

71. When can the transaction value be rejected for computation of value of supply
(a) When the buyer and seller are related and price is not the sole consideration
(b) When the buyer and seller are related or price is not the sole consideration
(c) It can never be rejected
(d) When the goods are sold at very low margins

72. What deductions are allowed from the transaction value

(a) Discounts offered to customers, subject to conditions
(b) Packing Charges, subject to conditions
(c) Amount paid by customer on behalf of the supplier, subject to conditions
(d) Freight charges incurred by the supplier for CIF terms of supply, subject to conditions

73. If the goods are supplied to related persons then how should the taxable person ascertain the value of
supplies?
(a) Seek the help of the GST officer
(b) Use the arm's length price as required under the Income Tax law
(c) Identify the prices at which goods are sold by the unrelated person to his customer
(d) As per Rule 28 of the CGST Rules

74. Rule 30 of the CGST Rules inter alia provides value of supply of goods or services or both based
on cost shall be ................................ % of cost of production or manufacture or the cost of
acquisition of such goods or the cost of provision of such services
(a) 100
(b) 10
(c) 110
(d) 120

75. The books and other records u/s 35 are to be maintained at

(a) Place where the books and accounts are maintained
(b) Place of address of the Proprietor/ Partner/Director/Principal Officer
(c) Principal place of business mentioned in the Certificate of Registration
(d) Any of the above

76. In case, more than one place of business situated within a state specified in the Registration

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Certificate, the books and Accounts shall be maintained at
(a) Each place of business pertaining to such place
(b) Place where the books of accounts are maintained for all places situated within a state
(c) At principal place of business covered mentioned in the Registration Certificate for all places of
business in each State
(d) Any of the above

77. The time period prescribed for maintenance of accounts and records, if the taxable person is a party
to an appeal or revision shall be-
(a) Two year after final disposal of such appeal or revision or proceeding, or until the expiry of thirty-
six months from the last date of filing of Annual Return for the year pertaining to such accounts
and records, whichever is later
(b) Two year after final disposal of such appeal or revision or proceeding, or until the expiry of sixty
months from the last date of filing of Annual Return for the year pertaining to such accounts and
records, whichever is later
(c) One year after final disposal of such appeal or revision or proceeding, or until the expiry of
seventy-two months from the last date of filing of Annual Return for the year pertaining to such
accounts and records, whichever is later
(d) One year after final disposal of such appeal or revision or proceeding, or until the expiry of forty
months from the last date of filing of Annual Return for the year pertaining to such accounts and
records, whichever is later

78. Taxable person has to maintain his records for a period of:
(a) expiry of 72 months from the due date of filing of Annual Return for the year
(b) expiry of 40 months from the due date of filing of Annual Return for the year
(c) expiry of 30 months from the due date of filing of Annual Return for the year
(d) expiry of 90 months from the due date of filing of Annual Return for the year

79. Accounts are required to be maintained in

(a) Manual form
(b) Electronic form
(c) Manual and electronic form
(d) Manual or electronic form

80. Who among the following, even if not registered, is required to maintain records
(a) Owner or operator of warehouse
(b) Owner or operator of godown
(c) Owner or operator of any other place used for storage of goods
(d) Every transporter
(e) All the above

81. If a turnover during a financial year exceeds the prescribed limit, then accounts get audited by
(a) Chartered Accountant
(b) Cost Accountant
(c) Either (a) or (b)
(d) Both (a) and (b)

82. What accounts and records are required to be maintained by every registered taxable person at his
principal place of business

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(a) account of production or manufacture of goods
(b) input tax credit availed
(c) output tax payable and paid
(d) All of the above

83. A person who has applied for registration can:

(a) Provisionally collect tax till his registration is approved, on applying for registration, if he has
applied for registration within prescribed time
(b) Neither collect tax nor claim input tax credit
(c) Issue 'revised invoice' and collect tax within 1 month of date of issuance of certificate of
registration, subject to conditions
(d) All of the above.

84. Tax invoice must be issued by

(a) Every supplier
(b) Every taxable person
(c) Registered persons not paying tax under composition scheme
(d) All the above

85. Law permits collection of tax on supplies effected prior to registration, but after applying for
registration:
(a) Yes, but only on intra-State supplies, if the revised invoice is raised within one month
(b) Yes, but only on intra-State supplies effected to unregistered persons, if the revised invoice
is raised within one month
(c) Yes, on all supplies, if the revised invoice is raised within one month
(d) No, tax can be collected only on supplies effected after registration is granted.

86. A bill of supply can be issued in case of inter-State and intra-State:

(a) Exempted supplies
(b) Supplies to unregistered persons
(c) Both of above
(d) None of the above.

87. An invoice must be issued if supply involves moment of goods:

(a) At the time of removal of goods
(b) On transfer of risks and rewards of the goods to the recipient
(c) On receipt of payment for the supply
(d) Earliest of the above dates.

88. In case of inter-State movement of goods, every registered person who causes movement of goods
of consignment value exceeding ....................................... in relation to a supply or for reasons other
than supply or due to inward supply from an unregistered person shall, before commencement of
such movement, file FORM GST EWB-01.
(a) Rs. 50,000
(b) Rs. 1,00,000
(c) Rs. 70,000
(d) None of the above

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89. When the movement of goods is caused by an unregistered person the e-way bill shall be
generated by:
(a) Unregistered person himself
(b) The Transporter
(c) Either of them
(d) Neither of them

90. When an e-way bill is not required to be generated?

(a) Where the goods being transported are specified in Annexure to Rule 138 of the CGST Rules
(b) Where the goods are being transported by a non-motorised conveyance
(c) Where the goods are being transported from the customs port, airport, air cargo complex and land
customs station to an inland container depot or a container freight station for clearance by Customs
(d) All of the above

91. The name of the State of recipient along with State code is required on the invoice where:
(a) Supplies are made to unregistered persons
(b) Supplies are made to unregistered persons where the value of supply is Rs. 50,000 or more
(c) Inter-state supplies are made to unregistered persons where the value of supply is Rs.
50,000 or more
(d) Supplies are made to registered persons

92. For an increase in the tax/ taxable value, a debit note for GST purposes:
(a) Should be issued by the supplier
(b) Should be issued by the recipient
(c) May be issued by the supplier
(d) May be issued by the recipient

93. The last date for declaring the details of a Credit Note issued on 25-Jun-2019 for a supply made
on 19-Sep-2018 is:
(a) 31-Dec-2019 – Last date for filing annual return
(b) 20-Jul-2019 – Actual date for filing annual return
(c) 20-Jan-2019 – Due Date of Filing of December Return
(d) 20-Oct-2019 – Due Date of Filing of September Return

94. The receipt voucher must contain:

(a) Details of goods or services
(b) Invoice reference
(c) Full value of supply
(d) None of the above

95. What is a valid tenure for an e-way bill for a distance upto 20 KMS?
(a) One day in case of Over Dimensional Cargo
(b) One day in cases other than Over Dimensional Cargo
(c) One additional day in case of Over Dimensional Cargo
(d) One additional day in cases other than Over Dimensional Cargo

96. Who can extend the validity of an e-way bill?

(a) Commissioner

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CA VIVEK GABA CS – EXECUTIVE GST MCQs
(b) Joint Commissioner
(c) Additional Commissioner
(d) Any one of the above

97. How should e-way bill be generated for multiple consignments intended to be transported in one
conveyance?
(a) The transporter shall generate separate e-way bills for each consignment
(b) A consolidated e-way bill in FORM GST EWB-02 maybe generated
(c) No e-way bill shall be required
(d) None of the above

98. A payment voucher need not be raised if the supplier is an unregistered person.
(a) True, as the recipient is required to issue an invoice in that case
(b) True, if the unregistered person does not require it
(c) False, a payment voucher is the only document to evidence the supply
(d) False, payment voucher should be issued in addition to raising an invoice for the inward supply
99. What is the threshold limit for supplier of services if they wants to opt for composition scheme?
(a) 1.50 crore
(b) 100 lakhs
(c) 75 lakhs
(d) 50 lakhs
100. What is the concessional rate of tax for supplier of services(other than restaurant service) if they
wants to opt for composition scheme?
(a) 3% CGST + 3% SGST
(b) 2.5% CGST + 2.5% SGST
(c) 0.5% CGST + 0.5% SGST
(d) None of the above

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CS – EXECUTIVE

TAX SCANNER
GST MCQs
(Set – 2)
Relevant for: JUNE & DECEMBER, 2021

Compilation & Authored by CA VIVEK GABA

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CA VIVEK GABA GST MCQs CS - EXECUTIVE

CS – EXECUTIVE (NEW & OLD SYLLABUS)

GST MCQs Set – 2
TOPICS: Definition, Job – Work, ITC, TOS, Payment of GST
1. Whether definition of Inputs includes capital goods.
(a) Yes
(b) No
(c) Certain capital goods only
(d) None of the above

2. Whether credit on capital goods can be taken immediately on receipt of the goods?
(a) Yes
(b) No
(c) After usage of such capital goods
(d) After capitalizing in books of Accounts

3. The term "used in the course or furtherance of business" means?

(a) It should be directly co-related to output supply
(b) It is planned to use in the course of business
(c) It is used or intended to be used in the course of business
(d) It is used in the course of business for making outward supply

4. Under section 16(2) of CGST Act how many conditions are to be fulfilled for the entitlement of
credit?
(a) All four conditions
(b) Any two conditions
(c) Conditions not specified
(d) None of the above

5. Which of the following is included for computation of taxable supplies for the purpose of
availing credit?
(a) Zero-rated supplies
(b) Exempt supplies
(c) Both
(d) None of the above

6. The inputs sent to job work has to be received back within:

(a) 1 year
(b) 2 years
(c) 180 days
(d) 6 months

7. The principal is entitled to avail the credit on capital goods sent to job worker directly:
(a) Yes
(b) No
(c) May be
(d) Within 6 months

8. If the capital goods sent to job worker has not been received within 3 years from the date of

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CA VIVEK GABA GST MCQs CS - EXECUTIVE
being sent:
(a) Principal has to pay amount equal to credit taken on such capital goods
(b) No need to pay amount equal to credit taken on such capital goods
(c) It shall be treated as deemed supply of capital goods to the job worker
(d) None of the above

9. The ISD may distribute the CGST and IGST credit to recipient outside the State as
(a) IGST
(b) CGST
(c) SGST
(d) UTGST

10. The ISD may distribute the CGST credit within the State as
(a) IGST
(b) CGST
(c) SGST
(d) Any of the above.

11. Whether credit on inputs should be availed based on receipt of documents or receipt of
goods
(a) Receipt of goods
(b) Receipt of Documents
(c) Both
(d) Either receipt of documents or Receipt of goods

12. In case supplier has deposited the taxes but the receiver has not received the documents, is
receiver entitled to avail credit?
(a) Yes, it will be auto populated in recipient monthly returns
(b) No as one of the conditions of 16(2) is not fulfilled
(c) Yes, if the receiver can prove later that documents are received subsequently
(d) None of the above

13. Input tax credit on capital goods and Inputs can be availed in one installment or in multiple
installments?
(a) In thirty-six installments
(b) In twelve installments
(c) In one installment
(d) In six installments

14. Whether depreciation on tax component of capital goods and Plant and Machinery and
whether input tax credit is Permissible?
(a) Yes
(b) No
(c) Input tax credit is eligible if depreciation on tax component is not availed
(d) None of the above

15. What is the maximum time limit to claim the Input tax credit?
(a) Till the date of filing annual return
(b) Due date of September month which is following the financial year
(c) Earliest of (a) or (b)

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(d) Later of (a) or (b)

16. Proportionate credit for capital goods is allowed

(a) For business and non-business purpose
(b) For business or non- business purpose
(c) Both of the above
(d) None of the above

17. The time limit to pay the value of supply with taxes to avail the input tax credit?
(a) Three months
(b) Six Months
(c) One hundred and eighty days
(d) Till the date of filing of Annual Return

18. What is the time limit for taking input tax credit by a registered taxable person?
(a) No time limit
(b) 1 year from the date of invoice
(c) Due date of furnishing of the return under section 39 for the month of September
following the end of financial year to which such invoice or invoice relating to such
debit note pertains
(d) Due date of furnishing of the return under section 39 for the month of September
following the end of financial year to which such invoice or invoice relating to such
debit note pertains or furnishing of the relevant annual return, whichever is earlier.

19. Exempt supplies under Section 17 (apportionment of credit) includes

(a) Only exempted supplies
(b) Reverse charge supplies and sale of land
(c) Exempted supplies, reverse charge supplies, Transaction in securities, sale of land,
sale of building
(d) None of the above

20. Banking Company or Financial Institution have an option of claiming:

(a) Eligible Credit or 50% credit
(b) Only 50% Credit
(c) Only Eligible credit
(d) Eligible credit and 50% credit

21. Eligibility of credit on capital goods in case of change of scheme from Composition scheme
to Regular scheme
(a) Eligible during application for Regular scheme
(b) Not eligible
(c) Yes, immediately before the date from which he becomes liable to pay tax under the
Regular scheme
(d) None of the above

22. Is Input tax fully restricted in case of switchover from taxable to exempt supplies
(a) Yes
(b) No
(c) Proportionately restricted
(d) Not restricted

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23. Is Input tax to be paid in case of switchover from taxable to exempt supplies
(a) Yes, equivalent to the credit in respect of inputs held in stock (including semi-finished
and finished goods) and on capital goods held in stock
(b) No
(c) Yes, full credit
(d) No, should be debited to electronic credit ledger

24. The time limit beyond which if goods are not returned, the inputs sent for job work shall be
treated as supply
(a) One year
(b) Five years
(c) Six months
(d) Seven years

25. In case of Voluntary registration input tax credit can be availed

(a) on stocks held on the day immediately preceding the date from which he becomes
liable to pay tax under the provisions of this Act
(b) on stocks held on the day immediately preceding the date of grant of registration under
the provisions of this Act.
(c) on stocks held on the day immediately preceding the date of application of registration
under the provisions of this Act.
(d) None of the above

26. The time limit beyond which if goods are not returned, the capital goods sent for job work
shall be treated as supply
(a) One year
(b) Five years
(c) Three Years
(d) Seven years

27. Principal entitled for input tax credit on inputs sent for job work
(a) If goods sent are returned within one year
(b) If goods sent are returned within three years
(c) If goods sent are returned within six months
(d) If goods sent are returned within nine months

28. In case of ISD whether distributor and recipient should have same PAN
(a) Yes
(b) No
(c) Yes, if in same state and different in other state
(d) None of the above

29. Is it mandatory that the tax on the supply has to be paid by the supplier so that the recipient
can claim credit?
(a) No
(b) Yes
(c) Optional
(d) Not Applicable

30. Input Tax credit as credited in Electronic Credit ledger can be utilized for
(a) Payment of Interest

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CA VIVEK GABA GST MCQs CS - EXECUTIVE
(b) Payment of penalty
(c) Payment of Fine
(d) Payment of Taxes

31. When the goods are sent from one job worker to another, the challan may be issued by:
(a) Only by the Principal
(b) Only by Job worker sending goods to another job worker
(c) By any one of the above two
(d) None of the Above

32. The details of challans in respect of goods dispatched to a job worker or received from a
job worker or sent from one job worker to another during a quarter shall be included in
FORM?
(a) Form GST ITC-03
(b) Form GST ITC-04
(c) Form GSTR-2
(d) None of Above

33. ITC can be taken on goods if goods not received by registered person but
(a) By his agent on his direction
(b) By the job worker on his instruction
(c) By any other person on his direction
(d) Any of above

34. ITC can be availed on

(a) Possession of prescribed invoice/ debit note
(b) Receipt of goods/services
(c) Tax on such supply has been paid to government and return being furnished by the
supplier
(d) Fulfilling all the above conditions

35. Maximum time limit for availing ITC is

(a) The date of filing of annual return
(b) Due date of filing return u/s 39 for the month of September
(c) Earliest of above two
(d) Later of above two.

36. ITC can be claimed by a registered person for

(a) Taxable supplies for business purpose
(b) Taxable supplies for non-business purpose
(c) Exempted supplies
(d) Non-taxable supplies

37. ITC on motor vehicle can be claimed by

(a) Any registered person
(b) Registered person engaged in same line of business
(c) Any registered person engaged in exempted supply
(d) Any of the above

38. ITC can be claimed on goods/services for personal use if

(a) Payment to supplier has been made

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CA VIVEK GABA GST MCQs CS - EXECUTIVE
(b) Return being filed
(c) All of above
(d) No ITC can be claimed

39. ITC on works contract service can be availed only if

(a) Engaged in same line of business
(b) Service related to movable property
(c) Service related to immovable property
(d) All of above

40. An unregistered person can avail ITC on stock if he applies for registration within
(a) 60 days of becoming liable to register under GST
(b) Immediately after becoming liable to register under GST
(c) 30 days of becoming liable to register under GST
(d) Cannot avail ITC on stock

41. On sale, demerger, transfer, amalgamation, transferee is allowed to utilize ITC which is
(a) Unavailed in transferor books
(b) Unutilized in e-ledger of transferor
(c) Total ITC available to transferor
(d) None of above

42. The principal can avail ITC on goods sent to job-worker which relates to
(a) Inputs
(b) Capital goods
(c) Inputs/capital goods directly sent to job-worker
(d) All of above.

43. In case of supply of plant & machinery on which ITC is taken, tax to be paid on is
(a) Amount equal to ITC availed less 5% for every quarter or part thereof
(b) Tax on transaction value
(c) Higher of above two
(d) Lower of above two

44. Mr. X has sent his goods to Mr. Y on job-work on 07-05-2017. From when it will be
considered as deemed supply if not received back within one year(further extended by
one year)?
(a) 06-05-2018
(b) 07-05-2017
(c) 03-11-2018
(d) Not Taxable

45. If the inputs are not received back within the prescribed limit by the principal then, who is
responsible to pay the GST?
(a) Job worker
(b) Principal
(c) Job worker is responsible when sending such inputs and Principal needs to reverse
the ITC taken earlier.
(d) None of the above

46. What is the time limit to receive back the tools and dies or jigs and fixtures sent to job-

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CA VIVEK GABA GST MCQs CS - EXECUTIVE
worker's place?
(a) 1 year
(b) 3 years
(c) 5 years
(d) No time limit specified under GST

47. When should a job-worker take registration?

(a) Always
(b) Only if his aggregate turnover exceeds the threshold limits specified under
Section 22 of the Act.
(c) Never
(d) None of the above

48. Which section specifies the conditions to be fulfilled for claiming ITC on inputs and/or
capital goods sent to job- worker?
a) 19
b) 55
c)143
d)177

49. When will the inputs and/or capital goods sent to job-work become a supply?
a) When the inputs and/or capital goods sent to job-worker are not received within 1
year or 3 years respectively
b) When the inputs and/or capital goods sent to job-worker are not supplied, with or
without payment of tax, from the job-workers place within 1 year or 3 years
respectively
c) Both under (a) or (b)
d) None of the above

50. Whether the details of goods supplied from job worker's premises need to be included in
Form GST ITC-04?
a) Required for unregistered job worker
b) Required for registered job worker
c) Not required
d) Both (a) & (b)

51. Section defines ‘Job Work’.

(a) 2(78)
(b) 2(68)
(c) 2(87)
(d) 2(68)

52. Section make provisions relating to Input Tax Credit in respect of inputs sent
for job work.
(a) 18
(b) 19
(c) 143
(d) 141

53. Section makes provisions for special procedure for removal of goods for job

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CA VIVEK GABA GST MCQs CS - EXECUTIVE
work without payment of tax.
(a) 18
(b) 19
(c) 143
(d) 141

54. How can the principal move goods to the job-worker?

a) Job-work challan
b) Tax invoice
c) Delivery challan containing the details as specified in the Tax invoice, credit and
debit note rules.
d) Option (a) or (b)

55. Who is responsible for accountability for any contravention under this Act?
a) Principal
b) Job-worker
c) Manufacturer
d) No-body

56. What amount shall be payable by the Principal in case the goods are not brought back
within the time allowed in case of job work?
(a) Tax
(b) Tax + interest
(c) Tax + interest + penalty
(d) None of the above

57. What is the exception for not bringing back of goods sent for job work?
(a) Moulds and dies
(b) Jigs and fixtures
(c) Tools
(d) All of the above

58. Principal can send the goods to the job worker on basis of what document?
(a) Bill of supply
(b) Tax invoice
(c) Delivery Challan
(d) Any of the above

59. In case of direct supply of goods to job worker from the supplier, in whose name the
invoice shall be issued?
(a) In the name of job worker
(b) In the name of supplier
(c) In the name of principal
(d) Both (a) and (b) are correct

60. What is the time of supply of service if the invoice is issued within 30 days from the date
of provision of service?
(a) Date of issue of invoice
(b) Date on which the supplier receives payment
(c) Date of provision of service
(d) Earlier of (a) & (b)

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61. What is the time of supply of service for the supply of taxable services up to Rs.1000 in
excess of the amount indicated in the taxable invoice?
(a) At the option of the supplier – Invoice date or Date of receipt of consideration
(a) Date of issue of
(b) Date of entry in books of account invoice
(c) Date of receipt of consideration.

62. How is the date of receipt of consideration by the supplier determined?

a) Date on which the receipt of payment is entered in the books of account
b) Date on which the receipt of payment is credited in the bank account
c) Earlier of (a) & (b)
d) (a) & (b) whichever is later

63. What is the time of supply of service in case of reverse charge mechanism?
(a) Date of payment as entered in the books of account of the recipient
(b) Date immediately following 60 days from the date of issue of invoice
(c) Date of invoice
(d) Earlier of (a) & (b)

64. On 04.09.2019, supplier invoices goods taxable on reverse charge basis to ABC & Co.
ABC & Co. receives the goods on 12.09.2019 and makes payment on 30.9.2019.
determine the time of supply.
(a) 04.09.2019
(b) 04.10.2019
(c) 12.09.2019
(d) 30.09.2019

65. ABC Ltd. has purchased for its customers 50 vouchers dated 20.8.2018 worth Rs.100
each from PQR Ltd., a footwear manufacturing company. The vouchers were issued by
ABC Ltd. on 20.09.2018. the vouchers can be encashed at retail outlets of PQR Ltd. The
employees of ABC Ltd. encashed the same on 01.10.2018. Determine the time of supply
of vouchers (SUPPLY IS IDENTIFIABLE).
(a) 20.08.2019
(b) 20.09.2019
(c) 01.10.2019
(d) Supply is not identified

66. What is the time of supply of goods in residuary cases, in case where a periodical return
has to be filed?
(a) Date on which return is to be filed
(b) Actual date of filing of return
(c) Date of payment of tax
(d) Date of collection of tax

67. What is the time of supply in case of addition in the value of way of interest, late fee or
penalty or any delayed payment of consideration?
(a) Last date on which such late fees / penalty has been charged
(b) Date of payment of such additional amount
(c) Date of collection of whole amount
(d) It doesn’t constitute supply

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68. Date of receipt of advance is the time of supply in case of advance received for supply for
services especially when the invoice and provisioning of service is done post advance
receipt. Comment.
(a) True
(b) False
(c) Partially correct
(d) None of the above

69. Continuous supply of services means a supply of services which is provided, or agreed to
be provided, continuously or on recurrent basis, under a contract, for a period exceeding
with payment obligations.
(a) 1 year, annual
(b) 3 months, periodic
(c) 6 months, half yearly
(d) 1 year, periodic

70. What is the time of supply of service in case an associated enterprise receives services
from the service provider located outside India?
(a) Date of entry in the books of account of associated enterprise(recipient)
(b) Date of payment
(c) Earlier of (a) & (b)
(d) Date of entry in the books of the supplier of service

71. What is the time of supply of vouchers when the supply with respect to the voucher is
identifiable?
(a) Date of issue of voucher
(b) Date of redemption of voucher
(c) Earlier of (a) & (b)
(d) (a) & (b) whichever is later

72. What is the time of supply of vouchers when the supply with respect to the voucher is not
identifiable?
(a) Date of issue of voucher
(b) Date of redemption of voucher
(c) Earlier of (a) & (b)
(d) (a) & (b) whichever is later

73. What is time of supply of goods, in case of forward charge?

(a) Date of issue of invoice
(b) Last date of issue of invoice
(c) Date of receipt of consideration by the supplier
(d) Earlier of (a) & (b)

74. What is time of supply of goods liable to tax under reverse charge mechanism?
(a) Date of receipt of goods
(b) Date on which the payment is made
(c) Date immediately following 30 days from the date of issue of invoice by the supplier
(d) Earlier of (a) or (b) or (c)

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75. What is the time of supply of vouchers when the supply with respect to the voucher is not
identifiable?
(a) Date of issue of voucher
(b) Date of redemption of voucher
(c) Earlier of (a) & (b)
(d) (a) & (b) whichever is later

76. What is date of receipt of payment?

(a) Date of entry in the books
(b) Date of payment credited into bank account
(c) Earlier of (a) and (b)
(d) Date of filing of return

77. Value of services rendered is Rs. 1,00,000 Date of issue of invoice is 5th October 2019.
Advance Received is Rs. 25,000 on 20th September 2019. Balance amount received on
7th October 2019. What is the time of supply for Rs. 1,00,000
(a) 5th October 2018 for Rs. 1,00,000
(b) 20th September 2018 for Rs. 1,00,000
(c) 20th September 2018- Rs. 25,000 and 5th October 2018 for Rs. 75,000
(d) 20th September 2018- Rs. 25,000 and 7th October 2018 for Rs. 75,000

78. There was increase in tax rate from 20% to 24% w.e.f.1.09.2019. Which of the following
rate is applicable when services are provided after change in rate of tax in September
2019, but invoice issued and payment received, both in August, 2019:
a) 20% as it is lower of the two
b) 24% as it is higher of the two
c) 20% as invoice and payment were received prior to rate change
d) 24% as the supply was completed after rate change

79. Which section governs the provisions regarding determining time of supply of goods?
(a) Section 12
(b) Section 13
(c) Section 14
(d) Section 15

80. Which section governs the provisions regarding determining time of supply of services?
(a) Section 12
(b) Section 13
(c) Section 14
(d) Section 15

81. The time of supply fixes the point when the to pay GST arises.
(a) Liability
(b) Payment
(c) Provision
(d) Recovery

82. Reverse charge means the liability to pay tax by the of goods or
services or both instead of the of such goods or services or both.
(a) Recipient, Supplier
(b) Recipient, Agent

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(c) Supplier, Recipient
(d) Agent, Recipient

83. There was increase in tax rate from 20% to 24% w.e.f. 1.09.2019. Which of the following
rate is applicable when services provided, and invoice raised after change in rate of tax in
September,2019, but payment received in August 2019:
(a) 20% as it is lower of the two
(b) 24% as it is higher of the two
(c) 20% as payment (being one of the factors) was prior to rate change
(d) 24% as invoice was issued in the period during which supply is completed

84. There was increase in tax rate from 20% to 24% w.e.f. 1.9.2018. Which of the following
rate is applicable if the supplier has opted for composition levy and invoice was issued
after change in rate of tax in September,2018 but payment received, and goods supplied
in August,2018:
(a) 20% as it is lower of the two
(b) 24% as it is higher of the two
(c) 20% as payment was received in the period during which the supply was effected
(d) 24% as invoice being one of the factors was issued after rate change

85. What is the date of receipt of payment?

(a) Date on which payment is entered in the books of account
(b) Date on which payment is credited to the bank account
(c) Earlier of (a) or (b)
(d) Either of (a) or (b)

86. Where amount received is in excess of invoice with amount upto ,

supplier has option to choose time of supply as date of issue of fresh invoice for the said
excess amount.
(a) Rs.100
(b) Rs.1,000
(c) Rs.500
(d) Rs.10,000

87. Determine the amount of GST in case of supply of service of Rs.15,00,000 on 4.9.2019
and invoice has been issued on 31.8.2018. Payment received on 30.09.2019. The CGST
rate has been increased from 5% to 18% w.e.f. 1.9.2019.
(a) Rs.2,70,000
(b) Rs.1,00,000
(c) Rs.75,000
(d) Rs.1,20,000

88. What is the time of supply of goods liable to tax under reverse charge mechanism?
(a) Date of receipt of goods
(b) Date on which the payment is made
(c) Date immediately following 30 days from the date of issue of invoice by the supplier
(d) Earlier of (a) or (b) or (c)

89. Mr. X has received the payment, but has not deposited the cheque in the bank account,
what is the date of receipt of payment?
(a) Date of receipt of payment

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CA VIVEK GABA GST MCQs CS - EXECUTIVE
(b) Date of credit in the bank account
(c) Date on which payment is entered in the books of account of the supplier
(d) Earlier of (b) and (c)

90. Om which of the following situations, ‘New rate’ shall be applicable?

(a) When the goods have been supplied before the change in rate of tax but issue of
invoice and receipt of payment is after the change in rate of tax.
(b) When the goods have been supplied after the change in rate of tax but issue of
invoice and receipt of payment is before the change in rate of tax.
(c) When the supply of goods and issue of invoice has been done before the change in
rate of tax but receipt of payment is after the change in rate of tax.
(d) When the supply of goods and receipt of payment has been done before the change
in rate of tax.

91. In which of the following situations, ‘Old rate’ shall be applicable?

(a) When the goods have been supplied after the change in rate of tax but issue of
invoice and receipt of payment is before the change in rate of tax.
(b) When the supply of goods and issue of invoice has been done after the change in rate
of tax but receipt of payment is before the change in rate of tax.
(c) When the supply of goods and receipt of payment has been done after the change in
rate of tax but issue of invoice is before the change in rate of tax
(d) None of the above

92. Determine the amount of GST in case of supply of service of Rs.10,00,000 on

04.09.2019 and invoice has also been issued on the same date. The date of payment is
30.8.2019. the CGST rate has been increased from 5% to 12% w.e.f. 1.9.2019.
(a) Rs.50,000
(b) Rs.1,00,000
(c) Rs.70,000
(d) Rs.1,20,000

93. What should the taxable person do if he pay's the wrong tax i.e. IGST instead of
CGST/SGST or vice versa?
(a) Remit tax again and claim refund
(b) It will be auto-adjusted
(c) It will be adjusted on application/request
(d) None of the above

94. What should the taxable person do if he pay's tax under wrong GSTIN?
a) Pay again under right GSTIN and claim refund
b) Auto-adjustment
c) Adjustment on application/request
d) Raise ISD invoice and transfer

95. What is the due date for payment of tax?

a) Last day of the month to which payment relates
b) Within 10 days of the subsequent month
c) Within 20 days of the subsequent month
d) Within 15 days of the subsequent month

96. What is the validity of challan in FORM GST PMT-06?

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CA VIVEK GABA GST MCQs CS - EXECUTIVE
(a) 1 day
(b) 5 days
(c) 15 days
(d) Perpetual validity

97. While making purchases the dealer has to pay GST which is available as credit while
making payment for outward supply. Such credit is reflected in GST portal in,
(a) Electronic Cash ledger
(b) Electronic liability ledger
(c) Electronic Credit ledger
(d) All of the above

98. A taxable person failed to pay tax and/or file returns on time. He should pay interest on?
(a) Gross tax payable
(b) Gross tax payable & input credit claimed
(c) Net tax payable
(d) No interest payable, if reasonable cause is shown

99. For payment of IGST input tax credit can be utilised in the following manner only:
(a) IGST, CGST, SGST/UTGST
(b) IGST, SGST/UTGST, CGST
(c) CGST, SGST/UTGST, IGST
(d) Any of the above manner

100. Which of these registers/ledgers are maintained online?

(a) Tax liability register
(b) Credit ledger
(c) Cash ledger
(d) All of them

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CS – EXECUTIVE

TAX SCANNER
GST MCQs
(Set – 2)
Relevant for: JUNE & DECEMBER, 2021

Compilation & Authored by CA VIVEK GABA

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CA VIVEK GABA GST MCQs CS - EXECUTIVE

CS – EXECUTIVE (NEW & OLD SYLLABUS)

GST MCQs Set – 2
TOPICS: Definition, Job – Work, ITC, TOS, Payment of GST
1. Whether definition of Inputs includes capital goods.
(a) Yes
(b) No
(c) Certain capital goods only
(d) None of the above

2. Whether credit on capital goods can be taken immediately on receipt of the goods?
(a) Yes
(b) No
(c) After usage of such capital goods
(d) After capitalizing in books of Accounts

3. The term "used in the course or furtherance of business" means?

(a) It should be directly co-related to output supply
(b) It is planned to use in the course of business
(c) It is used or intended to be used in the course of business
(d) It is used in the course of business for making outward supply

4. Under section 16(2) of CGST Act how many conditions are to be fulfilled for the entitlement of
credit?
(a) All four conditions
(b) Any two conditions
(c) Conditions not specified
(d) None of the above

5. Which of the following is included for computation of taxable supplies for the purpose of
availing credit?
(a) Zero-rated supplies
(b) Exempt supplies
(c) Both
(d) None of the above

6. The inputs sent to job work has to be received back within:

(a) 1 year
(b) 2 years
(c) 180 days
(d) 6 months

7. The principal is entitled to avail the credit on capital goods sent to job worker directly:
(a) Yes
(b) No
(c) May be
(d) Within 6 months

8. If the capital goods sent to job worker has not been received within 3 years from the date of

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CA VIVEK GABA GST MCQs CS - EXECUTIVE
being sent:
(a) Principal has to pay amount equal to credit taken on such capital goods
(b) No need to pay amount equal to credit taken on such capital goods
(c) It shall be treated as deemed supply of capital goods to the job worker
(d) None of the above

9. The ISD may distribute the CGST and IGST credit to recipient outside the State as
(a) IGST
(b) CGST
(c) SGST
(d) UTGST

10. The ISD may distribute the CGST credit within the State as
(a) IGST
(b) CGST
(c) SGST
(d) Any of the above.

11. Whether credit on inputs should be availed based on receipt of documents or receipt of
goods
(a) Receipt of goods
(b) Receipt of Documents
(c) Both
(d) Either receipt of documents or Receipt of goods

12. In case supplier has deposited the taxes but the receiver has not received the documents, is
receiver entitled to avail credit?
(a) Yes, it will be auto populated in recipient monthly returns
(b) No as one of the conditions of 16(2) is not fulfilled
(c) Yes, if the receiver can prove later that documents are received subsequently
(d) None of the above

13. Input tax credit on capital goods and Inputs can be availed in one installment or in multiple
installments?
(a) In thirty-six installments
(b) In twelve installments
(c) In one installment
(d) In six installments

14. Whether depreciation on tax component of capital goods and Plant and Machinery and
whether input tax credit is Permissible?
(a) Yes
(b) No
(c) Input tax credit is eligible if depreciation on tax component is not availed
(d) None of the above

15. What is the maximum time limit to claim the Input tax credit?
(a) Till the date of filing annual return
(b) Due date of September month which is following the financial year
(c) Earliest of (a) or (b)

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(d) Later of (a) or (b)

16. Proportionate credit for capital goods is allowed

(a) For business and non-business purpose
(b) For business or non- business purpose
(c) Both of the above
(d) None of the above

17. The time limit to pay the value of supply with taxes to avail the input tax credit?
(a) Three months
(b) Six Months
(c) One hundred and eighty days
(d) Till the date of filing of Annual Return

18. What is the time limit for taking input tax credit by a registered taxable person?
(a) No time limit
(b) 1 year from the date of invoice
(c) Due date of furnishing of the return under section 39 for the month of September
following the end of financial year to which such invoice or invoice relating to such
debit note pertains
(d) Due date of furnishing of the return under section 39 for the month of September
following the end of financial year to which such invoice or invoice relating to such
debit note pertains or furnishing of the relevant annual return, whichever is earlier.

19. Exempt supplies under Section 17 (apportionment of credit) includes

(a) Only exempted supplies
(b) Reverse charge supplies and sale of land
(c) Exempted supplies, reverse charge supplies, Transaction in securities, sale of land,
sale of building
(d) None of the above

20. Banking Company or Financial Institution have an option of claiming:

(a) Eligible Credit or 50% credit
(b) Only 50% Credit
(c) Only Eligible credit
(d) Eligible credit and 50% credit

21. Eligibility of credit on capital goods in case of change of scheme from Composition scheme
to Regular scheme
(a) Eligible during application for Regular scheme
(b) Not eligible
(c) Yes, immediately before the date from which he becomes liable to pay tax under the
Regular scheme
(d) None of the above

22. Is Input tax fully restricted in case of switchover from taxable to exempt supplies
(a) Yes
(b) No
(c) Proportionately restricted
(d) Not restricted

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CA VIVEK GABA GST MCQs CS - EXECUTIVE
23. Is Input tax to be paid in case of switchover from taxable to exempt supplies
(a) Yes, equivalent to the credit in respect of inputs held in stock (including semi-finished
and finished goods) and on capital goods held in stock
(b) No
(c) Yes, full credit
(d) No, should be debited to electronic credit ledger

24. The time limit beyond which if goods are not returned, the inputs sent for job work shall be
treated as supply
(a) One year
(b) Five years
(c) Six months
(d) Seven years

25. In case of Voluntary registration input tax credit can be availed

(a) on stocks held on the day immediately preceding the date from which he becomes
liable to pay tax under the provisions of this Act
(b) on stocks held on the day immediately preceding the date of grant of registration under
the provisions of this Act.
(c) on stocks held on the day immediately preceding the date of application of registration
under the provisions of this Act.
(d) None of the above

26. The time limit beyond which if goods are not returned, the capital goods sent for job work
shall be treated as supply
(a) One year
(b) Five years
(c) Three Years
(d) Seven years

27. Principal entitled for input tax credit on inputs sent for job work
(a) If goods sent are returned within one year
(b) If goods sent are returned within three years
(c) If goods sent are returned within six months
(d) If goods sent are returned within nine months

28. In case of ISD whether distributor and recipient should have same PAN
(a) Yes
(b) No
(c) Yes, if in same state and different in other state
(d) None of the above

29. Is it mandatory that the tax on the supply has to be paid by the supplier so that the recipient
can claim credit?
(a) No
(b) Yes
(c) Optional
(d) Not Applicable

30. Input Tax credit as credited in Electronic Credit ledger can be utilized for
(a) Payment of Interest

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(b) Payment of penalty
(c) Payment of Fine
(d) Payment of Taxes

31. When the goods are sent from one job worker to another, the challan may be issued by:
(a) Only by the Principal
(b) Only by Job worker sending goods to another job worker
(c) By any one of the above two
(d) None of the Above

32. The details of challans in respect of goods dispatched to a job worker or received from a
job worker or sent from one job worker to another during a quarter shall be included in
FORM?
(a) Form GST ITC-03
(b) Form GST ITC-04
(c) Form GSTR-2
(d) None of Above

33. ITC can be taken on goods if goods not received by registered person but
(a) By his agent on his direction
(b) By the job worker on his instruction
(c) By any other person on his direction
(d) Any of above

34. ITC can be availed on

(a) Possession of prescribed invoice/ debit note
(b) Receipt of goods/services
(c) Tax on such supply has been paid to government and return being furnished by the
supplier
(d) Fulfilling all the above conditions

35. Maximum time limit for availing ITC is

(a) The date of filing of annual return
(b) Due date of filing return u/s 39 for the month of September
(c) Earliest of above two
(d) Later of above two.

36. ITC can be claimed by a registered person for

(a) Taxable supplies for business purpose
(b) Taxable supplies for non-business purpose
(c) Exempted supplies
(d) Non-taxable supplies

37. ITC on motor vehicle can be claimed by

(a) Any registered person
(b) Registered person engaged in same line of business
(c) Any registered person engaged in exempted supply
(d) Any of the above

38. ITC can be claimed on goods/services for personal use if

(a) Payment to supplier has been made

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CA VIVEK GABA GST MCQs CS - EXECUTIVE
(b) Return being filed
(c) All of above
(d) No ITC can be claimed

39. ITC on works contract service can be availed only if

(a) Engaged in same line of business
(b) Service related to movable property
(c) Service related to immovable property
(d) All of above

40. An unregistered person can avail ITC on stock if he applies for registration within
(a) 60 days of becoming liable to register under GST
(b) Immediately after becoming liable to register under GST
(c) 30 days of becoming liable to register under GST
(d) Cannot avail ITC on stock

41. On sale, demerger, transfer, amalgamation, transferee is allowed to utilize ITC which is
(a) Unavailed in transferor books
(b) Unutilized in e-ledger of transferor
(c) Total ITC available to transferor
(d) None of above

42. The principal can avail ITC on goods sent to job-worker which relates to
(a) Inputs
(b) Capital goods
(c) Inputs/capital goods directly sent to job-worker
(d) All of above.

43. In case of supply of plant & machinery on which ITC is taken, tax to be paid on is
(a) Amount equal to ITC availed less 5% for every quarter or part thereof
(b) Tax on transaction value
(c) Higher of above two
(d) Lower of above two

44. Mr. X has sent his goods to Mr. Y on job-work on 07-05-2017. From when it will be
considered as deemed supply if not received back within one year(further extended by
one year)?
(a) 06-05-2018
(b) 07-05-2017
(c) 03-11-2018
(d) Not Taxable

45. If the inputs are not received back within the prescribed limit by the principal then, who is
responsible to pay the GST?
(a) Job worker
(b) Principal
(c) Job worker is responsible when sending such inputs and Principal needs to reverse
the ITC taken earlier.
(d) None of the above

46. What is the time limit to receive back the tools and dies or jigs and fixtures sent to job-

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CA VIVEK GABA GST MCQs CS - EXECUTIVE
worker's place?
(a) 1 year
(b) 3 years
(c) 5 years
(d) No time limit specified under GST

47. When should a job-worker take registration?

(a) Always
(b) Only if his aggregate turnover exceeds the threshold limits specified under
Section 22 of the Act.
(c) Never
(d) None of the above

48. Which section specifies the conditions to be fulfilled for claiming ITC on inputs and/or
capital goods sent to job- worker?
a) 19
b) 55
c)143
d)177

49. When will the inputs and/or capital goods sent to job-work become a supply?
a) When the inputs and/or capital goods sent to job-worker are not received within 1
year or 3 years respectively
b) When the inputs and/or capital goods sent to job-worker are not supplied, with or
without payment of tax, from the job-workers place within 1 year or 3 years
respectively
c) Both under (a) or (b)
d) None of the above

50. Whether the details of goods supplied from job worker's premises need to be included in
Form GST ITC-04?
a) Required for unregistered job worker
b) Required for registered job worker
c) Not required
d) Both (a) & (b)

51. Section defines ‘Job Work’.

(a) 2(78)
(b) 2(68)
(c) 2(87)
(d) 2(68)

52. Section make provisions relating to Input Tax Credit in respect of inputs sent
for job work.
(a) 18
(b) 19
(c) 143
(d) 141

53. Section makes provisions for special procedure for removal of goods for job

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CA VIVEK GABA GST MCQs CS - EXECUTIVE
work without payment of tax.
(a) 18
(b) 19
(c) 143
(d) 141

54. How can the principal move goods to the job-worker?

a) Job-work challan
b) Tax invoice
c) Delivery challan containing the details as specified in the Tax invoice, credit and
debit note rules.
d) Option (a) or (b)

55. Who is responsible for accountability for any contravention under this Act?
a) Principal
b) Job-worker
c) Manufacturer
d) No-body

56. What amount shall be payable by the Principal in case the goods are not brought back
within the time allowed in case of job work?
(a) Tax
(b) Tax + interest
(c) Tax + interest + penalty
(d) None of the above

57. What is the exception for not bringing back of goods sent for job work?
(a) Moulds and dies
(b) Jigs and fixtures
(c) Tools
(d) All of the above

58. Principal can send the goods to the job worker on basis of what document?
(a) Bill of supply
(b) Tax invoice
(c) Delivery Challan
(d) Any of the above

59. In case of direct supply of goods to job worker from the supplier, in whose name the
invoice shall be issued?
(a) In the name of job worker
(b) In the name of supplier
(c) In the name of principal
(d) Both (a) and (b) are correct

60. What is the time of supply of service if the invoice is issued within 30 days from the date
of provision of service?
(a) Date of issue of invoice
(b) Date on which the supplier receives payment
(c) Date of provision of service
(d) Earlier of (a) & (b)

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61. What is the time of supply of service for the supply of taxable services up to Rs.1000 in
excess of the amount indicated in the taxable invoice?
(a) At the option of the supplier – Invoice date or Date of receipt of consideration
(a) Date of issue of
(b) Date of entry in books of account invoice
(c) Date of receipt of consideration.

62. How is the date of receipt of consideration by the supplier determined?

a) Date on which the receipt of payment is entered in the books of account
b) Date on which the receipt of payment is credited in the bank account
c) Earlier of (a) & (b)
d) (a) & (b) whichever is later

63. What is the time of supply of service in case of reverse charge mechanism?
(a) Date of payment as entered in the books of account of the recipient
(b) Date immediately following 60 days from the date of issue of invoice
(c) Date of invoice
(d) Earlier of (a) & (b)

64. On 04.09.2019, supplier invoices goods taxable on reverse charge basis to ABC & Co.
ABC & Co. receives the goods on 12.09.2019 and makes payment on 30.9.2019.
determine the time of supply.
(a) 04.09.2019
(b) 04.10.2019
(c) 12.09.2019
(d) 30.09.2019

65. ABC Ltd. has purchased for its customers 50 vouchers dated 20.8.2018 worth Rs.100
each from PQR Ltd., a footwear manufacturing company. The vouchers were issued by
ABC Ltd. on 20.09.2018. the vouchers can be encashed at retail outlets of PQR Ltd. The
employees of ABC Ltd. encashed the same on 01.10.2018. Determine the time of supply
of vouchers (SUPPLY IS IDENTIFIABLE).
(a) 20.08.2019
(b) 20.09.2019
(c) 01.10.2019
(d) Supply is not identified

66. What is the time of supply of goods in residuary cases, in case where a periodical return
has to be filed?
(a) Date on which return is to be filed
(b) Actual date of filing of return
(c) Date of payment of tax
(d) Date of collection of tax

67. What is the time of supply in case of addition in the value of way of interest, late fee or
penalty or any delayed payment of consideration?
(a) Last date on which such late fees / penalty has been charged
(b) Date of payment of such additional amount
(c) Date of collection of whole amount
(d) It doesn’t constitute supply

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CA VIVEK GABA GST MCQs CS - EXECUTIVE

68. Date of receipt of advance is the time of supply in case of advance received for supply for
services especially when the invoice and provisioning of service is done post advance
receipt. Comment.
(a) True
(b) False
(c) Partially correct
(d) None of the above

69. Continuous supply of services means a supply of services which is provided, or agreed to
be provided, continuously or on recurrent basis, under a contract, for a period exceeding
with payment obligations.
(a) 1 year, annual
(b) 3 months, periodic
(c) 6 months, half yearly
(d) 1 year, periodic

70. What is the time of supply of service in case an associated enterprise receives services
from the service provider located outside India?
(a) Date of entry in the books of account of associated enterprise(recipient)
(b) Date of payment
(c) Earlier of (a) & (b)
(d) Date of entry in the books of the supplier of service

71. What is the time of supply of vouchers when the supply with respect to the voucher is
identifiable?
(a) Date of issue of voucher
(b) Date of redemption of voucher
(c) Earlier of (a) & (b)
(d) (a) & (b) whichever is later

72. What is the time of supply of vouchers when the supply with respect to the voucher is not
identifiable?
(a) Date of issue of voucher
(b) Date of redemption of voucher
(c) Earlier of (a) & (b)
(d) (a) & (b) whichever is later

73. What is time of supply of goods, in case of forward charge?

(a) Date of issue of invoice
(b) Last date of issue of invoice
(c) Date of receipt of consideration by the supplier
(d) Earlier of (a) & (b)

74. What is time of supply of goods liable to tax under reverse charge mechanism?
(a) Date of receipt of goods
(b) Date on which the payment is made
(c) Date immediately following 30 days from the date of issue of invoice by the supplier
(d) Earlier of (a) or (b) or (c)

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CA VIVEK GABA GST MCQs CS - EXECUTIVE
75. What is the time of supply of vouchers when the supply with respect to the voucher is not
identifiable?
(a) Date of issue of voucher
(b) Date of redemption of voucher
(c) Earlier of (a) & (b)
(d) (a) & (b) whichever is later

76. What is date of receipt of payment?

(a) Date of entry in the books
(b) Date of payment credited into bank account
(c) Earlier of (a) and (b)
(d) Date of filing of return

77. Value of services rendered is Rs. 1,00,000 Date of issue of invoice is 5th October 2019.
Advance Received is Rs. 25,000 on 20th September 2019. Balance amount received on
7th October 2019. What is the time of supply for Rs. 1,00,000
(a) 5th October 2018 for Rs. 1,00,000
(b) 20th September 2018 for Rs. 1,00,000
(c) 20th September 2018- Rs. 25,000 and 5th October 2018 for Rs. 75,000
(d) 20th September 2018- Rs. 25,000 and 7th October 2018 for Rs. 75,000

78. There was increase in tax rate from 20% to 24% w.e.f.1.09.2019. Which of the following
rate is applicable when services are provided after change in rate of tax in September
2019, but invoice issued and payment received, both in August, 2019:
a) 20% as it is lower of the two
b) 24% as it is higher of the two
c) 20% as invoice and payment were received prior to rate change
d) 24% as the supply was completed after rate change

79. Which section governs the provisions regarding determining time of supply of goods?
(a) Section 12
(b) Section 13
(c) Section 14
(d) Section 15

80. Which section governs the provisions regarding determining time of supply of services?
(a) Section 12
(b) Section 13
(c) Section 14
(d) Section 15

81. The time of supply fixes the point when the to pay GST arises.
(a) Liability
(b) Payment
(c) Provision
(d) Recovery

82. Reverse charge means the liability to pay tax by the of goods or
services or both instead of the of such goods or services or both.
(a) Recipient, Supplier
(b) Recipient, Agent

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CA VIVEK GABA GST MCQs CS - EXECUTIVE
(c) Supplier, Recipient
(d) Agent, Recipient

83. There was increase in tax rate from 20% to 24% w.e.f. 1.09.2019. Which of the following
rate is applicable when services provided, and invoice raised after change in rate of tax in
September,2019, but payment received in August 2019:
(a) 20% as it is lower of the two
(b) 24% as it is higher of the two
(c) 20% as payment (being one of the factors) was prior to rate change
(d) 24% as invoice was issued in the period during which supply is completed

84. There was increase in tax rate from 20% to 24% w.e.f. 1.9.2018. Which of the following
rate is applicable if the supplier has opted for composition levy and invoice was issued
after change in rate of tax in September,2018 but payment received, and goods supplied
in August,2018:
(a) 20% as it is lower of the two
(b) 24% as it is higher of the two
(c) 20% as payment was received in the period during which the supply was effected
(d) 24% as invoice being one of the factors was issued after rate change

85. What is the date of receipt of payment?

(a) Date on which payment is entered in the books of account
(b) Date on which payment is credited to the bank account
(c) Earlier of (a) or (b)
(d) Either of (a) or (b)

86. Where amount received is in excess of invoice with amount upto ,

supplier has option to choose time of supply as date of issue of fresh invoice for the said
excess amount.
(a) Rs.100
(b) Rs.1,000
(c) Rs.500
(d) Rs.10,000

87. Determine the amount of GST in case of supply of service of Rs.15,00,000 on 4.9.2019
and invoice has been issued on 31.8.2018. Payment received on 30.09.2019. The CGST
rate has been increased from 5% to 18% w.e.f. 1.9.2019.
(a) Rs.2,70,000
(b) Rs.1,00,000
(c) Rs.75,000
(d) Rs.1,20,000

88. What is the time of supply of goods liable to tax under reverse charge mechanism?
(a) Date of receipt of goods
(b) Date on which the payment is made
(c) Date immediately following 30 days from the date of issue of invoice by the supplier
(d) Earlier of (a) or (b) or (c)

89. Mr. X has received the payment, but has not deposited the cheque in the bank account,
what is the date of receipt of payment?
(a) Date of receipt of payment

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CA VIVEK GABA GST MCQs CS - EXECUTIVE
(b) Date of credit in the bank account
(c) Date on which payment is entered in the books of account of the supplier
(d) Earlier of (b) and (c)

90. Om which of the following situations, ‘New rate’ shall be applicable?

(a) When the goods have been supplied before the change in rate of tax but issue of
invoice and receipt of payment is after the change in rate of tax.
(b) When the goods have been supplied after the change in rate of tax but issue of
invoice and receipt of payment is before the change in rate of tax.
(c) When the supply of goods and issue of invoice has been done before the change in
rate of tax but receipt of payment is after the change in rate of tax.
(d) When the supply of goods and receipt of payment has been done before the change
in rate of tax.

91. In which of the following situations, ‘Old rate’ shall be applicable?

(a) When the goods have been supplied after the change in rate of tax but issue of
invoice and receipt of payment is before the change in rate of tax.
(b) When the supply of goods and issue of invoice has been done after the change in rate
of tax but receipt of payment is before the change in rate of tax.
(c) When the supply of goods and receipt of payment has been done after the change in
rate of tax but issue of invoice is before the change in rate of tax
(d) None of the above

92. Determine the amount of GST in case of supply of service of Rs.10,00,000 on

04.09.2019 and invoice has also been issued on the same date. The date of payment is
30.8.2019. the CGST rate has been increased from 5% to 12% w.e.f. 1.9.2019.
(a) Rs.50,000
(b) Rs.1,00,000
(c) Rs.70,000
(d) Rs.1,20,000

93. What should the taxable person do if he pay's the wrong tax i.e. IGST instead of
CGST/SGST or vice versa?
(a) Remit tax again and claim refund
(b) It will be auto-adjusted
(c) It will be adjusted on application/request
(d) None of the above

94. What should the taxable person do if he pay's tax under wrong GSTIN?
a) Pay again under right GSTIN and claim refund
b) Auto-adjustment
c) Adjustment on application/request
d) Raise ISD invoice and transfer

95. What is the due date for payment of tax?

a) Last day of the month to which payment relates
b) Within 10 days of the subsequent month
c) Within 20 days of the subsequent month
d) Within 15 days of the subsequent month

96. What is the validity of challan in FORM GST PMT-06?

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CA VIVEK GABA GST MCQs CS - EXECUTIVE
(a) 1 day
(b) 5 days
(c) 15 days
(d) Perpetual validity

97. While making purchases the dealer has to pay GST which is available as credit while
making payment for outward supply. Such credit is reflected in GST portal in,
(a) Electronic Cash ledger
(b) Electronic liability ledger
(c) Electronic Credit ledger
(d) All of the above

98. A taxable person failed to pay tax and/or file returns on time. He should pay interest on?
(a) Gross tax payable
(b) Gross tax payable & input credit claimed
(c) Net tax payable
(d) No interest payable, if reasonable cause is shown

99. For payment of IGST input tax credit can be utilised in the following manner only:
(a) IGST, CGST, SGST/UTGST
(b) IGST, SGST/UTGST, CGST
(c) CGST, SGST/UTGST, IGST
(d) Any of the above manner

100. Which of these registers/ledgers are maintained online?

(a) Tax liability register
(b) Credit ledger
(c) Cash ledger
(d) All of them

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CA VIVEK GABA CS EXECUTIVE GST (SET – 3)

CS – EXECUTIVE

TAX
SCANNER
GST MCQs
(SET – 3)
Relevant for – JUNE & DEC 2021

Compilation & Authored by CA VIVEK GABA

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CA VIVEK GABA CS EXECUTIVE GST (SET – 3)

CS – EXECUTIVE (NEW & OLD SYLLABUS)

GST MCQ’s SET – 3

(REFUND, ASSESSMENT, INSPECTION, RETURN)

Compilation by: CA VIVEK GABA

1. Balance in electronic credit ledger can be utilized against which liability?
(a) Output tax payable
(b) Interest
(c) Penalty
(d) All of them

2. Balance in electronic credit ledger under IGST can be used against which liability?
(a) IGST Liability only
(b) IGST and CGST liability
(c) IGST, CGST and SGST liability at the option of supplier
(d) None of them

3. Balance in electronic credit ledger under CGST can be used against which liability?
(a) CGST Liability only
(b) CGST and IGST liability
(c) CGST, IGST and SGST liability
(d) None of them

4. Balance in electronic credit ledger under SGST can be used against which liability?
(a) SGST Liability only
(b) SGST and IGST liability
(c) SGST, IGST and CGST liability
(d) None of them

5. Which among the following is not an example of OIDAR services?

(a) Advertising on internet
(b) Cloud services
(c) Provision of e – books, music, software etc.
(d) Online shopping

6. Which of the following registers / ledgers are maintained at the GST Portal?
(a) Electronic liability ledger
(b) Electronic cash ledger
(c) Electronic credit ledger
(d) All of the above

7. What is e – commerce?
(a) Supply of goods on an electronic platform for commerce other than the e – commerce
operator himself
(b) Supply of goods or services on an electronic platform for commerce including the e –
commerce operator
(c) Supply of goods and services on an electronic platform for commerce
(d) Supply of goods or services or both including digital products over digital or electronic
network

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CA VIVEK GABA CS EXECUTIVE GST (SET – 3)
8. ‘Electronic commerce operator’ means any person who digital or
electronic facility or platform for electronic commerce.
(a) Owns
(b) Manages
(c) Operates
(d) Any of the above

9. The Tax Collected by E – commerce Operators from the actual Suppliers of goods is termed
as:
(a) TDS
(b) TCS
(c) Service tax
(d) All of the above

10. Electronic Cash Ledger is maintained in Form,

(a) GST PMT – 1
(b) GST PMT – 3
(c) GST PMT – 4
(d) GST PMT – 5

11. Payment of tax made electronically is reflected in,

(a) Electronic cash ledger
(b) Electronic credit ledger
(c) Electronic liability ledger
(d) All of the above

12. Electronic credit ledger is maintained in Form,

(a) GST PMT – 1
(b) GST PMT – 2
(c) GST PMT – 3
(d) GST PMT – 4

13. Payment of tax, interest or penalty for each month shall be made by debiting on or bef
(a) Electronic Cash Ledger
(b) Electronic Credit Ledger
(c) Electronic Liability Ledger
(d) Both (a) and (b)

14. What is the full form of CPIN?

(a) Challan Identification Number
(b) Common Portal Identification Number
(c) Challan Pin Identification Number
(d) Common Pin Identification Number

15. What is the full form of CIN?

(a) Challan Identification Number
(b) Common Portal Identification Number
(c) Common Inquiry Number
(d) Challan Inquiry Number

16. What is the rate of interest in case of belated payment of tax?

(a) 1%
(b) 10%

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CA VIVEK GABA CS EXECUTIVE GST (SET – 3)
(c) 18%
(d) 24%

17. What is the rate of interest in case of undue or excess claim of ITC?
(a) 18%
(b) 24%
(c) 30%
(d) 40%

18. Mr. A was liable to pay GST of Rs.10,000 on 20.8.2018 but he failed to pay. Later he decided
to pay tax on 26.10.2018. what would be the period for which interest has to be paid by him?
(a) 66 days
(b) 67 days
(c) 68 days
(d) 70 days

19. Mr. A registered as an ISD in Delhi want to transfer the credit of Delhi CGST and SGST to
its branch in Mumbai. Is this possible?
(a) Yes
(b) No
(c) May be
(d) None of the above

20. On what value TDS needs to be deducted?

a) Contract value
b) Contract value excluding tax
c) Invoice value including tax
d) Invoice value excluding tax

21. What is the due date for payment of TDS?

(a) Last day of the month to which payment relates
(b) Within 10 days of the subsequent month
(c) Within 20 days of the subsequent month
(d) Within 15 days of the subsequent month

22. What is the due date for issue of TDS Certificate?

(a) The date of payment of TDS
(b) Within 10 days from the date of payment of TDS
(c) Within 20 days from the date of payment of TDS
(d) Within 05 days from the date of payment of TDS

23. Every registered person required to deduct tax at source under section 51 shall furnish
return, in ............................ , for the month in which such deductions have been made within 10
days
after the end of such month.
(a) Form GSTR-5
(b) Form GSTR-6
(c) Form GSTR-7
(d) Form GSTR-8

24. At what rate should the tax be collected at source?

(a) Not exceeding 0.5%
(b) Not exceeding 1%

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CA VIVEK GABA CS EXECUTIVE GST (SET – 3)
(c) Not exceeding 2%
(d) Not exceeding 3%

25. Is there any threshold limit for applying the provisions of Section 52 for collecting tax at
source?
(a) TCS applies if net value of taxable supplies exceeds Rs.10,00,000/-
(b) TCS applies if net value of taxable supplies exceeds Rs.15,00,000/-
(c) TCS applies if net value of taxable supplies exceeds Rs.20,00,000/-
(d) No such limit prescribed, tax should always be collected at source if the conditions
envisaged u/s 52 are met.

26. When will Section 52 apply? Or when should the e-commerce operator be liable to collect
tax at source?
(a) E-commerce operator shall collect tax at source in respect of all supplies made through it.
(b) E-commerce operator should collect tax at source only if the supplier of the goods and is
registered
(c) E-commerce operator shall collect tax at source on the net taxable value of supplies
made through it by other supplier where the consideration with respect to such supply is
to be collected by the E-commerce operator.
(d) E-commerce operator shall collect tax at source only if the net value of taxable supplies
exceeds the prescribed threshold limit.
27. When can a supplier making supplies through E-commerce operator opt not to register?
(a) Always
(b) When the e-commerce operator is not required to collect tax at source u/s 52
(c) When the supplier doesn't cross the threshold, limit specified under section 22.
(d) Option (b) and (c), cumulatively fulfilled

28. When should the e-commerce operator remit the amount of TCS to government and file the
necessary returns with the government?
(a) Within 10 days after the end of the month in which such amount was collected
(b) Within 10 days after the end of the month in which such amount was collected, but no
time limit for filing the return
(c) Within 10 days after the end of the month in which such amount was collected, but no
time limit for paying the money
(d) No time limit for both

29. Can a supplier take credit of the TCS?

(a) Yes
(b) No
(c) Yes, on the basis of the valid return filed
(d) Yes, on the basis of a valid return filed by the e-commerce operator and there is no
discrepancy in the returns

30. Every electronic commerce operator required to collect tax at source under section 52 shall
furnish a statement in ……………………, containing details of supplies effected through such
operator and the amount of tax collected as required under section 52(1) of the CGST Act.
(a) Form GSTR-5
(b) Form GSTR-6
(c) Form GSTR-7
(d) Form GSTR-8

31. Which section governs the provisions regarding refund in GST?

a) Section 53

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CA VIVEK GABA CS EXECUTIVE GST (SET – 3)
b) Section 45
c) Section 54
d) Section 52

32. Can a person also claim refund if he has paid excess tax by mistake?
(a) Yes
(b) No
(c) Partially correct
(d) None of above

33. Refund will be allowed in case of .

(a) Deemed exports
(b) Inverted duty structures
(c) Exports of goods or services
(d) All of the above

34. Which among the following are zero rated supplies?

(a) Exports
(b) Supplies to SEZ
(c) Exports and Imports
(d) Both (a) and (b)

35. The time limit available to proper officer to pass final order after accepting the refund
application is -
(a) Within sixty days from the date of receipt of application.
(b) Within eighty days from the date of receipt of application.
(c) Within ninety days from the date of receipt of application.
(d) Within thirty days from the date of receipt of application.

36. Interest on delayed refunds (Section 56)Interest on refund amount is required to be paid
after expiry of ......................... from the date of receipt of the application
(a) 60 days
(b) 90 days
(c) 180 days
(d) 240 days

37. What is the rate of interest to be payable in case of delay in sanctioning the refund claimed?
(a) Not exceeding 6%
(b) Not exceeding 8%
(c) Not exceeding 10%
(d) Not exceeding 12%

38. The time limit for filing refund claim is from the relevant date.
(a) One year
(b) Two years
(c) One and half year
(d) Half year

39. will be treated as application for refund in case of IGST paid on goods exported.
(a) GSTR – 3
(b) Form GST RFD-01A
(c) Shipping Bill / Bill of Export

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CA VIVEK GABA CS EXECUTIVE GST (SET – 3)

(d) FIRC

40. Is there any provision of provisional payment of refund in case of exports or not?
(a) Yes
(b) No
(c) Partially correct
(d) No clarification in the Act

41. Which of the following conditions needs to be complied with in case of export of services?
(a) Supplier must be located in India
(b) Recipient must be located outside India
(c) Place of supply outside India
(d) All of the above

42. What is the minimum limit of refund claim needed to be admitted in GST portal?
(a) Rs. 1000
(b) Rs. 2000
(c) Rs. 500
(d) Rs. 5000

43. The interest shall be payable @ for withholding the refund amount.
(a) 5%
(b) 7%
(c) 6%
(d) 6.5%

44. What is the full form of EPCG?

(a) Export Promotion Custom Goods
(b) Export Performance Capital Goods
(c) Deemed Export Promotion Credit Goods
(d) Export Promotion Capital Goods

45. Refund amount is credited to , if the amount is refundable and to , if the amount is n
(a) Bank account of the registered applicant, Consumer application fund
(b) Bank account of the unregistered applicant, Consumer application fund
(c) Bank account of the registered applicant, Consumer Welfare Fund
(d) Consumer Welfare Fund, Bank account of registered applicant

46. Which of the following statement is incorrect?

(a) Refund of unutilized input tax credit shall be allowed in case of exports including zero-
rated supplies
(b) Refund of unutilized input tax credit shall be allowed in case it has been
accumulated on account of rate of tax of inputs is higher than the rate of
tax on output supplies.
(c) Refund of unutilized input tax credit shall be allowed in cases where the goods
exported out of India are subject to export duty.
(d) Refund of unutilized input tax credit shall not be allowed in case the supplier of
goods and services avails duty drawback of GST.

47. What is the full form of LUT?

(a) Letter of Undertaking
(b) Letter of Unutilized ITC
(c) Letter of Unique Identification

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(d) Loading Under Transit

48. Refunds would be allowed on a provisional basis in case of refund claims on

account of zero rated supplies of goods and / or services made by registered
persons. At what percentage, would such provisional refunds be granted?
(a) 70%
(b) 65%
(c) 80%
(d) 90%

49. Supplier supplying goods or services to UN Agencies should indicate in the invoice so
(a) UIN
(b) GST
(c) UNN
(d) GSTIN

50. ‘Tourist’ means a person not normally resident in India, who enters India for a stay of
not more than for legitimate non-immigrant purposes.
(a) Six months
(b) Twelve months
(c) Nine months
(d) Three months

51. Who will establish Consumer Welfare Fund?

(a) State Government
(b) Central Government
(c) GST Council
(d) Both (a) and (b)

52. What is the relevant date in case of refund on account of excess payment of GST due to
mistake or inadvertence?
(a) Date of payment of GST
(b) Last day of the financial year
(c) Date of providing of service
(d) None of the above

53. Interest U/s 56 is applicable on delayed payment of refunds issued under?

(a) Section 54
(b) Section 44
(c) Section 41
(d) Section 45

54. Interest U/s 56 has to be paid for delayed refunds in case of appeal etc, if the refund is not
granted within ……….
(a) 90 days
(b) 3 months
(c) 60 days
(d) None of the above

55. The applicant is not required to furnish documentary evidence if the amount of refund
claimed is less than: -
a) Rs. 6 lacs

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CA VIVEK GABA CS EXECUTIVE GST (SET – 3)
b) Rs. 2 lac
c) Rs. 10 lac
d) Rs. 20 lac

56. The sanctioned refund amount can be adjusted against the payments which the assessee is
liable to pay but remains unpaid under the erstwhile law.
a) Tax
b) Penalty
c) Interest and other amounts
d) All of the above

57. Where the tax authorities notice a discrepancy in the details during the scrutiny of
returns, the registered person:
(a) would be liable for interest if he is unable to prove that the discrepancy did not arise
on his account and it was a fault of another person
(b) is required to provide satisfactory/ acceptable explanation for the same within 30
days or any extended timelines as may be permitted
(c) must prepare documents to cover up the discrepancy.
(d) Both (a) and (b)

58. What is the time limit after which action under section 61 cannot be taken?
(a) 30 days from filing of return or such further period as may be decided by proper officer.
(b) No time Limit
(c) Time limit mentioned in Section 73 or 74 of the Act.
(d)

59. What is the time limit for issuing best judgement order under section 62?
(a) 9 months from the end of financial year.
(b) 3 years for cases covered U/s 73 or 5 years for cases covered under 74
(c) 5 years for cases covered U/s 73 or 3 years for cases covered under 74
(d) 5 years from the due date of filing annual return.

60. Where the tax liability as per the final assessment is higher than tax paid at the time of filing of
return u/s 39 the registered person shall .
(a) not be liable to interest, provided he proves that his actions were bonafide
(b) be liable to pay interest from due date till the date of actual payment
(c) be liable to pay interest from date of the final assessment till the date of actual payment
(d) be liable to pay interest from due date till the date of the final assessment

61. Provisional assessment under the GST law is permitted to be:

(a) At the instance of the taxable person
(b) At the instance of the tax authorities on a best judgment basis in absence of adequate
details or response from registered person
(c) Either of (a) and (b)
(d) Available only to certain notified persons

62. On the grounds of sufficient reasons being provided by proper officer the time period for
passing final assessment order can be extended by Joint/ Additional Commissioner for
further period of not exceeding
(a) 2 months
(b) 4 months

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CA VIVEK GABA CS EXECUTIVE GST (SET – 3)
(c) 6 months
(d) No time limit

63. On the grounds of sufficient reasons being provided by proper officer the time period for
passing final assessment order can be extended by Commissioner for further period of
(a) 2 months
(b) 4 years
(c) 6 months
(d) No time limit

64. The assessment order u/s 62 shall be deemed to be cancelled if:

(a) Where the registered person furnishes a valid return within 30 days of the service of
the assessment order.
(b) Where the registered person within 90 days of the service of the assessment order.
(c) Assessment order under section 46 cannot be cancelled.
(d) Where assessee intimates to the Proper Officer that he has filed the valid return.

65. A taxable person may apply for provisional assessment:

(a) when the taxable person is not able to determine the value of goods and/or services
(b) when the taxable person is not able to determine the rate of tax.
(c) (a) or (b)
(d) (a) and (b)

66. What is the time period within which the final assessment order should be passed?
(a) Six months from the date of the provisional assessment.
(b) Nine months from the date of the provisional assessment.
(c) Three months from the date of the provisional assessment.
(d) One months from the date of the provisional assessment.

67. If final order is not passed within six months, time period specified in 60(1) may, on
sufficient cause being shown and for reasons to be recorded in writing, be extended:
(a) by the Joint/Additional Commissioner for a further period of 6 months and by the
Commissioner for such further period not exceeding 4 years.
(b) by the Commissioner for a further period of 6 months.
(c) by the Joint/Additional Commissioner for a further period of 1 year.
(d) by the Joint/Additional Commissioner for a further period of 1 year and by the
Commissioner for a further period of 6 months

68. Whether any additional interest/penalty/prosecution will be leviable for non-payment of tax
determined under provisional assessment?
(a) Only interest specified under Section 50 will be liable.
(b) Interest u/s 50 + Penalty of Rs. 10,000.
(c) Only Penalty @ 50% of the default amount.
(d) No Penalty, only Prosecution

69. Whether any time limit has been specified to issue notice for scrutiny?
(a) Six months from the end of the respective financial year.
(b) No time limit has been prescribed as of now, however same may be prescribed in the rules.
(c) One Year from the end of the respective financial year.
(d) 3 Years from the end of the respective financial year.

70. What are the consequences, where a registered person fails to furnish the return required
under Section 39 or Section 45, even after the service of a notice under Section 46?

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CA VIVEK GABA CS EXECUTIVE GST (SET – 3)
(a) The proper officer may proceed to assess the tax liability of the said person to the best
of his judgement.
(b) issue an assessment order within a period of five years from the date specified under
Section 44
(c) (a) or (b)
(d) (a) and (b)

71. What is the time limit for issuing order under section 62?
(a) 9 months from the end of financial year.
(b) 3 years for cases covered U/s 73 or 5 years for cases covered under 74
(c) 5 years for cases covered U/s 73 or 3 years for cases covered under 74
(d) 5 years from the due date of filing annual return.

72. If the registered person furnishes a valid return within ......................................of the service of
the assessment order u/s 62 (1), the said assessment order shall be deemed to have been
withdrawn.
(a) 30 days
(b) 60 days
(c) 1 month
(d) 2 months.

73. What are the pre requisites for proper officer to pass assessment order under Section 63
(a) Period selected for assessment has to be within 5 years from the end of due date for
filing annual return of relevant period.
(b) Show cause notice has to be issued before passing assessment order.
(c) Opportunity of being heard has to be given before passing assessment order.
(d) All of the above.

74. During the course of audit, the authorised officer may require the registered person:
a) to afford him the necessary facility to verify the books of account or other documents as he
may require
b) to furnish such information as he may require and render assistance for timely
completion of the audit
c) (a) and/or (b)
d) Only (a)

75. Special audit u/s 66 can be directed at any stage of scrutiny, enquiry, investigation or any
other proceedings having regard to nature and complexity of the case if, any officer not
below the rank of Assistant Commissioner:
a) is of the opinion that the value has not been correctly declared
b) the credit availed is not within the normal limits
c) assessee does no co-operate
d) (a) or (b)

76. Who is authorised to conduct the special audit including books of account u/s 66?
a) Chartered Accountant as may be nominated by the Commissioner.
b) Cost and Works Accountant as may be nominated by the Commissioner.
c) (a) or (b)
d) Company Secretary

77. The time limit to submit a report of the audit u/s 66 is:
a) within the period of ninety days without any extension of time

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CA VIVEK GABA CS EXECUTIVE GST (SET – 3)
b) within the period of sixty days without any extension of time
c) within the period of ninety days. The Assistant Commissioner may, on an application
made to him in this behalf or for any material and sufficient reason, extend the said period
by another ninety days.
d) None of the above

78. Audit can be undertaken in case of:

a) Taxable Person
b) Unregistered Person
c) Registered Person
d) All of above

79. Special Audit can be directed by a proper officer if he is of the opinion that:
a) Value requires verification
b) Value has been overstated
c) Value has not been correctly stated
d) All of above

80. The tax authorities may conduct audit u/s 65 at:

a) the place of business of the registered person
b) the place of residence of the registered person.
c) the office of the tax authorities.
d) (a) or (c)

81. Prior to the conduct of audit u/s 65 the registered person shall be informed, by way of a
notice, sufficiently in advance:
a) not less than fifteen working days
b) not less than thirty working days
c) not less than ten working days
d) No prior intimation required

82. The time limit for completion of the audit u/s 65(1) is:
a) six months from the date of commencement of audit
b) three months from the date of commencement of audit
c) One year from the date of commencement of audit
d) None of the above.

83. Where the Commissioner is satisfied that audit u/s 65 in respect of such registered person
cannot be completed within three months from the date of commencement of audit the time
limit can be extended:
a) by a further period not exceeding six months
b) by a further period not exceeding three months
c) by a further period not exceeding nine months
d) no extension of time limit is permissible

84. When can the proper officer issue summons to call upon a person?
(a) To give evidence
(b) Produce a document
(c) Produce any other thing in an enquiry
(d) All of the above

85. The documents called for should be provided within……………….

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CA VIVEK GABA CS EXECUTIVE GST (SET – 3)
(a) 20 working days
(b) 15 working days
(c) 5 working days
(d) 45 working days

86. Initiation of action under this section is by a Proper Officer not below the rank of …………..
(a) Superintendent
(b) Inspector
(c) Joint Commissioner
(d) Commissioner

87. Which are the places of business / premises which can be inspected by the proper officer
under this section?
(a) Any places of business of a taxable person
(b) Any places of business of a taxable person engaged in the business of transporting goods
(c) Any places of business of an owner or an operator of a warehouse or godown or any other
place.
(d) All of the above

88. Can the seized goods be released on provisional basis upon execution of a bond and
furnishing of security or on payment of applicable tax, interest and penalty?
(a) Yes
(b) No
(c) At proper officer's discretion
(d) None of the above

89. What is the prescribed monetary limit of Central Tax for Deputy or Assistant Commissioner of
Central Tax for issuance of show cause notices and orders under Section 73 and 74?
(a) Not exceeding Rupees 10 lakhs
(b) Above Rupees 10 lakhs and not exceeding Rupees 1 crore
(c) Above Rupees 1 crore without any limit
(d) Any amount without any limit

90. The time limit for payment of tax demand is ..................................... from the date of service of
the order,
(a) 3 months
(b) 90 days
(c) 6 months
(d) 1 year

91. What is the time limit for issue of order in case of fraud, misstatement or suppression?
(a) 30 months
(b) 18 months
(c) 5 years
(d) 3 years

92. What is the time limit for issue of order in case of other than fraud, misstatement or
suppression?
(a) 30 months
(b) 18 months
(c) 5 years
(d) 3 years

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CA VIVEK GABA CS EXECUTIVE GST (SET – 3)
93. Is it obligatory on the part of the Department to take on record the assessee's representation
during adjudication and issue of order?
(a) Yes
(b) No
(c) At proper officer's discretion
(d) If requested by notice

94. What is the maximum amount of demand for which the officer can issue an order under
section 73 in case of other than fraud, misstatement or suppression?
(a) Amount of tax + interest + penalty of 10% of tax
(b) Amount of tax + interest + penalty of 10% of tax or Rs. 10,000/- whichever is higher
(c) Rs. 10,000
(d) Amount of tax + interest + 25% penalty

95. What is the maximum amount of demand for which the officer can issue an order under
section 74 in case fraud, misstatement or suppression?
(a) Amount of tax + interest + penalty of 15% of tax
(b) Amount of tax + interest + penalty of 25% of tax
(c) Amount of tax + interest + penalty of 50% of tax
(d) Amount of tax + interest + penalty of 100% of tax

96. What is the time limit for issue of order in pursuance of the direction of the Appellate Authority or
Appellate Tribunal or a Court, from the date of communication of the said direction?
(a) 30 months
(b) 18 months
(c) 2 years
(d) 5 years

97. Is there any time limit for issue of notice under section 76 in cases where tax collected but
not paid?
(a) No time limit
(b) 1 year
(c) 3 years
(d) 5 years

98. Within how many years should the proper officer issue an order from the date of issue of
notice?
(a) 1 year
(b) 2 years
(c) 3 years
(d) 4 years

99. The Summary return of goods or services in Form GSTR 3B shall be submitted by
(a) 10th of the succeeding month
(b) 18th of the succeeding month
(c) 15th of the succeeding month
(d) 20th of the succeeding month

100. The due date for furnishing the annual return for every financial year by every
registered taxable person is
(a) 30th of September following the end of the financial year
(b) 20th of October following the end of the financial year
(c) 31st of December following the end of the financial year

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CA VIVEK GABA CS EXECUTIVE GST (SET – 3)
(d) 31st of May following the end of the financial year

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CA VIVEK GABA CS EXECUTIVE GST (SET – 3)

CS – EXECUTIVE

TAX
SCANNER
GST MCQs
(SET – 3)
Relevant for – JUNE & DEC 2021

Compilation & Authored by CA VIVEK GABA

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CA VIVEK GABA CS EXECUTIVE GST (SET – 3)

CS – EXECUTIVE (NEW & OLD SYLLABUS)

GST MCQ’s SET – 3

(REFUND, ASSESSMENT, INSPECTION, RETURN)

Compilation by: CA VIVEK GABA

1. Balance in electronic credit ledger can be utilized against which liability?
(a) Output tax payable
(b) Interest
(c) Penalty
(d) All of them

2. Balance in electronic credit ledger under IGST can be used against which liability?
(a) IGST Liability only
(b) IGST and CGST liability
(c) IGST, CGST and SGST liability at the option of supplier
(d) None of them

3. Balance in electronic credit ledger under CGST can be used against which liability?
(a) CGST Liability only
(b) CGST and IGST liability
(c) CGST, IGST and SGST liability
(d) None of them

4. Balance in electronic credit ledger under SGST can be used against which liability?
(a) SGST Liability only
(b) SGST and IGST liability
(c) SGST, IGST and CGST liability
(d) None of them

5. Which among the following is not an example of OIDAR services?

(a) Advertising on internet
(b) Cloud services
(c) Provision of e – books, music, software etc.
(d) Online shopping

6. Which of the following registers / ledgers are maintained at the GST Portal?
(a) Electronic liability ledger
(b) Electronic cash ledger
(c) Electronic credit ledger
(d) All of the above

7. What is e – commerce?
(a) Supply of goods on an electronic platform for commerce other than the e – commerce
operator himself
(b) Supply of goods or services on an electronic platform for commerce including the e –
commerce operator
(c) Supply of goods and services on an electronic platform for commerce
(d) Supply of goods or services or both including digital products over digital or electronic
network

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8. ‘Electronic commerce operator’ means any person who digital or
electronic facility or platform for electronic commerce.
(a) Owns
(b) Manages
(c) Operates
(d) Any of the above

9. The Tax Collected by E – commerce Operators from the actual Suppliers of goods is termed
as:
(a) TDS
(b) TCS
(c) Service tax
(d) All of the above

10. Electronic Cash Ledger is maintained in Form,

(a) GST PMT – 1
(b) GST PMT – 3
(c) GST PMT – 4
(d) GST PMT – 5

11. Payment of tax made electronically is reflected in,

(a) Electronic cash ledger
(b) Electronic credit ledger
(c) Electronic liability ledger
(d) All of the above

12. Electronic credit ledger is maintained in Form,

(a) GST PMT – 1
(b) GST PMT – 2
(c) GST PMT – 3
(d) GST PMT – 4

13. Payment of tax, interest or penalty for each month shall be made by debiting on or bef
(a) Electronic Cash Ledger
(b) Electronic Credit Ledger
(c) Electronic Liability Ledger
(d) Both (a) and (b)

14. What is the full form of CPIN?

(a) Challan Identification Number
(b) Common Portal Identification Number
(c) Challan Pin Identification Number
(d) Common Pin Identification Number

15. What is the full form of CIN?

(a) Challan Identification Number
(b) Common Portal Identification Number
(c) Common Inquiry Number
(d) Challan Inquiry Number

16. What is the rate of interest in case of belated payment of tax?

(a) 1%
(b) 10%

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CA VIVEK GABA CS EXECUTIVE GST (SET – 3)
(c) 18%
(d) 24%

17. What is the rate of interest in case of undue or excess claim of ITC?
(a) 18%
(b) 24%
(c) 30%
(d) 40%

18. Mr. A was liable to pay GST of Rs.10,000 on 20.8.2018 but he failed to pay. Later he decided
to pay tax on 26.10.2018. what would be the period for which interest has to be paid by him?
(a) 66 days
(b) 67 days
(c) 68 days
(d) 70 days

19. Mr. A registered as an ISD in Delhi want to transfer the credit of Delhi CGST and SGST to
its branch in Mumbai. Is this possible?
(a) Yes
(b) No
(c) May be
(d) None of the above

20. On what value TDS needs to be deducted?

a) Contract value
b) Contract value excluding tax
c) Invoice value including tax
d) Invoice value excluding tax

21. What is the due date for payment of TDS?

(a) Last day of the month to which payment relates
(b) Within 10 days of the subsequent month
(c) Within 20 days of the subsequent month
(d) Within 15 days of the subsequent month

22. What is the due date for issue of TDS Certificate?

(a) The date of payment of TDS
(b) Within 10 days from the date of payment of TDS
(c) Within 20 days from the date of payment of TDS
(d) Within 05 days from the date of payment of TDS

23. Every registered person required to deduct tax at source under section 51 shall furnish
return, in ............................ , for the month in which such deductions have been made within 10
days
after the end of such month.
(a) Form GSTR-5
(b) Form GSTR-6
(c) Form GSTR-7
(d) Form GSTR-8

24. At what rate should the tax be collected at source?

(a) Not exceeding 0.5%
(b) Not exceeding 1%

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CA VIVEK GABA CS EXECUTIVE GST (SET – 3)
(c) Not exceeding 2%
(d) Not exceeding 3%

25. Is there any threshold limit for applying the provisions of Section 52 for collecting tax at
source?
(a) TCS applies if net value of taxable supplies exceeds Rs.10,00,000/-
(b) TCS applies if net value of taxable supplies exceeds Rs.15,00,000/-
(c) TCS applies if net value of taxable supplies exceeds Rs.20,00,000/-
(d) No such limit prescribed, tax should always be collected at source if the conditions
envisaged u/s 52 are met.

26. When will Section 52 apply? Or when should the e-commerce operator be liable to collect
tax at source?
(a) E-commerce operator shall collect tax at source in respect of all supplies made through it.
(b) E-commerce operator should collect tax at source only if the supplier of the goods and is
registered
(c) E-commerce operator shall collect tax at source on the net taxable value of supplies
made through it by other supplier where the consideration with respect to such supply is
to be collected by the E-commerce operator.
(d) E-commerce operator shall collect tax at source only if the net value of taxable supplies
exceeds the prescribed threshold limit.
27. When can a supplier making supplies through E-commerce operator opt not to register?
(a) Always
(b) When the e-commerce operator is not required to collect tax at source u/s 52
(c) When the supplier doesn't cross the threshold, limit specified under section 22.
(d) Option (b) and (c), cumulatively fulfilled

28. When should the e-commerce operator remit the amount of TCS to government and file the
necessary returns with the government?
(a) Within 10 days after the end of the month in which such amount was collected
(b) Within 10 days after the end of the month in which such amount was collected, but no
time limit for filing the return
(c) Within 10 days after the end of the month in which such amount was collected, but no
time limit for paying the money
(d) No time limit for both

29. Can a supplier take credit of the TCS?

(a) Yes
(b) No
(c) Yes, on the basis of the valid return filed
(d) Yes, on the basis of a valid return filed by the e-commerce operator and there is no
discrepancy in the returns

30. Every electronic commerce operator required to collect tax at source under section 52 shall
furnish a statement in ……………………, containing details of supplies effected through such
operator and the amount of tax collected as required under section 52(1) of the CGST Act.
(a) Form GSTR-5
(b) Form GSTR-6
(c) Form GSTR-7
(d) Form GSTR-8

31. Which section governs the provisions regarding refund in GST?

a) Section 53

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CA VIVEK GABA CS EXECUTIVE GST (SET – 3)
b) Section 45
c) Section 54
d) Section 52

32. Can a person also claim refund if he has paid excess tax by mistake?
(a) Yes
(b) No
(c) Partially correct
(d) None of above

33. Refund will be allowed in case of .

(a) Deemed exports
(b) Inverted duty structures
(c) Exports of goods or services
(d) All of the above

34. Which among the following are zero rated supplies?

(a) Exports
(b) Supplies to SEZ
(c) Exports and Imports
(d) Both (a) and (b)

35. The time limit available to proper officer to pass final order after accepting the refund
application is -
(a) Within sixty days from the date of receipt of application.
(b) Within eighty days from the date of receipt of application.
(c) Within ninety days from the date of receipt of application.
(d) Within thirty days from the date of receipt of application.

36. Interest on delayed refunds (Section 56)Interest on refund amount is required to be paid
after expiry of ......................... from the date of receipt of the application
(a) 60 days
(b) 90 days
(c) 180 days
(d) 240 days

37. What is the rate of interest to be payable in case of delay in sanctioning the refund claimed?
(a) Not exceeding 6%
(b) Not exceeding 8%
(c) Not exceeding 10%
(d) Not exceeding 12%

38. The time limit for filing refund claim is from the relevant date.
(a) One year
(b) Two years
(c) One and half year
(d) Half year

39. will be treated as application for refund in case of IGST paid on goods exported.
(a) GSTR – 3
(b) Form GST RFD-01A
(c) Shipping Bill / Bill of Export

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(d) FIRC

40. Is there any provision of provisional payment of refund in case of exports or not?
(a) Yes
(b) No
(c) Partially correct
(d) No clarification in the Act

41. Which of the following conditions needs to be complied with in case of export of services?
(a) Supplier must be located in India
(b) Recipient must be located outside India
(c) Place of supply outside India
(d) All of the above

42. What is the minimum limit of refund claim needed to be admitted in GST portal?
(a) Rs. 1000
(b) Rs. 2000
(c) Rs. 500
(d) Rs. 5000

43. The interest shall be payable @ for withholding the refund amount.
(a) 5%
(b) 7%
(c) 6%
(d) 6.5%

44. What is the full form of EPCG?

(a) Export Promotion Custom Goods
(b) Export Performance Capital Goods
(c) Deemed Export Promotion Credit Goods
(d) Export Promotion Capital Goods

45. Refund amount is credited to , if the amount is refundable and to , if the amount is n
(a) Bank account of the registered applicant, Consumer application fund
(b) Bank account of the unregistered applicant, Consumer application fund
(c) Bank account of the registered applicant, Consumer Welfare Fund
(d) Consumer Welfare Fund, Bank account of registered applicant

46. Which of the following statement is incorrect?

(a) Refund of unutilized input tax credit shall be allowed in case of exports including zero-
rated supplies
(b) Refund of unutilized input tax credit shall be allowed in case it has been
accumulated on account of rate of tax of inputs is higher than the rate of
tax on output supplies.
(c) Refund of unutilized input tax credit shall be allowed in cases where the goods
exported out of India are subject to export duty.
(d) Refund of unutilized input tax credit shall not be allowed in case the supplier of
goods and services avails duty drawback of GST.

47. What is the full form of LUT?

(a) Letter of Undertaking
(b) Letter of Unutilized ITC
(c) Letter of Unique Identification

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(d) Loading Under Transit

48. Refunds would be allowed on a provisional basis in case of refund claims on

account of zero rated supplies of goods and / or services made by registered
persons. At what percentage, would such provisional refunds be granted?
(a) 70%
(b) 65%
(c) 80%
(d) 90%

49. Supplier supplying goods or services to UN Agencies should indicate in the invoice so
(a) UIN
(b) GST
(c) UNN
(d) GSTIN

50. ‘Tourist’ means a person not normally resident in India, who enters India for a stay of
not more than for legitimate non-immigrant purposes.
(a) Six months
(b) Twelve months
(c) Nine months
(d) Three months

51. Who will establish Consumer Welfare Fund?

(a) State Government
(b) Central Government
(c) GST Council
(d) Both (a) and (b)

52. What is the relevant date in case of refund on account of excess payment of GST due to
mistake or inadvertence?
(a) Date of payment of GST
(b) Last day of the financial year
(c) Date of providing of service
(d) None of the above

53. Interest U/s 56 is applicable on delayed payment of refunds issued under?

(a) Section 54
(b) Section 44
(c) Section 41
(d) Section 45

54. Interest U/s 56 has to be paid for delayed refunds in case of appeal etc, if the refund is not
granted within ……….
(a) 90 days
(b) 3 months
(c) 60 days
(d) None of the above

55. The applicant is not required to furnish documentary evidence if the amount of refund
claimed is less than: -
a) Rs. 6 lacs

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CA VIVEK GABA CS EXECUTIVE GST (SET – 3)
b) Rs. 2 lac
c) Rs. 10 lac
d) Rs. 20 lac

56. The sanctioned refund amount can be adjusted against the payments which the assessee is
liable to pay but remains unpaid under the erstwhile law.
a) Tax
b) Penalty
c) Interest and other amounts
d) All of the above

57. Where the tax authorities notice a discrepancy in the details during the scrutiny of
returns, the registered person:
(a) would be liable for interest if he is unable to prove that the discrepancy did not arise
on his account and it was a fault of another person
(b) is required to provide satisfactory/ acceptable explanation for the same within 30
days or any extended timelines as may be permitted
(c) must prepare documents to cover up the discrepancy.
(d) Both (a) and (b)

58. What is the time limit after which action under section 61 cannot be taken?
(a) 30 days from filing of return or such further period as may be decided by proper officer.
(b) No time Limit
(c) Time limit mentioned in Section 73 or 74 of the Act.
(d)

59. What is the time limit for issuing best judgement order under section 62?
(a) 9 months from the end of financial year.
(b) 3 years for cases covered U/s 73 or 5 years for cases covered under 74
(c) 5 years for cases covered U/s 73 or 3 years for cases covered under 74
(d) 5 years from the due date of filing annual return.

60. Where the tax liability as per the final assessment is higher than tax paid at the time of filing of
return u/s 39 the registered person shall .
(a) not be liable to interest, provided he proves that his actions were bonafide
(b) be liable to pay interest from due date till the date of actual payment
(c) be liable to pay interest from date of the final assessment till the date of actual payment
(d) be liable to pay interest from due date till the date of the final assessment

61. Provisional assessment under the GST law is permitted to be:

(a) At the instance of the taxable person
(b) At the instance of the tax authorities on a best judgment basis in absence of adequate
details or response from registered person
(c) Either of (a) and (b)
(d) Available only to certain notified persons

62. On the grounds of sufficient reasons being provided by proper officer the time period for
passing final assessment order can be extended by Joint/ Additional Commissioner for
further period of not exceeding
(a) 2 months
(b) 4 months

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CA VIVEK GABA CS EXECUTIVE GST (SET – 3)
(c) 6 months
(d) No time limit

63. On the grounds of sufficient reasons being provided by proper officer the time period for
passing final assessment order can be extended by Commissioner for further period of
(a) 2 months
(b) 4 years
(c) 6 months
(d) No time limit

64. The assessment order u/s 62 shall be deemed to be cancelled if:

(a) Where the registered person furnishes a valid return within 30 days of the service of
the assessment order.
(b) Where the registered person within 90 days of the service of the assessment order.
(c) Assessment order under section 46 cannot be cancelled.
(d) Where assessee intimates to the Proper Officer that he has filed the valid return.

65. A taxable person may apply for provisional assessment:

(a) when the taxable person is not able to determine the value of goods and/or services
(b) when the taxable person is not able to determine the rate of tax.
(c) (a) or (b)
(d) (a) and (b)

66. What is the time period within which the final assessment order should be passed?
(a) Six months from the date of the provisional assessment.
(b) Nine months from the date of the provisional assessment.
(c) Three months from the date of the provisional assessment.
(d) One months from the date of the provisional assessment.

67. If final order is not passed within six months, time period specified in 60(1) may, on
sufficient cause being shown and for reasons to be recorded in writing, be extended:
(a) by the Joint/Additional Commissioner for a further period of 6 months and by the
Commissioner for such further period not exceeding 4 years.
(b) by the Commissioner for a further period of 6 months.
(c) by the Joint/Additional Commissioner for a further period of 1 year.
(d) by the Joint/Additional Commissioner for a further period of 1 year and by the
Commissioner for a further period of 6 months

68. Whether any additional interest/penalty/prosecution will be leviable for non-payment of tax
determined under provisional assessment?
(a) Only interest specified under Section 50 will be liable.
(b) Interest u/s 50 + Penalty of Rs. 10,000.
(c) Only Penalty @ 50% of the default amount.
(d) No Penalty, only Prosecution

69. Whether any time limit has been specified to issue notice for scrutiny?
(a) Six months from the end of the respective financial year.
(b) No time limit has been prescribed as of now, however same may be prescribed in the rules.
(c) One Year from the end of the respective financial year.
(d) 3 Years from the end of the respective financial year.

70. What are the consequences, where a registered person fails to furnish the return required
under Section 39 or Section 45, even after the service of a notice under Section 46?

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CA VIVEK GABA CS EXECUTIVE GST (SET – 3)
(a) The proper officer may proceed to assess the tax liability of the said person to the best
of his judgement.
(b) issue an assessment order within a period of five years from the date specified under
Section 44
(c) (a) or (b)
(d) (a) and (b)

71. What is the time limit for issuing order under section 62?
(a) 9 months from the end of financial year.
(b) 3 years for cases covered U/s 73 or 5 years for cases covered under 74
(c) 5 years for cases covered U/s 73 or 3 years for cases covered under 74
(d) 5 years from the due date of filing annual return.

72. If the registered person furnishes a valid return within ......................................of the service of
the assessment order u/s 62 (1), the said assessment order shall be deemed to have been
withdrawn.
(a) 30 days
(b) 60 days
(c) 1 month
(d) 2 months.

73. What are the pre requisites for proper officer to pass assessment order under Section 63
(a) Period selected for assessment has to be within 5 years from the end of due date for
filing annual return of relevant period.
(b) Show cause notice has to be issued before passing assessment order.
(c) Opportunity of being heard has to be given before passing assessment order.
(d) All of the above.

74. During the course of audit, the authorised officer may require the registered person:
a) to afford him the necessary facility to verify the books of account or other documents as he
may require
b) to furnish such information as he may require and render assistance for timely
completion of the audit
c) (a) and/or (b)
d) Only (a)

75. Special audit u/s 66 can be directed at any stage of scrutiny, enquiry, investigation or any
other proceedings having regard to nature and complexity of the case if, any officer not
below the rank of Assistant Commissioner:
a) is of the opinion that the value has not been correctly declared
b) the credit availed is not within the normal limits
c) assessee does no co-operate
d) (a) or (b)

76. Who is authorised to conduct the special audit including books of account u/s 66?
a) Chartered Accountant as may be nominated by the Commissioner.
b) Cost and Works Accountant as may be nominated by the Commissioner.
c) (a) or (b)
d) Company Secretary

77. The time limit to submit a report of the audit u/s 66 is:
a) within the period of ninety days without any extension of time

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CA VIVEK GABA CS EXECUTIVE GST (SET – 3)
b) within the period of sixty days without any extension of time
c) within the period of ninety days. The Assistant Commissioner may, on an application
made to him in this behalf or for any material and sufficient reason, extend the said period
by another ninety days.
d) None of the above

78. Audit can be undertaken in case of:

a) Taxable Person
b) Unregistered Person
c) Registered Person
d) All of above

79. Special Audit can be directed by a proper officer if he is of the opinion that:
a) Value requires verification
b) Value has been overstated
c) Value has not been correctly stated
d) All of above

80. The tax authorities may conduct audit u/s 65 at:

a) the place of business of the registered person
b) the place of residence of the registered person.
c) the office of the tax authorities.
d) (a) or (c)

81. Prior to the conduct of audit u/s 65 the registered person shall be informed, by way of a
notice, sufficiently in advance:
a) not less than fifteen working days
b) not less than thirty working days
c) not less than ten working days
d) No prior intimation required

82. The time limit for completion of the audit u/s 65(1) is:
a) six months from the date of commencement of audit
b) three months from the date of commencement of audit
c) One year from the date of commencement of audit
d) None of the above.

83. Where the Commissioner is satisfied that audit u/s 65 in respect of such registered person
cannot be completed within three months from the date of commencement of audit the time
limit can be extended:
a) by a further period not exceeding six months
b) by a further period not exceeding three months
c) by a further period not exceeding nine months
d) no extension of time limit is permissible

84. When can the proper officer issue summons to call upon a person?
(a) To give evidence
(b) Produce a document
(c) Produce any other thing in an enquiry
(d) All of the above

85. The documents called for should be provided within……………….

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CA VIVEK GABA CS EXECUTIVE GST (SET – 3)
(a) 20 working days
(b) 15 working days
(c) 5 working days
(d) 45 working days

86. Initiation of action under this section is by a Proper Officer not below the rank of …………..
(a) Superintendent
(b) Inspector
(c) Joint Commissioner
(d) Commissioner

87. Which are the places of business / premises which can be inspected by the proper officer
under this section?
(a) Any places of business of a taxable person
(b) Any places of business of a taxable person engaged in the business of transporting goods
(c) Any places of business of an owner or an operator of a warehouse or godown or any other
place.
(d) All of the above

88. Can the seized goods be released on provisional basis upon execution of a bond and
furnishing of security or on payment of applicable tax, interest and penalty?
(a) Yes
(b) No
(c) At proper officer's discretion
(d) None of the above

89. What is the prescribed monetary limit of Central Tax for Deputy or Assistant Commissioner of
Central Tax for issuance of show cause notices and orders under Section 73 and 74?
(a) Not exceeding Rupees 10 lakhs
(b) Above Rupees 10 lakhs and not exceeding Rupees 1 crore
(c) Above Rupees 1 crore without any limit
(d) Any amount without any limit

90. The time limit for payment of tax demand is ..................................... from the date of service of
the order,
(a) 3 months
(b) 90 days
(c) 6 months
(d) 1 year

91. What is the time limit for issue of order in case of fraud, misstatement or suppression?
(a) 30 months
(b) 18 months
(c) 5 years
(d) 3 years

92. What is the time limit for issue of order in case of other than fraud, misstatement or
suppression?
(a) 30 months
(b) 18 months
(c) 5 years
(d) 3 years

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CA VIVEK GABA CS EXECUTIVE GST (SET – 3)
93. Is it obligatory on the part of the Department to take on record the assessee's representation
during adjudication and issue of order?
(a) Yes
(b) No
(c) At proper officer's discretion
(d) If requested by notice

94. What is the maximum amount of demand for which the officer can issue an order under
section 73 in case of other than fraud, misstatement or suppression?
(a) Amount of tax + interest + penalty of 10% of tax
(b) Amount of tax + interest + penalty of 10% of tax or Rs. 10,000/- whichever is higher
(c) Rs. 10,000
(d) Amount of tax + interest + 25% penalty

95. What is the maximum amount of demand for which the officer can issue an order under
section 74 in case fraud, misstatement or suppression?
(a) Amount of tax + interest + penalty of 15% of tax
(b) Amount of tax + interest + penalty of 25% of tax
(c) Amount of tax + interest + penalty of 50% of tax
(d) Amount of tax + interest + penalty of 100% of tax

96. What is the time limit for issue of order in pursuance of the direction of the Appellate Authority or
Appellate Tribunal or a Court, from the date of communication of the said direction?
(a) 30 months
(b) 18 months
(c) 2 years
(d) 5 years

97. Is there any time limit for issue of notice under section 76 in cases where tax collected but
not paid?
(a) No time limit
(b) 1 year
(c) 3 years
(d) 5 years

98. Within how many years should the proper officer issue an order from the date of issue of
notice?
(a) 1 year
(b) 2 years
(c) 3 years
(d) 4 years

99. The Summary return of goods or services in Form GSTR 3B shall be submitted by
(a) 10th of the succeeding month
(b) 18th of the succeeding month
(c) 15th of the succeeding month
(d) 20th of the succeeding month

100. The due date for furnishing the annual return for every financial year by every
registered taxable person is
(a) 30th of September following the end of the financial year
(b) 20th of October following the end of the financial year
(c) 31st of December following the end of the financial year

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CA VIVEK GABA CS EXECUTIVE GST (SET – 3)
(d) 31st of May following the end of the financial year

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 GST TEST SERIES CA VIVEK GABA CS EXECUTIVE

CS – EXECUTIVE (NEW & OLD SYLLABUS)

GST MCQ’s SET – 4 (MISC TOPICS)

Compilation by: CA VIVEK GABA

1. The definition of goods under section 2(52) of the CGST Act does not include-
(a) Grass
(b) Money and securities
(c) Actionable claims
(d) Growing crops

2. The definition of goods under section 2(52) of the CGST Act does include-
(a) Grass
(b) Money and securities
(c) Actionable claims
(d) Both A & C

3. The definition of goods under section 2(52) of the CGST Act is -

(a) Inclusive
(b) Exhaustive
(c) None of the above
(d) Both A & C

4. The definition of Services under section 2(102) of the CGST Act is -

(a) Inclusive
(b) Exhaustive
(c) None of the above
(d) Both A & C

5. The definition of Services under section 2(102) of the CGST Act means -
(a) Anything
(b) Anything other than Goods
(c) Anything other than goods and money
(d) Anything other than goods, money & securities

6. The definition of services under section 2(102) of the CGST Act includes -
(a) Movable property
(b) Immovable property
(c) Both A & B
(d) None of the above

7. The definition of services under section 2(102) of the CGST Act includes -
(a) Transaction in securities
(b) Facilitating or arranging transactions in securities
(c) Both A & B
(d) None of the above

8. An exempt supply includes-

(a) Supply of goods or services or both which attracts Nil rate of tax
(b) Non-taxable supply
 GST TEST SERIES CA VIVEK GABA CS EXECUTIVE
(c) Supply of goods or services or both which are wholly exempt from tax under Section 11 of the CGST
Act or under Section 6 of IGST Act
(d) All of the above

9. ....................... of the Constitution provides that no tax shall be levied or collected except by
authority of law?
(a) Article 254
(b) Article 245
(c) Article 265
(d) Article 256

10. ....................... of the Constitution provides that subject matter of laws made by parliament or
Legislature of State?
(a) Article 254
(b) Article 245
(c) Article 246
(d) Article 265

11. Capital goods include-

(a) Goods, the value of which is capitalized in the books of accounts
(b) Goods which are used or intended to be used in the course or furtherance of business
(c) Both (a) and (b)
(d) None of the above

12. The term 'agriculturist' includes the following persons who undertake cultivation of land:
(a) An individual
(b) A Hindu Undivided Family
(c) A co-operative society
(d) Both (a) and (b)

13. The term 'casual taxable person' includes:

(a) A person occasionally supplying goods or services or both in a State or a Union territory where
he has no fixed place of business.
(b) A person occasionally supplying goods or services or both in a State or a Union territory where
he has fixed place of business.
(c) Both (a) and (b)
(d) None of the above

14. Section defines ‘Job Work’.

(a) 2(78)
(b) 2(68)
(c) 2(87)
(d) 2(68)

15. For payment of IGST input tax credit can be utilised in the following manner only :
(a) IGST, CGST & SGST/UTGST in any Manner
(b) IGST, SGST/UTGST, CGST in that order
(c) IGST, CGST, SGST/UTGST in that order
(d) Any of the above manner

16. Input tax credit of IGST an be utilised in the following manner only :
 GST TEST SERIES CA VIVEK GABA CS EXECUTIVE
(a) IGST, CGST & SGST/UTGST in any Manner
(b) IGST, SGST/UTGST, CGST in that order
(c) IGST, CGST, SGST/UTGST in that order
(d) Any of the above manner

17. Input tax credit of CGST an be utilised in the following manner only :
(a) CGST & IGST in that order
(b) IGST, SGST/UTGST, CGST in that order
(c) IGST, CGST, SGST/UTGST in that order
(d) Any of the above manner

18. For payment of SGST input tax credit can be utilised in the following manner only :
(a) IGST, SGST/UTGST in that order
(b) IGST, SGST/UTGST, CGST in that order
(c) IGST, CGST, SGST/UTGST in that order
(d) Any of the above manner

19. Input tax credit of SGST/UTGSTc can be utilised in the following manner only :
(a) SGST/UTGST & IGST in that order
(b) IGST, SGST/UTGST, in that order
(c) IGST, CGST, SGST/UTGST in that order
(d) Any of the above manner

20. GST is one of the widely accepted __________ system prevalent in more than _______ across the
globe?
a) Indirect Tax, 160 Countries
b) Direct Tax, 185 Countries
c) Indirect Tax, 170 Countries
d) Indirect Tax, 190 Countries

21. GST was first levied by ________?

a) France in 1954
b) USA in 1985
c) India in 2017
d) U.K in 1970

22. ________ is the most recent country to join the bandwagon?

a) Malaysia
b) Pakistan
c) USA
d) France

23. GST is a ________ based tax?

a) Destination
b) Origin
c) Both A & B
d) None of the above

24. Which of the following statement is correct:-

I. GST is a broad-based tax
II. GST is a destination based tax
III. GST is collected through a staged process i.e. a tax on the value added to goods or services at every
point in the supply chain
 GST TEST SERIES CA VIVEK GABA CS EXECUTIVE
IV. GST is a tax on the consumption of products from business sources, and not on personal or hobby
activities
a) Only I.
b) I & II Both
c) I, II & III
d) I, II, III & IV all statement is correct

25. Which of the following statement is False:

I. GST is a broad-based tax
II. GST is a Origin based tax
III. GST is collected through a staged process i.e. a tax on the value added to goods or services at
every point in the supply chain
IV. GST is a tax on the consumption of products from business sources, and not on personal or
hobby activities
a) Only I.
b) I & II Both
c) Only II
d) I, II, III & IV all are false.

26. Which of the following statement is Correct:-

I. GST is a broad-based tax
II. GST is a destination based tax
III. GST is collected through a staged process i.e. a tax on the value added to goods or services at
every point in the supply chain
IV. Under GST, input tax credit is provided throughout the value chain for creditable acquisition.
a) Only I.
b) I & II Both
c) Only II
d) I, II, III & IV all are correct.

27. Australian Model wherein, tax is collected by the ______ and distributed to the _____?
a) Centre, State
b) State, Centre
c) Both A & B
d) None of the above

28. Currently, __________ also follow dual GST model?

a) Brazil and Canada
b) USA and Canada
c) France & U.K
d) Germany & France

29. India follow _______ GST Model?

a) Single
b) Dual
c) Four
d) None of the above

30. GST is a consumption or destination based tax levied on the basis of the “________”?
a) Destination principle
b) Origin Principle
c) Both A & B
d) None of the above
 GST TEST SERIES CA VIVEK GABA CS EXECUTIVE

31. It is a __________ tax regime covering both goods and services, and be collected on value-added
at each stage of the supply chain?
a) Comprehensive
b) Selective
c) Positive
d) None of the above

32. Goods and Services Tax is a tax levied on goods and services imposed at each point of ________?
a) Supply
b) Manufacturing
c) Sale
d) Service

33. GST is a national level tax based on _______?

a) value added principle
b) First point tax principle
c) Last point tax principle
d) None of the above

34. _________ as a well-designed value added tax on all goods and services, is the most elegant
method to eliminate distortions and to tax consumption?
a) Goods and Services Tax
b) Service Tax
c) Income Tax
d) Excise Duty

35. Which of the following Central Taxes have been subsumed under GST?
i. Central Excise Duty
ii. Duties of Excise (Medicinal and Toilet Preparations)
iii. Additional Duties of Excise (Textiles and Textile Products)
iv. Service Tax
v. Income Tax
vi. Basic Custom Duty
a) i, ii, iii & iv
b) vi, iii, ii, i & v
c) Only i, ii & iii
d) None of the above

36. Which of the following Central Taxes have not been subsumed under GST?
i. Central Excise Duty
ii. Duties of Excise (Medicinal and Toilet Preparations)
iii. Additional Duties of Excise (Textiles and Textile Products)
iv. Service Tax
v. Income Tax
vi. Basic Custom Duty
vii. Export Duty
a) v, vi & vii
b) Only v.
c) i, ii & vii.
d) Only vi & vii
 GST TEST SERIES CA VIVEK GABA CS EXECUTIVE

37. Which of the following Central Taxes have been subsumed under GST?
i. Central Excise Duty
ii. Duties of Excise (Medicinal and Toilet Preparations)
iii. Additional Duties of Excise (Textiles and Textile Products)
iv. Service Tax
v. Income Tax
vi. Basic Custom Duty
vii. Additional custom duties (commonly known as CVD)
viii. Special Custom duties (commonly known as SAD)
a) i, ii, iii, iv, vii & viii
b) Only vii & viii.
c) Only v & vi.
d) None of the above

38. Which of the following State Taxes have been subsumed under GST?
i. State VAT [Except 5 PP & A. Liquor for HC)
ii. Central Sales Tax [Except 5 PP & A. Liquor for HC)
iii. Purchase Tax
iv. Luxury Tax
v. Entry Tax
vi. All forms Entertainment Tax (except those levied by the local bodies)
a) i, ii, iii, iv, v & vi.
b) Only iii, iv & v.
c) Only vi
d) None of the above

39. Which of the following State Taxes have not been subsumed under GST?
i. Road & passenger tax
ii. Central Sales Tax
iii. Toll tax
iv. Luxury Tax
v. Property tax
vi. Electricity duty.
a) i, iii, v & vi.
b) Only iii, iv & v.
c) Only vi
d) None of the above

40. Which of the following State Taxes have been subsumed under GST?
a) State VAT [Except 5 PP & A.Liquor for HC)
b) Taxes on advertisements
c) Taxes on lotteries, betting and gambling
d) All of the above

41. Final assent of Hon’ble President of India was given on ______?

a) 8th September,2016
b) December 19, 2016
c) 8th September,2017
d) None of the above

42. Which of the following Bills passed by parliament?

i. Central Goods and Services Tax (CGST)Bill
ii. Integrated Goods and Services Tax(IGST) Bill
 GST TEST SERIES CA VIVEK GABA CS EXECUTIVE
iii. Union Territory Goods and Services Tax (UTGST)Bill
iv. Goods and Services Tax (Compensation to States) Bill
v. State Goods and Services Tax (SGST)Bill
a) i, ii, iii & iv
b) Only i.
c) Only i, ii & iii
d) All of the above

43. ________ is the main decision-making body that has been formed to finalize the design of GST?
a) GST Council
b) Central government
c) State government
d) Parliament

44. Who will be the chairperson in GST Council?

a) Union finance minister
b) State finance minister
c) Any minister nominated by Government
d) None of the above

45. Vice Chairperson of GST Council will be from Member from ______?
a) State Government
b) Central government
c) Any member nominated by central government
d) Any of the above

46. In the GST Council, a decision will be taken by a _______ majority with the Centre having a
_________ and the states the remaining _______?
a) three-fourth, one-third vote, two-third
b) three-fourth, Two-third vote, One-third
c) Two-third, One-third, One third
d) None of the above

47. On which of the following functions GST Council may give recommendations –
a) taxes, cesses, and surcharges levied by the Centre, States and local bodies which may be
subsumed in the GST
b) goods and services which may be subjected to or exempted from GST
c) special provision with respect to Arunachal Pradesh, Jammu and Kashmir, Manipur, Meghalaya,
Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand
d) All of the above

48. In India GST came effective from July 1st, 2017. India has chosen ___ model of dual-GST.
a) USA
b) UK
c) Canadian
d) China

49. Which of the following country has the maximum GST tax slab?
a) Greece
b) China
c) Australia
d) India
 GST TEST SERIES CA VIVEK GABA CS EXECUTIVE

50. Indian GST model has _________rate structure.

a) 3
b) 4
c) 5
d) 6
e) 2

51. How many types of taxes will be in Indian GST?

a) 2
b) 3
c) 4
d) 6

52. What does “I” stands for in IGST?

a) International
b) Internal
c) Integrated
d) Intra

53. The tax IGST charged by _________Government.

a) Central / Parliament
b) State
c) Concerned department
d) Both a and b
e) All a, b and c

54. The maximum rate of IGST in current GST Laws is _________.

a) 5%
b) 12%
c) 18%
d) 28%
e) No such limit

55. GST comes under which amendment bill?

a) 118
b) 120
c) 122
d) 115
e) 129

56. Under which Act GST was introduced?

a) 100
b) 101
c) 102
d) 103

57. GST council formation based on Article number _________.

a) 279A
b) 289A
c) 266A
d) 255A

58. GST Definition defined under article __________

 GST TEST SERIES CA VIVEK GABA CS EXECUTIVE
a) 366(12A)
b) 289A
c) 266A
d) 255A

59. GST threshold limit of Normal States is _________ lakh

a) 12
b) 15
c) 20/40
d) 25

60. The Central Board of Excise and Customs (CBEC) announced that every year _________ will be
considered as GST Day.
a) April 1
b) March 1
c) June 1
d) July 1

61. A special purpose vehicle _________ has been launched to cater the needs of GST.
a) GSTC
b) GSTN
c) GSTM
d) GSTR

62. What does N stands for in HSN?

a) Network
b) Nationalization
c) Nominee
d) Nomenclature
e) Nomination

63. Which article Introduce GST?

a) 270
b) 246A
c) 269A (1)
d) 279A

64. What is Integrated Goods and Services Tax?

a) Tax imposed on imported goods and services
b) Tax imposed on value additions to exports
c) Tax imposed on interstate trade
d) Tax on international trade

65. Who of the following will be the members of the GST Council?
i. Union Finance Minister
ii. Union Minister of State in charge of Revenue or Finance
iii. Chief Ministers of States
a) 1, 3
b) 1, 2
c) 2, 3
d) All of the above

66. Which of the following taxes leviable on an intra-State transaction?

 GST TEST SERIES CA VIVEK GABA CS EXECUTIVE
a) CGST
b) SGST
c) Both a) and b)
d) IGST

67. Which of the following taxes leviable on Imports?

a) CGST
b) SGST
c) IGST
d) all of the above

68. what is the full form of GSTIN

a) Goods and service tax number
b) Goods and services tax identification number
c) Goods and services tax Import number
d) all of the above

69. Which of the following taxes leviable on Export?

a) No GST (i.e Zero rated supply)
b) IGST
c) SGST
d) all of the above

70. Who is liable to pay GST under GST?

a) Supplier
b) Receiver
c) 3rd Party (i.e ECO)
d) Any of the above

71. GST shall be rounded off in the multiple of

(a) `100
(b) `10
(c) 1
(d) 1000

72. In case of Inter-State Supply of service/Goods

(a) only IGST shall be charged
(b) only CGST shall be charged
(c) only SGST shall be charged
(d) Both IGST and CGST shall be charged.

73. In case of Intra-State Supply of service/Goods

(a) only IGST shall be charged
(b) only CGST shall be charged
(c) only SGST shall be charged
(d) Both CGST and SGST shall be charged.

74. Mr. X is a dealer registered in GST and has purchased goods for `7,60,000 and paid CGST @
9% & SGST @ 9% and sold the goods at a profit of 40% on cost and charged output CGST @
9% and Output SGST @ 9%. Tax Payable shall be
(a) CGST – `27,360 & SGST - `27,360
(b) CGST – `27,360 & SGST – Nil
(c) CGST – Nil & SGST - `27,360
 GST TEST SERIES CA VIVEK GABA CS EXECUTIVE
(d) CGST – `95,760 & SGST - `95,760

75. Mr. X is a dealer registered in GST and has purchased goods from other State `10,00,000 and
paid IGST @ 12% and sold the goods at a profit of `1,00,000 and charged output CGST @ 6%
and Output SGST @ 6%. Tax Payable shall be (IGST Credit 1st CGST & 2nd CGST)
(a) CGST – `66,000 & SGST - `66,000
(b) CGST – `12,000 & SGST – Nil
(c) CGST – Nil & SGST - `12,000
(d) IGST – `1,20,000

76. Which of the following taxes have been subsumed in GST?

(a) Central Sales Tax
(b) Central Excise Duty
(c) VAT
(d) All of the above

77. List-I of the Constitution contains matters in respect of which has the exclusive
right to make laws.
(a) Central Government/Parliament
(b) State
(c) Both Centre and State Governments
(d) None of the above

78. On Petroleum Crude, High Speed Diesel, Motor Spirit (commonly known as Petrol), Natural
Gas and Aviation Turbine Fuel:
(a) GST is not levied at all
(b) GST will be levied from a date to be notified on the recommendations of the GST Council
(c) GST is levied, but exempt
(d) None of the above

79. Mr. X is a dealer registered in GST and has purchased goods from other State 10,00,000 and
paid IGST @ 12% and sold the goods at a profit of `1,00,000 on same state IGST 12%. Tax
Payable shall be
a) IGST – `1,26,000
b) CGST – `Nil
c) CGST – 66,000 & SGST - `66,000
d) IGST – 12,000

80. Mr. X is a dealer registered in GST and has purchased goods for `7,60,000 and paid CGST @
9% & SGST @ 9% and sold the goods at a profit of 40% on cost and charged output CGST @
9% and Output SGST @ 9%. COMPUTE COST in hands of Consumer.
a) 7,60,000
b) 8,96,800
c) 10,64,000
d) 12,55,520

81. The definition of goods under section 2(52) of the CGST Act does not include-
(a) Grass
(b) Money and securities
(c) Actionable claims
(d) Growing crops
 GST TEST SERIES CA VIVEK GABA CS EXECUTIVE

82. __________ of the Constitution provides that no tax shall be levied or collected except by
authority of law?
(a) Article 254
(b) Article 245
(c) Article 265
(d) Article 256

83. Which of the following taxes will be levied on imports?

(a) CGST & IGST
(b) SGST
(c) IGST
(d) CGST and SGST

84. Which of the following statement is correct?

i. ITC of CGST can be adjusted from output SGST
ii. ITC of SGST can be adjusted from output CGST
iii. ITC of IGST can be adjusted from output CGST
iv. ITC of CGST can be adjusted from output IGST
a) (iii) & (iv)
b) (i) & (iv)
c) (i) & (iii)
d) (ii) & (iii)

85. Mr. X is a dealer registered in GST and has purchased goods from other State `12,00,000 and
paid IGST @ 12% and sold the goods at 15,00,000 in same state and charged output CGST @
6% and Output SGST @ 6%. Tax Payable shall be
a) CGST – `90,000 & SGST - `90,000
b) CGST – `36,000 & SGST - Nil
c) CGST – Nil & SGST - `36,000
d) IGST – `1,44,000

86. Union Territory means the territory of

(i) Andaman and Nicobar Island
(ii) Dadra and Nagar Haveli
(iii) Nagaland
(iv) Telangana
(a) all the above
(b) only (i) & (ii)
(c) only (ii) & (iii)
(d) (i), (ii) & (iii)

87. Which of the following statement is correct.

(a) GST is applicable throughout India including J&K.
(b) GST is applicable throughout India excluding J&K.
(c) GST is applicable outside India.
(d) None of the above is correct

88. What is the maximum rate of CGST prescribed under CGST Act?
(a) 20%
(b) 28%
(c) 24%
(d) 40%
 GST TEST SERIES CA VIVEK GABA CS EXECUTIVE

89. Which article of the Constitution outlines the composition and functions of the GST Council?
(a) 270
(b) 279A
(c) 246A
(d) 269A

90. Mr. X is a dealer registered in GST and has purchased goods from Same State `10,00,000 and
paid CGST @ 9% and SGST @ 9% sold the goods at a profit of `1,00,000 and charged output
Nil rate (Exempt from GST) . Compute ITC Amount in hands of Mr. X on Inward Supply
(a) CGST – `90,000 & SGST - `90,000
(b) CGST – Nil & SGST – Nil
(c) CGST – Nil & SGST – 90,000
(d) None of the above

91. GST comes under which amendment bill?

a) 118
b) 101
c) 122
d) Article – 246A

92. Apportionment of IGST based on Article number _________.

a) 279A
b) 269A
c) 246A
d) 248A

93. Which of the following is/are true?

1. Both the State and Centre will have power to make laws on taxation of goods and services (All
GST).
2. Parliament’s law will not Power to make law on IGST.
a) Only 1
b) Only 2
c) Both 1 and 2
d) Neither 1 nor 2

94. Which of the following statement is not correct

(i) GST is a single stage tax
(ii) GST is a multi stage tax
(iii) GST has cascading effect
a) (i) & (ii)
b) (ii) & (iii)
c) (i) & (iii)
d) Only (ii)

95. ________ is the main decision-making body that has been formed to finalize the design of GST?
a) GST Council
b) Central government
c) CBIC
d) Parliament

96. The headquarters of GST council is _________.

a) Mumbai
 GST TEST SERIES CA VIVEK GABA CS EXECUTIVE

b) New Delhi
c) Ahmadabad
d) Hyderabad
e) Lucknow

97. The Central Board of Indirect Tax and Customs (CBIC) announced that every year _________
will be considered as GST Day.
a) April 1
b) March 1
c) June 1
d) July 1
e) January 1

98. A special purpose vehicle _________ has been launched to cater the needs of GST.
a) GSTC
b) GSTN
c) GSTM
d) GSTR
e) GSTS

99. What does N stands for in HSN?

a) Network
b) Nationalization
c) Nominee
d) Nomenclature
e) Nomination

100. An E-commerce operator should get registered?

(a) Yes, irrespective of threshold limit
(b) No, required to register only if his aggregate turnover exceeds the threshold limit.
(c) Yes, if he is located in North-western states.
(d) He is required to register if he is liable to collect tax at source and /or his aggregate turnover
exceeds the threshold limit.
 GST TEST SERIES CA VIVEK GABA CS EXECUTIVE

CS – EXECUTIVE (NEW & OLD SYLLABUS)

GST MCQ’s SET – 4 (MISC TOPICS)

Compilation by: CA VIVEK GABA

1. The definition of goods under section 2(52) of the CGST Act does not include-
(a) Grass
(b) Money and securities
(c) Actionable claims
(d) Growing crops

2. The definition of goods under section 2(52) of the CGST Act does include-
(a) Grass
(b) Money and securities
(c) Actionable claims
(d) Both A & C

3. The definition of goods under section 2(52) of the CGST Act is -

(a) Inclusive
(b) Exhaustive
(c) None of the above
(d) Both A & C

4. The definition of Services under section 2(102) of the CGST Act is -

(a) Inclusive
(b) Exhaustive
(c) None of the above
(d) Both A & C

5. The definition of Services under section 2(102) of the CGST Act means -
(a) Anything
(b) Anything other than Goods
(c) Anything other than goods and money
(d) Anything other than goods, money & securities

6. The definition of services under section 2(102) of the CGST Act includes -
(a) Movable property
(b) Immovable property
(c) Both A & B
(d) None of the above

7. The definition of services under section 2(102) of the CGST Act includes -
(a) Transaction in securities
(b) Facilitating or arranging transactions in securities
(c) Both A & B
(d) None of the above

8. An exempt supply includes-

(a) Supply of goods or services or both which attracts Nil rate of tax
(b) Non-taxable supply
 GST TEST SERIES CA VIVEK GABA CS EXECUTIVE
(c) Supply of goods or services or both which are wholly exempt from tax under Section 11 of the CGST
Act or under Section 6 of IGST Act
(d) All of the above

9. ....................... of the Constitution provides that no tax shall be levied or collected except by
authority of law?
(a) Article 254
(b) Article 245
(c) Article 265
(d) Article 256

10. ....................... of the Constitution provides that subject matter of laws made by parliament or
Legislature of State?
(a) Article 254
(b) Article 245
(c) Article 246
(d) Article 265

11. Capital goods include-

(a) Goods, the value of which is capitalized in the books of accounts
(b) Goods which are used or intended to be used in the course or furtherance of business
(c) Both (a) and (b)
(d) None of the above

12. The term 'agriculturist' includes the following persons who undertake cultivation of land:
(a) An individual
(b) A Hindu Undivided Family
(c) A co-operative society
(d) Both (a) and (b)

13. The term 'casual taxable person' includes:

(a) A person occasionally supplying goods or services or both in a State or a Union territory where
he has no fixed place of business.
(b) A person occasionally supplying goods or services or both in a State or a Union territory where
he has fixed place of business.
(c) Both (a) and (b)
(d) None of the above

14. Section defines ‘Job Work’.

(a) 2(78)
(b) 2(68)
(c) 2(87)
(d) 2(68)

15. For payment of IGST input tax credit can be utilised in the following manner only :
(a) IGST, CGST & SGST/UTGST in any Manner
(b) IGST, SGST/UTGST, CGST in that order
(c) IGST, CGST, SGST/UTGST in that order
(d) Any of the above manner

16. Input tax credit of IGST an be utilised in the following manner only :
 GST TEST SERIES CA VIVEK GABA CS EXECUTIVE
(a) IGST, CGST & SGST/UTGST in any Manner
(b) IGST, SGST/UTGST, CGST in that order
(c) IGST, CGST, SGST/UTGST in that order
(d) Any of the above manner

17. Input tax credit of CGST an be utilised in the following manner only :
(a) CGST & IGST in that order
(b) IGST, SGST/UTGST, CGST in that order
(c) IGST, CGST, SGST/UTGST in that order
(d) Any of the above manner

18. For payment of SGST input tax credit can be utilised in the following manner only :
(a) IGST, SGST/UTGST in that order
(b) IGST, SGST/UTGST, CGST in that order
(c) IGST, CGST, SGST/UTGST in that order
(d) Any of the above manner

19. Input tax credit of SGST/UTGSTc can be utilised in the following manner only :
(a) SGST/UTGST & IGST in that order
(b) IGST, SGST/UTGST, in that order
(c) IGST, CGST, SGST/UTGST in that order
(d) Any of the above manner

20. GST is one of the widely accepted __________ system prevalent in more than _______ across the
globe?
a) Indirect Tax, 160 Countries
b) Direct Tax, 185 Countries
c) Indirect Tax, 170 Countries
d) Indirect Tax, 190 Countries

21. GST was first levied by ________?

a) France in 1954
b) USA in 1985
c) India in 2017
d) U.K in 1970

22. ________ is the most recent country to join the bandwagon?

a) Malaysia
b) Pakistan
c) USA
d) France

23. GST is a ________ based tax?

a) Destination
b) Origin
c) Both A & B
d) None of the above

24. Which of the following statement is correct:-

I. GST is a broad-based tax
II. GST is a destination based tax
III. GST is collected through a staged process i.e. a tax on the value added to goods or services at every
point in the supply chain
 GST TEST SERIES CA VIVEK GABA CS EXECUTIVE
IV. GST is a tax on the consumption of products from business sources, and not on personal or hobby
activities
a) Only I.
b) I & II Both
c) I, II & III
d) I, II, III & IV all statement is correct

25. Which of the following statement is False:

I. GST is a broad-based tax
II. GST is a Origin based tax
III. GST is collected through a staged process i.e. a tax on the value added to goods or services at
every point in the supply chain
IV. GST is a tax on the consumption of products from business sources, and not on personal or
hobby activities
a) Only I.
b) I & II Both
c) Only II
d) I, II, III & IV all are false.

26. Which of the following statement is Correct:-

I. GST is a broad-based tax
II. GST is a destination based tax
III. GST is collected through a staged process i.e. a tax on the value added to goods or services at
every point in the supply chain
IV. Under GST, input tax credit is provided throughout the value chain for creditable acquisition.
a) Only I.
b) I & II Both
c) Only II
d) I, II, III & IV all are correct.

27. Australian Model wherein, tax is collected by the ______ and distributed to the _____?
a) Centre, State
b) State, Centre
c) Both A & B
d) None of the above

28. Currently, __________ also follow dual GST model?

a) Brazil and Canada
b) USA and Canada
c) France & U.K
d) Germany & France

29. India follow _______ GST Model?

a) Single
b) Dual
c) Four
d) None of the above

30. GST is a consumption or destination based tax levied on the basis of the “________”?
a) Destination principle
b) Origin Principle
c) Both A & B
d) None of the above
 GST TEST SERIES CA VIVEK GABA CS EXECUTIVE

31. It is a __________ tax regime covering both goods and services, and be collected on value-added
at each stage of the supply chain?
a) Comprehensive
b) Selective
c) Positive
d) None of the above

32. Goods and Services Tax is a tax levied on goods and services imposed at each point of ________?
a) Supply
b) Manufacturing
c) Sale
d) Service

33. GST is a national level tax based on _______?

a) value added principle
b) First point tax principle
c) Last point tax principle
d) None of the above

34. _________ as a well-designed value added tax on all goods and services, is the most elegant
method to eliminate distortions and to tax consumption?
a) Goods and Services Tax
b) Service Tax
c) Income Tax
d) Excise Duty

35. Which of the following Central Taxes have been subsumed under GST?
i. Central Excise Duty
ii. Duties of Excise (Medicinal and Toilet Preparations)
iii. Additional Duties of Excise (Textiles and Textile Products)
iv. Service Tax
v. Income Tax
vi. Basic Custom Duty
a) i, ii, iii & iv
b) vi, iii, ii, i & v
c) Only i, ii & iii
d) None of the above

36. Which of the following Central Taxes have not been subsumed under GST?
i. Central Excise Duty
ii. Duties of Excise (Medicinal and Toilet Preparations)
iii. Additional Duties of Excise (Textiles and Textile Products)
iv. Service Tax
v. Income Tax
vi. Basic Custom Duty
vii. Export Duty
a) v, vi & vii
b) Only v.
c) i, ii & vii.
d) Only vi & vii
 GST TEST SERIES CA VIVEK GABA CS EXECUTIVE

37. Which of the following Central Taxes have been subsumed under GST?
i. Central Excise Duty
ii. Duties of Excise (Medicinal and Toilet Preparations)
iii. Additional Duties of Excise (Textiles and Textile Products)
iv. Service Tax
v. Income Tax
vi. Basic Custom Duty
vii. Additional custom duties (commonly known as CVD)
viii. Special Custom duties (commonly known as SAD)
a) i, ii, iii, iv, vii & viii
b) Only vii & viii.
c) Only v & vi.
d) None of the above

38. Which of the following State Taxes have been subsumed under GST?
i. State VAT [Except 5 PP & A. Liquor for HC)
ii. Central Sales Tax [Except 5 PP & A. Liquor for HC)
iii. Purchase Tax
iv. Luxury Tax
v. Entry Tax
vi. All forms Entertainment Tax (except those levied by the local bodies)
a) i, ii, iii, iv, v & vi.
b) Only iii, iv & v.
c) Only vi
d) None of the above

39. Which of the following State Taxes have not been subsumed under GST?
i. Road & passenger tax
ii. Central Sales Tax
iii. Toll tax
iv. Luxury Tax
v. Property tax
vi. Electricity duty.
a) i, iii, v & vi.
b) Only iii, iv & v.
c) Only vi
d) None of the above

40. Which of the following State Taxes have been subsumed under GST?
a) State VAT [Except 5 PP & A.Liquor for HC)
b) Taxes on advertisements
c) Taxes on lotteries, betting and gambling
d) All of the above

41. Final assent of Hon’ble President of India was given on ______?

a) 8th September,2016
b) December 19, 2016
c) 8th September,2017
d) None of the above

42. Which of the following Bills passed by parliament?

i. Central Goods and Services Tax (CGST)Bill
ii. Integrated Goods and Services Tax(IGST) Bill
 GST TEST SERIES CA VIVEK GABA CS EXECUTIVE
iii. Union Territory Goods and Services Tax (UTGST)Bill
iv. Goods and Services Tax (Compensation to States) Bill
v. State Goods and Services Tax (SGST)Bill
a) i, ii, iii & iv
b) Only i.
c) Only i, ii & iii
d) All of the above

43. ________ is the main decision-making body that has been formed to finalize the design of GST?
a) GST Council
b) Central government
c) State government
d) Parliament

44. Who will be the chairperson in GST Council?

a) Union finance minister
b) State finance minister
c) Any minister nominated by Government
d) None of the above

45. Vice Chairperson of GST Council will be from Member from ______?
a) State Government
b) Central government
c) Any member nominated by central government
d) Any of the above

46. In the GST Council, a decision will be taken by a _______ majority with the Centre having a
_________ and the states the remaining _______?
a) three-fourth, one-third vote, two-third
b) three-fourth, Two-third vote, One-third
c) Two-third, One-third, One third
d) None of the above

47. On which of the following functions GST Council may give recommendations –
a) taxes, cesses, and surcharges levied by the Centre, States and local bodies which may be
subsumed in the GST
b) goods and services which may be subjected to or exempted from GST
c) special provision with respect to Arunachal Pradesh, Jammu and Kashmir, Manipur, Meghalaya,
Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand
d) All of the above

48. In India GST came effective from July 1st, 2017. India has chosen ___ model of dual-GST.
a) USA
b) UK
c) Canadian
d) China

49. Which of the following country has the maximum GST tax slab?
a) Greece
b) China
c) Australia
d) India
 GST TEST SERIES CA VIVEK GABA CS EXECUTIVE

50. Indian GST model has _________rate structure.

a) 3
b) 4
c) 5
d) 6
e) 2

51. How many types of taxes will be in Indian GST?

a) 2
b) 3
c) 4
d) 6

52. What does “I” stands for in IGST?

a) International
b) Internal
c) Integrated
d) Intra

53. The tax IGST charged by _________Government.

a) Central / Parliament
b) State
c) Concerned department
d) Both a and b
e) All a, b and c

54. The maximum rate of IGST in current GST Laws is _________.

a) 5%
b) 12%
c) 18%
d) 28%
e) No such limit

55. GST comes under which amendment bill?

a) 118
b) 120
c) 122
d) 115
e) 129

56. Under which Act GST was introduced?

a) 100
b) 101
c) 102
d) 103

57. GST council formation based on Article number _________.

a) 279A
b) 289A
c) 266A
d) 255A

58. GST Definition defined under article __________

 GST TEST SERIES CA VIVEK GABA CS EXECUTIVE
a) 366(12A)
b) 289A
c) 266A
d) 255A

59. GST threshold limit of Normal States is _________ lakh

a) 12
b) 15
c) 20/40
d) 25

60. The Central Board of Excise and Customs (CBEC) announced that every year _________ will be
considered as GST Day.
a) April 1
b) March 1
c) June 1
d) July 1

61. A special purpose vehicle _________ has been launched to cater the needs of GST.
a) GSTC
b) GSTN
c) GSTM
d) GSTR

62. What does N stands for in HSN?

a) Network
b) Nationalization
c) Nominee
d) Nomenclature
e) Nomination

63. Which article Introduce GST?

a) 270
b) 246A
c) 269A (1)
d) 279A

64. What is Integrated Goods and Services Tax?

a) Tax imposed on imported goods and services
b) Tax imposed on value additions to exports
c) Tax imposed on interstate trade
d) Tax on international trade

65. Who of the following will be the members of the GST Council?
i. Union Finance Minister
ii. Union Minister of State in charge of Revenue or Finance
iii. Chief Ministers of States
a) 1, 3
b) 1, 2
c) 2, 3
d) All of the above

66. Which of the following taxes leviable on an intra-State transaction?

 GST TEST SERIES CA VIVEK GABA CS EXECUTIVE
a) CGST
b) SGST
c) Both a) and b)
d) IGST

67. Which of the following taxes leviable on Imports?

a) CGST
b) SGST
c) IGST
d) all of the above

68. what is the full form of GSTIN

a) Goods and service tax number
b) Goods and services tax identification number
c) Goods and services tax Import number
d) all of the above

69. Which of the following taxes leviable on Export?

a) No GST (i.e Zero rated supply)
b) IGST
c) SGST
d) all of the above

70. Who is liable to pay GST under GST?

a) Supplier
b) Receiver
c) 3rd Party (i.e ECO)
d) Any of the above

71. GST shall be rounded off in the multiple of

(a) `100
(b) `10
(c) 1
(d) 1000

72. In case of Inter-State Supply of service/Goods

(a) only IGST shall be charged
(b) only CGST shall be charged
(c) only SGST shall be charged
(d) Both IGST and CGST shall be charged.

73. In case of Intra-State Supply of service/Goods

(a) only IGST shall be charged
(b) only CGST shall be charged
(c) only SGST shall be charged
(d) Both CGST and SGST shall be charged.

74. Mr. X is a dealer registered in GST and has purchased goods for `7,60,000 and paid CGST @
9% & SGST @ 9% and sold the goods at a profit of 40% on cost and charged output CGST @
9% and Output SGST @ 9%. Tax Payable shall be
(a) CGST – `27,360 & SGST - `27,360
(b) CGST – `27,360 & SGST – Nil
(c) CGST – Nil & SGST - `27,360
 GST TEST SERIES CA VIVEK GABA CS EXECUTIVE
(d) CGST – `95,760 & SGST - `95,760

75. Mr. X is a dealer registered in GST and has purchased goods from other State `10,00,000 and
paid IGST @ 12% and sold the goods at a profit of `1,00,000 and charged output CGST @ 6%
and Output SGST @ 6%. Tax Payable shall be (IGST Credit 1st CGST & 2nd CGST)
(a) CGST – `66,000 & SGST - `66,000
(b) CGST – `12,000 & SGST – Nil
(c) CGST – Nil & SGST - `12,000
(d) IGST – `1,20,000

76. Which of the following taxes have been subsumed in GST?

(a) Central Sales Tax
(b) Central Excise Duty
(c) VAT
(d) All of the above

77. List-I of the Constitution contains matters in respect of which has the exclusive
right to make laws.
(a) Central Government/Parliament
(b) State
(c) Both Centre and State Governments
(d) None of the above

78. On Petroleum Crude, High Speed Diesel, Motor Spirit (commonly known as Petrol), Natural
Gas and Aviation Turbine Fuel:
(a) GST is not levied at all
(b) GST will be levied from a date to be notified on the recommendations of the GST Council
(c) GST is levied, but exempt
(d) None of the above

79. Mr. X is a dealer registered in GST and has purchased goods from other State 10,00,000 and
paid IGST @ 12% and sold the goods at a profit of `1,00,000 on same state IGST 12%. Tax
Payable shall be
a) IGST – `1,26,000
b) CGST – `Nil
c) CGST – 66,000 & SGST - `66,000
d) IGST – 12,000

80. Mr. X is a dealer registered in GST and has purchased goods for `7,60,000 and paid CGST @
9% & SGST @ 9% and sold the goods at a profit of 40% on cost and charged output CGST @
9% and Output SGST @ 9%. COMPUTE COST in hands of Consumer.
a) 7,60,000
b) 8,96,800
c) 10,64,000
d) 12,55,520

81. The definition of goods under section 2(52) of the CGST Act does not include-
(a) Grass
(b) Money and securities
(c) Actionable claims
(d) Growing crops
 GST TEST SERIES CA VIVEK GABA CS EXECUTIVE

82. __________ of the Constitution provides that no tax shall be levied or collected except by
authority of law?
(a) Article 254
(b) Article 245
(c) Article 265
(d) Article 256

83. Which of the following taxes will be levied on imports?

(a) CGST & IGST
(b) SGST
(c) IGST
(d) CGST and SGST

84. Which of the following statement is correct?

i. ITC of CGST can be adjusted from output SGST
ii. ITC of SGST can be adjusted from output CGST
iii. ITC of IGST can be adjusted from output CGST
iv. ITC of CGST can be adjusted from output IGST
a) (iii) & (iv)
b) (i) & (iv)
c) (i) & (iii)
d) (ii) & (iii)

85. Mr. X is a dealer registered in GST and has purchased goods from other State `12,00,000 and
paid IGST @ 12% and sold the goods at 15,00,000 in same state and charged output CGST @
6% and Output SGST @ 6%. Tax Payable shall be
a) CGST – `90,000 & SGST - `90,000
b) CGST – `36,000 & SGST - Nil
c) CGST – Nil & SGST - `36,000
d) IGST – `1,44,000

86. Union Territory means the territory of

(i) Andaman and Nicobar Island
(ii) Dadra and Nagar Haveli
(iii) Nagaland
(iv) Telangana
(a) all the above
(b) only (i) & (ii)
(c) only (ii) & (iii)
(d) (i), (ii) & (iii)

87. Which of the following statement is correct.

(a) GST is applicable throughout India including J&K.
(b) GST is applicable throughout India excluding J&K.
(c) GST is applicable outside India.
(d) None of the above is correct

88. What is the maximum rate of CGST prescribed under CGST Act?
(a) 20%
(b) 28%
(c) 24%
(d) 40%
 GST TEST SERIES CA VIVEK GABA CS EXECUTIVE

89. Which article of the Constitution outlines the composition and functions of the GST Council?
(a) 270
(b) 279A
(c) 246A
(d) 269A

90. Mr. X is a dealer registered in GST and has purchased goods from Same State `10,00,000 and
paid CGST @ 9% and SGST @ 9% sold the goods at a profit of `1,00,000 and charged output
Nil rate (Exempt from GST) . Compute ITC Amount in hands of Mr. X on Inward Supply
(a) CGST – `90,000 & SGST - `90,000
(b) CGST – Nil & SGST – Nil
(c) CGST – Nil & SGST – 90,000
(d) None of the above

91. GST comes under which amendment bill?

a) 118
b) 101
c) 122
d) Article – 246A

92. Apportionment of IGST based on Article number _________.

a) 279A
b) 269A
c) 246A
d) 248A

93. Which of the following is/are true?

1. Both the State and Centre will have power to make laws on taxation of goods and services (All
GST).
2. Parliament’s law will not Power to make law on IGST.
a) Only 1
b) Only 2
c) Both 1 and 2
d) Neither 1 nor 2

94. Which of the following statement is not correct

(i) GST is a single stage tax
(ii) GST is a multi stage tax
(iii) GST has cascading effect
a) (i) & (ii)
b) (ii) & (iii)
c) (i) & (iii)
d) Only (ii)

95. ________ is the main decision-making body that has been formed to finalize the design of GST?
a) GST Council
b) Central government
c) CBIC
d) Parliament

96. The headquarters of GST council is _________.

a) Mumbai
 GST TEST SERIES CA VIVEK GABA CS EXECUTIVE

b) New Delhi
c) Ahmadabad
d) Hyderabad
e) Lucknow

97. The Central Board of Indirect Tax and Customs (CBIC) announced that every year _________
will be considered as GST Day.
a) April 1
b) March 1
c) June 1
d) July 1
e) January 1

98. A special purpose vehicle _________ has been launched to cater the needs of GST.
a) GSTC
b) GSTN
c) GSTM
d) GSTR
e) GSTS

99. What does N stands for in HSN?

a) Network
b) Nationalization
c) Nominee
d) Nomenclature
e) Nomination

100. An E-commerce operator should get registered?

(a) Yes, irrespective of threshold limit
(b) No, required to register only if his aggregate turnover exceeds the threshold limit.
(c) Yes, if he is located in North-western states.
(d) He is required to register if he is liable to collect tax at source and /or his aggregate turnover
exceeds the threshold limit.
CA VIVEK GABA CS EXECUTIVE GST (SET – 5)

CS – EXECUTIVE

TAX
SCANNER
GST MCQs
(SET – 5)
Relevant for – JUNE & DEC 2021

Compilation & Authored by:

CA VIVEK GABA

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CA VIVEK GABA CS EXECUTIVE GST (SET – 5)

CS – EXECUTIVE (NEW & OLD SYLLABUS)

GST MCQ’s SET – 5 (MIX QUESTIONS)

Compilation by : CA VIVEK GABA

1. Supply includes which of the following?

a) Goods
b) Services
c) Goods or Services
d) Goods and Services
e) Goods and / or Services

2. Which of the following taxes leviable on Exports?

a) CGST
b) SGST
c) IGST
d) NO GST (i.e. ZERO RATED SUPPLY)

3. What is the threshold limit of turnover for opting composition scheme under GST?
a) Rs 75 lacs
b) Rs 100 lacs
c) Not exceeding Rs 150 lacs
d) None of the above

4. What is the rate applicable for a composition dealer, being a manufacturer for CGST &
SGST?
a) Not exceeding 1%
b) 5%
c) 0%
d) No composition for manufacturer

5. Can the taxable person under Composition Scheme claim input tax credit?
a) Yes
b) No
c) Yes, only in some Cases
d) cant say

6. Within how many days a person should apply for registration?

a) Within 60 days from the date he becomes liable for registration.
b) Within 30 days from the date he becomes liable for registration.
c) No Time Limit
d) Within 90 days from the date he becomes liable for registration.

7. Which of the following requires amendment in the registration certificate?

a) Change of name of the registered person
b) Change in constitution of the registered person
c) Switching over form composition scheme to normal scheme or vice versa.
d) All the above

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CA VIVEK GABA CS EXECUTIVE GST (SET – 5)
8. The validity period of the registration certificate issued to casual taxable person and non-
resident taxable person is
a) 90 days from the effective date of registration
b) Period specified in the application for registration
c) Earliest of (a) or (b) above
d) Apply Registration at least 5 days prior to the commencement of business

9. What is the validity period of the registration certificate?

a) One year
b) Ten years
c) Valid till it is cancelled.
d) Five years

10. Which of the following are considered for calculating the aggregate turnover under
Composition scheme
a) Taxable supplies
b) Exempt Supplies
c) Both the above
d) Non-taxable supplies

11. Should a person dealing exclusively in the supply of exempted / not taxable goods/services
be required to obtain registration
a) Yes
b) No
c) Can’t say
d) Government to decide

12. What is cut off turnover limit for compulsory registration under GST ( in case of supply of
goods except specified goods?
a) Exceeds Rs 40 lacs
b) Exceeds Rs 20 lacs
c) Rs 50 lacs
d) No limit for registration

13. Who could be responsible to pay the GST?

a) Person supplying
b) Person receiving
c) Both the above
d) None

14. The details of outward supplies of goods or services shall be submitted by

a) 11th of the succeeding month
b) 10th of the succeeding month
c) 15th of the succeeding month
d) 20th of the succeeding month

15. Every registered taxable person shall be entitled to take credit of input tax in his return and
such input tax credit shall be credited to
a) Personal Ledger Account
b) Refund account
c) Electronic Cash Ledger
d) Electronic Credit Ledger

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CA VIVEK GABA CS EXECUTIVE GST (SET – 5)
16. The due date for furnishing the annual return for every financial year by registered taxable
person
a) 30th of September following the end of the financial year
b) 20th of October following the end of the financial year
c) 31st of December following the end of the financial year
d) 31st of May following the end of the financial year

17. A tax return preparer can undertake the following activities if authorized by the taxable
person
a) Furnish details inward and outward supplies
b) Furnish monthly / quarterly return
c) Furnish Annual and Final return
d) All of the above

18. The final return shall be filed by the registered taxable person within
a) 3 months of the date of cancellation or;
b) date of order of cancellation
c) 1 month of the date of order of cancellation
d) Later of (a) and (b)

19. The annual return shall be filed by the registered taxable person (other than composition
suppliers) in Form
a) GSTR 7
b) GSTR 9
c) GSTR 9A
d) GSTR 10

20. The person deducting tax at source shall deposit such amount by
a) 18th of the succeeding month
b) 20th of the month succeeding the quarter
c) 17th of the succeeding month
d) 10th of the succeeding month

21. The certificate of details of tax deducted by the deductor shall be furnished to the deductee
in Form
a) GSTR 7
b) GSTR 7A
c) GSTR 2A
d) GSTR 1A

22. Every tax payer paying tax under Section 9 (composition levy) shall file the return in
a) Form GSTR 3 by 18th of the month succeeding the quarter
b) Form GSTR 4 by 18th of the month succeeding the quarter
c) Form GSTR 4 by 18th of the succeeding month
d) Form GSTR 4 by 30th April succeeding year

23. The details of inward supplies of goods or services in Form GSTR 2 shall be submitted by
a) After 11th but on or before 15th of the succeeding month
b) 18th of the succeeding month
c) 15th of the succeeding month
d) 20th of the succeeding month

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CA VIVEK GABA CS EXECUTIVE GST (SET – 5)
24. The details submitted by the outward supplier in Form GSTR 1 shall be furnished to the
recipient (not being a composition supplier) in Form
a) GSTR 4
b) GSTR 5
c) GSTR 2
d) GSTR 6

25. GST is Collected on supply of all goods or services or both except

a) supply of alcoholic liquor for human consumption
b) Supply of petroleum crude, motor spirit (petrol), high speed diesel, natural gas and aviation
turbine fuel
c) Both of the above
d) None of the above

26. CGST / SGST,UTGST is payable on all ________ of goods and/or services and IGST is
payable on all ______ of goods and/or services.
a) intra-State supply, inter- State supply
b) inter-State supply, intra- State supply
c) at the option of taxable person
d) none of the above

27. A Composition Scheme, which is mainly devised for small taxpayers, provides ______ rate
of tax and filing of ______ instead of __________
a) concessional, Annually returns, monthly return
b) Higher, quarterly returns, monthly return
c) concessional, monthly returns, Quarterly return
d) none of the above

28. To be eligible for registration under Composition scheme it is required that the aggregate
turnover of a registered tax payer should not exceed _______ in the preceding financial year
& the limit is ______ for North Eastern & Special Category States)
a) Rs. 150,00,000/-, Rs. 75,00,000/-
b) Rs. 50,00,000/-, Rs. 25,00,000/-
c) Rs. 100,00,000/-, Rs. 50,00,000/-
d) Rs. 75,00,000/-, Rs. 20,00,000/-

29. Which of the following states covered North Eastern and Special Category States (for
Registration)–
i. Assam, Arunachal Pradesh,
ii. Manipur, Tripura,
iii. Mizoram, Nagaland,
iv. Tripura, Sikkim,
v. Delhi, Bihar
vi. Jammu & Kashmir
vii. Himachal Pradesh
a) i, ii, iii, iv & vi
b) i, ii, iii, iv, vi & vii
c) Only vi
d) Only ii & iii

30. Which of the following supply will be excluded for the computation of Aggregate turnover?
a) exempt supplies
b) exports of goods or services or both

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CA VIVEK GABA CS EXECUTIVE GST (SET – 5)
c) value of inward supplies on which tax is payable by a person on reverse charge basis
d) inter-State supplies of persons having the same Permanent Account Number

31. Which of the following taxes excluded at the time of computation of aggregate turnover?
a) central tax,
b) State tax,
c) Union territory tax,
d) integrated tax and cess
e) all of the above

32. Under GST the taxable event is _____ of goods or services or both?
a) SUPPLY
b) Manufacturing
c) Sale
d) Provision of services

33. Supply defined under which of the following section –

a) Section 7 of CGST Act, 2017
b) Section 11 of CGST Act, 2017
c) Section 9 of CGST Act, 2017
d) None of the above

34. Definition of Supply given under Act is –

a) Inclusive definition
b) Exhaustive definition
c) Neither A Nor B
d) Both A & B

35. Sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made
is deemed to be as Supply if –
a) Transaction enter for a consideration
b) Transaction in the course or furtherance of business
c) Both A & B must be satisfied
d) Only A Satisfied

36. Import of services for a consideration __________ is deemed as Supply?

a) whether or not in the course or furtherance of business
b) Transaction in the course or furtherance of business
c) Not a Supply
d) none of the above

37. The activities specified in _______, made or agreed to be made without a consideration is
deemed as Supply?
a) Schedule I
b) Schedule II
c) Schedule I & II
d) None of the above

38. The activities to be treated as “supply of goods” or “supply of services” as referred to in

_______?
a) Schedule II
b) Schedule I
c) Both A & B

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CA VIVEK GABA CS EXECUTIVE GST (SET – 5)
d) None of the above

39. A Customer purchases a printer and pays Rs. 12,000 for it is called as –
a) Supply since it is sale & Cover under Sec 7(1)(a)
b) Supply since it is Exchange & Cover under Sec 7(1)(a)
c) Not a Supply since it not Cover under Sec 7(1)(a)
d) Supply since it is Barter & Cover under Sec 7(1)(a)

40. A customer purchases a printer and pays the supplier by exchanging his used computer for
printer. The market value of the used computer is Rs. 12,000 is –
a) Supply since it is Barter & Cover under Sec 7(1)(a)
b) Supply since it is Sale & Cover under Sec 7(1)(a)
c) Not a Supply since it not Cover under Sec 7(1)(a)
d) Supply since it is Sale & Cover under Sec 7(1)(a)

41. A trader exchanged a new car for Rs. 2,00,000 cash and a used car (of market value of
10,00,000) –
a) Supply since it is Exchange & Cover under Sec 7(1)(a)
b) Supply since it is Sale & Cover under Sec 7(1)(a)
c) Not a Supply since it not Cover under Sec 7(1)(a)
d) Supply since it is Barter & Cover under Sec 7(1)(a)

42. Mr. A is salaried employee in A Ltd. it sells his second hand cycle for consideration of Rs.
2,000. Whether this transaction deemed as supply under section 7(1)(a) –
a) Not a supply since This supply transaction is not in the course or furtherance of business
b) It is supply since This supply transaction is not in the course or furtherance of business
c) neither A nor B
d) None of the above

43. Mr A is a salaried employee in A Ltd. It has availed services of an foreign architect for
construction of his house. which of the following statement is correct –
a) Such supply of service is not in course or furtherance of any business in hands of Mr A. But it
will constitute supply in terms of section 7(1)(b).
b) Such supply of service is not in course or furtherance of any business in hands of Mr A & it
will not constitute supply in terms of section 7(1)(b).
c) Any of the above
d) None of the above

44. The law provides that in certain cases, even though there is no consideration, the same
would be treated as ‘Supply’. Such cases are Listed in _______?
a) Schedule I
b) Schedule II
c) Schedule I & II
d) None of the above

45. Which of the following activity deemed as Supply under Schedule I even if no consideration
exists –
a) Sale (permanent transfer) of business assets (goods) on which ITC has been availed
b) Supplies of goods and/or services between related person, except gift upto Rs. 50,000 to
employees.
c) Agent to principal of vice-versa, if agent supplies / receives goods on behalf of principal
d) All of the above

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CA VIVEK GABA CS EXECUTIVE GST (SET – 5)
46. Which of the following activity deemed to be “Supply of Goods” –
i. Transfer of title of goods
ii. Permanent Transfer of business assets
iii. Transfer of right without transfer of title
iv. Treatment of process to another person’s goods [job-work, repair, maintenance, etc.]
v. Supply of Goods by ‘unincorporated AOP/BOI’ to its members
a) i, ii & iii
b) i, ii & v
c) Only i & ii
d) Only iii & iv

47. Which of the following activity deemed to be “Supply of Services” –

i. Transfer of title of goods
ii. Permanent Transfer of business assets
iii. Transfer of right without transfer of title
iv. Treatment of process to another person’s goods [job-work, repair, maintenance, etc.]
v. Supply of Goods by ‘unincorporated AOP/BOI’ to its members
a) i, ii & v
b) ii & iii
c) iii & iv
d) Only iii

48. Transfer of title of goods is deemed to be –

a) Supply of goods
b) Supply of Services
c) Both A & B depends upon situation
d) Neither A & Nor B

49. Permanent Transfer of business assets –

a) Supply of goods
b) Supply of Services
c) Both A & B depends upon situation
d) Neither A & Nor B

50. Supply of Goods by ‘unincorporated AOP/BOI’ to its members-

a) Supply of goods
b) Supply of Services
c) Both A & B depends upon situation
d) Neither A & Nor B

51. Transfer of right without transfer of title-

a) Supply of goods
b) Supply of Services
c) Both A & B depends upon situation
d) Neither A & Nor B
52. Treatment of process to another person’s goods [job-work, repair, maintenance, etc.]
a) Supply of goods
b) Supply of Services
c) Both A & B depends upon situation
d) Neither A & Nor B

53. Motor Car purchased (ITC not availed being not admissible) Subsequent, disposed off
without consideration is –

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CA VIVEK GABA CS EXECUTIVE GST (SET – 5)
a) Covered under Supply
b) Not a Supply
c) Neither A & nor B
d) Liable to Excise duty

54. Gift upto value of Rs 50,000 in a year to an employee __________ & Gifts in value in excess
of Rs. 50,000 _______
a) shall not be treated as “Supply”, shall be taxable as ‘Supply’
b) shall be taxable as ‘Supply’, shall not be treated as “Supply”
c) Both activity not covered under supply
d) None of the above

55. Stock Transfer/ branch transfer from Mumbai Head office to Gujarat Branch office.
[HO – GST registered in Maharastra] & [BO- GST Registration in Gujarat] –
a) It is deemed as Supply
b) It is not a supply
c) Any of the above
d) None of the above

56. Which of the following statement is correct –

a) ABC associates received legal consultancy service from its head office located in USA. The
head office has rendered such service free of cost to its branch office. Since ABC Associates
and the branch office are related persons, services received by ABC associates will qualify as
supply even though the head office has not charged anything from it
b) Gift upto value of Rs 50,000 in a year to an employee shall not be treated as “Supply”& Gifts in
value in excess of Rs. 50,000 shall be taxable as ‘Supply’
c) Both A & B
d) None of the above

57. ________ is excluded from the definition of goods as well as services

a) securities and money
b) Only Securities
c) Only Money
d) None of the above

58. Characterize a transaction as supply which of the following points need to be kept in mind?
a) Supply should be a taxable supply
b) Supply should be made by a taxable person
c) Supply should be made within taxable territory
d) All of the above

59. A head office which is located out of India provides interior designing services to its branch
office in India, the service _______
a) will be a taxable Supply under GST
b) will not be taxable supply under GST
c) outside the preview of GST
d) none of the above

60. Any transfer of right or undivided share in goods Service without transfer of title is–
a) Supply of Goods
b) Supply of Services
c) Any of the above at the option of GST council
d) None of the above

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CA VIVEK GABA CS EXECUTIVE GST (SET – 5)

61. Transfer of title in goods under an agreement where property in goods passes at a future
date on payment of full consideration –
a) Supply of Goods
b) Supply of Services
c) Any of the above
d) None of the above

62. Any lease, tenancy, easement, licence to occupy land –

a) Supply of Goods
b) Supply of Services
c) Any of the above /
d) None of the above

63. Any lease or letting out of the building including a commercial, industrial or residential
complex for business or commerce, either wholly or partly –
a) Supply of Goods
b) Supply of Services
c) Any of the above
d) None of the above

64. Renting of immovable property

a) Supply of Goods
b) Supply of Services
c) Any of the above
d) None of the above

65. Temporary transfer or permitting the use or enjoyment of any intellectual property right -
a) Supply of Goods
b) Supply of Services
c) Any of the above
d) None of the above

66. Development, design, programming, customisation, adaptation, upgradation, enhancement,

implementation of information technology software –
a) Supply of Goods
b) Supply of Services
c) Any of the above
d) None of the above

67. Agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do
an act –
a) Supply of Goods
b) Supply of Services
c) Any of the above
d) None of the above

68. Works Contract as defined under Section 2(119) –

a) Supply of Goods
b) Supply of Services
c) Any of the above
d) None of the above

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CA VIVEK GABA CS EXECUTIVE GST (SET – 5)
69. Which of the followings Activities which are neither supply of goods nor supply of services –
a) Services by employee to employer
b) Services by any court or tribunal
c) Functions performed by the Members of Parliament etc
d) All of the above

70. Which of the followings Activities which are neither supply of goods nor supply of services-
a) Services of funeral, burial, crematorium or mortuary including transportation of the deceased.
b) Actionable claims, other than lottery, betting and gambling
c) Both A & B
d) Only A

71. Composite supply is similar to the concept of “_________”

a) Bundled service
b) Mixed Supply
c) Joint supply
d) None of the above

72. Composite supply is ______

a) naturally bundled
b) unnatural bundle
c) mixed supply
d) none of the above

73. Mixed supply is ______

a) naturally bundled
b) unnatural bundle
c) mixed supply
d) none of the above

74. Under __________ the goods or services can be sold separately-

a) Mixed supply
b) Composite supply
c) Both A & B
d) None of the above

75. Where goods are packed and transported with insurance, the supply of goods, packing
materials, transport and insurance is a _______ and supply of goods is a principal supply –
a) composite supply
b) Mixed Supply
c) Both A & B
d) None of the above

76. A supply of a package consisting of canned foods, sweets, chocolates, cakes, dry fruits,
aerated drinks and fruit juices when supplied for a single price is _______.
a) mixed supply
b) Composite supply
c) None of the above
d) Both A & B

77. Which of the following statement is correct –

a) a composite supply comprising two or more supplies, one of which is a principal supply, shall
be treated as a supply of such principal supply

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CA VIVEK GABA CS EXECUTIVE GST (SET – 5)
b) a mixed supply comprising two or more supplies shall be treated as a supply of that particular
supply which attracts the highest rate of tax
c) both A & B
d) only A

78. Tax rate applicable in hands of manufacture under composition scheme –

a) 2% (CGST + SGST)
b) 5% (CSGT + SGST)
c) 1% (CGST + SGST)
d) 2.5% (CGST + SGST)

79. Tax rate applicable in hands of Restaurant under composition scheme –

a) 2% (CGST + SGST)
b) 5% (CSGT + SGST)
c) 1% (CGST + SGST)
d) 2.5% (CGST + SGST)

80. Tax rate applicable in hands of Other supplier (Traders) under composition scheme–
a) 2% (CGST + SGST)
b) 5% (CSGT + SGST)
c) 1% (CGST + SGST)
d) 2.5% (CGST + SGST)

81. Which of the following persons are not eligible of composition scheme?
a) The scheme is not available for Manufacturer of Tobacco, ice cream & PAN Masala.
b) Supplier of goods which are not taxable under the CGST Act/SGST Act/UTGST Act is not
eligible to register under this scheme
c) Tax payers making inter- state supplies is not eligible for composition scheme
d) All of the above

82. Registered person under composition scheme is ___________ and neither he will be eligible
for any input tax credit
a) not permitted to collect tax buyer
b) permitted to collect tax from buyer
c) at the option of registered person
d) none of the above

83. The composition scheme is ______

a) optional
b) mandatory in all cases
c) mandatory in specified cases
d) none of the above

84. Registered person under sub-section 10(1) shall lapse _________ on which his aggregate
turnover during a financial year exceeds the specified limit –
a) with effect from the day
b) with effect from the Month
c) with effect from the 15th day
d) none of the above

85. XYZ Ltd, having its head office at Mumbai, is registered as Input Service Distributor (ISD). It has
three units in different cities situated in ‘Mumbai’,‘Jabalpur’ and ‘Delhi’ which are operational in the

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CA VIVEK GABA CS EXECUTIVE GST (SET – 5)
current year. XYZ Ltd. furnishes the following information for the month of July 2018 :
 CGST paid on services used only for Mumbai Unit : Rs. 3,00,000
 IGST, CGST & SGST paid on services used for all units : Rs. 12,00,000
Total turnover of the units for the previous financial year is as follows:

Unit Turnover (Rs.)

Total Turnover of three units Rs. 10,00,00,000
Turnover of Mumbai unit Rs. 5,00,00,000
Turnover of Jabalpur unit Rs. 3,00,00,000
Turnover of Delhi unit Rs. 2,00,0000
Determine the credit to be distributed by XYZ Ltd. to each of its three units.
a) Mumbai – 9,00,000, Jabalpur – 3,60,000, Delhi – 2,40,000
b) Mumbai – 7,50,000, Jabalpur – 4,50,000, Delhi – 3,00,000
c) Mumbai – 9,00,000, Jabalpur –6,00,000, Delhi – Nil
d) None of the above

86. Vinod, a supplier of goods in Vadodara furnishes the following particulars pertaining to supplies
likely to be effected by him during the third and fourth quarters of the FY 2018-19:
Value of supply of goods chargeable to GST Rs. 18 lakhs
Goods to be supplied to World Health Organization, Ahmadabad office Rs. 4 lakhs
All supplies will be within the State only. He desires to know whether he should get
himself registered for GST purposes. Advise him suitably.
a) Yes, Since A.T.O is 22 Lakh
b) NO, Since A.T.O is 18 Lakh
c) At the option of the assessee
d) None of the above

87. State the Form Number and the due date for its filing under CGST Act, 2017 of the return
by :
(i) a composition scheme taxable person
(ii) a registered person deducting tax at source
(iii) an input service distributor.
a) (i) GSTR – 4 (ii) GSTR – 7 (iii) GSTR – 6
b) (i) GSTR – 3B (ii) GSTR – 8 (iii) GSTR – 6
c) (i) GSTR – 4 (ii) GSTR – 8 (iii) GSTR – 6
d) None of the above

88. KKR Associates a firm of Company Secretaries in Delhi has an annual turnover of Rs. 46
lakh in the preceding financial year. With reference to the provisions of the CGST Act,
2017, examine whether the firm can opt for the composition scheme.
a) Yes, Since A.T.O upto Rs. 50 Lakhs
b) No, Since Composition Scheme is not available supply of services other than
restaurant services
c) Yes or not at the option of assessee
d) None of the above

89. Discuss whether the following transactions will be considered as supply or not under GST
laws
(i) An individual buys a car for personal use and after a year sells it to a car dealer.
(ii) A dealer of air-conditioners permanently transfers an air conditioner from his stock in trade,
for personal use at his residence.
a) Yes, Yes

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CA VIVEK GABA CS EXECUTIVE GST (SET – 5)
b) Yes, No
c) No, Yes
d) None of the above

90. Mr. A has started supply of goods in Tripura. He is required to obtain registration if
his aggregate turnover exceeds during a financial year.
(a) `10 lakh
(b) `20 lakh
(c) `30 lakh
(d) `50 lakh

91. Mr. A has started supply of goods other than specified goods in J&K. He is required
to obtain registration if his aggregate turnover exceeds during a financial year.
(a) `10 lakh
(b) `20 lakh
(c) `30 lakh
(d) `40 lakh

92. The Aggregate turnover of ABC Industries of Delhi has exceeded `20 lakh on 1 st
September. It submits the application on 20th September. Registration certificate is
granted to it on 25th September, effective date of registration shall be-
(a) 20th September
(b) 30th September
(c) 01st September
(d) 25th September

93. The Aggregate turnover of ABC Industries of Delhi has exceeded `20 lakh on 1 st
September. It submits the application on 5th October. Registration certificate is granted
to it on 25th October, effective date of registration shall be-
(a) 5th October
(b) 1st September
(c) 25th October
(d) 25th September

94. The Aggregate turnover of ABC Industries of Delhi has exceeded `5 lakh on 1 st
September. It submits the application on 20th September Voluntarily. Registration
certificate is granted to it on 25th September, effective date of registration shall be-
(a) 20th September
th
(b) 30 September
(c) 01st September
(d) 25th September
95. Non- resident taxable person is required to take registration in GST
(a) if his aggregate turnover exceeds `10 lakh
(b) if his aggregate turnover exceeds `20 lakh
(c) if his aggregate turnover exceeds `30 lakh
(d) Irrespective of turnover

96. If proper officer fails to take action within working days from the date of
submission of application or within 7 working days from the date of receipt of
clarification, registration shall be deemed to have been approved.
(a) 5 days
(b) 10 days

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 CA VIVEK GABA CS EXECUTIVE GST (SET – 5)

(c) 3 days
(d) 15 days

97. If a person is opting for composition scheme in one State then it shall be applicable in
_____ States for multiple registration.
(a) all the States
(b) Optional for other States
(c) not apply for other States
(d) None of the above

98. If a trader is opting for composition scheme then tax shall be payable on
(a) Turnover in a State
(b) Turnover of taxable supplies in a State
(c) Turnover of exempt supplies in a State
(d) None of the above

99. ABC Industries, a manufacturer in Mumbai, is engaged in supply of goods in Mumbai as

well as Chennai (i.e. inter-State supply of goods). Here, ABC Industries enter into the
composition scheme.
(a) can
(b) cannot
(c) may
(d) None of the above

100. A dealer ‘X’ has two offices in Delhi. In order to determine whether ‘X’ is eligible to avail
benefit of the composition scheme, turnover of would be taken into account.
(a) any one of the offices
(b) both the offices
(c) higher of both the offices
(d) lower of both the offices

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CA VIVEK GABA CS EXECUTIVE GST (SET – 5)

CS – EXECUTIVE

TAX
SCANNER
GST MCQs
(SET – 5)
Relevant for – JUNE & DEC 2021

Compilation & Authored by:

CA VIVEK GABA

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CA VIVEK GABA CS EXECUTIVE GST (SET – 5)

CS – EXECUTIVE (NEW & OLD SYLLABUS)

GST MCQ’s SET – 5 (MIX QUESTIONS)

Compilation by : CA VIVEK GABA

1. Supply includes which of the following?

a) Goods
b) Services
c) Goods or Services
d) Goods and Services
e) Goods and / or Services

2. Which of the following taxes leviable on Exports?

a) CGST
b) SGST
c) IGST
d) NO GST (i.e. ZERO RATED SUPPLY)

3. What is the threshold limit of turnover for opting composition scheme under GST?
a) Rs 75 lacs
b) Rs 100 lacs
c) Not exceeding Rs 150 lacs
d) None of the above

4. What is the rate applicable for a composition dealer, being a manufacturer for CGST &
SGST?
a) Not exceeding 1%
b) 5%
c) 0%
d) No composition for manufacturer

5. Can the taxable person under Composition Scheme claim input tax credit?
a) Yes
b) No
c) Yes, only in some Cases
d) cant say

6. Within how many days a person should apply for registration?

a) Within 60 days from the date he becomes liable for registration.
b) Within 30 days from the date he becomes liable for registration.
c) No Time Limit
d) Within 90 days from the date he becomes liable for registration.

7. Which of the following requires amendment in the registration certificate?

a) Change of name of the registered person
b) Change in constitution of the registered person
c) Switching over form composition scheme to normal scheme or vice versa.
d) All the above

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CA VIVEK GABA CS EXECUTIVE GST (SET – 5)
8. The validity period of the registration certificate issued to casual taxable person and non-
resident taxable person is
a) 90 days from the effective date of registration
b) Period specified in the application for registration
c) Earliest of (a) or (b) above
d) Apply Registration at least 5 days prior to the commencement of business

9. What is the validity period of the registration certificate?

a) One year
b) Ten years
c) Valid till it is cancelled.
d) Five years

10. Which of the following are considered for calculating the aggregate turnover under
Composition scheme
a) Taxable supplies
b) Exempt Supplies
c) Both the above
d) Non-taxable supplies

11. Should a person dealing exclusively in the supply of exempted / not taxable goods/services
be required to obtain registration
a) Yes
b) No
c) Can’t say
d) Government to decide

12. What is cut off turnover limit for compulsory registration under GST ( in case of supply of
goods except specified goods?
a) Exceeds Rs 40 lacs
b) Exceeds Rs 20 lacs
c) Rs 50 lacs
d) No limit for registration

13. Who could be responsible to pay the GST?

a) Person supplying
b) Person receiving
c) Both the above
d) None

14. The details of outward supplies of goods or services shall be submitted by

a) 11th of the succeeding month
b) 10th of the succeeding month
c) 15th of the succeeding month
d) 20th of the succeeding month

15. Every registered taxable person shall be entitled to take credit of input tax in his return and
such input tax credit shall be credited to
a) Personal Ledger Account
b) Refund account
c) Electronic Cash Ledger
d) Electronic Credit Ledger

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CA VIVEK GABA CS EXECUTIVE GST (SET – 5)
16. The due date for furnishing the annual return for every financial year by registered taxable
person
a) 30th of September following the end of the financial year
b) 20th of October following the end of the financial year
c) 31st of December following the end of the financial year
d) 31st of May following the end of the financial year

17. A tax return preparer can undertake the following activities if authorized by the taxable
person
a) Furnish details inward and outward supplies
b) Furnish monthly / quarterly return
c) Furnish Annual and Final return
d) All of the above

18. The final return shall be filed by the registered taxable person within
a) 3 months of the date of cancellation or;
b) date of order of cancellation
c) 1 month of the date of order of cancellation
d) Later of (a) and (b)

19. The annual return shall be filed by the registered taxable person (other than composition
suppliers) in Form
a) GSTR 7
b) GSTR 9
c) GSTR 9A
d) GSTR 10

20. The person deducting tax at source shall deposit such amount by
a) 18th of the succeeding month
b) 20th of the month succeeding the quarter
c) 17th of the succeeding month
d) 10th of the succeeding month

21. The certificate of details of tax deducted by the deductor shall be furnished to the deductee
in Form
a) GSTR 7
b) GSTR 7A
c) GSTR 2A
d) GSTR 1A

22. Every tax payer paying tax under Section 9 (composition levy) shall file the return in
a) Form GSTR 3 by 18th of the month succeeding the quarter
b) Form GSTR 4 by 18th of the month succeeding the quarter
c) Form GSTR 4 by 18th of the succeeding month
d) Form GSTR 4 by 30th April succeeding year

23. The details of inward supplies of goods or services in Form GSTR 2 shall be submitted by
a) After 11th but on or before 15th of the succeeding month
b) 18th of the succeeding month
c) 15th of the succeeding month
d) 20th of the succeeding month

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CA VIVEK GABA CS EXECUTIVE GST (SET – 5)
24. The details submitted by the outward supplier in Form GSTR 1 shall be furnished to the
recipient (not being a composition supplier) in Form
a) GSTR 4
b) GSTR 5
c) GSTR 2
d) GSTR 6

25. GST is Collected on supply of all goods or services or both except

a) supply of alcoholic liquor for human consumption
b) Supply of petroleum crude, motor spirit (petrol), high speed diesel, natural gas and aviation
turbine fuel
c) Both of the above
d) None of the above

26. CGST / SGST,UTGST is payable on all ________ of goods and/or services and IGST is
payable on all ______ of goods and/or services.
a) intra-State supply, inter- State supply
b) inter-State supply, intra- State supply
c) at the option of taxable person
d) none of the above

27. A Composition Scheme, which is mainly devised for small taxpayers, provides ______ rate
of tax and filing of ______ instead of __________
a) concessional, Annually returns, monthly return
b) Higher, quarterly returns, monthly return
c) concessional, monthly returns, Quarterly return
d) none of the above

28. To be eligible for registration under Composition scheme it is required that the aggregate
turnover of a registered tax payer should not exceed _______ in the preceding financial year
& the limit is ______ for North Eastern & Special Category States)
a) Rs. 150,00,000/-, Rs. 75,00,000/-
b) Rs. 50,00,000/-, Rs. 25,00,000/-
c) Rs. 100,00,000/-, Rs. 50,00,000/-
d) Rs. 75,00,000/-, Rs. 20,00,000/-

29. Which of the following states covered North Eastern and Special Category States (for
Registration)–
i. Assam, Arunachal Pradesh,
ii. Manipur, Tripura,
iii. Mizoram, Nagaland,
iv. Tripura, Sikkim,
v. Delhi, Bihar
vi. Jammu & Kashmir
vii. Himachal Pradesh
a) i, ii, iii, iv & vi
b) i, ii, iii, iv, vi & vii
c) Only vi
d) Only ii & iii

30. Which of the following supply will be excluded for the computation of Aggregate turnover?
a) exempt supplies
b) exports of goods or services or both

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CA VIVEK GABA CS EXECUTIVE GST (SET – 5)
c) value of inward supplies on which tax is payable by a person on reverse charge basis
d) inter-State supplies of persons having the same Permanent Account Number

31. Which of the following taxes excluded at the time of computation of aggregate turnover?
a) central tax,
b) State tax,
c) Union territory tax,
d) integrated tax and cess
e) all of the above

32. Under GST the taxable event is _____ of goods or services or both?
a) SUPPLY
b) Manufacturing
c) Sale
d) Provision of services

33. Supply defined under which of the following section –

a) Section 7 of CGST Act, 2017
b) Section 11 of CGST Act, 2017
c) Section 9 of CGST Act, 2017
d) None of the above

34. Definition of Supply given under Act is –

a) Inclusive definition
b) Exhaustive definition
c) Neither A Nor B
d) Both A & B

35. Sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made
is deemed to be as Supply if –
a) Transaction enter for a consideration
b) Transaction in the course or furtherance of business
c) Both A & B must be satisfied
d) Only A Satisfied

36. Import of services for a consideration __________ is deemed as Supply?

a) whether or not in the course or furtherance of business
b) Transaction in the course or furtherance of business
c) Not a Supply
d) none of the above

37. The activities specified in _______, made or agreed to be made without a consideration is
deemed as Supply?
a) Schedule I
b) Schedule II
c) Schedule I & II
d) None of the above

38. The activities to be treated as “supply of goods” or “supply of services” as referred to in

_______?
a) Schedule II
b) Schedule I
c) Both A & B

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CA VIVEK GABA CS EXECUTIVE GST (SET – 5)
d) None of the above

39. A Customer purchases a printer and pays Rs. 12,000 for it is called as –
a) Supply since it is sale & Cover under Sec 7(1)(a)
b) Supply since it is Exchange & Cover under Sec 7(1)(a)
c) Not a Supply since it not Cover under Sec 7(1)(a)
d) Supply since it is Barter & Cover under Sec 7(1)(a)

40. A customer purchases a printer and pays the supplier by exchanging his used computer for
printer. The market value of the used computer is Rs. 12,000 is –
a) Supply since it is Barter & Cover under Sec 7(1)(a)
b) Supply since it is Sale & Cover under Sec 7(1)(a)
c) Not a Supply since it not Cover under Sec 7(1)(a)
d) Supply since it is Sale & Cover under Sec 7(1)(a)

41. A trader exchanged a new car for Rs. 2,00,000 cash and a used car (of market value of
10,00,000) –
a) Supply since it is Exchange & Cover under Sec 7(1)(a)
b) Supply since it is Sale & Cover under Sec 7(1)(a)
c) Not a Supply since it not Cover under Sec 7(1)(a)
d) Supply since it is Barter & Cover under Sec 7(1)(a)

42. Mr. A is salaried employee in A Ltd. it sells his second hand cycle for consideration of Rs.
2,000. Whether this transaction deemed as supply under section 7(1)(a) –
a) Not a supply since This supply transaction is not in the course or furtherance of business
b) It is supply since This supply transaction is not in the course or furtherance of business
c) neither A nor B
d) None of the above

43. Mr A is a salaried employee in A Ltd. It has availed services of an foreign architect for
construction of his house. which of the following statement is correct –
a) Such supply of service is not in course or furtherance of any business in hands of Mr A. But it
will constitute supply in terms of section 7(1)(b).
b) Such supply of service is not in course or furtherance of any business in hands of Mr A & it
will not constitute supply in terms of section 7(1)(b).
c) Any of the above
d) None of the above

44. The law provides that in certain cases, even though there is no consideration, the same
would be treated as ‘Supply’. Such cases are Listed in _______?
a) Schedule I
b) Schedule II
c) Schedule I & II
d) None of the above

45. Which of the following activity deemed as Supply under Schedule I even if no consideration
exists –
a) Sale (permanent transfer) of business assets (goods) on which ITC has been availed
b) Supplies of goods and/or services between related person, except gift upto Rs. 50,000 to
employees.
c) Agent to principal of vice-versa, if agent supplies / receives goods on behalf of principal
d) All of the above

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CA VIVEK GABA CS EXECUTIVE GST (SET – 5)
46. Which of the following activity deemed to be “Supply of Goods” –
i. Transfer of title of goods
ii. Permanent Transfer of business assets
iii. Transfer of right without transfer of title
iv. Treatment of process to another person’s goods [job-work, repair, maintenance, etc.]
v. Supply of Goods by ‘unincorporated AOP/BOI’ to its members
a) i, ii & iii
b) i, ii & v
c) Only i & ii
d) Only iii & iv

47. Which of the following activity deemed to be “Supply of Services” –

i. Transfer of title of goods
ii. Permanent Transfer of business assets
iii. Transfer of right without transfer of title
iv. Treatment of process to another person’s goods [job-work, repair, maintenance, etc.]
v. Supply of Goods by ‘unincorporated AOP/BOI’ to its members
a) i, ii & v
b) ii & iii
c) iii & iv
d) Only iii

48. Transfer of title of goods is deemed to be –

a) Supply of goods
b) Supply of Services
c) Both A & B depends upon situation
d) Neither A & Nor B

49. Permanent Transfer of business assets –

a) Supply of goods
b) Supply of Services
c) Both A & B depends upon situation
d) Neither A & Nor B

50. Supply of Goods by ‘unincorporated AOP/BOI’ to its members-

a) Supply of goods
b) Supply of Services
c) Both A & B depends upon situation
d) Neither A & Nor B

51. Transfer of right without transfer of title-

a) Supply of goods
b) Supply of Services
c) Both A & B depends upon situation
d) Neither A & Nor B
52. Treatment of process to another person’s goods [job-work, repair, maintenance, etc.]
a) Supply of goods
b) Supply of Services
c) Both A & B depends upon situation
d) Neither A & Nor B

53. Motor Car purchased (ITC not availed being not admissible) Subsequent, disposed off
without consideration is –

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CA VIVEK GABA CS EXECUTIVE GST (SET – 5)
a) Covered under Supply
b) Not a Supply
c) Neither A & nor B
d) Liable to Excise duty

54. Gift upto value of Rs 50,000 in a year to an employee __________ & Gifts in value in excess
of Rs. 50,000 _______
a) shall not be treated as “Supply”, shall be taxable as ‘Supply’
b) shall be taxable as ‘Supply’, shall not be treated as “Supply”
c) Both activity not covered under supply
d) None of the above

55. Stock Transfer/ branch transfer from Mumbai Head office to Gujarat Branch office.
[HO – GST registered in Maharastra] & [BO- GST Registration in Gujarat] –
a) It is deemed as Supply
b) It is not a supply
c) Any of the above
d) None of the above

56. Which of the following statement is correct –

a) ABC associates received legal consultancy service from its head office located in USA. The
head office has rendered such service free of cost to its branch office. Since ABC Associates
and the branch office are related persons, services received by ABC associates will qualify as
supply even though the head office has not charged anything from it
b) Gift upto value of Rs 50,000 in a year to an employee shall not be treated as “Supply”& Gifts in
value in excess of Rs. 50,000 shall be taxable as ‘Supply’
c) Both A & B
d) None of the above

57. ________ is excluded from the definition of goods as well as services

a) securities and money
b) Only Securities
c) Only Money
d) None of the above

58. Characterize a transaction as supply which of the following points need to be kept in mind?
a) Supply should be a taxable supply
b) Supply should be made by a taxable person
c) Supply should be made within taxable territory
d) All of the above

59. A head office which is located out of India provides interior designing services to its branch
office in India, the service _______
a) will be a taxable Supply under GST
b) will not be taxable supply under GST
c) outside the preview of GST
d) none of the above

60. Any transfer of right or undivided share in goods Service without transfer of title is–
a) Supply of Goods
b) Supply of Services
c) Any of the above at the option of GST council
d) None of the above

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CA VIVEK GABA CS EXECUTIVE GST (SET – 5)

61. Transfer of title in goods under an agreement where property in goods passes at a future
date on payment of full consideration –
a) Supply of Goods
b) Supply of Services
c) Any of the above
d) None of the above

62. Any lease, tenancy, easement, licence to occupy land –

a) Supply of Goods
b) Supply of Services
c) Any of the above /
d) None of the above

63. Any lease or letting out of the building including a commercial, industrial or residential
complex for business or commerce, either wholly or partly –
a) Supply of Goods
b) Supply of Services
c) Any of the above
d) None of the above

64. Renting of immovable property

a) Supply of Goods
b) Supply of Services
c) Any of the above
d) None of the above

65. Temporary transfer or permitting the use or enjoyment of any intellectual property right -
a) Supply of Goods
b) Supply of Services
c) Any of the above
d) None of the above

66. Development, design, programming, customisation, adaptation, upgradation, enhancement,

implementation of information technology software –
a) Supply of Goods
b) Supply of Services
c) Any of the above
d) None of the above

67. Agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do
an act –
a) Supply of Goods
b) Supply of Services
c) Any of the above
d) None of the above

68. Works Contract as defined under Section 2(119) –

a) Supply of Goods
b) Supply of Services
c) Any of the above
d) None of the above

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CA VIVEK GABA CS EXECUTIVE GST (SET – 5)
69. Which of the followings Activities which are neither supply of goods nor supply of services –
a) Services by employee to employer
b) Services by any court or tribunal
c) Functions performed by the Members of Parliament etc
d) All of the above

70. Which of the followings Activities which are neither supply of goods nor supply of services-
a) Services of funeral, burial, crematorium or mortuary including transportation of the deceased.
b) Actionable claims, other than lottery, betting and gambling
c) Both A & B
d) Only A

71. Composite supply is similar to the concept of “_________”

a) Bundled service
b) Mixed Supply
c) Joint supply
d) None of the above

72. Composite supply is ______

a) naturally bundled
b) unnatural bundle
c) mixed supply
d) none of the above

73. Mixed supply is ______

a) naturally bundled
b) unnatural bundle
c) mixed supply
d) none of the above

74. Under __________ the goods or services can be sold separately-

a) Mixed supply
b) Composite supply
c) Both A & B
d) None of the above

75. Where goods are packed and transported with insurance, the supply of goods, packing
materials, transport and insurance is a _______ and supply of goods is a principal supply –
a) composite supply
b) Mixed Supply
c) Both A & B
d) None of the above

76. A supply of a package consisting of canned foods, sweets, chocolates, cakes, dry fruits,
aerated drinks and fruit juices when supplied for a single price is _______.
a) mixed supply
b) Composite supply
c) None of the above
d) Both A & B

77. Which of the following statement is correct –

a) a composite supply comprising two or more supplies, one of which is a principal supply, shall
be treated as a supply of such principal supply

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CA VIVEK GABA CS EXECUTIVE GST (SET – 5)
b) a mixed supply comprising two or more supplies shall be treated as a supply of that particular
supply which attracts the highest rate of tax
c) both A & B
d) only A

78. Tax rate applicable in hands of manufacture under composition scheme –

a) 2% (CGST + SGST)
b) 5% (CSGT + SGST)
c) 1% (CGST + SGST)
d) 2.5% (CGST + SGST)

79. Tax rate applicable in hands of Restaurant under composition scheme –

a) 2% (CGST + SGST)
b) 5% (CSGT + SGST)
c) 1% (CGST + SGST)
d) 2.5% (CGST + SGST)

80. Tax rate applicable in hands of Other supplier (Traders) under composition scheme–
a) 2% (CGST + SGST)
b) 5% (CSGT + SGST)
c) 1% (CGST + SGST)
d) 2.5% (CGST + SGST)

81. Which of the following persons are not eligible of composition scheme?
a) The scheme is not available for Manufacturer of Tobacco, ice cream & PAN Masala.
b) Supplier of goods which are not taxable under the CGST Act/SGST Act/UTGST Act is not
eligible to register under this scheme
c) Tax payers making inter- state supplies is not eligible for composition scheme
d) All of the above

82. Registered person under composition scheme is ___________ and neither he will be eligible
for any input tax credit
a) not permitted to collect tax buyer
b) permitted to collect tax from buyer
c) at the option of registered person
d) none of the above

83. The composition scheme is ______

a) optional
b) mandatory in all cases
c) mandatory in specified cases
d) none of the above

84. Registered person under sub-section 10(1) shall lapse _________ on which his aggregate
turnover during a financial year exceeds the specified limit –
a) with effect from the day
b) with effect from the Month
c) with effect from the 15th day
d) none of the above

85. XYZ Ltd, having its head office at Mumbai, is registered as Input Service Distributor (ISD). It has
three units in different cities situated in ‘Mumbai’,‘Jabalpur’ and ‘Delhi’ which are operational in the

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CA VIVEK GABA CS EXECUTIVE GST (SET – 5)
current year. XYZ Ltd. furnishes the following information for the month of July 2018 :
 CGST paid on services used only for Mumbai Unit : Rs. 3,00,000
 IGST, CGST & SGST paid on services used for all units : Rs. 12,00,000
Total turnover of the units for the previous financial year is as follows:

Unit Turnover (Rs.)

Total Turnover of three units Rs. 10,00,00,000
Turnover of Mumbai unit Rs. 5,00,00,000
Turnover of Jabalpur unit Rs. 3,00,00,000
Turnover of Delhi unit Rs. 2,00,0000
Determine the credit to be distributed by XYZ Ltd. to each of its three units.
a) Mumbai – 9,00,000, Jabalpur – 3,60,000, Delhi – 2,40,000
b) Mumbai – 7,50,000, Jabalpur – 4,50,000, Delhi – 3,00,000
c) Mumbai – 9,00,000, Jabalpur –6,00,000, Delhi – Nil
d) None of the above

86. Vinod, a supplier of goods in Vadodara furnishes the following particulars pertaining to supplies
likely to be effected by him during the third and fourth quarters of the FY 2018-19:
Value of supply of goods chargeable to GST Rs. 18 lakhs
Goods to be supplied to World Health Organization, Ahmadabad office Rs. 4 lakhs
All supplies will be within the State only. He desires to know whether he should get
himself registered for GST purposes. Advise him suitably.
a) Yes, Since A.T.O is 22 Lakh
b) NO, Since A.T.O is 18 Lakh
c) At the option of the assessee
d) None of the above

87. State the Form Number and the due date for its filing under CGST Act, 2017 of the return
by :
(i) a composition scheme taxable person
(ii) a registered person deducting tax at source
(iii) an input service distributor.
a) (i) GSTR – 4 (ii) GSTR – 7 (iii) GSTR – 6
b) (i) GSTR – 3B (ii) GSTR – 8 (iii) GSTR – 6
c) (i) GSTR – 4 (ii) GSTR – 8 (iii) GSTR – 6
d) None of the above

88. KKR Associates a firm of Company Secretaries in Delhi has an annual turnover of Rs. 46
lakh in the preceding financial year. With reference to the provisions of the CGST Act,
2017, examine whether the firm can opt for the composition scheme.
a) Yes, Since A.T.O upto Rs. 50 Lakhs
b) No, Since Composition Scheme is not available supply of services other than
restaurant services
c) Yes or not at the option of assessee
d) None of the above

89. Discuss whether the following transactions will be considered as supply or not under GST
laws
(i) An individual buys a car for personal use and after a year sells it to a car dealer.
(ii) A dealer of air-conditioners permanently transfers an air conditioner from his stock in trade,
for personal use at his residence.
a) Yes, Yes

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CA VIVEK GABA CS EXECUTIVE GST (SET – 5)
b) Yes, No
c) No, Yes
d) None of the above

90. Mr. A has started supply of goods in Tripura. He is required to obtain registration if
his aggregate turnover exceeds during a financial year.
(a) `10 lakh
(b) `20 lakh
(c) `30 lakh
(d) `50 lakh

91. Mr. A has started supply of goods other than specified goods in J&K. He is required
to obtain registration if his aggregate turnover exceeds during a financial year.
(a) `10 lakh
(b) `20 lakh
(c) `30 lakh
(d) `40 lakh

92. The Aggregate turnover of ABC Industries of Delhi has exceeded `20 lakh on 1 st
September. It submits the application on 20th September. Registration certificate is
granted to it on 25th September, effective date of registration shall be-
(a) 20th September
(b) 30th September
(c) 01st September
(d) 25th September

93. The Aggregate turnover of ABC Industries of Delhi has exceeded `20 lakh on 1 st
September. It submits the application on 5th October. Registration certificate is granted
to it on 25th October, effective date of registration shall be-
(a) 5th October
(b) 1st September
(c) 25th October
(d) 25th September

94. The Aggregate turnover of ABC Industries of Delhi has exceeded `5 lakh on 1 st
September. It submits the application on 20th September Voluntarily. Registration
certificate is granted to it on 25th September, effective date of registration shall be-
(a) 20th September
th
(b) 30 September
(c) 01st September
(d) 25th September
95. Non- resident taxable person is required to take registration in GST
(a) if his aggregate turnover exceeds `10 lakh
(b) if his aggregate turnover exceeds `20 lakh
(c) if his aggregate turnover exceeds `30 lakh
(d) Irrespective of turnover

96. If proper officer fails to take action within working days from the date of
submission of application or within 7 working days from the date of receipt of
clarification, registration shall be deemed to have been approved.
(a) 5 days
(b) 10 days

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(c) 3 days
(d) 15 days

97. If a person is opting for composition scheme in one State then it shall be applicable in
_____ States for multiple registration.
(a) all the States
(b) Optional for other States
(c) not apply for other States
(d) None of the above

98. If a trader is opting for composition scheme then tax shall be payable on
(a) Turnover in a State
(b) Turnover of taxable supplies in a State
(c) Turnover of exempt supplies in a State
(d) None of the above

99. ABC Industries, a manufacturer in Mumbai, is engaged in supply of goods in Mumbai as

well as Chennai (i.e. inter-State supply of goods). Here, ABC Industries enter into the
composition scheme.
(a) can
(b) cannot
(c) may
(d) None of the above

100. A dealer ‘X’ has two offices in Delhi. In order to determine whether ‘X’ is eligible to avail
benefit of the composition scheme, turnover of would be taken into account.
(a) any one of the offices
(b) both the offices
(c) higher of both the offices
(d) lower of both the offices

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CA VIVEK GABA CS EXECUTIVE GST (SET – 6)

CS – EXECUTIVE

TAX
SCANNER
GST MCQs
(SET – 6)

Relevant for – JUNE & DEC 2021

Compilation & Authored by :

CA VIVEK GABA

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CA VIVEK GABA CS EXECUTIVE GST (SET – 6)

CS – EXECUTIVE (NEW & OLD SYLLABUS)

GST MCQ’s SET – 6 (COMBINED TOPICS)

Compilation by: CA VIVEK GABA

1. Where Goods cannot be seized the proper officer or the authorised officer may serve
on the owner or the custodian of the goods, an order of prohibition in FORM _________
that he shall not remove, part with, or otherwise deal with the goods except with the
previous permission of such officer
a) GST INS-03
b) GST INS-02
c) GST INS-04
d) GST INS-02

2. The bond (for release of seized goods) so executed will be in Form ________ and
the security in the form of a bank guarantee equivalent to the amount of applicable
tax, interest and penalty payable.
a) GST INS- 04
b) GST INS- 01
c) GST INS- 02
d) GST INS- 03

3. If the goods so seized are of perishable or hazardous nature, such goods can be
released by an order under Form __________
a) GST INS-05
b) GST INS-01
c) GST INS-03
d) GST INS-04

4. In which of the following case Commissioner to authorise any officer of Central Tax
to arrest such person who has committed –
a) supplies any goods or services or both without issue of any invoice, with the
intention to evade tax

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b) avails input tax credit using such invoice or bill without supply of goods or services
or both
c) collects any amount as tax but fails to pay the same to the Government beyond a
period of three months from the date on which such sum becomes due
d) all of the above

5. Where the amount of tax evaded or the amount of input tax credit wrongly availed or
utilised or the amount of refund wrongly taken exceeds 500 lakhs then –
a) imprisonment for a term which may extend to 5 years and with fine
b) imprisonment for a term which may extend to 7 years and with fine
c) imprisonment for a term which may extend to 5 years and without fine
d) imprisonment for a term which may extend to 3 years and with fine

6. Where the amount of tax evaded or the amount of input tax credit wrongly availed or
utilised or the amount of refund wrongly taken exceeds 200 lakhs upto 500 lakhs
then–
a) imprisonment for a term which may extend to 5 years and with fine
b) imprisonment for a term which may extend to 7 years and with fine
c) imprisonment for a term which may extend to 5 years and without fine
d) imprisonment for a term which may extend to 3 years and with fine

7. Input tax credit on compensation cess paid under GST (Compensation to States) Act,
2017
a) is not available c) is available
b) is available but not fully d) is available after one year

8. Maximum rate of CGST prescribed by law for intrastate supply made is----
a) 18% c) 20%
b) 40% d) 28%+cess

9. Input tax credit on Compensation cess paid under GST (Compensation to States) Act,
2017 is available for payment of
a) IGST only
b) IGST and CGST only
c) compensation under GST (Compensation to States) Act

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CA VIVEK GABA CS EXECUTIVE GST (SET – 6)

d) None of the above

10. IGST is payable when the supply is ---

a) Interstate c) supply from SEZ
b) Inter- UT d) All of the above

11. Zero rated supply includes supplies made-

a) By SEZ unit in India c) to SEZ unit in India
b) Both (a) & (b) above d) None of the above

12. With the introduction of GST, imports will be—

a) more expensive c) cheaper
b) neutral with no change d) None of the above

13. GST Laws are implemented on the recommendation of

a) Central Government c) GST Network (GSTN)
b) GST Council d) President of India

14. When did the President of India gave assent to the Central GST Law?
a) 18th April 2017 c) 22nd April 2017
b) 5th April 2017 d) 13th April 2017

15. Money means:

a) Indian legal tender c) Cheque / Promissory note
b) Foreign currency d) all of the above

16. Where is GST applicable till 7th July, 2017?

a) All over India except the state of Jammu and Kashmir
b) All over India except the state of Sikkim
c) All over India except the state of Meghalaya
d) All over India

17. What is the meaning of non-taxable territory?

a) Outside taxable territory c) Inside taxable territory
b) Interstate taxable territory d) None of the above

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18. What does the term “person” includes?

a) HUF c) Individual
b) LLP d) All of the above

19. GST Council is referred under which Article of the Constitution?

a) 279 c) 279A
b) 277 d) 276

20. What is the weight of vote that the Centre has in the GST Council?
a) 1/4th of total votes cast c) 1/3rd of total votes cast
b) 1/2th of total votes cast d) none of the above

21. What is the weight of vote that the all the States together have in the GST Council?
a) 1/4th of total votes cast c) 2/3rd of total votes cast
b) 1/2th of total votes cast d) 3/4th of total votes cast

22. Who is the Chairperson of the GST Council

a) Finance Secretary c) Union Finance Minister
b) State’s Finance Minister by rotation d) Prime Minister

23. Under which Schedule, power to declare certain activity/ transaction as neither supply
of goods nor of services
a) Schedule I c) Schedule III
b) Schedule II d) Schedule IV

24. When was GST Council constituted?

a) 12th September 2016 c) 13th September 2016
b) 20th September 2016 d) 16th September 2016

25. Who is an agriculturist?

a) Individual or HUF c) Individual and HUF
b) Partnership d) All of the above

26. An Associated Enterprise is mentioned in?

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a) Income Tax Act, 1961 c) Central GST Law, 2017

b) State GST Law, 2017 d) Companies Act, 2013

27. Appointed day is __________________

a) date on which the provisions of the act shall come into force
b) date on which President gave assent
c) date on which both houses passed the act
d) date on which it is sent to Finance Ministry

28. What is conveyance?

a) vessel c) vehicle
b) aircraft d) all of the above

29. Which section mentions about intra-state supply of service?

a) section 8 c) section 18
b) section 14 d) section 12

30. Place of supply referred in Integrated Goods and Service Tax Act is mentioned in
which Chapter?
a) Chapter II c) Chapter V
b) Chapter III d) Chapter VIII

31. When does Quarter end?

a) March c) September
b) December d) All of the above

32. What is the threshold limit for composite tax levy for service provider?
a) ` 60 lakh c) ` 50 lakh
b) ` 70 lakh d) ` 1 crore

33. When does the liability to pay tax on goods arise?

a) at the time of supply
b) at the time when goods reach supplier
c) at the time of preparing invoice
d) None of the above

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34. The time of supply of goods shall be the earlier of _____________

a) date of issue of invoice c) last date of invoice issued
b) date of receipt of payment d) earlier of A or C

35. What does Taxable event mean?

a) Tax on supply c) either a) or b)
b) Tax on services d) both a) or b)

36. Tax is paid on which value?

a) Transaction value c) manufacturing value
b) manufacturing value plus profit d) notional value

37. Which of the following condition/s must be satisfied to be eligible to avail Input tax
credit?
a) on receipt of goods
b) on payment of taxes paid by supplier to Govt.
c) he has to be file return under section 39
d) all of the above

38. How is Input Tax Credit on capital goods available?

a) in single installment c) equally in five installment
b) 10% every year d) none of the above

39. Debit note and Credit note is mentioned in which section?

a) section 36 c) section 34
b) section 39 d) none of the above

40. Valid return is mentioned in which section?

a) section 29 c) section 39
b) section 47 d) section 49\

41. What is the threshold limit for an individual limit for GST registration in state of
nagaland?
a) ` 10 lakh c) ` 15 lakh

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CA VIVEK GABA CS EXECUTIVE GST (SET – 6)

b) ` 12 lakh d) ` 20 lakh

42. In which section is “invoice” or “tax invoice” in?

a) section 34 c) section 31
b) section 37 d) section 27

43. Electronic cash ledger and Electronic credit ledger is mentioned in which section?
a) section 49 c) section 42
b) section 39 d) section 47

44. A person is having multiple businesses required registration

a) Single c) either of the two
b) each business separately d) none of the above

45. GST registration is

a) PAN based c) passport based
b) Aadhar based d) none of the above

46. Deemed registration is

a) after four working days c) after five working days
b) after three common working days d) after seven working days

47. Annual Return has to be filed every year:

a) 30th June c) 30th September
b) 31st December d) 31st October

48. IGST is levied on supply of goods and provision of services ____________

a) within state c) either of a) or b)
b) between two states d) none of the above

49. IGST is levied on supply of goods and provision of services by ___________

a) Centre c) State
b) Union Territory d) both b) and c)

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50. Tax deduction at the rate of 1% on certain persons, who are recipients of supply,
from the payment made or credited to the supplier where total value of supply, under
contract, is exceeding rupees:
a) ` 1,00,000 c) ` 2,50,000
b) ` 1,50,000 d) ` 5,00,000

51. The credit of CGST can be utilised for the payment of:
a) SGST c) IGST
b) UTGST d) none of the above

52. GST would not be applicable to:

a) alcohol for human consumption
b) petrol
c) natural gas
d) diesel
e) all of the above

53. Which of the following GST bill have been passed by the Parliament?
a) GST (Compensation to States) Bill c) IGST Bill
b) UTGST Bill d) All of the above

54. Which of the following is not eligible for Composition Scheme:

a) Inter-state supply of goods
b) Areated Water
c) Person supplying goods through e-commerce sector
d) All of the above

55. The following tax will not be subsumed into GST:

a) Luxury Tax c) entertainment tax for local bodies
b) Excise duty d) value added tax

56. Utilisation of integrated GST would be in which order?

a) IGST, CGST & SGST (any manner) c) IGST, SGST, CGST
b) CGST, SGST, IGST d) SGST, IGST, CGST

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CA VIVEK GABA CS EXECUTIVE GST (SET – 6)

57. Which of the following does Aggregate Turnover under GST does not include?
a) Exempt supplies
b) export of goods and/ or services
c) All taxable supplies
d) value of inward supplies on which tax has been paid under reverse charge

58. Which of the following is subsumed under Central GST?

a) Central Sales Tax for alcoholic liquor c) Customs Duty
b) Service Tax d) all of the above

59. Which of the following true in respect of Goods and Service Tax
a) It is destination based tax c) it is a origin based tax
b) It is levied only on goods d) All of the above

60. What is the threshold limit for composition levy?

a) ` 40 lakh c) ` 1.50 crore
b) ` 30 lakh d) ` 70 lakh

61. Which of the following require themselves to be registered compulsory, irrespective of

threshold limit?
a) Casual taxable person c) non-resident taxable person
b) Input service distributor d) all of the above

62. The time of supply of voucher in respect of goods and services shall be
a) date of issue of voucher, in case of identifiable supply
b) date of redemption of voucher in other case
c) both a) and b)
d) none of the above

63. What does the conditions for supply includes?

a) Supply is a taxable service
b) Supply is made in the taxable territory
c) Supply is made by taxable person
d) All of the above

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CA VIVEK GABA CS EXECUTIVE GST (SET – 6)

64. Which of the following statement is correct:-

I. GST is a broad-based tax
II. GST is a destination based tax
III. GST is collected through a staged process i.e. a tax on the value added to goods
or services at every point in the supply chain
IV. GST is a tax on the consumption of products from business sources, and not on
personal or hobby activities
a) Only I b) I & II Both
b) I, II & III d) I, II, III & IV all statement is correct

65. ________ is excluded from the definition of goods as well as services

a) securities and money c) Only Securities
b) Only Money d) None of the above

66. What shall be time of supply in case of reverse charge?

a) the date of the receipt of goods
b) the date of payment as entered in the books of account or payment is debited in his
bank account, whichever is earlier
c) the date immediately following thirty days from the date of issue of invoice or any
other document
d) earlier of the above

67. Which of the following states covered North Eastern and Special Category States for
registration (i.e. 10 lakh limit) –
i. Assam, Arunachal Pradesh,
ii. Manipur, Meghalaya,
iii. Mizoram, Nagaland,
iv. Tripura, manipur,
v. Delhi, Bihar
vi. Jammu & Kashmir
vii. Himachal Pradesh
a) i, ii, iii, iv & vi c) i, ii, iii, iv, vi & vii
b) Only iii & iv d) Only i, ii & iii

68. Which of the following Bills passed by parliament?

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CA VIVEK GABA CS EXECUTIVE GST (SET – 6)

i. Central Goods and Services Tax (CGST)Bill

ii. Integrated Goods and Services Tax(IGST) Bill
iii. Union Territory Goods and Services Tax (UTGST)Bill
iv. Goods and Services Tax (Compensation to States) Bill
v. State Goods and Services Tax (CGST)Bill
a) i, ii, iii & iv c) Only i
b) Only i, ii & iii d) None of the above

69. Which of the following activity deemed as Supply under Schedule I even if no
consideration exists –
a) sale of business assets (goods) on which ITC has been availed
b) supply of goods and/or services between related person, except gift upto Rs. 50,000
to employees.
c) agent to principal of vice-versa, if agent supplies / receives goods on behalf of
principal
d) All of the above

70. What is cut off turnover limit for compulsory registration under GST u/s 24?
a) ` 9 lacs c) exceeds ` 20 lacs
b) ` 50 lacs d) No limit for registration

71. Import of services for a consideration __________ is deemed as Supply?

a) whether or not in the course or furtherance of business
b) Transaction in the course or furtherance of business
c) Not a Supply
d) none of the above

72. Which of the following taxes leviable on Imports?

a) CGST c) SGST
b) IGST d) all of the above

73. ________ is payable on all intra-state supply of goods and/or services and _______
is payable on all inter- State supply of goods and/or services.
a) CGST + SGST/UTGST, IGST c) IGST, CGST
b) IGST, SGST d) None of the above

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CA VIVEK GABA CS EXECUTIVE GST (SET – 6)

74. Gift upto value of ` 50,000 in a year to an employee __________ & Gifts in value in
excess of ` 50,000 _______
a) shall not be treated as “Supply”, shall be taxable as ‘Supply’
b) shall be taxable as ‘Supply’, shall not be treated as “Supply”
c) Both activity not covered under supply
d) None of the above

75. Which of the following persons are not eligible of composition scheme?
a) Manufacturer of ice cream, pan masala, tobacco, aerated water
b) Supplier of goods which are taxable under the CGST Act/SGST Act/UTGST Act
c) Tax payers making intra- state supplies is not eligible for composition scheme
d) All of the above

76. Which of the followings Activities which are neither supply of goods nor supply of
services:
a) Services by employee to employer
b) Services by any court or tribunal
c) Supply of goods transfer from NTT to NTT without entering into India
d) All of the above

77. Which of the following person is not liable for registration?

a) Person supplying exempted goods or services or goods or services which are not
liable for tax under GST
b) Goods or services covered under 100% RCM
c) Both a) & b)
d) None of the above

78. Vice Chairperson of GST Council will be from Member from ______?
a) State Government
b) Central government
c) Any member nominated by central government
d) Any of the above

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79. Every Registered taxable person (Except Composition Scheme) shall have to file return
if T.O upto 1.50 crore_________:
a) Quarterly
b) Half Yearly
c) Monthly
d) Annually

80. GST is payable by the recipient under reverse charge on:

(a) Sponsorship services
(b) Transport of goods by rail
(c) Transport of passengers by air
(d) All of the above

81. Which of the following statement is not correct?

(a) Reverse charge shall be applicable in case of renting of immovable property by
the Govt. to a business entity who is registered under GST
(b) Reverse charge shall be applicable in case of renting of immovable property by
the Govt. to a business entity who is not registered under GST
(c) Renting of immovable property by the Govt. to a person other than business
entity shall be exempt from GST
(d) None of these

82. Which of the following statement is correct?

a) Services by the department of post is exempt if the services are of speed post,
express parcel post, life insurance or agency services provided to a person other
than Govt.
b) Services by the department of post is exempt if the services are of basic mail
services, operation of saving account, post card, inland letter provided to a person
other than Govt.
c) Services by the department of post is exempt if the services are of basic mail
services, operation of saving account, post card, inland letter provided to any
person.
d) None of these

83. Reverse charge shall be applicable

i. If Govt. has provided security services to a business entity which is registered under

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GST
ii. If Govt. has provided renting of immovable property services to a business entity
which is registered under GST
iii. If Govt. has provided services in relation to an aircraft or vessel inside or outside
the precincts of a port or airport
a) (i) & (ii)
b) (i) & (iii)
c) (ii) & (iii)
d) none of these

84. Which of the following statement is not correct?

a) If an individual advocate has given services to a business entity who is registered,
reverse charge shall be applicable
b) If an individual advocate has given services to any other advocate, it will be
exempt from GST
c) If an individual advocate has given services to a business entity who is
unregistered, it will be exempt from GST
d) If an individual advocate has given services to a business entity , reverse charge
shall be applicable

85. ABC Ltd. has sent certain goods through one GTA to XYZ Ltd. and freight is
payable by XYZ Ltd. and both ABC Ltd. and XYZ Ltd. are registered under GST,
in this case
a) normal charge shall be applicable and GTA will collect GST from ABC Ltd.
b) normal charge shall be applicable and GTA will collect GST from XYZ Ltd.
c) reverse charge shall be applicable and GST shall be paid by ABC Ltd.
d) reverse charge shall be applicable and GST shall be paid by XYZ Ltd.
e) none of these

86. In which case reverse charge is not applicable

a) Sponsorship services have been provided by ABC Ltd. to XYZ Ltd.
b) Sponsorship services have been provided by ABC Ltd. to one HUF
c) Sponsorship services have been provided by Mr. A to XYZ Ltd.
d) None of these

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87. In which case reverse charge is not applicable

a) GTA transported goods and consignor ABC Ltd. and consignee XYZ Ltd. and freight
payable by ABC Ltd.
b) GTA transported goods and consignor Mr. A and consignee XYZ Ltd. and freight
payable by XYZ Ltd.
c) GTA transported goods and consignor Mr. A and consignee Mr. B and freight
payable by Mr. A. Mr. A is not registered but Mr. B is registered
d) None of these

88. Which Statement from the following is correct

i. Reverse charge shall be applicable in respect of any taxable services provided
or agreed to be provided by any person who is located in a non-taxable territory
and received by any person located in the taxable territory.
ii. Reverse charge shall be applicable in respect of any non- taxable services
provided or agreed to be provided by any person who is located in a non-
taxable territory and received by any person located in the taxable territory.
iii. Reverse charge shall be applicable in respect of any taxable services provided
or agreed to be provided by any person who is located in a taxable territory and
received by any person located in the taxable territory.
iv. Reverse charge shall be applicable in respect of any taxable services provided
or agreed to be provided by any person who is located in a taxable territory and
received by any person located in the non- taxable territory.
a) only (i) is correct
b) only (i) & (ii) is correct
c) only (ii) & (iii) is correct
d) only (ii) & (iv)
e) all the above is correct.

89. Which Statement from the following is correct

(i) Reverse charge shall be applicable in case of OIDAR services received by an
unregistered person.
(ii) Reverse charge shall be applicable in case of OIDAR services received by
registered person.
(iii) Reverse charge shall be applicable in case of OIDAR services, service provided
by an unregistered person.

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(iv) Reverse charge shall be applicable in case of OIDAR services, service provided
by registered person.
a) only (i) is correct
b) only (ii) is correct
c) only (ii) & (iii) is correct
d) only (ii) & (iv)
e) all the above is correct.

90. Which Statement from the following is correct

(i) Reverse charge shall be applicable if sponsorship services have been provided
to any body-corporate or partnership firm.
(ii) Reverse charge shall be applicable if sponsorship services have been provided
to any person.
(iii) Reverse charge shall be applicable if sponsorship services have been provided
to an individual.
(iv) Reverse charge shall be applicable if sponsorship services have been provided
to HUF.
a) only (i) is correct
b) only (ii) is correct
c) only (iii) & (iv) is correct
d) only (i) & (iv)
e) all the above is correct
f) (i),(iii) & (iv) is correct

91. Mr. A sponsored a dance competition organized by ‘Taal Academy’, a dance

school run by an individual. The dance competition was named as ‘Mr. A’s
Dance Show’ by ‘Taal Academy’. Who is liable to pay GST in this case?
a) Taal Academy
b) Mr. A
c) Both
d) None of above

92. ABC Ltd., a carrying and forwarding agency, started its operations on October
1, 2019 and is registered under GST. It utilized the services of Big Carriers, a
goods transport agency, in the month of November, 2019. GST shall be payable

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by
a) ABC Ltd.
b) Big Carriers
c) Both (a) & (b)
d) None of above

93. ABC, a firm of lawyers rendered legal advice to Mr. B, an architect, and MNO
Ltd., an advertising agency during December, 2019. Who is liable to pay GST
in this case if aggregate turnover of Mr. B and MNO Ltd. are exceeding ` 20
lakh in the preceding year.
a) ABC
b) Mr. B only
c) Both Mr. B & MNO Ltd.
d) MNO Ltd.

94. ABC, a firm of lawyers rendered legal advice to Mr. B, an architect, and MNO
Ltd., an advertising agency during December, 2019. Who is liable to pay GST
in this case if aggregate turnover of Mr. B is `15 lakh and MNO Ltd. `25 lakh
in the preceding year.
a) ABC
b) Mr. B only
c) Both Mr. B & MNO Ltd.
d) MNO Ltd.

95. Reverse charge shall be applicable

a) Services by the Department of Posts by way of speed post, express
parcel post, life insurance, and agency services provided to a person
other than Government
b) Services in relation to an aircraft or a vessel, inside or outside the precincts of a
port or an airport
c) Transport of goods or passengers
d) in respect of services provided by Government or local authority except (a) , (b)
& (c)
e) in respect of services provided by Government or local authority except (a) & (b)
only

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96. Which Statement from the following is correct

a) Reverse charge shall be applicable in respect of services provided or agreed to
be provided by an insurance agent to any person carrying on insurance
business
b) Reverse charge shall not be applicable in respect of services provided or agreed
to be provided by an insurance agent to any person carrying on insurance
business
c) Reverse charge shall be applicable in respect of services provided or agreed to
be provided by an insurance agent to any person carrying on any business
d) Reverse charge shall be applicable in respect of services received by an insurance
agent.

97. Which Statement from the following is not correct

a) Reverse charge shall be applicable in respect of services provided or agreed to
be provided by an insurance agent to any person carrying on insurance business
b) Reverse charge shall be applicable in respect of services provided by a recovery
agent to a banking company or a financial institution or a non-banking financial
company
c) Reverse charge shall be applicable in respect of services by the members of
overseeing committee to Reserve Bank of India.
d) Reverse charge shall be applicable in respect of services by Director to any
partnership firm.

98. Which Statement from the following is correct

a) Reverse charge shall be applicable in respect of services supplied by individual
Direct Selling Agents (DSAs) to bank or non-banking financial company
(NBFCs).

b) Reverse charge shall not be applicable in respect of services supplied by

Individual Direct Selling Agents (DSAs) to bank or non-banking financial
company (NBFCs).
c) Reverse charge shall be applicable in respect of services supplied by Direct
Selling Agents (a body corporate) to bank or non-banking financial company
(NBFCs).
d) Reverse charge shall be applicable in respect of services supplied by Direct

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CA VIVEK GABA CS EXECUTIVE GST (SET – 6)

Selling Agents (LLP) to bank or non-banking financial company (NBFCs).

99. A service receiver has received invoice dated 29.06.2019 and made the payment
on 10.08.2019 and reverse charge is applicable, in this case time of supply
shall be
a) 28.08.2019
b) 29.06.2019
c) 10.08.2019
d) none of these

100. A service receiver has received invoice dated 01.06.2018 and made the
payment on 10.08.2018 and reverse charge is applicable, in this case time of
supply shall be
a) 01.08.2018
b) 10.08.2018
c) 01.06.2018
d) none of these

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CA VIVEK GABA CS EXECUTIVE GST (SET – 6)

CS – EXECUTIVE

TAX
SCANNER
GST MCQs
(SET – 6)

Relevant for – JUNE & DEC 2021

Compilation & Authored by :

CA VIVEK GABA

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CA VIVEK GABA CS EXECUTIVE GST (SET – 6)

CS – EXECUTIVE (NEW & OLD SYLLABUS)

GST MCQ’s SET – 6 (COMBINED TOPICS)

Compilation by: CA VIVEK GABA

1. Where Goods cannot be seized the proper officer or the authorised officer may serve
on the owner or the custodian of the goods, an order of prohibition in FORM _________
that he shall not remove, part with, or otherwise deal with the goods except with the
previous permission of such officer
a) GST INS-03
b) GST INS-02
c) GST INS-04
d) GST INS-02

2. The bond (for release of seized goods) so executed will be in Form ________ and
the security in the form of a bank guarantee equivalent to the amount of applicable
tax, interest and penalty payable.
a) GST INS- 04
b) GST INS- 01
c) GST INS- 02
d) GST INS- 03

3. If the goods so seized are of perishable or hazardous nature, such goods can be
released by an order under Form __________
a) GST INS-05
b) GST INS-01
c) GST INS-03
d) GST INS-04

4. In which of the following case Commissioner to authorise any officer of Central Tax
to arrest such person who has committed –
a) supplies any goods or services or both without issue of any invoice, with the
intention to evade tax

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b) avails input tax credit using such invoice or bill without supply of goods or services
or both
c) collects any amount as tax but fails to pay the same to the Government beyond a
period of three months from the date on which such sum becomes due
d) all of the above

5. Where the amount of tax evaded or the amount of input tax credit wrongly availed or
utilised or the amount of refund wrongly taken exceeds 500 lakhs then –
a) imprisonment for a term which may extend to 5 years and with fine
b) imprisonment for a term which may extend to 7 years and with fine
c) imprisonment for a term which may extend to 5 years and without fine
d) imprisonment for a term which may extend to 3 years and with fine

6. Where the amount of tax evaded or the amount of input tax credit wrongly availed or
utilised or the amount of refund wrongly taken exceeds 200 lakhs upto 500 lakhs
then–
a) imprisonment for a term which may extend to 5 years and with fine
b) imprisonment for a term which may extend to 7 years and with fine
c) imprisonment for a term which may extend to 5 years and without fine
d) imprisonment for a term which may extend to 3 years and with fine

7. Input tax credit on compensation cess paid under GST (Compensation to States) Act,
2017
a) is not available c) is available
b) is available but not fully d) is available after one year

8. Maximum rate of CGST prescribed by law for intrastate supply made is----
a) 18% c) 20%
b) 40% d) 28%+cess

9. Input tax credit on Compensation cess paid under GST (Compensation to States) Act,
2017 is available for payment of
a) IGST only
b) IGST and CGST only
c) compensation under GST (Compensation to States) Act

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CA VIVEK GABA CS EXECUTIVE GST (SET – 6)

d) None of the above

10. IGST is payable when the supply is ---

a) Interstate c) supply from SEZ
b) Inter- UT d) All of the above

11. Zero rated supply includes supplies made-

a) By SEZ unit in India c) to SEZ unit in India
b) Both (a) & (b) above d) None of the above

12. With the introduction of GST, imports will be—

a) more expensive c) cheaper
b) neutral with no change d) None of the above

13. GST Laws are implemented on the recommendation of

a) Central Government c) GST Network (GSTN)
b) GST Council d) President of India

14. When did the President of India gave assent to the Central GST Law?
a) 18th April 2017 c) 22nd April 2017
b) 5th April 2017 d) 13th April 2017

15. Money means:

a) Indian legal tender c) Cheque / Promissory note
b) Foreign currency d) all of the above

16. Where is GST applicable till 7th July, 2017?

a) All over India except the state of Jammu and Kashmir
b) All over India except the state of Sikkim
c) All over India except the state of Meghalaya
d) All over India

17. What is the meaning of non-taxable territory?

a) Outside taxable territory c) Inside taxable territory
b) Interstate taxable territory d) None of the above

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18. What does the term “person” includes?

a) HUF c) Individual
b) LLP d) All of the above

19. GST Council is referred under which Article of the Constitution?

a) 279 c) 279A
b) 277 d) 276

20. What is the weight of vote that the Centre has in the GST Council?
a) 1/4th of total votes cast c) 1/3rd of total votes cast
b) 1/2th of total votes cast d) none of the above

21. What is the weight of vote that the all the States together have in the GST Council?
a) 1/4th of total votes cast c) 2/3rd of total votes cast
b) 1/2th of total votes cast d) 3/4th of total votes cast

22. Who is the Chairperson of the GST Council

a) Finance Secretary c) Union Finance Minister
b) State’s Finance Minister by rotation d) Prime Minister

23. Under which Schedule, power to declare certain activity/ transaction as neither supply
of goods nor of services
a) Schedule I c) Schedule III
b) Schedule II d) Schedule IV

24. When was GST Council constituted?

a) 12th September 2016 c) 13th September 2016
b) 20th September 2016 d) 16th September 2016

25. Who is an agriculturist?

a) Individual or HUF c) Individual and HUF
b) Partnership d) All of the above

26. An Associated Enterprise is mentioned in?

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CA VIVEK GABA CS EXECUTIVE GST (SET – 6)

a) Income Tax Act, 1961 c) Central GST Law, 2017

b) State GST Law, 2017 d) Companies Act, 2013

27. Appointed day is __________________

a) date on which the provisions of the act shall come into force
b) date on which President gave assent
c) date on which both houses passed the act
d) date on which it is sent to Finance Ministry

28. What is conveyance?

a) vessel c) vehicle
b) aircraft d) all of the above

29. Which section mentions about intra-state supply of service?

a) section 8 c) section 18
b) section 14 d) section 12

30. Place of supply referred in Integrated Goods and Service Tax Act is mentioned in
which Chapter?
a) Chapter II c) Chapter V
b) Chapter III d) Chapter VIII

31. When does Quarter end?

a) March c) September
b) December d) All of the above

32. What is the threshold limit for composite tax levy for service provider?
a) ` 60 lakh c) ` 50 lakh
b) ` 70 lakh d) ` 1 crore

33. When does the liability to pay tax on goods arise?

a) at the time of supply
b) at the time when goods reach supplier
c) at the time of preparing invoice
d) None of the above

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34. The time of supply of goods shall be the earlier of _____________

a) date of issue of invoice c) last date of invoice issued
b) date of receipt of payment d) earlier of A or C

35. What does Taxable event mean?

a) Tax on supply c) either a) or b)
b) Tax on services d) both a) or b)

36. Tax is paid on which value?

a) Transaction value c) manufacturing value
b) manufacturing value plus profit d) notional value

37. Which of the following condition/s must be satisfied to be eligible to avail Input tax
credit?
a) on receipt of goods
b) on payment of taxes paid by supplier to Govt.
c) he has to be file return under section 39
d) all of the above

38. How is Input Tax Credit on capital goods available?

a) in single installment c) equally in five installment
b) 10% every year d) none of the above

39. Debit note and Credit note is mentioned in which section?

a) section 36 c) section 34
b) section 39 d) none of the above

40. Valid return is mentioned in which section?

a) section 29 c) section 39
b) section 47 d) section 49\

41. What is the threshold limit for an individual limit for GST registration in state of
nagaland?
a) ` 10 lakh c) ` 15 lakh

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CA VIVEK GABA CS EXECUTIVE GST (SET – 6)

b) ` 12 lakh d) ` 20 lakh

42. In which section is “invoice” or “tax invoice” in?

a) section 34 c) section 31
b) section 37 d) section 27

43. Electronic cash ledger and Electronic credit ledger is mentioned in which section?
a) section 49 c) section 42
b) section 39 d) section 47

44. A person is having multiple businesses required registration

a) Single c) either of the two
b) each business separately d) none of the above

45. GST registration is

a) PAN based c) passport based
b) Aadhar based d) none of the above

46. Deemed registration is

a) after four working days c) after five working days
b) after three common working days d) after seven working days

47. Annual Return has to be filed every year:

a) 30th June c) 30th September
b) 31st December d) 31st October

48. IGST is levied on supply of goods and provision of services ____________

a) within state c) either of a) or b)
b) between two states d) none of the above

49. IGST is levied on supply of goods and provision of services by ___________

a) Centre c) State
b) Union Territory d) both b) and c)

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50. Tax deduction at the rate of 1% on certain persons, who are recipients of supply,
from the payment made or credited to the supplier where total value of supply, under
contract, is exceeding rupees:
a) ` 1,00,000 c) ` 2,50,000
b) ` 1,50,000 d) ` 5,00,000

51. The credit of CGST can be utilised for the payment of:
a) SGST c) IGST
b) UTGST d) none of the above

52. GST would not be applicable to:

a) alcohol for human consumption
b) petrol
c) natural gas
d) diesel
e) all of the above

53. Which of the following GST bill have been passed by the Parliament?
a) GST (Compensation to States) Bill c) IGST Bill
b) UTGST Bill d) All of the above

54. Which of the following is not eligible for Composition Scheme:

a) Inter-state supply of goods
b) Areated Water
c) Person supplying goods through e-commerce sector
d) All of the above

55. The following tax will not be subsumed into GST:

a) Luxury Tax c) entertainment tax for local bodies
b) Excise duty d) value added tax

56. Utilisation of integrated GST would be in which order?

a) IGST, CGST & SGST (any manner) c) IGST, SGST, CGST
b) CGST, SGST, IGST d) SGST, IGST, CGST

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CA VIVEK GABA CS EXECUTIVE GST (SET – 6)

57. Which of the following does Aggregate Turnover under GST does not include?
a) Exempt supplies
b) export of goods and/ or services
c) All taxable supplies
d) value of inward supplies on which tax has been paid under reverse charge

58. Which of the following is subsumed under Central GST?

a) Central Sales Tax for alcoholic liquor c) Customs Duty
b) Service Tax d) all of the above

59. Which of the following true in respect of Goods and Service Tax
a) It is destination based tax c) it is a origin based tax
b) It is levied only on goods d) All of the above

60. What is the threshold limit for composition levy?

a) ` 40 lakh c) ` 1.50 crore
b) ` 30 lakh d) ` 70 lakh

61. Which of the following require themselves to be registered compulsory, irrespective of

threshold limit?
a) Casual taxable person c) non-resident taxable person
b) Input service distributor d) all of the above

62. The time of supply of voucher in respect of goods and services shall be
a) date of issue of voucher, in case of identifiable supply
b) date of redemption of voucher in other case
c) both a) and b)
d) none of the above

63. What does the conditions for supply includes?

a) Supply is a taxable service
b) Supply is made in the taxable territory
c) Supply is made by taxable person
d) All of the above

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CA VIVEK GABA CS EXECUTIVE GST (SET – 6)

64. Which of the following statement is correct:-

I. GST is a broad-based tax
II. GST is a destination based tax
III. GST is collected through a staged process i.e. a tax on the value added to goods
or services at every point in the supply chain
IV. GST is a tax on the consumption of products from business sources, and not on
personal or hobby activities
a) Only I b) I & II Both
b) I, II & III d) I, II, III & IV all statement is correct

65. ________ is excluded from the definition of goods as well as services

a) securities and money c) Only Securities
b) Only Money d) None of the above

66. What shall be time of supply in case of reverse charge?

a) the date of the receipt of goods
b) the date of payment as entered in the books of account or payment is debited in his
bank account, whichever is earlier
c) the date immediately following thirty days from the date of issue of invoice or any
other document
d) earlier of the above

67. Which of the following states covered North Eastern and Special Category States for
registration (i.e. 10 lakh limit) –
i. Assam, Arunachal Pradesh,
ii. Manipur, Meghalaya,
iii. Mizoram, Nagaland,
iv. Tripura, manipur,
v. Delhi, Bihar
vi. Jammu & Kashmir
vii. Himachal Pradesh
a) i, ii, iii, iv & vi c) i, ii, iii, iv, vi & vii
b) Only iii & iv d) Only i, ii & iii

68. Which of the following Bills passed by parliament?

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CA VIVEK GABA CS EXECUTIVE GST (SET – 6)

i. Central Goods and Services Tax (CGST)Bill

ii. Integrated Goods and Services Tax(IGST) Bill
iii. Union Territory Goods and Services Tax (UTGST)Bill
iv. Goods and Services Tax (Compensation to States) Bill
v. State Goods and Services Tax (CGST)Bill
a) i, ii, iii & iv c) Only i
b) Only i, ii & iii d) None of the above

69. Which of the following activity deemed as Supply under Schedule I even if no
consideration exists –
a) sale of business assets (goods) on which ITC has been availed
b) supply of goods and/or services between related person, except gift upto Rs. 50,000
to employees.
c) agent to principal of vice-versa, if agent supplies / receives goods on behalf of
principal
d) All of the above

70. What is cut off turnover limit for compulsory registration under GST u/s 24?
a) ` 9 lacs c) exceeds ` 20 lacs
b) ` 50 lacs d) No limit for registration

71. Import of services for a consideration __________ is deemed as Supply?

a) whether or not in the course or furtherance of business
b) Transaction in the course or furtherance of business
c) Not a Supply
d) none of the above

72. Which of the following taxes leviable on Imports?

a) CGST c) SGST
b) IGST d) all of the above

73. ________ is payable on all intra-state supply of goods and/or services and _______
is payable on all inter- State supply of goods and/or services.
a) CGST + SGST/UTGST, IGST c) IGST, CGST
b) IGST, SGST d) None of the above

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74. Gift upto value of ` 50,000 in a year to an employee __________ & Gifts in value in
excess of ` 50,000 _______
a) shall not be treated as “Supply”, shall be taxable as ‘Supply’
b) shall be taxable as ‘Supply’, shall not be treated as “Supply”
c) Both activity not covered under supply
d) None of the above

75. Which of the following persons are not eligible of composition scheme?
a) Manufacturer of ice cream, pan masala, tobacco, aerated water
b) Supplier of goods which are taxable under the CGST Act/SGST Act/UTGST Act
c) Tax payers making intra- state supplies is not eligible for composition scheme
d) All of the above

76. Which of the followings Activities which are neither supply of goods nor supply of
services:
a) Services by employee to employer
b) Services by any court or tribunal
c) Supply of goods transfer from NTT to NTT without entering into India
d) All of the above

77. Which of the following person is not liable for registration?

a) Person supplying exempted goods or services or goods or services which are not
liable for tax under GST
b) Goods or services covered under 100% RCM
c) Both a) & b)
d) None of the above

78. Vice Chairperson of GST Council will be from Member from ______?
a) State Government
b) Central government
c) Any member nominated by central government
d) Any of the above

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79. Every Registered taxable person (Except Composition Scheme) shall have to file return
if T.O upto 1.50 crore_________:
a) Quarterly
b) Half Yearly
c) Monthly
d) Annually

80. GST is payable by the recipient under reverse charge on:

(a) Sponsorship services
(b) Transport of goods by rail
(c) Transport of passengers by air
(d) All of the above

81. Which of the following statement is not correct?

(a) Reverse charge shall be applicable in case of renting of immovable property by
the Govt. to a business entity who is registered under GST
(b) Reverse charge shall be applicable in case of renting of immovable property by
the Govt. to a business entity who is not registered under GST
(c) Renting of immovable property by the Govt. to a person other than business
entity shall be exempt from GST
(d) None of these

82. Which of the following statement is correct?

a) Services by the department of post is exempt if the services are of speed post,
express parcel post, life insurance or agency services provided to a person other
than Govt.
b) Services by the department of post is exempt if the services are of basic mail
services, operation of saving account, post card, inland letter provided to a person
other than Govt.
c) Services by the department of post is exempt if the services are of basic mail
services, operation of saving account, post card, inland letter provided to any
person.
d) None of these

83. Reverse charge shall be applicable

i. If Govt. has provided security services to a business entity which is registered under

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GST
ii. If Govt. has provided renting of immovable property services to a business entity
which is registered under GST
iii. If Govt. has provided services in relation to an aircraft or vessel inside or outside
the precincts of a port or airport
a) (i) & (ii)
b) (i) & (iii)
c) (ii) & (iii)
d) none of these

84. Which of the following statement is not correct?

a) If an individual advocate has given services to a business entity who is registered,
reverse charge shall be applicable
b) If an individual advocate has given services to any other advocate, it will be
exempt from GST
c) If an individual advocate has given services to a business entity who is
unregistered, it will be exempt from GST
d) If an individual advocate has given services to a business entity , reverse charge
shall be applicable

85. ABC Ltd. has sent certain goods through one GTA to XYZ Ltd. and freight is
payable by XYZ Ltd. and both ABC Ltd. and XYZ Ltd. are registered under GST,
in this case
a) normal charge shall be applicable and GTA will collect GST from ABC Ltd.
b) normal charge shall be applicable and GTA will collect GST from XYZ Ltd.
c) reverse charge shall be applicable and GST shall be paid by ABC Ltd.
d) reverse charge shall be applicable and GST shall be paid by XYZ Ltd.
e) none of these

86. In which case reverse charge is not applicable

a) Sponsorship services have been provided by ABC Ltd. to XYZ Ltd.
b) Sponsorship services have been provided by ABC Ltd. to one HUF
c) Sponsorship services have been provided by Mr. A to XYZ Ltd.
d) None of these

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87. In which case reverse charge is not applicable

a) GTA transported goods and consignor ABC Ltd. and consignee XYZ Ltd. and freight
payable by ABC Ltd.
b) GTA transported goods and consignor Mr. A and consignee XYZ Ltd. and freight
payable by XYZ Ltd.
c) GTA transported goods and consignor Mr. A and consignee Mr. B and freight
payable by Mr. A. Mr. A is not registered but Mr. B is registered
d) None of these

88. Which Statement from the following is correct

i. Reverse charge shall be applicable in respect of any taxable services provided
or agreed to be provided by any person who is located in a non-taxable territory
and received by any person located in the taxable territory.
ii. Reverse charge shall be applicable in respect of any non- taxable services
provided or agreed to be provided by any person who is located in a non-
taxable territory and received by any person located in the taxable territory.
iii. Reverse charge shall be applicable in respect of any taxable services provided
or agreed to be provided by any person who is located in a taxable territory and
received by any person located in the taxable territory.
iv. Reverse charge shall be applicable in respect of any taxable services provided
or agreed to be provided by any person who is located in a taxable territory and
received by any person located in the non- taxable territory.
a) only (i) is correct
b) only (i) & (ii) is correct
c) only (ii) & (iii) is correct
d) only (ii) & (iv)
e) all the above is correct.

89. Which Statement from the following is correct

(i) Reverse charge shall be applicable in case of OIDAR services received by an
unregistered person.
(ii) Reverse charge shall be applicable in case of OIDAR services received by
registered person.
(iii) Reverse charge shall be applicable in case of OIDAR services, service provided
by an unregistered person.

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(iv) Reverse charge shall be applicable in case of OIDAR services, service provided
by registered person.
a) only (i) is correct
b) only (ii) is correct
c) only (ii) & (iii) is correct
d) only (ii) & (iv)
e) all the above is correct.

90. Which Statement from the following is correct

(i) Reverse charge shall be applicable if sponsorship services have been provided
to any body-corporate or partnership firm.
(ii) Reverse charge shall be applicable if sponsorship services have been provided
to any person.
(iii) Reverse charge shall be applicable if sponsorship services have been provided
to an individual.
(iv) Reverse charge shall be applicable if sponsorship services have been provided
to HUF.
a) only (i) is correct
b) only (ii) is correct
c) only (iii) & (iv) is correct
d) only (i) & (iv)
e) all the above is correct
f) (i),(iii) & (iv) is correct

91. Mr. A sponsored a dance competition organized by ‘Taal Academy’, a dance

school run by an individual. The dance competition was named as ‘Mr. A’s
Dance Show’ by ‘Taal Academy’. Who is liable to pay GST in this case?
a) Taal Academy
b) Mr. A
c) Both
d) None of above

92. ABC Ltd., a carrying and forwarding agency, started its operations on October
1, 2019 and is registered under GST. It utilized the services of Big Carriers, a
goods transport agency, in the month of November, 2019. GST shall be payable

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by
a) ABC Ltd.
b) Big Carriers
c) Both (a) & (b)
d) None of above

93. ABC, a firm of lawyers rendered legal advice to Mr. B, an architect, and MNO
Ltd., an advertising agency during December, 2019. Who is liable to pay GST
in this case if aggregate turnover of Mr. B and MNO Ltd. are exceeding ` 20
lakh in the preceding year.
a) ABC
b) Mr. B only
c) Both Mr. B & MNO Ltd.
d) MNO Ltd.

94. ABC, a firm of lawyers rendered legal advice to Mr. B, an architect, and MNO
Ltd., an advertising agency during December, 2019. Who is liable to pay GST
in this case if aggregate turnover of Mr. B is `15 lakh and MNO Ltd. `25 lakh
in the preceding year.
a) ABC
b) Mr. B only
c) Both Mr. B & MNO Ltd.
d) MNO Ltd.

95. Reverse charge shall be applicable

a) Services by the Department of Posts by way of speed post, express
parcel post, life insurance, and agency services provided to a person
other than Government
b) Services in relation to an aircraft or a vessel, inside or outside the precincts of a
port or an airport
c) Transport of goods or passengers
d) in respect of services provided by Government or local authority except (a) , (b)
& (c)
e) in respect of services provided by Government or local authority except (a) & (b)
only

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96. Which Statement from the following is correct

a) Reverse charge shall be applicable in respect of services provided or agreed to
be provided by an insurance agent to any person carrying on insurance
business
b) Reverse charge shall not be applicable in respect of services provided or agreed
to be provided by an insurance agent to any person carrying on insurance
business
c) Reverse charge shall be applicable in respect of services provided or agreed to
be provided by an insurance agent to any person carrying on any business
d) Reverse charge shall be applicable in respect of services received by an insurance
agent.

97. Which Statement from the following is not correct

a) Reverse charge shall be applicable in respect of services provided or agreed to
be provided by an insurance agent to any person carrying on insurance business
b) Reverse charge shall be applicable in respect of services provided by a recovery
agent to a banking company or a financial institution or a non-banking financial
company
c) Reverse charge shall be applicable in respect of services by the members of
overseeing committee to Reserve Bank of India.
d) Reverse charge shall be applicable in respect of services by Director to any
partnership firm.

98. Which Statement from the following is correct

a) Reverse charge shall be applicable in respect of services supplied by individual
Direct Selling Agents (DSAs) to bank or non-banking financial company
(NBFCs).

b) Reverse charge shall not be applicable in respect of services supplied by

Individual Direct Selling Agents (DSAs) to bank or non-banking financial
company (NBFCs).
c) Reverse charge shall be applicable in respect of services supplied by Direct
Selling Agents (a body corporate) to bank or non-banking financial company
(NBFCs).
d) Reverse charge shall be applicable in respect of services supplied by Direct

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CA VIVEK GABA CS EXECUTIVE GST (SET – 6)

Selling Agents (LLP) to bank or non-banking financial company (NBFCs).

99. A service receiver has received invoice dated 29.06.2019 and made the payment
on 10.08.2019 and reverse charge is applicable, in this case time of supply
shall be
a) 28.08.2019
b) 29.06.2019
c) 10.08.2019
d) none of these

100. A service receiver has received invoice dated 01.06.2018 and made the
payment on 10.08.2018 and reverse charge is applicable, in this case time of
supply shall be
a) 01.08.2018
b) 10.08.2018
c) 01.06.2018
d) none of these

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CA VIVEK GABA CS EXECUTIVE GST (SET – 7)

CS – EXECUTIVE

TAX
SCANNER
GST MCQs
(SET – 7)

Relevant for – JUNE & DEC 2021

Compilation & Authored by :

CA VIVEK GABA

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CA VIVEK GABA CS EXECUTIVE GST (SET – 7)

CS – EXECUTIVE (NEW & OLD SYLLABUS)

GST MCQ’s SET – 7 (COMBINED TOPICS)

Compilation by: CA VIVEK GABA

1. What shall be Time of Supply in case of Vouchers if supply is not identifiable

a) the date of redemption of voucher
b) the date of issue of vouchers
c) Earlier of the above
d) None of the above

2. Section 15 of the CGST Act states that, the value of taxable supply under GST is
the ________
a) Transaction value
b) Nominal value
c) Sale price – abatement
d) None of the above

3. Which of the following element not include in the definition of consideration?

a) Any subsidy given by the Central Government or a State Government
b) Any subsidy given by the only Central Government
c) Any subsidy given by the only State Government
d) None of the above

4. To avail the benefit of ITC it is required that the person availing such benefit is
________
a) A registered under GST
b) not registered under GST
c) may or may not registered under GST
d) none of the above

5. Which of the following statement is correct –

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a) To avail the benefit of ITC it is required that the person availing such benefit is
registered under GST
b) An unregistered person is not eligible to take the benefit of ITC
c) Input Tax Credit (ITC) is considered as a cornerstone of GST
d) All of the above

6. Which of following conditions must be satisfied for eligibility to obtain ITC is –

i. he should be in possession of tax invoice or debit note or such other tax paying
documents as may be prescribed
ii. he should have received the goods or services or both
iii. the supplier should have actually paid the tax charged in respect of the supply to
the government
iv. he should have furnished the return under section 39
a) Only i & ii
b) Only ii & iii
c) i, ii, iii & iv
d) Only iii & iv

7. Where the goods against an invoice are received in lots or instalments, the registered
person shall be entitled to take credit upon __________
a) receipt of the last lot or instalment
b) receipt of the First lot or instalment
c) 100% at the time of receipt of 1st invoice
d) None of the above

8. Availability of ITC to recipient has been made dependent on _______

a) payment of tax by supplier
b) payment of tax by Govt.
c) payment of tax by Service provider
d) none of the above

9. if a recipient fails to pay the amount of supply along with tax payable thereon
_________ from the date of issue of invoice, the recipient will be liable to pay along
with the output tax liability an amount equal to the input tax credit availed by the
recipient along with interest thereon –
a) within 180 days

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b) within 6 months
c) within 90 days
d) none of the above

10. If Goods or services partly used for business purpose then what will be the treatment
of ITC under GST –
a) 100% ITC Allowed whether partly used for business or partly for other purpose
b) Only that amount of input tax which is attributable to the purpose of business will
be allowed as credit
c) NO Credit allowed in given question
d) Percentage will notify by GST Council

11. Where Goods or services or both are used partly for Exempted supplies or partly for
taxable supplies what will be the treatment of ITC under GST –
a) ITC not allowed for exempted supplies
b) 50% ITC Allowed
c) 100% ITC allowed
d) None of the above

12. Where Goods or services or both are used partly for taxable supplies including zero
rated supplies under IGST or under CGST Act, and partly for exempted supplies –
a) only that amount of input tax which is attributable to the taxable supplies including
zero rated supplies will be allowed as credit and not for exempted supplies
b) 100% ITC Allowed irrespective of the usage of Goods/Services
c) Fix 50% ITC allowed in this cases
d) None of the above

13. Normally Input tax credit is not available on ________

a) motor vehicle
b) Vessel
c) Aircraft
d) All of the above

14. Which of the Following statement is Correct –

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CA VIVEK GABA CS EXECUTIVE GST (SET – 7)

a) Motor vehicle and other transport of passengers or imparting training on flying,

driving and navigating such vehicles or conveyances or for transportation of such
goods, Input Tax Credit will be allowed
b) Where Goods or services or both are used partly for taxable supplies including zero
rated supplies under IGST or under CGST Act, and partly for exempted supplies,
only that amount of input tax which is attributable to the taxable supplies including
zero rated supplies will be allowed as credit and not for exempted supplies.
c) if goods or services or both are used partly for purpose of business and partly for
other purpose, only that amount of input tax which is attributable to the purpose of
business will be allowed as credit
d) All the above statements are correct

15. If a caterer uses a service of another caterer, Input Tax Credit ______
a) will be allowed
b) will not be allowed
c) partially allowed
d) none of the above

16. Input tax credit is _______ on supply of membership of a club, health and fitness
centre
a) not available
b) 100% Available
c) Partially available
d) None of the above

17. Input tax credit is _____ on supply of services of rent-a-cab, life insurance and health
insurance
a) not available
b) 100% Available
c) Partially available
d) None of the above

18. Input tax credit is _______ on travel benefits extended to employees on vacation such
as leave or home travel concession
a) not available
b) 100% Available

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CA VIVEK GABA CS EXECUTIVE GST (SET – 7)

c) Partially available
d) None of the above

19. Input tax credit is _______ on works contract services when supplied for construction
of an immovable property (other than plant and machinery)
a) not available
b) 100% Available
c) Partially available
d) None of the above

20. Input Tax Credit ________ when it is an input service for further supply of works
contract service
a) will be allowed
b) will not be allowed
c) Both A & B
d) None of the above

21. Tax has been paid under composition scheme on supply of goods or services or both,
input tax credit is _____
a) not allowed
b) 100% Allowed
c) Partially allowed
d) None of the above

22. Input Tax Credit is ______ when goods or services or both are received by a non-
resident taxable person –
a) not allowed
b) 100% Allowed
c) Partially Allowed
d) None of the above

23. If goods are imported by such non-taxable person ______?

a) input tax credit will be allowed
b) input tax credit will not be allowed
c) partially Allowed
d) none of the above

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24. ________ with respect to goods lost, stolen, destroyed or written off as well as on
goods given as gifts or free samples ________?
a) Input tax credit, not Allowed
b) Input Tax credit, will be allowed
c) 100% Allowed in both cases
d) None of the above

25. The person who is treating or processing the goods belonging to other person is
called ‘________’ and the person to whom the goods belongs is called _________
a) job worker, principal
b) Principal, Job worker
c) Supplier, Customers
d) None of the above

26. when goods are sent from a taxable person to a Job worker ________ and _________
if the goods so sent are not received back within 1 year or 3 years in case of inputs
or capital goods as the case may be –
a) it shall be treated as supply, will be liable to GST
b) it shall not be treated as supply, will not be liable to GST
c) it shall be treated as supply, But not liable to GST
d) none of the above

27. Which of the following statement is correct –

a) job work, input includes intermediate goods arising from any treatment or process
carried out on the inputs by the principal or the job worker
b) when goods are sent from a taxable person to a Job worker it shall be treated as
supply and will be liable to GST if the goods so sent are not received back within
1 year or 3 years in case of inputs or capital goods as the case may be
c) Both A & B
d) None of the above

28. ITC will be provided only when goods are actually received, but under _______ this
condition is exempted
a) Job work
b) Mixed supply

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CA VIVEK GABA CS EXECUTIVE GST (SET – 7)

c) Composite supply
d) None of the above

29. Which of the following statement is correct under Job-Work –

a) job work, input includes intermediate goods arising from any treatment or process
carried out on the inputs by the principal or the job worker
b) ITC can be availed even if inputs or capital goods are directly sent to the Job
Worker without being first brought to the place of business of Principal
c) Both A & B
d) None of the above

30. A ________ is required to maintain proper accounts and records and keep it at his
registered, principal place of business.
a) registered person
b) unregistered person
c) Both A & B
d) None of the above

31. Which of the following books maintain by supplier –

a) Production or manufacture of goods
b) Inward and outward supply of goods or services or both
c) Stock of goods
d) All of the above

32. Which of the following books maintain by supplier –

a) Input tax credit availed
b) Output tax payable and paid
c) Such other particulars as may be prescribed
d) All of the above

33. The ________ is empowered to notify a class of taxable persons to maintain additional
accounts or documents for specified purpose or to maintain accounts in other
prescribed manner
a) Commissioner
b) Chief Commissioner
c) Assistant Commissioner

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CA VIVEK GABA CS EXECUTIVE GST (SET – 7)

d) Deputy Commissioner

34. The time duration for retention of accounts and records under GST is until expiry of
________ from the due date of furnishing of annual return for the year pertaining to
such accounts and records–
a) Seventy-two months
b) seventy months
c) seventy-one months
d) none of the above

35. A registered person, who is a party to an appeal or revision or any other proceedings
shall retain books of accounts for a period -
a) One year after final disposal of such appeal or revision or 72 months from due
date of annual GST return whichever is Later.
b) Two year after final disposal of such appeal or revision
c) One year after final disposal of such appeal or revision
d) None of the above

36. _______ indicates what must be paid by the buyer to the seller –
a) Invoice
b) Debit Note’
c) Credit Note
d) Bill of supply

37. On every sale/purchase an invoice is issued by the _________

a) supplier i.e., person making the sale
b) Buyer i.e. person purchase the goods
c) Any of the above
d) None of the above

38. What is the time limit of issue invoice if Supply involves movement of goods –
a) Before or At the time of removal of goods for supply to the recipient
b) Before or At the time of delivery of goods or making available thereof to the recipient
c) Before or At the option of supplier.
d) None of the above

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39. What is the time limit of issue invoice if Supply does not involves movement of goods–
a) Before or At the time of removal of goods for supply to the recipient
b) Before or At the time of delivery of goods or making available thereof to the recipient
c) At the option of supplier.
d) None of the above.

40. A registered taxable supplier of services is required to raise invoice in General case–
a) invoice shall be issued within a prescribed period from the date of supply of service
b) on or before the due date of payment
c) on or before the date of completion of that event
d) none of the above

41. A registered taxable supplier of services is required to raise invoice in Continuous

Supply of service where successive statements of accounts or successive payments
are involved –
a) before or at the time each such statement is issued or, as the case may be, each
such payment is received
b) on or before the due date of payment
c) on or before the date of completion of that event
d) none of the above

42. A registered taxable supplier of services is required to raise invoice in Continuous

supply having ascertainable due date –
a) before or at the time each such statement is issued or, as the case may be, each
such payment is received
b) on or before the due date of payment
c) on or before the date of completion of that event
d) none of the above

43. A registered taxable supplier of services is required to raise invoice in Continuous

supply having unascertainable due date –
a) before or at the time when the supplier of service receives the payment
b) on or before the due date of payment
c) on or before the date of completion of that event
d) none of the above

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CA VIVEK GABA CS EXECUTIVE GST (SET – 7)

44. A registered taxable supplier of services is required to raise invoice in Continuous

supply where the payment is linked to the completion of an event –
a) before or at the time when the supplier of service receives the payment
b) on or before the due date of payment
c) on or before the date of completion of that event
d) none of the above

45. Where the goods being sent or taken on approval for sale or return are removed
before the supply takes place, the invoice shall be issued
a) before or at the time of supply
b) six months from the date of removal
c) a) or b) whichever is earlier
d) a) or b) whichever is later

46. Which of the following case A registered person is required to debit note –
a) where taxable value or tax charged in that tax invoice is found to be less than the
taxable value or tax payable in respect of such supply
b) where the goods supplied are returned by the recipient
c) Both A & B
d) None of the above

47. Which of the following case A registered person is required to Credit note –
a) when taxable value or tax charged in a tax invoice is found to exceed the taxable
value or tax payable in respect of supply
b) where the goods supplied are returned by the recipient
c) where goods or services or both supplied are found to be deficient
d) all of the above

48. _________ is the most fundamental requirement for identification of tax payers ensuring
tax compliance in the economy?
a) Registration
b) Return
c) Debit Note
d) Invoice

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CA VIVEK GABA CS EXECUTIVE GST (SET – 7)

49. Without registration, a person _________ from his customers ________ input Tax Credit
of tax paid by him –
a) can neither collect tax, nor claim any
b) can collect, cannot claim
c) can neither collect tax, can claim any
d) none of the above

50. What is the threshold limit of Registration under GST?

a) 10 lakhs (for special category States) and Rs. 20/40 lakhs for other states and
Union territories
b) 20 lakhs (for special category States) and Rs. 10 lakhs for other states and Union
territories
c) 10 lakhs (for special category States) and Rs. Only 20 lakhs for other states and
Union territories
d) None of the above

51. Which of the following person is not liable for registration?

a) Person supplying exempted goods or services or goods or services which are not
liable for tax under GST
b) An agriculturist, to the extent of supply of produce out of cultivation of land
c) Both A & B
d) None of the above

52. Which of the following person is required for registration under GST Law?
a) Every person who is a registered licensee or holds a license under an existing law
b) An interstate supplier of goods
c) Casual Taxable person
d) All of the above

53. Which of the following person is required for registration under GST Law?
a) Persons who are required to pay tax under reverse charge
b) A non-resident taxable person
c) Persons who are required to deduct tax under section 51
d) All of the above

54. Which of the following person is required for registration under GST Law?

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a) Persons who make taxable supply of goods or services or both on behalf of other
taxable persons
b) Input Service Distributor
c) Electronic Commerce Operator
d) All of the above

55. A taxpayer is required to file a document with the administrative authority which is
commonly known as a “___________”
a) Return
b) Invoice
c) Registration
d) Credit note

56. Every registered person (other than an ISD, a non-resident taxable person and a
person paying tax under the provision of section 10/51/51 file Outwards supplies on–
a) On or before 11 of next month
b) On or before 15 of next month
c) On or before 20 of next month
d) None of the above

57. Every registered person (other than an ISD, a non-resident taxable person and a
person paying tax under the provision of section 10/51/51 file Inwards supplies on –
a) After the 11th day but on or before the 15th day of the month succeeding the tax
period
b) After the 15th day but on or before the 10th day of the month succeeding the tax
period
c) On or before 15th of next month
d) On or before 10th of next month

58. Registered Composition Supplier file _________ within _____________?

a) Quarterly Return, 18 days after the end of each quarter
b) Monthly Return, 18 days after the end of each Month
c) Quarterly Return, 10 days after the end of each quarter
d) Annually return, 30th April of Following Financial year

59. Every Input Service distributor (ISD) file details of Tax invoices on –

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a) On or Before 13 of next month

b) Within 20 days after the end of a calendar month
c) On or Before 13 of next month
d) None of the above

60. Every Registered Person deducting tax at source (section 51) file details of TDS on–
a) Within 10 days after the end of the month in which deductions is made
b) Within 20 days after the end of the month in which deductions is made
c) Within 15 days after the end of the month in which deductions is made
d) None of the above

61. Every E- Commerce operator required to collect tax (Section 52) file details of TCS
on–
a) Within 10 days after the end of the month in which collection is made
b) Within 15 days after the end of the month in which collection is made
c) Within 20 days after the end of the month in which collection is made
d) None of the above

62. Every Registered Person (except ISD, Non resident taxable, Section 10,51,52 and
Casual Taxable Person file ____________ on ___________
a) Annual Return, 31 December of the following Financial Year
b) Annual Return, 30th November of the following Financial Year
c) Annual Return, 31 December of the following Calendar Year
d) None of the above
63. Taxable Person whose registration has been cancelled or surrendered file final return
on ________
a) Within three months of the date of cancellation or date of order of cancellation
whichever is later
b) Within Six months of the date of cancellation of date of order of cancellation
whichever is later
c) Within three months of the date of cancellation of date of order of cancellation
whichever is Earlier
d) None of the above

64. Under GST regime, all the taxpayers will get _______ electronic ledgers
a) Three

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b) Four
c) Two
d) One

65. Under GST regime, all the taxpayers will get three electronic ledgers namely -
a) E-cash Ledger
b) E-credit Ledger
c) E-liability Ledger
d) All of the above

66. Electronic cash ledger under sub-section (1) of section 49 shall be maintained for
_________
a) each registered person
b) Specified Person
c) Decided by GST Council
d) None of the above

67. Payment can be made in cash by debiting the _______ maintained on the common
portal –
a) E-cash ledger
b) E-credit Ledger
c) E-liability Ledger
d) All of the above

68. Which of the following Ways to deposit money in cash ledger –

a) E-Payment (Internet Banking, Credit Card, Debit Card)
b) Real Time Gross Settlement (RTGS)
c) National Electronic Fund transfer (NEFT)
d) All of the above

69. Over the Counter Payment can be made in branches of Banks Authorized (for deposits
up to ____________ per challan per tax period, by cash, cheque or demand draft) to
accept deposit of GST –
a) ten thousand rupees
b) One thousand rupees
c) Two thousand rupees

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d) None of the above

70. The electronic credit ledger shall be maintained by ___________ who is eligible for
input tax credit under the Act on the Common Portal –
a) Every registered person
b) Specified taxable person
c) Notified by GST Council
d) None of the above

71. Any payment required to be made by a person who is not registered under the Act,
shall be made on the basis of a __________ generated through the Common Portal –
a) Temporary identification number
b) Permanent account number
c) Aadhar Number
d) Unique number

72. Every taxable person shall discharge his tax and other dues under this Act or the
rules made there under in the following order, namely:–
i. self-assessed tax, and other dues related to the return of the current tax period
ii. self-assessed tax, and other dues related to returns of previous tax periods
iii. any other amount payable under this Act or the rules made thereunder including
the demand determined under section 73 or section 74
a) i, ii & iii
b) ii, i & iii
c) iii, ii & i
d) iii, i & ii

73. If a person liable to pay tax, fails to pay such tax or any part thereof shall for the
period for which the tax or any part thereof remains unpaid, is liable to pay, on his
own, interest ________
a) not exceeding 18%
b) not exceeding 24%
c) not exceeding 36%
d) not exceeding 15%

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74. Whereas if a taxable person who makes an undue or excess claim of input tax credit
or undue or excess reduction in output tax liability, shall pay interest at such rate
________
a) not exceeding 24%
b) not exceeding 36%
c) not exceeding 18%
d) none of the above

75. Which of the following sequence is correct for utilisation of CGST Credit –
a) 1st CGST, 2nd IGST
b) 1st IGST, 2nd CSGT
c) 1st CGST, 2nd SGST
d) 1st SGST, 2nd CSGT

76. Which of the following sequence is correct for utilisation of UTGST Credit –
a) 1st UTGST, 2nd IGST
b) 1st IGST, 2nd SGST
c) 1st CGST, 2nd SGST
d) 1st SGST, 2nd CSGT

77. Which of the following sequence is correct for utilisation of IGST Credit –
a) 1st CGST, 2nd IGST, 3rd SGST
b) 1st IGST, 2nd CSGT, 3rd SGST
c) 1st CGST, 2nd SGST, 3rd IGST
d) 1st SGST, 2nd CSGT, 3rd IGST

78. Cross utilisation of CGST and SGST is ______

a) not available
b) available
c) Defined by GST Council
d) None of the above

79. Any person claiming refund of any tax and interest, if any, paid on such tax or any
other amount paid by him, may make an application before the expiry of ____
a) Two years from the relevant date
b) One years from the relevant date

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c) Three years from the relevant date

d) None of the above

80. A specialised agency of the United Nations Organisation or any Multilateral Financial
Institution and Organisation notified under the United Nations (Privileges and
Immunities) Act, 1947, Consulate or Embassy of foreign countries or any other person
or class of persons, as notified under section 55, entitled to a refund of tax paid by
it on inward supplies of goods or services or both, may make an application for such
refund, in such form and manner as may be prescribed, before the expiry of ________
from the last day of the quarter in which such supply was received
a) Five months
b) Six months
c) Three months
d) One year

81. Which of the following statement is correct –

a) Refund allowed in case of zero rated supplies made without payment of tax
b) Refund is allowed in case where the credit has accumulated on account of rate of
tax on inputs being higher than the rate of tax on output supplies other than nil
rated or fully exempt supplies, except supplies of goods or services or both as may
be notified by the Government on the recommendations of the Council
c) Both A & B
d) Neither A Nor B

82. Which of the following cases refund will not allowed –

a) Goods exported out of India are subjected to export duty
b) If the supplier of goods or services or both avails of drawback in respect of central
tax or claims refund of the integrated tax paid on such supplies
c) Both A or B
d) None of the above

83. Amount claimed as refund is _________, it shall not be necessary for the applicant
to furnish any documentary and other evidences but he may file a declaration
a) less than One lakh rupees
b) less than two lakh rupees
c) less than three lakh rupees

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d) less than four lakh rupees

84. Proper office make an order within _______ from the date of receipt of application
and the amount so determined shall be credited to the Consumer Welfare Fund
a) sixty days
b) Thirty days
c) Ninety days
d) forty days

85. In which of the following case refund will not credit in Consumer Welfare fund –
a) refund of tax paid on zero-rated supplies of goods or services or both or on inputs
or input services used in making such zero-rated supplies
b) refund of unutilised input tax credit under sub-section (3)
c) refund of tax paid on a supply which is not provided, either wholly or partially, and
for which invoice has not been issued, or where a refund voucher has been issued
d) all of the above

86. Section 56 of the CGST Act, 2017 states that if any tax ordered to be refunded under
section 54 is not refunded within sixty days from the date of receipt of application
interest at such rate __________
a) not exceeding six per cent
b) not exceeding Nine per cent
c) not exceeding Eighteen per cent
d) none of the above

87. Where any claim of refund arises from an order passed by an adjudicating authority
or Appellate Authority or Appellate Tribunal or court which has attained finality and
the same is not refunded within sixty days from the date of receipt of application filed
consequent to such order, interest at such rate ________.
a) not exceeding nine per cent
b) not exceeding Three per cent
c) not exceeding Eighteen per cent
d) not exceeding Six per cent

88. Which of the following assessment covered under GST –

a) Self-assessment

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b) Provisional assessment
c) Best judgement assessment
d) All of the above

89. Which of the following assessment covered under GST –

a) Summary assessment
b) Re assessment
c) Assessment of unregistered person
d) All of the above

90. A _________ is done when the taxable person is unable to determine the value of
goods or services or both or determine the rate of tax applicable thereto –
a) Provisional assessment
b) Re assessment
c) Summary assessment
d) Any of the above

91. Proper officer shall pass an order (Provisional assessment request), within a period
not later than _______ from the date of receipt of such request –
a) 90 days
b) 30 days
c) 100 days
d) 120 days

92. The proper officer is required to pass final assessment order within ______ from the
date of the communication of order –
a) 6 months
b) 12 months
c) 3 months
d) 9 months

93. Which of the following type of Audit under GST Law?

a) General Audit [Audit by Tax Department)
b) Special Audit
c) Tax Audit
d) Both A & B

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94. Which of the following person will undertake of General Audit –

a) Commissioner or officer authorised by commissioner
b) Officer not below the rank of Assistant Commissioner
c) Any of the above
d) None of the above

95. A prior notice of General Audit not less than _____ working days will be sent to the
registered person before the audit is conducted –
a) 15
b) 30
c) 60
d) 45

96. The audit needs to be completed within a period of _____ months from the date of
commencement of the audit, but a further extension for a period of ____ months may
be provided by the Commissioner for the reasons recorded in writing –
a) Three, Six
b) Six, Six
c) Nine, Three
d) Four, Three

97. A report of Special audit signed and certified by the appointed Chartered Accountant
or Cost Accountant is required to be submitted within _____ days although this period
can be further extended to _____ days –
a) 90, 90
b) 90, 30
c) 30, 90
d) 60, 60

98. _______ means, careful examination or scrutiny –

a) Inspection
b) Audit
c) Assessment
d) None of the above

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99. The authorisation to conduct the inspection or search or, as the case may be, seizure
of goods, documents, books or things liable to confiscation will be in form _________
a) GST INS - 01
b) GST INS – 02
c) GST INS – 03
d) None of the above

100. A proper officer _________ or an officer authorised by such proper officer can make
an order of seizure in form _______
a) not below the rank of Joint Commissioner, GST INS-02
b) not below the rank of Assistant Commissioner, GST INS-02
c) not below the rank of Commissioner, GST INS-02
d) none of the above

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CA VIVEK GABA CS EXECUTIVE GST (SET – 7)

CS – EXECUTIVE

TAX
SCANNER
GST MCQs
(SET – 7)

Relevant for – JUNE & DEC 2021

Compilation & Authored by :

CA VIVEK GABA

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CA VIVEK GABA CS EXECUTIVE GST (SET – 7)

CS – EXECUTIVE (NEW & OLD SYLLABUS)

GST MCQ’s SET – 7 (COMBINED TOPICS)

Compilation by: CA VIVEK GABA

1. What shall be Time of Supply in case of Vouchers if supply is not identifiable

a) the date of redemption of voucher
b) the date of issue of vouchers
c) Earlier of the above
d) None of the above

2. Section 15 of the CGST Act states that, the value of taxable supply under GST is
the ________
a) Transaction value
b) Nominal value
c) Sale price – abatement
d) None of the above

3. Which of the following element not include in the definition of consideration?

a) Any subsidy given by the Central Government or a State Government
b) Any subsidy given by the only Central Government
c) Any subsidy given by the only State Government
d) None of the above

4. To avail the benefit of ITC it is required that the person availing such benefit is
________
a) A registered under GST
b) not registered under GST
c) may or may not registered under GST
d) none of the above

5. Which of the following statement is correct –

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a) To avail the benefit of ITC it is required that the person availing such benefit is
registered under GST
b) An unregistered person is not eligible to take the benefit of ITC
c) Input Tax Credit (ITC) is considered as a cornerstone of GST
d) All of the above

6. Which of following conditions must be satisfied for eligibility to obtain ITC is –

i. he should be in possession of tax invoice or debit note or such other tax paying
documents as may be prescribed
ii. he should have received the goods or services or both
iii. the supplier should have actually paid the tax charged in respect of the supply to
the government
iv. he should have furnished the return under section 39
a) Only i & ii
b) Only ii & iii
c) i, ii, iii & iv
d) Only iii & iv

7. Where the goods against an invoice are received in lots or instalments, the registered
person shall be entitled to take credit upon __________
a) receipt of the last lot or instalment
b) receipt of the First lot or instalment
c) 100% at the time of receipt of 1st invoice
d) None of the above

8. Availability of ITC to recipient has been made dependent on _______

a) payment of tax by supplier
b) payment of tax by Govt.
c) payment of tax by Service provider
d) none of the above

9. if a recipient fails to pay the amount of supply along with tax payable thereon
_________ from the date of issue of invoice, the recipient will be liable to pay along
with the output tax liability an amount equal to the input tax credit availed by the
recipient along with interest thereon –
a) within 180 days

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b) within 6 months
c) within 90 days
d) none of the above

10. If Goods or services partly used for business purpose then what will be the treatment
of ITC under GST –
a) 100% ITC Allowed whether partly used for business or partly for other purpose
b) Only that amount of input tax which is attributable to the purpose of business will
be allowed as credit
c) NO Credit allowed in given question
d) Percentage will notify by GST Council

11. Where Goods or services or both are used partly for Exempted supplies or partly for
taxable supplies what will be the treatment of ITC under GST –
a) ITC not allowed for exempted supplies
b) 50% ITC Allowed
c) 100% ITC allowed
d) None of the above

12. Where Goods or services or both are used partly for taxable supplies including zero
rated supplies under IGST or under CGST Act, and partly for exempted supplies –
a) only that amount of input tax which is attributable to the taxable supplies including
zero rated supplies will be allowed as credit and not for exempted supplies
b) 100% ITC Allowed irrespective of the usage of Goods/Services
c) Fix 50% ITC allowed in this cases
d) None of the above

13. Normally Input tax credit is not available on ________

a) motor vehicle
b) Vessel
c) Aircraft
d) All of the above

14. Which of the Following statement is Correct –

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a) Motor vehicle and other transport of passengers or imparting training on flying,

driving and navigating such vehicles or conveyances or for transportation of such
goods, Input Tax Credit will be allowed
b) Where Goods or services or both are used partly for taxable supplies including zero
rated supplies under IGST or under CGST Act, and partly for exempted supplies,
only that amount of input tax which is attributable to the taxable supplies including
zero rated supplies will be allowed as credit and not for exempted supplies.
c) if goods or services or both are used partly for purpose of business and partly for
other purpose, only that amount of input tax which is attributable to the purpose of
business will be allowed as credit
d) All the above statements are correct

15. If a caterer uses a service of another caterer, Input Tax Credit ______
a) will be allowed
b) will not be allowed
c) partially allowed
d) none of the above

16. Input tax credit is _______ on supply of membership of a club, health and fitness
centre
a) not available
b) 100% Available
c) Partially available
d) None of the above

17. Input tax credit is _____ on supply of services of rent-a-cab, life insurance and health
insurance
a) not available
b) 100% Available
c) Partially available
d) None of the above

18. Input tax credit is _______ on travel benefits extended to employees on vacation such
as leave or home travel concession
a) not available
b) 100% Available

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c) Partially available
d) None of the above

19. Input tax credit is _______ on works contract services when supplied for construction
of an immovable property (other than plant and machinery)
a) not available
b) 100% Available
c) Partially available
d) None of the above

20. Input Tax Credit ________ when it is an input service for further supply of works
contract service
a) will be allowed
b) will not be allowed
c) Both A & B
d) None of the above

21. Tax has been paid under composition scheme on supply of goods or services or both,
input tax credit is _____
a) not allowed
b) 100% Allowed
c) Partially allowed
d) None of the above

22. Input Tax Credit is ______ when goods or services or both are received by a non-
resident taxable person –
a) not allowed
b) 100% Allowed
c) Partially Allowed
d) None of the above

23. If goods are imported by such non-taxable person ______?

a) input tax credit will be allowed
b) input tax credit will not be allowed
c) partially Allowed
d) none of the above

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24. ________ with respect to goods lost, stolen, destroyed or written off as well as on
goods given as gifts or free samples ________?
a) Input tax credit, not Allowed
b) Input Tax credit, will be allowed
c) 100% Allowed in both cases
d) None of the above

25. The person who is treating or processing the goods belonging to other person is
called ‘________’ and the person to whom the goods belongs is called _________
a) job worker, principal
b) Principal, Job worker
c) Supplier, Customers
d) None of the above

26. when goods are sent from a taxable person to a Job worker ________ and _________
if the goods so sent are not received back within 1 year or 3 years in case of inputs
or capital goods as the case may be –
a) it shall be treated as supply, will be liable to GST
b) it shall not be treated as supply, will not be liable to GST
c) it shall be treated as supply, But not liable to GST
d) none of the above

27. Which of the following statement is correct –

a) job work, input includes intermediate goods arising from any treatment or process
carried out on the inputs by the principal or the job worker
b) when goods are sent from a taxable person to a Job worker it shall be treated as
supply and will be liable to GST if the goods so sent are not received back within
1 year or 3 years in case of inputs or capital goods as the case may be
c) Both A & B
d) None of the above

28. ITC will be provided only when goods are actually received, but under _______ this
condition is exempted
a) Job work
b) Mixed supply

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c) Composite supply
d) None of the above

29. Which of the following statement is correct under Job-Work –

a) job work, input includes intermediate goods arising from any treatment or process
carried out on the inputs by the principal or the job worker
b) ITC can be availed even if inputs or capital goods are directly sent to the Job
Worker without being first brought to the place of business of Principal
c) Both A & B
d) None of the above

30. A ________ is required to maintain proper accounts and records and keep it at his
registered, principal place of business.
a) registered person
b) unregistered person
c) Both A & B
d) None of the above

31. Which of the following books maintain by supplier –

a) Production or manufacture of goods
b) Inward and outward supply of goods or services or both
c) Stock of goods
d) All of the above

32. Which of the following books maintain by supplier –

a) Input tax credit availed
b) Output tax payable and paid
c) Such other particulars as may be prescribed
d) All of the above

33. The ________ is empowered to notify a class of taxable persons to maintain additional
accounts or documents for specified purpose or to maintain accounts in other
prescribed manner
a) Commissioner
b) Chief Commissioner
c) Assistant Commissioner

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CA VIVEK GABA CS EXECUTIVE GST (SET – 7)

d) Deputy Commissioner

34. The time duration for retention of accounts and records under GST is until expiry of
________ from the due date of furnishing of annual return for the year pertaining to
such accounts and records–
a) Seventy-two months
b) seventy months
c) seventy-one months
d) none of the above

35. A registered person, who is a party to an appeal or revision or any other proceedings
shall retain books of accounts for a period -
a) One year after final disposal of such appeal or revision or 72 months from due
date of annual GST return whichever is Later.
b) Two year after final disposal of such appeal or revision
c) One year after final disposal of such appeal or revision
d) None of the above

36. _______ indicates what must be paid by the buyer to the seller –
a) Invoice
b) Debit Note’
c) Credit Note
d) Bill of supply

37. On every sale/purchase an invoice is issued by the _________

a) supplier i.e., person making the sale
b) Buyer i.e. person purchase the goods
c) Any of the above
d) None of the above

38. What is the time limit of issue invoice if Supply involves movement of goods –
a) Before or At the time of removal of goods for supply to the recipient
b) Before or At the time of delivery of goods or making available thereof to the recipient
c) Before or At the option of supplier.
d) None of the above

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39. What is the time limit of issue invoice if Supply does not involves movement of goods–
a) Before or At the time of removal of goods for supply to the recipient
b) Before or At the time of delivery of goods or making available thereof to the recipient
c) At the option of supplier.
d) None of the above.

40. A registered taxable supplier of services is required to raise invoice in General case–
a) invoice shall be issued within a prescribed period from the date of supply of service
b) on or before the due date of payment
c) on or before the date of completion of that event
d) none of the above

41. A registered taxable supplier of services is required to raise invoice in Continuous

Supply of service where successive statements of accounts or successive payments
are involved –
a) before or at the time each such statement is issued or, as the case may be, each
such payment is received
b) on or before the due date of payment
c) on or before the date of completion of that event
d) none of the above

42. A registered taxable supplier of services is required to raise invoice in Continuous

supply having ascertainable due date –
a) before or at the time each such statement is issued or, as the case may be, each
such payment is received
b) on or before the due date of payment
c) on or before the date of completion of that event
d) none of the above

43. A registered taxable supplier of services is required to raise invoice in Continuous

supply having unascertainable due date –
a) before or at the time when the supplier of service receives the payment
b) on or before the due date of payment
c) on or before the date of completion of that event
d) none of the above

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44. A registered taxable supplier of services is required to raise invoice in Continuous

supply where the payment is linked to the completion of an event –
a) before or at the time when the supplier of service receives the payment
b) on or before the due date of payment
c) on or before the date of completion of that event
d) none of the above

45. Where the goods being sent or taken on approval for sale or return are removed
before the supply takes place, the invoice shall be issued
a) before or at the time of supply
b) six months from the date of removal
c) a) or b) whichever is earlier
d) a) or b) whichever is later

46. Which of the following case A registered person is required to debit note –
a) where taxable value or tax charged in that tax invoice is found to be less than the
taxable value or tax payable in respect of such supply
b) where the goods supplied are returned by the recipient
c) Both A & B
d) None of the above

47. Which of the following case A registered person is required to Credit note –
a) when taxable value or tax charged in a tax invoice is found to exceed the taxable
value or tax payable in respect of supply
b) where the goods supplied are returned by the recipient
c) where goods or services or both supplied are found to be deficient
d) all of the above

48. _________ is the most fundamental requirement for identification of tax payers ensuring
tax compliance in the economy?
a) Registration
b) Return
c) Debit Note
d) Invoice

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49. Without registration, a person _________ from his customers ________ input Tax Credit
of tax paid by him –
a) can neither collect tax, nor claim any
b) can collect, cannot claim
c) can neither collect tax, can claim any
d) none of the above

50. What is the threshold limit of Registration under GST?

a) 10 lakhs (for special category States) and Rs. 20/40 lakhs for other states and
Union territories
b) 20 lakhs (for special category States) and Rs. 10 lakhs for other states and Union
territories
c) 10 lakhs (for special category States) and Rs. Only 20 lakhs for other states and
Union territories
d) None of the above

51. Which of the following person is not liable for registration?

a) Person supplying exempted goods or services or goods or services which are not
liable for tax under GST
b) An agriculturist, to the extent of supply of produce out of cultivation of land
c) Both A & B
d) None of the above

52. Which of the following person is required for registration under GST Law?
a) Every person who is a registered licensee or holds a license under an existing law
b) An interstate supplier of goods
c) Casual Taxable person
d) All of the above

53. Which of the following person is required for registration under GST Law?
a) Persons who are required to pay tax under reverse charge
b) A non-resident taxable person
c) Persons who are required to deduct tax under section 51
d) All of the above

54. Which of the following person is required for registration under GST Law?

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a) Persons who make taxable supply of goods or services or both on behalf of other
taxable persons
b) Input Service Distributor
c) Electronic Commerce Operator
d) All of the above

55. A taxpayer is required to file a document with the administrative authority which is
commonly known as a “___________”
a) Return
b) Invoice
c) Registration
d) Credit note

56. Every registered person (other than an ISD, a non-resident taxable person and a
person paying tax under the provision of section 10/51/51 file Outwards supplies on–
a) On or before 11 of next month
b) On or before 15 of next month
c) On or before 20 of next month
d) None of the above

57. Every registered person (other than an ISD, a non-resident taxable person and a
person paying tax under the provision of section 10/51/51 file Inwards supplies on –
a) After the 11th day but on or before the 15th day of the month succeeding the tax
period
b) After the 15th day but on or before the 10th day of the month succeeding the tax
period
c) On or before 15th of next month
d) On or before 10th of next month

58. Registered Composition Supplier file _________ within _____________?

a) Quarterly Return, 18 days after the end of each quarter
b) Monthly Return, 18 days after the end of each Month
c) Quarterly Return, 10 days after the end of each quarter
d) Annually return, 30th April of Following Financial year

59. Every Input Service distributor (ISD) file details of Tax invoices on –

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a) On or Before 13 of next month

b) Within 20 days after the end of a calendar month
c) On or Before 13 of next month
d) None of the above

60. Every Registered Person deducting tax at source (section 51) file details of TDS on–
a) Within 10 days after the end of the month in which deductions is made
b) Within 20 days after the end of the month in which deductions is made
c) Within 15 days after the end of the month in which deductions is made
d) None of the above

61. Every E- Commerce operator required to collect tax (Section 52) file details of TCS
on–
a) Within 10 days after the end of the month in which collection is made
b) Within 15 days after the end of the month in which collection is made
c) Within 20 days after the end of the month in which collection is made
d) None of the above

62. Every Registered Person (except ISD, Non resident taxable, Section 10,51,52 and
Casual Taxable Person file ____________ on ___________
a) Annual Return, 31 December of the following Financial Year
b) Annual Return, 30th November of the following Financial Year
c) Annual Return, 31 December of the following Calendar Year
d) None of the above
63. Taxable Person whose registration has been cancelled or surrendered file final return
on ________
a) Within three months of the date of cancellation or date of order of cancellation
whichever is later
b) Within Six months of the date of cancellation of date of order of cancellation
whichever is later
c) Within three months of the date of cancellation of date of order of cancellation
whichever is Earlier
d) None of the above

64. Under GST regime, all the taxpayers will get _______ electronic ledgers
a) Three

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b) Four
c) Two
d) One

65. Under GST regime, all the taxpayers will get three electronic ledgers namely -
a) E-cash Ledger
b) E-credit Ledger
c) E-liability Ledger
d) All of the above

66. Electronic cash ledger under sub-section (1) of section 49 shall be maintained for
_________
a) each registered person
b) Specified Person
c) Decided by GST Council
d) None of the above

67. Payment can be made in cash by debiting the _______ maintained on the common
portal –
a) E-cash ledger
b) E-credit Ledger
c) E-liability Ledger
d) All of the above

68. Which of the following Ways to deposit money in cash ledger –

a) E-Payment (Internet Banking, Credit Card, Debit Card)
b) Real Time Gross Settlement (RTGS)
c) National Electronic Fund transfer (NEFT)
d) All of the above

69. Over the Counter Payment can be made in branches of Banks Authorized (for deposits
up to ____________ per challan per tax period, by cash, cheque or demand draft) to
accept deposit of GST –
a) ten thousand rupees
b) One thousand rupees
c) Two thousand rupees

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d) None of the above

70. The electronic credit ledger shall be maintained by ___________ who is eligible for
input tax credit under the Act on the Common Portal –
a) Every registered person
b) Specified taxable person
c) Notified by GST Council
d) None of the above

71. Any payment required to be made by a person who is not registered under the Act,
shall be made on the basis of a __________ generated through the Common Portal –
a) Temporary identification number
b) Permanent account number
c) Aadhar Number
d) Unique number

72. Every taxable person shall discharge his tax and other dues under this Act or the
rules made there under in the following order, namely:–
i. self-assessed tax, and other dues related to the return of the current tax period
ii. self-assessed tax, and other dues related to returns of previous tax periods
iii. any other amount payable under this Act or the rules made thereunder including
the demand determined under section 73 or section 74
a) i, ii & iii
b) ii, i & iii
c) iii, ii & i
d) iii, i & ii

73. If a person liable to pay tax, fails to pay such tax or any part thereof shall for the
period for which the tax or any part thereof remains unpaid, is liable to pay, on his
own, interest ________
a) not exceeding 18%
b) not exceeding 24%
c) not exceeding 36%
d) not exceeding 15%

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74. Whereas if a taxable person who makes an undue or excess claim of input tax credit
or undue or excess reduction in output tax liability, shall pay interest at such rate
________
a) not exceeding 24%
b) not exceeding 36%
c) not exceeding 18%
d) none of the above

75. Which of the following sequence is correct for utilisation of CGST Credit –
a) 1st CGST, 2nd IGST
b) 1st IGST, 2nd CSGT
c) 1st CGST, 2nd SGST
d) 1st SGST, 2nd CSGT

76. Which of the following sequence is correct for utilisation of UTGST Credit –
a) 1st UTGST, 2nd IGST
b) 1st IGST, 2nd SGST
c) 1st CGST, 2nd SGST
d) 1st SGST, 2nd CSGT

77. Which of the following sequence is correct for utilisation of IGST Credit –
a) 1st CGST, 2nd IGST, 3rd SGST
b) 1st IGST, 2nd CSGT, 3rd SGST
c) 1st CGST, 2nd SGST, 3rd IGST
d) 1st SGST, 2nd CSGT, 3rd IGST

78. Cross utilisation of CGST and SGST is ______

a) not available
b) available
c) Defined by GST Council
d) None of the above

79. Any person claiming refund of any tax and interest, if any, paid on such tax or any
other amount paid by him, may make an application before the expiry of ____
a) Two years from the relevant date
b) One years from the relevant date

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c) Three years from the relevant date

d) None of the above

80. A specialised agency of the United Nations Organisation or any Multilateral Financial
Institution and Organisation notified under the United Nations (Privileges and
Immunities) Act, 1947, Consulate or Embassy of foreign countries or any other person
or class of persons, as notified under section 55, entitled to a refund of tax paid by
it on inward supplies of goods or services or both, may make an application for such
refund, in such form and manner as may be prescribed, before the expiry of ________
from the last day of the quarter in which such supply was received
a) Five months
b) Six months
c) Three months
d) One year

81. Which of the following statement is correct –

a) Refund allowed in case of zero rated supplies made without payment of tax
b) Refund is allowed in case where the credit has accumulated on account of rate of
tax on inputs being higher than the rate of tax on output supplies other than nil
rated or fully exempt supplies, except supplies of goods or services or both as may
be notified by the Government on the recommendations of the Council
c) Both A & B
d) Neither A Nor B

82. Which of the following cases refund will not allowed –

a) Goods exported out of India are subjected to export duty
b) If the supplier of goods or services or both avails of drawback in respect of central
tax or claims refund of the integrated tax paid on such supplies
c) Both A or B
d) None of the above

83. Amount claimed as refund is _________, it shall not be necessary for the applicant
to furnish any documentary and other evidences but he may file a declaration
a) less than One lakh rupees
b) less than two lakh rupees
c) less than three lakh rupees

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d) less than four lakh rupees

84. Proper office make an order within _______ from the date of receipt of application
and the amount so determined shall be credited to the Consumer Welfare Fund
a) sixty days
b) Thirty days
c) Ninety days
d) forty days

85. In which of the following case refund will not credit in Consumer Welfare fund –
a) refund of tax paid on zero-rated supplies of goods or services or both or on inputs
or input services used in making such zero-rated supplies
b) refund of unutilised input tax credit under sub-section (3)
c) refund of tax paid on a supply which is not provided, either wholly or partially, and
for which invoice has not been issued, or where a refund voucher has been issued
d) all of the above

86. Section 56 of the CGST Act, 2017 states that if any tax ordered to be refunded under
section 54 is not refunded within sixty days from the date of receipt of application
interest at such rate __________
a) not exceeding six per cent
b) not exceeding Nine per cent
c) not exceeding Eighteen per cent
d) none of the above

87. Where any claim of refund arises from an order passed by an adjudicating authority
or Appellate Authority or Appellate Tribunal or court which has attained finality and
the same is not refunded within sixty days from the date of receipt of application filed
consequent to such order, interest at such rate ________.
a) not exceeding nine per cent
b) not exceeding Three per cent
c) not exceeding Eighteen per cent
d) not exceeding Six per cent

88. Which of the following assessment covered under GST –

a) Self-assessment

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b) Provisional assessment
c) Best judgement assessment
d) All of the above

89. Which of the following assessment covered under GST –

a) Summary assessment
b) Re assessment
c) Assessment of unregistered person
d) All of the above

90. A _________ is done when the taxable person is unable to determine the value of
goods or services or both or determine the rate of tax applicable thereto –
a) Provisional assessment
b) Re assessment
c) Summary assessment
d) Any of the above

91. Proper officer shall pass an order (Provisional assessment request), within a period
not later than _______ from the date of receipt of such request –
a) 90 days
b) 30 days
c) 100 days
d) 120 days

92. The proper officer is required to pass final assessment order within ______ from the
date of the communication of order –
a) 6 months
b) 12 months
c) 3 months
d) 9 months

93. Which of the following type of Audit under GST Law?

a) General Audit [Audit by Tax Department)
b) Special Audit
c) Tax Audit
d) Both A & B

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94. Which of the following person will undertake of General Audit –

a) Commissioner or officer authorised by commissioner
b) Officer not below the rank of Assistant Commissioner
c) Any of the above
d) None of the above

95. A prior notice of General Audit not less than _____ working days will be sent to the
registered person before the audit is conducted –
a) 15
b) 30
c) 60
d) 45

96. The audit needs to be completed within a period of _____ months from the date of
commencement of the audit, but a further extension for a period of ____ months may
be provided by the Commissioner for the reasons recorded in writing –
a) Three, Six
b) Six, Six
c) Nine, Three
d) Four, Three

97. A report of Special audit signed and certified by the appointed Chartered Accountant
or Cost Accountant is required to be submitted within _____ days although this period
can be further extended to _____ days –
a) 90, 90
b) 90, 30
c) 30, 90
d) 60, 60

98. _______ means, careful examination or scrutiny –

a) Inspection
b) Audit
c) Assessment
d) None of the above

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99. The authorisation to conduct the inspection or search or, as the case may be, seizure
of goods, documents, books or things liable to confiscation will be in form _________
a) GST INS - 01
b) GST INS – 02
c) GST INS – 03
d) None of the above

100. A proper officer _________ or an officer authorised by such proper officer can make
an order of seizure in form _______
a) not below the rank of Joint Commissioner, GST INS-02
b) not below the rank of Assistant Commissioner, GST INS-02
c) not below the rank of Commissioner, GST INS-02
d) none of the above

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