INTERMEDIATE EXAMINATION
Syllabus 2016
Paper 7: DIRECT TAXATION (DTX)
Time Allowed: 3 Hours Full Marks: 100
There are Sections A, B, C and D to be answered subject to instructions given against each.
Section A 20 X 1 =
You are required to answer all the questions. Each question carries 1 mark. 20 Marks
Instructions: Each question is followed by 4 Answer choices and only one is correct. You are required
to select the choice which according to you represents the correct answer.
1. a. As per Sec. 6(1)(a) of The Income Tax Act, 1961, if an individual stays in India for at least
days in a previous year, he is a resident in India for the said previous year.
(i) 180
(ii) 181
(iii) 182
(iv) None of the above
b. As per section 80B(5) of The Income Tax Act, 1961, how many heads of income are
aggregated to compute Gross Total Income?
(i) 4
(ii) 6
(iii) 5
(iv) None of the above
c. An assessee is engaged in the business of growing and manufacturing tea in India, the portion
taxable as business income shall be _____________ .
(i) 20%
(ii) 40%
(iii) 60%
(iv) 80%
d. Income up to Rs. is exempt in respect of each minor child whose income is
clubbed u/s 64(1A) of The Income Tax Act, 1961.
(i) 1,500
(ii) 1,000
(iii) 2,500
(iv) None of the above
e. Remuneration to the director (who is an employee of the company) from his company
will be treated as _______.
(i) Income from other sources
(ii) Business Income
(iii) Salary
, (iv) None of the above
f. Maximum amount of deduction u/s 24(b) of The Income Tax Act, 1961 for Repairs of a self-
occupied house property is .
(i) Rs. 1,00,000
(ii) Rs. 2,00,000
(iii) Rs. 30,000
(iv) Rs. 1,50,000
g. The rate of depreciation u/s 32 of The Income Tax Act, 1961 on Intangible Assets is _____ .
(i) 15%
(ii) 30%
(iii) 25%
(iv) None of the above
h. Which of the following is not considered as ‘transfer of capital assets’ u/s 2(47) of The
Income Tax Act, 1961?
(i) Sale, Exchange & Relinquishment of the asset
(ii) Extinguishment of any right in an asset
(iii) Compulsory acquisition of an asset under any law
(iv) None of the above
i. Family pension is taxable under the head _______________ .
(i) Salaries
(ii) Capital Gains
(iii) Income from Other Sources
(iv) Business Income
j. Mr. X gifted a property to his son’s wife, who sold such property later. The profit arising
from this sale is taxable in the hands of __________________ .
(i) Son’s wife of Mr. X
(ii) Mr. X
(iii) Son of Mr. X
(iv) None of the above
k. Carry forward and set off of accumulated loss and unabsorbed depreciation in case of
demerger is dealt under section _____ of The Income Tax Act, 1961.
(i) 71A(4)
(ii) 72A(2)
(iii) 72A(4)
(iv) None of the above
l. Medical Insurance Premium is deductible under section ____ of The Income Tax Act, 1961.
(i) 80C
(ii) 80D
(iii) 80DD
(iv) None of the above
Syllabus 2016
Paper 7: DIRECT TAXATION (DTX)
Time Allowed: 3 Hours Full Marks: 100
There are Sections A, B, C and D to be answered subject to instructions given against each.
Section A 20 X 1 =
You are required to answer all the questions. Each question carries 1 mark. 20 Marks
Instructions: Each question is followed by 4 Answer choices and only one is correct. You are required
to select the choice which according to you represents the correct answer.
1. a. As per Sec. 6(1)(a) of The Income Tax Act, 1961, if an individual stays in India for at least
days in a previous year, he is a resident in India for the said previous year.
(i) 180
(ii) 181
(iii) 182
(iv) None of the above
b. As per section 80B(5) of The Income Tax Act, 1961, how many heads of income are
aggregated to compute Gross Total Income?
(i) 4
(ii) 6
(iii) 5
(iv) None of the above
c. An assessee is engaged in the business of growing and manufacturing tea in India, the portion
taxable as business income shall be _____________ .
(i) 20%
(ii) 40%
(iii) 60%
(iv) 80%
d. Income up to Rs. is exempt in respect of each minor child whose income is
clubbed u/s 64(1A) of The Income Tax Act, 1961.
(i) 1,500
(ii) 1,000
(iii) 2,500
(iv) None of the above
e. Remuneration to the director (who is an employee of the company) from his company
will be treated as _______.
(i) Income from other sources
(ii) Business Income
(iii) Salary
, (iv) None of the above
f. Maximum amount of deduction u/s 24(b) of The Income Tax Act, 1961 for Repairs of a self-
occupied house property is .
(i) Rs. 1,00,000
(ii) Rs. 2,00,000
(iii) Rs. 30,000
(iv) Rs. 1,50,000
g. The rate of depreciation u/s 32 of The Income Tax Act, 1961 on Intangible Assets is _____ .
(i) 15%
(ii) 30%
(iii) 25%
(iv) None of the above
h. Which of the following is not considered as ‘transfer of capital assets’ u/s 2(47) of The
Income Tax Act, 1961?
(i) Sale, Exchange & Relinquishment of the asset
(ii) Extinguishment of any right in an asset
(iii) Compulsory acquisition of an asset under any law
(iv) None of the above
i. Family pension is taxable under the head _______________ .
(i) Salaries
(ii) Capital Gains
(iii) Income from Other Sources
(iv) Business Income
j. Mr. X gifted a property to his son’s wife, who sold such property later. The profit arising
from this sale is taxable in the hands of __________________ .
(i) Son’s wife of Mr. X
(ii) Mr. X
(iii) Son of Mr. X
(iv) None of the above
k. Carry forward and set off of accumulated loss and unabsorbed depreciation in case of
demerger is dealt under section _____ of The Income Tax Act, 1961.
(i) 71A(4)
(ii) 72A(2)
(iii) 72A(4)
(iv) None of the above
l. Medical Insurance Premium is deductible under section ____ of The Income Tax Act, 1961.
(i) 80C
(ii) 80D
(iii) 80DD
(iv) None of the above
