QUESTION PAPER BOOKLET CODE - ICSI

1 : 1 :3241/2016/TLP ANSWERS MARKED IN THE OMR ANSWER SHEET SHALL ONLY BE EXAMINED PAPER BOOKLET code : AQuestion PAPER BOOKLET No. Roll No. : Time allowed : 3 hoursMaximum marks : 100 Total number of questions : 100 Total number of printed pages : 16 Instructions should use blue/black ballpoint pen ONLY to fill-in all the required information inOMR Answer Sheet and this QUESTION PAPER Answer Sheet cannot be taken out from the Examination Hall by the examinees and thesame is required to be properly handed over to the Invigilator/Supervisory staff on duty andacknowledgement be obtained for doing so on the Admit Card before leaving the are required to correctly fill-in the QUESTION PAPER BOOKLET code and the QuestionPaper BOOKLET No. (as mentioned on the top of this BOOKLET ) in the OMR Answer Sheet, as thesame will be taken as final for result computation.

2 Institute shall not undertake any responsibilityfor making correction(s) at later QUESTION PAPER BOOKLET contains 100 questions. All questions are compulsory and carry ONEmark each. There will be negative marking for wrong answers, in the ratio of 1:4, , deductionof 1 mark for every four wrong of this QUESTION PAPER BOOKLET MUST NOT be opened before the specified time of on opening of QUESTION PAPER BOOKLET , candidates should ensure that it contains100 questions in total and none of its page is missing/misprinted. In case of any discrepancy, thebooklet shall be replaced at QUESTION is followed by four alternative answers marked as A, B, C and D. For answeringthe questions including those requiring filling-in the blank spaces, candidates shall choose onemost appropriate answer to each QUESTION and mark the same in the OMR Answer Sheet bydarkening the appropriate circle only in the manner as prescribed in the OMR Answer of more than one circle corresponding to any QUESTION or overwriting/cutting anyanswer(s) shall be taken as wrong answer for computation of result.

3 Ticking/marking/writing ofanswer(s) in the QUESTION PAPER BOOKLET shall not be considered in any circumstance for awardof marks. The Institute shall neither entertain any claim nor be liable to respond to any of thequery in the aforesaid work, if any, should be done only on the space provided in this QUESTION PAPER The Copyright of this QUESTION PAPER BOOKLET and Multiple Choice Questions (MCQs) containedtherein solely vests with the (SIGNATURE OF CANDIDATE)201 / 1324: 2 :1/2016/TLP ANSWERS MARKED IN THE OMR ANSWER SHEET SHALL ONLY BE EXAMINED Contd ..Note :All references to sections mentioned in Part-A of the QUESTION PAPER relate to theIncome-tax Act, 1961 and relevant Assessment Year 2016 - 17 unless stated , a non-resident of India celebrated his80th birthday on 10th October 2015.

4 If histotal income for the previous year is 6,00,000, his income-tax liability for theprevious year 2015-16 is (A) 46,350(B) 41,200(C) 20,600(D) Ltd. is an Indian company. It carriesits business in Delhi and London. Totalcontrol and management of the company issituated in London. More than 85% of itsbusiness income is from the business inEngland. If so, its residential status willbe (A) Resident(B) Non-resident(C) Not ordinarily resident(D) Foreign Industries acquired a factorybuilding for self use in November, value of land underneath the buildingwas 5 lakh and value of building was 10lakh. The amount of eligible depreciationallowable for assessment year 2016-17is (A) 1,50,000(B) 25,000(C) 1,00,000(D) 50, distribution tax under section115-O shall be deposited within _____days from the date of declaration/distribution/payment of dividend, whicheveris earlier.

5 (A) 7 Days(B) 10 Days(C) 14 Days(D) 20 Smita inherited a vacant site landconsequent to the demise of her father on10th June, 1990. The land was acquired byher father on 10th April, 1970 for 40, fair market value of the land on1st April, 1981 was 60,000 and on thedate of inheritance, , 10th June, 1990was 2,00,000. The cost of acquisitionfor Ms. Smita is (A) 10,000(B) Nil(C) 60,000(D) 2,00, traced a missing girl by spending 20,000. For this, he was awarded with asum of 1,20,000. In this case the award istaxable to the extent of (A) 1,00,000(B) 1,20,000(C) 1,15,000(D) Nil.: 3 :3241/2016/TLP ANSWERS MARKED IN THE OMR ANSWER SHEET SHALL ONLY BE EXAMINED employee of a company, who wasentitled for a gratuity of 8,00,000, alsoreceived 12,00,000 by commuting 40%of his pension.

6 The taxable amount ofcommuted pension is (A) 2,00,000(B) 4,00,000(C) 12,00,000(D) 22,00, is receiving 10,000 as medicalallowance from his employer. Out of this,he spends 5,000 on his own medicaltreatment, 2,000 on the medical treatmentof his dependent wife and another 3,000for the medical treatment of his major sonwho is not a dependent on him. The amountof medical allowance taxable in hishand is (A) 10,000(B) 5,000(C) 3,000(D) Janhvi is provided with an interestfree loan by her employer for the purchaseof a house. The value of the perquisite shallbe (A) Simple interest computed at the ratecharged by the Central Governmentto its employees on 1st April of theprevious year(B) Simple interest computed at the ratecharged by State Bank of India on1st April of the previous year(C) Simple interest computed at the ratecharged by National Housing Bankon 1st April of the previous year(D) Simple interest computed at therate determined by the employer on1st April of the previous Padmaja let out a property for 20,000per month during the year 2015-16.

7 Themunicipal tax on the let-out property wasenhanced retrospectively. Hence, she paid 60,000 as municipal tax which includedarrears of municipal tax of 45,000. Herincome from house property is (A) 1,80,000(B) 1,57,500(C) 1,26,000(D) 1,36, Ltd., engaged in manufacture,acquired machineries for 30 crore inJuly, 2014 and for 27 crore in April, the machines were used within 45 daysof acquisition. The deduction under section32AC for the assessment year 2016-17will be (A) 40,50,000(B) 45,00,000(C) 85,50,000(D) 54,00, an asset used for scientific researchfor more than three years is sold withouthaving been used for other purposes,then the sale proceeds to the extent of thecost of the asset already allowed asdeduction under section 35 in the past shallbe treated as (A) Business income(B) Long-term capital gain(C) Short-term capital gain(D) Exempted / 2324: 4 :1/2016/TLP ANSWERS MARKED IN THE OMR ANSWER SHEET SHALL ONLY BE EXAMINED Contd.

8 An assessee doing a business incursany expenditure in respect of whichpayments made to a person in a day exceeds 20,000 should be paid through accountpayee cheque or demand draft to claimdeduction for such expenditure. Thisrestriction does not apply to (A) Payments made to RBI(B) Payments made to cultivators(C) Payment of terminal benefits toemployees not exceeding 50,000(D) All of the Ltd. contributed 8,70,000 towardsprovident fund account of its actually remitted 5,00,000 upto31st March and 2,50,000 upto the due datefor filing the return specified in section139(1). The amount liable to tax in itsassessment would be (A) 3,70,000(B) 1,20,000(C) Nil(D) 8,70, which section, the assessee has toreinvest the entire net consideration to claimfull exemption for the long-term capitalgains earned during a previous year (A) Section 54EC(B) Section 54F(C) Section 54GA(D) Section capital gains arising from thetransfer of equity shares in a company orunits of an equity oriented fund or units ofa business trust charged with securitytransaction tax are subject to income-tax atthe rate of (A) 10%(B) 15%(C) 20%(D) Normal received the following gifts duringthe previous year.

9 (i) 50,000 from his employer(ii) 1,00,000 from mother's sister(iii) 10,000 from his friend on theoccasion of his marriage(iv) 60,000 in the form of scholarshipfrom a registered charitable amount of taxable gift under the head'income from other sources' is (A) Nil(B) 50,000(C) 1,50,000(D) 2,10, time-limit for making revisional orderunder section 263(2) and 263(3) is (A) 6 Months from the date of assessment(B) 6 Months from the date of order(C) One year from the end of the financialyear in which the order was passed(D) None of the paid 1,00,000 to Raj for purchaseof standing crop (paddy). He harvestedthe produce, , paddy by incurringexpenditure of 25,000. He sold the saidpaddy for 1,80,000 to a trader. His otherincome for the year ended 31st March, 2016was 4,60,000. The total income ofBalu is (A) 6,40,000(B) 5,15,000(C) 4,85,000(D) 5,60,000: 5 :3241/2016/TLP ANSWERS MARKED IN THE OMR ANSWER SHEET SHALL ONLY BE EXAMINED , engaged in business, claimed thathe paid 10,000 per month by cheque asrent for his residence.

10 He does not ownany residential building. His total incomecomputed before deduction under section80GG is 3,40,000. The amount he canclaim as deduction under section 80 GGis (A) 24,000(B) 34,000(C) 1,20,000(D) 60, & Co., a partnership firm, received 5,00,000 from an insurance companyunder keyman insurance policy consequentto demise of partner Pramod. The amountof premium 2,30,000 paid earlier wasclaimed as deduction under section 37 bythe firm. The amount received from theinsurance company is (A) Tax-free under section 10(10D)(B) Fully taxable as income(C) 2,70,000 is taxable(D) 2,30,000 is of the following losses availableafter inter source set-off, cannot be set-offfrom incomes in other heads in the sameassessment year (A) Speculation losses(B) Loss from specified business(C) Loss under the head capital gains(D) All of the carry forward and set-off losses, a lossreturn must be filed by the assessee withinthe stipulated time and gets the lossdetermined by the Assessing , this condition is not applicableto (A) Loss from house property(B) Loss from speculation(C) Loss from discontinued business(D)