MCQ Portal

(i) Vinayak (P) Ltd. has total income (computed) of ₹ 32,00,000 for the assessment year 2024-25. It has not opted sections 115BA or 115BAA or 115BAB. Its annual turnover was always less than or equal to 50 crores. How much is the income tax payable by Vinayak (P) Ltd. for the assessment year 2024-25 (including surcharge and HEC)?

₹8,32,000 ₹9,98,400 ₹10,98,240 ₹13,31,200

(ii) Balu was employed in ABC Ltd. from 1st November, 2023 after he discontinued his proprietary business in textiles. He was given rent-free accommodation at Kolkata from the same date. His basic salary was ₹1,00,000 per month and DA ₹50,000 per month (eligible for retirement benefits). How much is the perquisite value of rent-free accommodation in the hands of Balu for the assessment year 2024-25?

₹1,80,000 ₹1,12,500 ₹75,000 ₹37,500

(iii) Kailash is a resident individual who owns an apartment in Singapore acquired on 19.08.2020. He had disclosed only 60% of its value in his income-tax returns. The Assessing Officer received this information of partial non-disclosure on 18.02.2024 and issued a notice under section 10 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 on 10.04.2024. What would be the value of the asset liable to tax under the said Act?

Fair Market Value of the asset as on 19.08.2020 40% of fair market value of the asset as on 19.08.2020 40% of fair market value of the asset as on 01.04.2024 40% of fair market value of the asset as on 01.04.2023

(iv) Chinta Co-operative Society is engaged in manufacturing activity and was set up and registered on 20th April, 2023. Its total income (computed) for the previous year 2023-24 was ₹22,50,000. How much is the income tax payable by it under section 115BAE of the Act? Note: Consider both surcharge and HEC.

₹7,02,000 ₹5,85,000 ₹4,68,000 ₹3,86,100

(v) TBF Ltd., an Indian company deducted ₹1,20,000 from various payments as TDS for the first quarter of the financial year 2023-24. However, it has failed to file the TDS return for the said quarter. How much shall be the amount of fee payable by it for default in furnishing TDS return?

₹100 for every day during which the failure continues subject to a maximum of ₹1,20,000. ₹100 for every day during which the failure continues subject to a maximum of ₹1,00,000. ₹200 for every day during which the failure continues subject to a maximum of ₹1,20,000. ₹200 for every day during which the failure continues subject to a maximum of ₹1,00,000.

(vi) Anil, a resident, has derived (i) short-term capital gain of ₹35,000 from the sale of shares (STT paid); (ii) long-term capital gain of ₹80,000 from the sale of shares (STT paid); and (iii) ₹9,000 on the sale of cryptocurrency held for 38 months. How much is the total amount of tax payable by Anil in respect of the capital gains? (Ignore surcharge and HEC)

Nil ₹5,550 ₹6,600 ₹7,950

(vii) Tarun, a resident, sold Virtual Digital Asset (VDA) with the help of a broker through an Exchange. The sale consideration was ₹6,05,000 (excluding GST/commission). How much is the amount of TDS applicable in respect of the sale of VDA?

₹60,500 ₹30,250 ₹12,100 ₹6,050

(viii) Raghav Industries (P) Ltd. was subjected to a search under section 132 and a sum of ₹300 lakhs by way of cash was found as undisclosed income. Raghav Industries (P) Ltd. has unabsorbed depreciation of ₹200 lakhs. How much of the unabsorbed depreciation is eligible for set off against cash found as a result of search, representing undisclosed income?

Nil ₹200 lakhs ₹100 lakhs ₹50 lakhs

(ix) Swami sold his residential house on 21st April, 2023, for ₹110 lakhs and earned long-term capital gains of ₹60 lakhs. He bought a new residential house in March 2024 for ₹55 lakhs in order to claim an eligible exemption under the Income-tax Act. What would you call this action of Swami reinvesting the long-term capital gain by way of acquisition of a new residential house?

Tax Planning Tax Evasion Tax Management Tax Avoidance

(x) Higgs Ltd., which has entered into international transactions attracting transfer pricing provisions, declared a final dividend of 10% on its paid-up capital of ₹20 crores on 23.08.2024. It has received dividend of ₹80 lakhs (gross) on 23.11.2023 from a business trust. How much is the quantum of deduction allowable under section 80 M?

₹200 lakhs ₹80 lakhs ₹120 lakhs NIL as the dividend received is liable to tax.

(xi) For Roberts Inc. of Italy, which of the following would mean that it has a Permanent Establishment (PE) in India?

Use of facilities solely for the purpose of storage or display of goods belonging to the enterprise. Operating a factory in India. Maintenance of goods belonging to the enterprise solely for the purpose of processing by another enterprise. Maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise or of collecting information, for the enterprise.

(xii) What is Berry Ratio in relation to the computation of the arm’s length price of an international transaction?

Gross profit / Operating expenses EBITDA / Shareholders funds Net profit / Gross profit Long term debts / Shareholders funds

(xiii) While determining the ALP of the transactions between A Ltd., Mumbai and its holding company Bee Inc., UK, there was an addition of ₹300 lakhs to the total income of A Ltd. How much should be paid by way of tax (including surcharge and HEC) by A Ltd. in order to avoid secondary adjustment?

₹93,60,000 ₹62,89,920 ₹54,00,000 ₹46,80,000

(xiv) Mittal Ltd., Pune exported goods to its holding company Glory Ltd., UK for ₹20 crores and it has failed to keep and maintain information and documents in respect of ₹5 crores. How much is the quantum of penalty leviable for such failure in the hands of Mittal Ltd.?

₹1,50,000 ₹5,00,000 ₹10,00,000 ₹25,00,000

(xv) Which of the following methods of computing arm’s length price is not a “Transaction Based Method”?

Comparable Uncontrolled Price Method Resale Price Method Cost Plus Method Profit Split Method

June 24 Tax Paper