Linear Inequalities

146 Practice MCQs available for CA Foundation

Paper

Paper 3: Quantitative Aptitude

Exam Weightage

1-3 Marks

Key Topics

Linear Inequalities in one & two variables

This chapter covers Linear Inequalities in one & two variables and is part of Paper 3: Quantitative Aptitude in the CA Foundation exam.

Exam Strategy Tip

This topic carries 1-3 Marks weightage. Focus on understanding core concepts rather than memorizing.

Key Terms

Correlation

A statistical measure that expresses the extent to which two variables are linearly related.

Function

A relation from a set A (Domain) to a set B (Codomain) such that every element in A is associated with exactly one element in B. Written as f: A→B. Types include Linear, Quadratic, Polynomial, and Exponential functions.

All 146 Questions

1119
On solving the inequalities 5x+y≤100\displaystyle 5x + y \le 100, x+y≤60\displaystyle x + y \le 60, x≥0\displaystyle x \ge 0, y≥0\displaystyle y \ge 0, we get the following solution:
MCQ
1120
An employer recruits experienced (x)\displaystyle (x) and fresh workmen (y)\displaystyle (y) for his under the condition that he cannot employ more than 11\displaystyle 11 people x\displaystyle x and y\displaystyle y can be related by the inequality.
MCQ
1121
The solution set of the equations x+2>0\displaystyle x + 2 > 0 and 2x−6>0\displaystyle 2x - 6 > 0 is
MCQ
1123
On solving the inequalities; we get 6x+y≥18\displaystyle 6x + y \ge 18, x+4y≥12\displaystyle x + 4y \ge 12, 2x+y≥10\displaystyle 2x + y \ge 10
MCQ
1124
Solve for x\displaystyle x of the inequalities 2≤3x−25≤4\displaystyle 2 \le \frac{3x - 2}{5} \le 4 where x∈N\displaystyle x \in N
MCQ
1125
The common region in the graph of the inequalities x+y≤4\displaystyle x + y \le 4, x−y≤4\displaystyle x - y \le 4, x≥2\displaystyle x \ge 2 is
MCQ
1126
XYZ Company has a policy for its recruitment as it should not recruit more than eight men (x)\displaystyle (x) to three women (y)\displaystyle (y). How can this fact be expressed in inequality?
MCQ
1129
In a garment factory, an average experienced tailor can stitch 5\displaystyle 5 shirts while a fresh tailor can stitch 3\displaystyle 3 shirts daily, but the employer has to maintain an output of at least 30\displaystyle 30 shirts stitched per day. This can be formulated as
MCQ
1130
A fertilizer company produces two types of fertilizers called grade I and grade II. Each of these types is processed through a critical chemical plant unit. The plant has maximum of 180\displaystyle 180 hours availability in a week. Manufacturing one bag of grade I fertilizer requires 4\displaystyle 4 hours in the plant. Manufacturing one bag of grade II fertilizer requires 10\displaystyle 10 hours in the plant. Express this using linear inequalities.
MCQ
1132
A software company should recruit more than or equal to 10\displaystyle 10 employees at a time for their recruitment drive. Under these conditions, company recruits experienced (x)\displaystyle (x) and freshers (y)\displaystyle (y) employees. The values of x\displaystyle x and y\displaystyle y can be related by the following inequality
MCQ
1133
Given the constraints, x≤3,y≤4\displaystyle x \le 3, y \le 4 and 4x+3y≤12\displaystyle 4x + 3y \le 12, the point ______ is in the feasible region. (Select from the below given list)
MCQ
1136
The shaded area is represented by which of the following option?
MCQ
1138
The Solution of the in equality 8x+6<12x+14\displaystyle 8x+6 < 12x+14 is
MCQ
1139
The rules and representations demand that employed should employ not more than 8\displaystyle 8 experienced leads to 1\displaystyle 1 fresh one and then fact can be expressed as
MCQ
1141
On solving the inequalities 5x+y≤100,x+y≤60,x≥0\displaystyle 5x+y \le 100, x+y \le 60, x \ge 0 and y≥0\displaystyle y \ge 0, we get the following situation
MCQ
1142
Mr. A plans to invest up to ₹30,000\displaystyle \text{₹} 30,000 in two stocks X and Y. Stock X(x) is priced at ₹175\displaystyle \text{₹} 175 and Stock Y(y) at ₹95\displaystyle \text{₹} 95 / share. This can be shown by
MCQ
1143
A company produces two products A and B, each of which requires processing in two machines. The first machine can be used for most for 60\displaystyle 60 hours, the second machine can be used for most for 40\displaystyle 40 hours. The product A requires 2\displaystyle 2 hours on machine one and one hour on machine two. The product B requires one hour on machine one and two hours on machine two. Express above situation using linear inequalities
MCQ
1144
The solution set of the inequation x+2>0\displaystyle x+2 > 0 and 2x−6>0\displaystyle 2x-6 > 0 is
MCQ
1146
On the average experienced person does 5\displaystyle 5 units of work while a fresh one 3\displaystyle 3 units of work daily but the employer has to maintain an output of at least 30\displaystyle 30 units of work per day. This situation can be expressed as
MCQ
1147
The sol. set of the eq. x+2>0\displaystyle x+2 > 0 and 2x−6>0\displaystyle 2x-6 > 0 is
MCQ
1148
The solution space of the inequalities 2x+y≤10\displaystyle 2x+y \le 10 and x−y≤5\displaystyle x-y \le 5: (i) includes origin (ii) includes the point (4,3)\displaystyle (4, 3) Which one is correct?
MCQ
1150
On the average, experienced person does 5\displaystyle 5 units of work while a fresh one 3\displaystyle 3 units work daily but the employer have to maintain the output of at least 30\displaystyle 30 units of work per day. This situation can be expressed as.

Chapter 3 Graph
MCQ
1151
Solution space of the inequalities 2x+y≤10\displaystyle 2x+y \le 10 and x−y≤5\displaystyle x-y \le 5: (i) Includes the origin (ii) Includes the point (4,3)\displaystyle (4, 3) Which one is correct?

Chapter 3 Graph
MCQ
1152
What is the smallest integral value of n\displaystyle n for which n2+7n−50n−336>0\displaystyle n^2+7n-50n-336 > 0
MCQ
1154
A dealer has only ₹5760\displaystyle \text{₹} 5760 to invest in fans (x) and sewing machines (y). The cost per unit of fan and sewing machine is ₹360\displaystyle \text{₹} 360 and ₹240\displaystyle \text{₹} 240 respectively. This can be shown by:
MCQ
1155
On solving the inequalities 5x+y≤100,x+y≤60,x≥0,y≥0\displaystyle 5x+y \le 100, x+y \le 60, x \ge 0, y \ge 0, we get the following situation:

Chapter 3 Graph
MCQ
1156
The rules and regulations demand that the employer should employ not more than 5\displaystyle 5 experienced hands to 1\displaystyle 1 fresh one and this fact is represented by (Taking experienced person as x\displaystyle x and fresh person as y\displaystyle y)
MCQ
1158
An employer recruits experienced (X) and fresh workmen(Y) for his under the condition that he cannot employ more than 11 people and y can be related by the inequality.
MCQ
1159
6x+y≥18,x+4y≥12,2x+y≥10\displaystyle 6x + y \ge 18, x + 4y \ge 12, 2x + y \ge 10 On solving the inequalities; we get:
MCQ
1160
A Labour can be paid under two methods given below: (i) ‘600‘\displaystyle `600` fixed and ‘50‘\displaystyle `50` per hour (ii) ‘170‘\displaystyle `170` per hour If a labour job work takes 'r\displaystyle r' hours to complete, find out the value of 'r\displaystyle r' for which the method (ii) gives the labour gets the better wages.
MCQ
1162
6x+y≥18,x+4y≥12,2x+y≥10\displaystyle 6x + y \ge 18, x + 4y \ge 12, 2x + y \ge 10. On solving the inequalities; we get:
MCQ
1163
If 3x+2<2x+5\displaystyle 3x + 2 < 2x + 5 and 4x−5≥2x−3\displaystyle 4x - 5 \ge 2x - 3, then x can take from the following values
MCQ
1164
On solving the inequalities 6x+y≥18,x+4y≥12,2x+y≥10\displaystyle 6x + y \ge 18, x + 4y \ge 12, 2x + y \ge 10, we get the following situation:
MCQ
1165
If 2x+5<3x+2\displaystyle 2x + 5 < 3x + 2 and 2x−3≥4x−5\displaystyle 2x - 3 \ge 4x - 5 then x takes which of the following value?
MCQ
1167
On an average an experienced person does 5 units of work whereas an unexperienced does one 3 units work daily but the employer have to maintain the output of at least 30 units of work per day. The situation can be expressed as.
MCQ
1169
Graph of the following linear inequalities : x+y≥1,y≤5,x≤6,7x+9y≤63,x≥0,y≥0\displaystyle x+y \ge 1, y \le 5, x \le 6, 7x+9y \le 63, x \ge 0, y \ge 0 is given below:Mark the common region.
MCQ
1171
If 2x+5<3x+2\displaystyle 2x + 5 < 3x + 2 and 2x−3≥4x−5\displaystyle 2x - 3 \ge 4x - 5, then x takes which of the following value ?
MCQ
1172
Solve Inequalities 2≤3x−25≤4\displaystyle 2 \le \frac{3x - 2}{5} \le 4 where x∈N\displaystyle x \in N
MCQ
1173
The shaded region represents:
MCQ
1174
The solution of the inequality 1≤(5−2x)3≤5\displaystyle 1 \le \frac{(5 - 2x)}{3} \le 5
MCQ
1118
The linear relationship between two variables in an inequality:
MCQ
1153
On the average experienced person does 5\displaystyle 5 units of work while a fresh one 3\displaystyle 3 units of work daily, but the employer have to maintain the output at least 30\displaystyle 30 units of work per day. The situation can be expressed as
MCQ
1137
A manufacturer produces two items A and B. He has ₹10,000\displaystyle \text{₹}10,000 to invest and a space to store 100\displaystyle 100 items. A table costs him ₹400\displaystyle \text{₹}400 and a chair ₹100\displaystyle \text{₹}100. Express this in the form of linear inequalities.
MCQ
1128
If 2x+5>3x+2\displaystyle 2x + 5 > 3x + 2 and 2x−3≤4x−5\displaystyle 2x - 3 \le 4x - 5, the 'x\displaystyle x' can take which of the following value?
MCQ
1122
The common region represented by the following in equalities L1:x+y≤4;L2:2x+y≥2\displaystyle L_1: x + y \le 4; L_2: 2x + y \ge 2 is

Chapter 3 Graph
MCQ
1135
A dietician re-accommodates mixture of two kinds of food to a person so that mixture contains at least 15\displaystyle 15 units of carbs, 25\displaystyle 25 units of protein, 15\displaystyle 15 units of fat and 15\displaystyle 15 units of fiber. The above contains of nutrients are available in the foods as below: Carbs (Food-1: 20, Food-2: 10); Protein (Food-1: 5, Food-2: 2); Fat (Food-1: 3, Food-2: 4); Fibre (Food-1: 2, Food-2: 5). If 'x\displaystyle x' units of food-1 is mixed with 'y\displaystyle y' units of food-2, how dietician recommendation can be expressed?
MCQ
1149
The sol. of the inequality (5−2x)3<x6−5\displaystyle \frac{(5-2x)}{3} < \frac{x}{6}-5 is
MCQ
1157
The common region represented by the following in equalities L1=X1+X2≤4\displaystyle L_1 = X_1 + X_2 \le 4; L2=2X1+X2≥6\displaystyle L_2 = 2X_1 + X_2 \ge 6
MCQ
1134
A senior typist can type five reports and a junior typist can type three reports per day. But the management needs to complete at least 30\displaystyle 30 reports in a day. If S\displaystyle S and J\displaystyle J denote the number of senior and junior typists assigned for the work. Which of the following inequality represents the constraint?
MCQ
1131
The solution of the inequality 5−2x3≤x6−5\displaystyle \frac{5 - 2x}{3} \le \frac{x}{6} - 5
MCQ
1161
The time required to produce a unit of product A is 3 hours and that for product B is 5 hours. The total usable time is 220 hours. If x and y are the no. of units of A and B that are produced then
MCQ
1166
Solve for X of the Inequalities 2≤3x−25≤4\displaystyle 2 \le \frac{3x - 2}{5} \le 4 where x∈N\displaystyle x \in N
MCQ
1168
A small manufacturing firm produces two types of gadgets A and B, which are first processed in the foundry then sent to the machine shop for finishing. The number of man-hours of labour required in each shop for the production of each unit of A and B, and the number of man-hours the firm has available per week are as follows:GadgetFoundryMachine-shopA105B64Weekly capacity1000600Let the firm manufactures x units of A and y units of B. The constraints are:
MCQ
1140
On the avg. experienced person does 6\displaystyle 6 units work while A person 2\displaystyle 2 units of work daily but employer has to maintain as output of at least 24\displaystyle 24 units of per day. This situation can be expressed as
MCQ
1145
On solving the inequalities 2x+5y≤20,3x+2y≤12,x≥0,y≥0\displaystyle 2x+5y \le 20, 3x+2y \le 12, x \ge 0, y \ge 0, we get the following situation
MCQ
1170
A manufacturer produces two items A and B. He has ‘10,000‘\displaystyle `10,000` to invest and a space to store ‘100‘\displaystyle `100` its ms. A table costs ‘100‘\displaystyle `100` and a chair ‘40‘\displaystyle `40`. Express this in the form of linear inequalities.
MCQ
1127
The region indicated by the shading in the graph is expressed by the inequalities

Chapter 3 Graph
MCQ
4008
On solving the inequalities 6x+y≥18\displaystyle 6x + y \ge 18, x+4y≥12\displaystyle x + 4y \ge 12, 2x+y≥10\displaystyle 2x + y \ge 10; which of the following are correct solutions?
MCQ
4009
The longest side of a triangle is 2 times the shortest side and the third side is 4 cm shorter than the longest side. If the perimeter of the triangle is at least 61 cm, find the minimum length of the shortest side.
MCQ
4107
Which of the following is a solution of the inequality 5x3≤x6−5\displaystyle \frac{5x}{3} \le \frac{x}{6} - 5 ?
MCQ
4108
The number of solutions of 5−2x4≤x8−5>3−2x\displaystyle \frac{5-2x}{4} \le \frac{x}{8} - 5 > 3-2x are ___________, where x\displaystyle x is a real number.
MCQ
4109
The region specified by the inequalities 10x+29y≥40\displaystyle 10x+29y \ge 40 and 15x−4y≤25\displaystyle 15x-4y \le 25 includes the point
MCQ
4201
The solution of the inequality 5−2x3≤x6−5\displaystyle \frac{5-2x}{3} \le \frac{x}{6} - 5 is
MCQ
4203
Solve the system and 5−2x4≤x8−5\displaystyle \frac{5-2x}{4} \le \frac{x}{8} - 5 and x+43≤6\displaystyle \frac{x+4}{3} \le 6.
MCQ
4255
The common region represented by inequalities: 2x+y≥8,x+y≥12,3x+2y≤34,x≥0\displaystyle 2x + y \ge 8, x + y \ge 12, 3x + 2y \le 34, x \ge 0 and y≥0\displaystyle y \ge 0 is
MCQ
4308
On solving the inequalities 6x+y≥18\displaystyle 6x + y \ge 18, x+4y≥12\displaystyle x + 4y \ge 12, 2x+y≥10\displaystyle 2x + y \ge 10; which of the following are correct solutions?
MCQ
4309
The longest side of a triangle is 2 times the shortest side and the third side is 4 cm shorter than the longest side. If the perimeter of the triangle is at least 61 cm, find the minimum length of the shortest side.
MCQ
4407
Which of the following is a solution of the inequality 5x3≤x6−5\displaystyle \frac{5x}{3} \le \frac{x}{6} - 5 ?
MCQ
4408
The number of solutions of 5−2x4≤x8−5>3−2x\displaystyle \frac{5-2x}{4} \le \frac{x}{8} - 5 > 3-2x are ___________, where x\displaystyle x is a real number.
MCQ
4409
The region specified by the inequalities 10x+29y≥40\displaystyle 10x+29y \ge 40 and 15x−4y≤25\displaystyle 15x-4y \le 25 includes the point
MCQ
4501
The solution of the inequality 5−2x3≤x6−5\displaystyle \frac{5-2x}{3} \le \frac{x}{6} - 5 is
MCQ
4503
Solve the system and 5−2x4≤x8−5\displaystyle \frac{5-2x}{4} \le \frac{x}{8} - 5 and x+43≤6\displaystyle \frac{x+4}{3} \le 6.
MCQ
4555
The common region represented by inequalities: 2x+y≥8,x+y≥12,3x+2y≤34,x≥0\displaystyle 2x + y \ge 8, x + y \ge 12, 3x + 2y \le 34, x \ge 0 and y≥0\displaystyle y \ge 0 is
MCQ
5574
4. The income of rent and interest will be chargeable to tax in the hands of -
MCQ
5577
7. Raju earned 25,000 from lotteries, ` 10,000 from betting, ` 50,000 from online games (on internet) and lost ` 5,000 in card games during P.Y. 2023-24. The amount of tax to be charged for A.Y. 2024-25 will be -
MCQ
5580
10. Determine the Value of Outward supply (including supply liable under RCM) of Mr. Mohanraj for the month of June 2024.
MCQ
5583
13. Determine the Gross amount of TDS (Ignoring Break-up between CGST/SGST/IGST) which will be deducted by the recipients in respect of supplies made to various Govts.
MCQ
5575
5. If Mrs. A invests this rent amount in a business and incurs a loss of ` 20,000 and she has income from other business of ` 4 lakh. The income of rent and business will be chargeable to tax in the hands of - TAXATION
MCQ
5578
8. AMT liability are not attracted to: Choose the correct answer from the following:
MCQ
5581
11. Amount of ITC that can be claimed by Mr. Mohanraj, for the month of June 2024 including RCM transactions if any, will be__________ each under CGST and SGST.
MCQ
5584
14. In respect of excess claim of ITC under IGST, the firm would be liable to pay interest on the excess availed IGST ITC amount of
MCQ
5587
6. Income from dairy farming on his rural agricultural land ` 50,000 Compute his total income and Income Tax thereon for A.Y. 2024-25 considering that assessee has opted out of Default tax regime. Answer (
MCQ
5576
6. If Mr. A transfers the above property for inadequate consideration with an agreement to live apart, then the income of rent and interest will be chargeable to tax in the hands of -
MCQ
5579
9. In respect of i-phone ordered and delivered, Place of Supply will be,
MCQ
5582
12. Mouriya & Co will be required to retain books of accounts and other records maintained under the provisions of the CGST Act, 2017 until _____________
MCQ
5585
4. Received from the performance of Fusion dance which includes both western and classical dance 1,45,000 Value of taxable supply of Mrs. Padmini for the month of June 2024 will be ` ___________.
MCQ
5588
4. Paid fee to Local Municipal corporation for renewal of the company's factory License for the financial year 2024-2025. 4,800 Additional Information: (i) All above figures are exclusive of taxes, wherever applicable. (ii) Assume the rate of GST as 18%, 9% and 9% for IGST, CGST/SGST respectively. (iii) Turnover of Nootan Limited for the preceding financial year was ` 67 lakh. You are required to compute the GST payable by Nootan Limited under Reverse Charge basis for the month of June 2024. Reason for the treatment of each item should form part of the answers. (5 Marks) (
MCQ
5591
Question 3 (a) (A) What is the meaning of Micro arid Small Enterprise u/s 43B of Income Tax Act, 1961? (B) Mr. Prem has following assets as on 01.04.2023 : (i) A machinery costing ` 4 lakh, which was used for scientific research related to business and deduction u/s 35 was allowed ` 40,000. (ii) A laptop received as a gift from his friend costing ` 60,000. It was purchased on 01.04.2022 by his friend. (iii) A temporary wooden structure costing ` 70,000 erected in Dec. 23 which was used for business purposes. Compute the depreciation allowed on these assets for F.Y. 2023-24. (b) Mr. X, age 83 years, a resident individual, gives the following particulars of his receipts for A.Y. 2024-25 : 1. Installment received from the bank under reverse mortgage arrangement ` 1,50,000 2. Interest on bank term deposits ` 2,00,000 3. Interest on bank saving a/c ` 45,000 4. Pension from Central Govt. ` 4,50,000 5. STCG on sale of dining table and chairs ` 1,00,000 6. Income from dairy farming on his rural agricultural land ` 50,000 Compute his total income and Income Tax thereon for A.Y. 2024-25 considering that assessee has opted out of Default tax regime.
Subjective
5586
16. Alpha Way Industries, a registered person dealing in supply of taxable goods all over India, having an aggregate turnover of ` 6.75 Crore in the preceding Financial Year, is required to issue Tax Invoice with HSN Code of:
MCQ
5589
Question 1 Mr. Rohit, a resident individual, aged 65 years, is a qualified medical practitioner. He runs his own clinic. Income & Expenditure A/c of Mr. Rohit for the year ending March 31st 2024 is as under : Expenditure ` Income ` To Salary to Staff 8,20,000 By Consultation Fees 22,00,000 To Administrative Expenses 5,90,000 By Salary received from Care Hospital Pvt. Ltd. 1,80,000 To Conveyance Expenses 24,000 By Rental Income from House Property 78,000 To Power & Fuel 24,000 By Dividend from Foreign Companies 10,000 To Interest on Housing Loan 1,00,000 To interest on Education Loan for son 26,000 To Amount paid to scientific research association approved & notified u/s 35 25,000 To Net Profit 8,59,000 Total 24,68,000 Total 24,68,000 Following is the further information relating to Financial Year 2023-2024: (i) He is working part-time with Care Hospital Pvt. Ltd. His Salary details are as under : Basic Pay Transport Allowance ` 13,000 p.m. ` 2,000 p.m. Total ` 15,000 p.m. Further, during P.Y. 2023-24 his son had undergone a medical treatment in Care Hospital Pvt. Ltd. free of cost. The hospital would have charged a sum of ` 1,00,000 for a similar treatment to unrelated patients. (ii) He owns a residential house. The ground floor of the house (50% portion) is self-occupied by him while first floor of the house (50% portion) has been rented out since 01/10/2023. The reconstruction of the entire house was started on 01.04.2023 and was completed on 30.09.2023. The monthly rent is ` 10,000. The tenant also pays ` 3,000 p.m. as power back-up charges. He took a housing loan of ` 12 lakhs on 01.04.2023. Interest on housing loan for the period 01.04.2023 to 30.09.2023 was ` 60,000 and for the period 01.10.2023 to 31.03.2024 was ` 40,000. During the year, he also paid municipal taxes for the F.Y. 2022-23 ` 4,000 and F.Y. 2023-24 ` 6,000. (iii) Other Information: (a) Payment of salary of ` 25,000 per month to sister-in-law of Mr. Rohit, who was in-charge of the Accounts & Receivables department. However, in comparison to similar work profile, the reasonable salary at market rate is ` 20,000 per month. (b) Conveyance expenses include a sum of ` 12,000 incurred for conveyance from house to Care Hospital Pvt. Ltd. and vice-versa in relation to his employment. (c) Power and fuel expenses include a sum of ` 6,000 incurred for generator fuel for providing power back up to the tenant. (d) Administrative expenses include a sum of ` 10,000 paid as Municipal Taxes for his house. TAXATION (e) Clinic Equipment details are : Opening W.D.V. of Clinic Equipment as on 01.04.2023 was ` 1,00,000 and fresh purchase made on 28.08.2023 for ` 25,000 which was paid in cash. (f) He also paid tuition fees of ` 40,000 for his Grand Daughter, which is debited to his capital a/c. (g) He availed a loan of ` 8,00,000 from bank for higher education of his son. He repaid principal of ` 50,000 and interest of ` 26,000 during P.Y. 2023-2024. You are required to compute his net taxable income and net tax liability for the A.Y. 2024-25 if he has exercised the option of shifting out of the default tax regime provided under section 115BAC(1A).
Subjective
5592
Question 4 (a) Mr. Rakesh furnishes the following details for year ended 31.03.2024: Particulars ` Short Term Capital Gain 2,80,000 Loss from Speculative Business 1,20,000 Long Term Capital Gain on Sale of Land 60,000 Long Term Capital Loss on Sale of shares (STT not paid) 2,00,000 Income From Business of Textile (after allowing current year Depreciation) 1,00,000 Income From Salary (Computed) 2,00,000 Loss from Let - Out House Property 80,000 Share of Loss from Firm 1,60,000 Investment in PPF 21,000 Medical Insurance Premium for self paid by Cheque 24,000 Preventive Health Check-up fees for wife paid by Cheque 5,000 Following are the Carry Forward Losses: • Carry Forward Loss from Business of Textile ` 1,20,000 - this being the 8th year from the year of Loss. Gross Total Income 6,95,000 Less: Deduction under section 80TTB 50,000 Total Income 6,45,000 Tax liability Up to ` 5,00,000 Nil ` 5,00,001 – ` 6,45,000 [@20% of ` 1,45,000] 29,000 29,000 Add: Health and education cess @4% 1,160 Tax liability 30,160 TAXATION Compute Total Income of Mr. Rakesh for the A.Y. 2024-2025 if he has exercised the option of shifting out of default tax regime provided under section 115BAC(1A). Also state the eligible Carry Forward losses. (b) (i) Which are all persons required to mandatorily file the Return of Loss as per section 80 of Income Tax Act, 1961. (ii) Consequences of Non-filing of Return of Loss in time OR (b) (i) What is Belated Return u/s 139(4) of Income tax Act, 1961 and when it should be filed? (ii) Explain Non-Applicability of Updated Return u/s 139(8A)
Subjective
5595
Question 7 (a) Rameshwar Industries is engaged in the manufacturing semi-conductors in the State of Assam. It makes only intra-State outward supplies. Following details have been made available by Rameshwar Industries: Date of commencement of business March 14, 2024 Date when turnover exceeded ` 10 lakh March 29, 2024 Date when turnover exceeded ` 20 lakh April 15, 2024 Date when turnover exceeded ` 40 lakh April 28, 2024 Date, of application for registration as per the provisions of Section 22·of the CGST Act, 2017 May 15, 2024 Date of issuance of certificate of registration May 29, 2024 Based on the above information, You are required to determine the following by briefly stating the relevant provision, (i) Effective date of registration of Rameshwar Industries (ii) Period for which revised tax invoice can be issued (iii) Timeline within which such revised tax invoice is to be issued. (5 Marks) (b) Write a short notes on: (i) Rectification of errors / omissions in respect of returns filed u/s 39 of the CGST Act, 2017. (ii) Exception to the rectification (iii) Time-limit for making such rectification. (5 Marks) TAXATION
Subjective
5598
2. Compute income from house property in the hands of Mr. Gopal.
MCQ
5590
Question 2 (a) Mr. Paras has a proprietary business since P.Y. 2015-16. He has transferred this business on 01.04.2023 by way of a slump sale for a total consideration of ` 40 Lakh. The fair market value of his capital assets as on 01.04.2023 is ` 35 Lakh. He has incurred expenses for this deal of ` 1,50,000. His Balance Sheet as on 31.03.2023 is given below: Liabilities ` Assets ` Own Capital 20,00,000 Building 18,00,000 Bank Loan 5,00,000 Debtors 5,00,000 Unsecured Loans 2,50,000 Machinery 5,00,000 Creditors 4,10,000 Other assets 3,60,000 31,60,000 31,60,000 Other information : (1) Bank loan balance includes ` 2 lakh for personal purpose. (2) Machinery costing ` 50,000 has been allowed 100% as deduction u/s 35AD (3) Other assets include self-generated goodwill of ` 60,000. (4) Unsecured loans include ` 1 lakh for amount payable for the purchase of the ornaments of his wife. Compute the capital gain/loss for the A.Y. 2024-25. (b) Mr. Ganesh whose Professional Receipts for the year ended 31.03.2023 were ` 1.25 crores has made payment to Mr. Rajesh (a Chartered Accountant) during P.Y. 2023-24 who has multi faced activities. Examine whether TDS Provisions re applicable for following payments made by Mr. Ganesh to CA Rajesh : (i) Professional Fee for consultation - ` 32,450 on 15.06.2023 including GST paid @18%. (ii) Royalty Payment for Use of Computer Software by various clients of Mr. Rajesh - ` 2,50,000 on 03.03.2024. (iii) Fee for Technical services related to Business of Mr. Ganesh - ` 20,000 on 15.12.2023. (iv) Fees for teaching accountancy to his Son - ` 40,000 on 31.10.2023.
Subjective
5593
Question 5 (a) Galaxy Cube Private Ltd., a registered person in Bharuch, Gujarat, engaged in various lines of business, provided the following details regarding its transactions made during the month of May 2024: Outward / Inward Transactions: Amount ` Supplied a latest technology laptop with touch screen option to Managing Director's friend (Open market value as well as sale to unknown customers was at ` 90,000) 60,000 Supplied printed letter cards to M K Industries, a registered person in Gandhinagar, Gujarat. Logo design was supplied by M K Industries. Out of ` 5,00,000, Materials cost was ` 4,00,000 and balance was Printing cost. 5,00,000 Provided services of transportation of passengers by an Omnibus through an Electronic Commerce Operator (ECO). 12,58,000 Provided catering services to Excel University of Patna, Bihar, which is recognized by UGC for granting recognised qualification 2,12,000 Made supply of goods in the territorial waters to Blue Waters Inc., registered in the State of Maharashtra. Such place of territorial water was at a distance of 5 nautical miles to the baseline of coastal State of Gujarat and 7 nautical miles to the baseline of coastal State of Maharashtra. 4,50,000 Purchased goods from DK & Co., a registered composition dealer. 3,35,000 TAXATION Additional Information : (i) During the course of filing invoices, accountant identified an invoice dated 31.03.2024, issued by Mr. Mahajan, whose residential house was taken on rent for MD of the company for his residential use. Invoice was for ` 50,000 (excluding tax). No payment has been made for this invoice. (ii) All the figures given above are exclusive of GST. (iii) All inward and outward supplies are intra-state except where details of place of recipient are given. (iv) Subject to the information given above, all the conditions necessary for availing the ITC have been fulfilled. (v) GST Rates are as follows: Particulars CGST SGST IGST Supply of Goods 6% 6% 12% Supply of Services 9% 9% 18% Compute the net minimum GST payable in cash by Galaxy Cube Private Ltd. for the month of May 2024. (10 Marks) (b) Gamma Multiplex registered in the State of Punjab, gives the following offers for booking movie tickets : Sr. No. Particulars Price Charged (excluding GST) 1 Tickets only ` 200 per person 2 Combo offer ` 350 per person (which includes ` 200 for ticket and ` 150 for snacks) 3 Snacks only ` 250 per token (snacks quantity will be more when compared to combo offer) For the month of April 2024, Gamma Multiplex situated in Punjab made the following supplies : (i) 10,000 tickets under combo offer (ii) 2,500 tickets only (iii) 1,000 tokens of snacks only GST rates applicable are: Rate of GST CGST SGST IGST Supply of Snacks 2.5% 2.5% 5% Supply of service of exhibition of cinema 9% 9% 18% You are required to determine the following, by explaining the relevant provisions : (i) Rate of GST to be applied when combo supply is made (ii) Rate of GST to be applied when snacks are sold in Multiplex (iii) Gross GST payable by Gamma Multiplex for the month of April, 2024. (5 Marks)
Subjective
5596
Question 8 (a) CBIC has issued a recent clarification on Time of Supply in respect of supply of services of construction of road and maintenance thereof of National Highway Projects of National Highway Authority of India (NHAI) in Hybrid Annuity Mode (HAM) model. Briefly discuss the said clarification. (5 Marks) OR (a) Explain briefly about the exemption available under the CGST Act, 2017 in respect of services provided by an Old Age Home. (5 Marks) (b) (i) Rule 138E of CGST Rules, 2017 prohibits certain persons to furnish the information in Part A of Form GST EWB-01 in respect of any outward movement of goods of a registered person. List the said persons. (2 Marks) (ii) List any six State taxes that were subsumed in the GST regime. (3 Marks)
Subjective
5599
3. Assuming Mr. Gopal has no other income, his total tax liability shall be -
MCQ
5602
6. Which statement is correct in respect of losses to be carried forward in next assessment years?
MCQ
5594
Question 6 (a) Nootan Ltd., a registered person in Indore, Madhya Pradesh, provides details of the following transactions carried out during the month of June 2024: Sr. No. Particulars Amount in ` 1. Paid remuneration to Mr. Madan, for the services rendered by him in the capacity of Director. Company deducted TDS under section 192 (Salary) and 194J (Professional or Technical services) of Income-Tax Act, 1961. Gross payments made were ` 8,50,000 and ` 11,50,000 respectively for Salary and Professional services. (Intra-State supply) 20,00,000 2. Paid rent to Indian Railways, registered in Madhya Pradesh, for its property located in the same State, which was taken on lease by the company. 1,25,000 3. Paid to XYZ Security Private Limited, for providing security services to its warehouses across the State. Security agency is not registered under GST. 5,35,000 4. Paid fee to Local Municipal corporation for renewal of the company's factory License for the financial year 2024-2025. 4,800 Additional Information: (i) All above figures are exclusive of taxes, wherever applicable. (ii) Assume the rate of GST as 18%, 9% and 9% for IGST, CGST/SGST respectively. (iii) Turnover of Nootan Limited for the preceding financial year was ` 67 lakh. You are required to compute the GST payable by Nootan Limited under Reverse Charge basis for the month of June 2024. Reason for the treatment of each item should form part of the answers. (5 Marks) (b) Determine the Place of Supply for the following independent cases, by briefly stating the relevant provisions : (i) Marxy Pharmaceuticals, registered under GST at Jaipur, Rajasthan hires Sargam Events LLP, registered under GST at Sagar, Madhya Pradesh for its annual event to be held in Gandhinagar, Gujarat. (ii) PSL Ltd., a registered person in Chandigarh, Punjab orders from CMR Ltd., a registered person in Ranchi, Jharkhand for delivery of goods to MHT Ltd., a registered person in Ranchi, Jharkhand. You are required to determine PoS for both of the above supplies made by CMR Ltd. as well as PSL Ltd. (5 Marks)
Subjective
5597
1. Determine income from capital gains and exemption available to Mr. Gopal for purchasing residential plot considering benefit of the assessee.
MCQ
5600
4. What shall be the gross total income in the hands of Mr. Satya?
MCQ
5603
7. Mr. Shivam, a resident individual, has made following payments to M/s ABC Ltd. to purchase overseas tour programme packages: (i) ` 4 lakhs on 18-05-2024 to visit New York, USA. (ii) ` 5 lakhs on 11-03-2025 to visit London, UK. Compute the amount of tax required to be collected u/s 206C(1G) by M/s ABC Ltd. assuming Mr. Shivam has furnished a valid PAN.
MCQ
5606
10. Amount on which Sandeep is required to pay tax under RCM is:
MCQ
5601
5. Compute total income of Mr. Satya for the assessment year 2025-26.
MCQ
5604
8. On 18th June, 2024, unexplained money of ` 30 lakhs u/s 69A was detected of Mr. Mahesh. Expenses of ` 10 lakhs were incurred to earn the income. He has also a brought forward business loss of ` 4,00,000. Amount of income tax payable by Mr. Mahesh on such income shall be -
MCQ
5607
11. Total tax payable in cash (including RCM) by Sandeep is:
MCQ
5610
14. Remaining Balance of Electronic Credit ledger and Electronic Cash ledger after filing return of April, 2024 will be
MCQ
5613
2024. He has received interest @ 12% per annum in China during the previous year 2024-25. (iii) Mr. Ramesh received royalty of ` 8,25,000 in consideration of providing patent rights to Mr. Sunil. Mr. Sunil has developed a new product in India by utilizing the patent rights. 30% of the royalty was received in India 3 Out of syllabus and 70% was received outside India. Mr. Ramesh and Sunil both have status of non-resident in India. (6 Marks)
MCQ
5605
9. Amount of inter-state outward supply on which Sandeep shall pay tax is:
MCQ
5608
12. The due date of issuance of invoice and the value of such invoice issued for work contract is:
MCQ
5611
15. Mr. Arun, a registered person, is del-credere agent (DCA) of Udhay Limited and AST Limited. Mr. Arun reported following transactions for the month of October 2024: (i) Sale of Goods of Udhay Limited in DCA Capacity for ` 4,50,000 (Invoices are issued in the name of Udhay Limited) (ii) Sale of Goods of AST Limited in DCA Capacity for ` 2,20,000 (Invoices are issued by Mr. Arun in his own name) (iii) To both the principals he has given guarantee for the realization of payments from customers and to fulfil it, he extends short-term transaction-based loan to the customer and charged interest for the same. Interest earned from customers of Udhay Limited ` 45,000 Interest earned from customer of AST Limited ` 22,000 The value of supply of goods to customers on which tax will be paid by Mr. Arun is __________and value of exempt supply is _______________.
MCQ
5614
Question 1 Mrs. S.C. Bose (aged 62 years) is a widow of a public sector employee who died during his service in 2011. She earns income from business of running a flower bouquet shop at Kolkata and income from royalty from writing books of science and sells in India and abroad. Profit & Loss account for the year ended 31st March, 2025 furnished by her is given below: Particulars ` Particulars ` To Opening stock 1,00,000 By Sales of flower bouquet 36,75,000 To Purchases 15,66,000 By Family pension from PSU through bank 3,60,000 To Salaries and wages 4,90,000 By Royalty form California University for books sold (Foreign exchange brought into India) 4,25,000 To Expenses relating to books authored by her 75,000 By Dividend (Net of TDS) 4,50,000 To Expenses in connection with dividends 12,000 By Interest on FDR (No TDS deducted) 76,000 To Repairs & Maintenance 3,25,000 By Closing stock 1,36,000 To Amount paid to IIT Chennai for scientific research projects 35,000 To Computers and other electronic items (purchased on 01-12-2024) 4,50,000 To Net Profit 20,69,000 Total 51,22,000 Total 51,22,000 Additional Information: (i) Purchases include ` 2 lakhs relate to flowers and creepers directly purchased from a farmer in cash on 26.09.2024. (ii) Repairs & Maintenance includes one-time deposit of ` 2,00,000 paid to electricity and water department. (iii) Computers and other electronic items includes ` 1,00,000 paid for television and washing machine for her household use. (iv) Salary & wages includes salary paid ` 2,40,000 to her illiterate brother (reasonable salary as per market rate is ` 1,80,000) (v) She purchased a residential house for ` 110 lakhs for which loan of ` 75 lakhs was taken from State Bank of India. Accrued interest was ` 3,37,500 till 31-03-2025 which was paid on 10-04-2025. No principal amount and interest was paid by Mrs. S.C. Bose till 31-03-2025. Ground floor of the house was used for shop and first floor was occupied for her residence. (vi) She purchased an electric vehicle on 30-09-2024 for ` 25 lakhs for business purposes. (vii) She sold 10,000 listed shares of SBCL Ltd. for ` 11,66,000 on 11-12-2024 which were purchased for ` 2,65,000 on 16.08.2024. STT was paid on purchase and sale both. Compute total income of Mrs. S.C. Bose under default tax regime u/s 115BAC and optional tax regime of the Income-tax Act, 1961 (15 Marks)
Subjective
5617
Question 4 (a) Mr. Sanju, an individual assessee, aged 32 years, furnishes the following details for the year ended on 31st March, 2025: (i) Loss from Future & Option: ` 75,000 (ii) Profit from restaurant business (computed): ` 2,21,000 (iii) Share of profit in partnership firm M/s XL & Co. (19% share): ` 38,000 (iv) Income from salary (computed): ` 3,15,000 (v) Interest on loan paid for self-occupied house property: ` 1,75,000 (Principal amount paid: ` 1,20,000) (vi) Short-term capital gain: ` 82,000 (vii) Long-term capital gain u/s 112A: ` 1,10,000 (viii)Long-term capital loss u/s 112: ` 68,000 (ix) His wife received salary of ` 2,40,000 from a partnership firm XL & Co., where she is an accountant. She does not have any professional qualification related to accounting. (x) He paid ` 21,000 for medical insurance premium and ` 9,000 for preventive health check-up. Brought forward speculative business loss: ` 26,000 (this being 3rd year from the year of loss) and brought forward short-term capital loss: ` 52,000 (this being the 4th year from the year of loss). Compute total income of Mr. Sanju for the A.Y. 2025-26 if he exercises the option to shift out of default tax regime u/s 115BAC(1A). Also state the losses eligible to carry-forward. (6 Marks) (b) State persons who are required to apply for the allotment of PAN under section 139A(1) of the Income-tax Act, 1961. Mention the time limit for making such application also. (4 Marks) OR (b) Specify all the documents in which quoting of Aadhaar Number is mandatory u/s 139AA of the Income-tax Act, 1961. Also explain to whom provisions of section 139AA does not apply. (4 Marks)
Subjective
5609
13. Consignment value of goods supplied to Kerala to Mr. Mathur, in order to determine applicability of issue of e-way bill, is
MCQ
5612
16. Aggregate turnover of Techno India Private Limited, a registered person, is ` 800 crore. Which of the following statements is correct in respect of QR Code?
MCQ
5615
Question 2 (a) State with reasons whether income chargeable to tax in India for the A.Y. 2025-26 in the hands of recipients in following independent situations: (i) Mr. Mahesh received dividend of ` 7 lakhs declared and paid by a foreign company outside India. Such dividend has been declared in respect of shares which derive their value substantially from assets situated in India. He is resident and not ordinarily resident in India.3 (ii) Mr. Shivansh is a non-resident in India and residing in China has deposited ` 16 lakhs with M/s ABC Ltd., an Indian company, on 01-09- 2024. He has received interest @ 12% per annum in China during the previous year 2024-25. (iii) Mr. Ramesh received royalty of ` 8,25,000 in consideration of providing patent rights to Mr. Sunil. Mr. Sunil has developed a new product in India by utilizing the patent rights. 30% of the royalty was received in India 3 Out of syllabus and 70% was received outside India. Mr. Ramesh and Sunil both have status of non-resident in India. (6 Marks) (b) Discuss the relevant provisions of Income-tax Act, 1961 with respect to tax deduction at source (TDS) and calculate amount of TDS also for the A.Y. 2025-26 in the following independent situations: (i) Marks Pictures Ltd. is a movie and short films production house having turnover of ` 15.22 crores during the previous year 2023-24. Solar Varanasi LLP also produces short films and clippings and it has already produced a short film namely 'Maha Kumbh'. On 16-10-2024, Marks Pictures Ltd. acquired television rights in consideration of ` 52 lakhs from Solar Varanasi LLP. (Both have valid PAN) (ii) Mr. Mayank, a salaried individual, paid rent for his residential house at Mumbai to the house owner Mr. Nikhil in the following manner: From April, 2024 to September, 2024: ` 75,000 per month; and From October, 2024 to March, 2025: ` 1,00,000 per month. (4 Marks)
Subjective
5624
2. Deduction in respect of interest on loan for the P.Y. 2023-24 shall be:
MCQ
5616
Question 3 (a) Mr. Sandeep, manager in CTL Pvt. Ltd. at Mumbai, furnishes following information for the year ended 31st March, 2025: Basic salary is ` 55,000 per month and entitled to a commission of ` 2,500 per month. A company owned accommodation is provided to him in Mumbai. Furniture costing ` 2,40,000 was also provided. He took a personal loan of ` 3,00,000 on 1st September, 2024 on which the interest @7.75% per annum was charged by the company. The entire loan is still outstanding. SBI rate of interest on 1" April, 2024 is 12.75%. Mr. Sandeep is the owner of a house property in Kolkata which he constructed during the financial year 2016-17. The property consists of four identical units. He occupied one unit for his residence and three units were let out at a rent of ` 20,000 per month per unit. The municipal value is` 9,00,000 and the municipal tax was paid @ 20% of municipal value. Fair rent and standard rent are ` 7,50,000 and ` 8,50,000, respectively. One of the let out units was vacant for six months during the year. Interest on loan taken for construction of the house is ` 2,00,000. Compute total income of Mr. Sandeep for the A.Y. 2025-26 assuming he has opted out default tax regime u/s 115BAC(1A). (6 Marks) (b) Discuss the taxability with reason in the hands of recipient for the assessment year 2025-26 in respect of following receipts or income: (i) Mr. Ram received a sum of ` 5,00,000 from his father on Ram's wedding anniversary. (ii) Mr. Govind sold his house property to Mrs. Radha for ` 1,25,00,000, whereas value determined by stamp valuation authority was ` 1,75,00,000. (iii) Ms. Agastha got a gift of car worth ` 7,00,000 from her friend on her wedding anniversary. (4 Marks)
Subjective
5625
3. Compute her total income for the assessment year 2024-25
MCQ
5627
5. Which of the following statement is correct in respect of deductions available to him under Chapter VI-A?
MCQ
5631
8. (A) 3 Read “opts for” as “pays tax under” TAXATION SECTION B: GOODS AND SERVICES TAX PART - I Case Scenario 3 M/s. Veena & Co. of Jabalpur was registered under GST under composition scheme. Outward Supply of the firm for the month of July 2023 was ` 10 lakh, out of which ` 2 lakh was supply of services. In the preceding financial year, the firm was doing trading of taxable goods only. Turnover of the concern for the previous financial year was ` 100 lakh. The firm imported the following services during August, 2023: (
MCQ
5623
1. The Net Annual Value (NAV) of the house property for the A.Y. 2024-25 is:
MCQ
5628
6. What is the requirement of deduction of tax at source by Game.com in respect of such winning by Mr. Desai?
MCQ
5630
8. During the year 2023-24, Mrs. Kalis (aged 65 years), received ` 10,50,000 a family pension. She had to spend ` 26,000 to get such income towards documentation and processing charges. She does not have any other income. Assuming she opts for3 the default tax regime, what shall be her total income chargeable to tax?
MCQ
5633
10. Import of services by Veena & Co. that will be treated as supply is ` ________.
MCQ
5636
13. Consignment value of goods supplied to Delhi by Pawan is `___________.
MCQ
5626
4. What shall be the total income of Mr. Desai for the A.Y. 2024-25
MCQ
5629
7. Mr. Sundaram owns two residential house properties in Chennai, one of which is used by him and his family for their residential purposes. Both the houses are exactly identical and their expected rent/municipal value etc. are also the same. He let out the other house for a rent of ` 1,15,000 p.m. He took two similar loans for the purchase of these two houses on 1.4.2022. The stamp duty value of these houses is ` 30 lakhs each. During the F.Y. 2023-24, he paid ` 4,00,000 as interest for each of the houses. He does not have any other income or investments during the year. He did not file his return of income within the due date under section 139(1). What shall be his total income chargeable to tax?
MCQ
5632
9. Tax liability of Veena & Co. for the month of July 2023 is `____________each under CGST and SGST.
MCQ
5635
12. Effective date of registration of Pawan is ____________.
MCQ
5638
15. Smita Limited made an outward supply of garments at an agreed price of ` 5,00,000. The company charged ‘Go Green Cess’ levied by Local municipal corporation amounting to ` 10,000 for this supply. As the customer made payment within 3 days from the date of delivery, Smita Limited provide a discount of ` 5,000 separately as a customer friendly measure, even though no prior agreement was made on discount. Value of Supply made by Smita Limited u/s 15 is ` ______________
MCQ
5634
11. Veena & Co. will be eligible to claim ITC held on Stock and Capital goods as on _____________.
MCQ
5637
14. Due date by which Pawan is supposed to file Final return under GST is ____________.
MCQ
5640
2023. The market value is ` 45,100. Determine the residential status of Mr. Madan and his HUF and compute gross total income of Mr. Madan for the assessment year 2024-25 assuming he opted out of the default tax regime. The value of one USD ($) may be taken as ` 70. (4 Marks)
MCQ
5643
2017. (5 Marks)
MCQ
5646
Question 3 (a) The particulars given below are of Mr. Radhey's income (age 47 years) posted in a private company in Delhi, for the previous year 2023-24: (i) Basic Pay ` 35,000 per month till January 31, 2024, ` 40,000 p.m. from February 2024. (ii) Dearness allowance 30% of basic salary (54% of DA forms part of retirement benefits) (iii) Leave encashment for P.Y. 2023-24 ` 10,000. (iv) He received salary for the month of April 2024 in advance on 31stMarch 2024. Also, he received an arrear salary for the month of March 2023 on the same day. (v) His employer gave him a rent-free accommodation (fully furnished) in Delhi from 01.04.2019. This house is owned by his employer. During the previous year 2019-20, the perquisite value of such rent-free furnished accommodation was valued at ` 39,000. The employer also provided him with the facility of a gardener to maintain this house. The salary of gardener paid by the employer was ` 1,000 p.m. The furniture and appliances provided with the house were bought by the employer at an aggregate cost of ` 1,50,000 on 01.01.2020. Electricity and water bills of ` 4,000 p.m. for the said house were paid by the employer. Cost Inflation Index F.Y. 2019-20-289, F.Y. 2020-21-301, F.Y. 2023-24-348. (vi) The employer also spent ` 50,000 on a refresher course for upgrading Mr. Radhey's skills. (vii) During the previous year his wife had been admitted in a notified hospital for treatment of her kidney disease, the hospital bills amounting to ` 3,50,000 were paid by the employer. You are required to compute the taxable salary income of Mr. Radhey for the Assessment Year 2024-25 assuming that he has opted out of the default tax regime under section 115BAC. (6 Marks) (b) Mr. Raj a resident individual, aged 69 years sold an urban agricultural land for ` 75,00,000 to Mr. Vipul on December 15, 2023 when the stamp duty value of agricultural land was ` 95 lakhs. However, the "agreement to sell" the agricultural land was entered on July 15, 2023 and Mr. Vipul gave ` 4 lakhs as advance through IMPS. The stamp duty value at the time of agreement was ` 85 lakhs. Mr. Raj paid 1% of sale consideration as commission to a broker. The land was purchased by him on May 15, 2002 for ` 10.85 lakhs and it was being used for agricultural purposes by him since its purchase. Mr. Raj purchased another agricultural land in rural area on January 1, 2024 for ` 40 lakhs and this land was sold by him on March 12, 2024 for ` 45 lakhs and he invested the entire sale proceeds in fixed deposits with a nationalized bank on the same day. Compute capital gain for assessment year 2024-25 if Mr. Raj exercises the option of shifting out of the default tax regime provided under section 115BAC(1A). Cost Inflation Index for: F.Y. 2002-03 = 105; F.Y. 2023-24-348 (4 Marks)
Subjective
5639
16. ‘Truth is God’, a religious trust u/s 12AA of the Income-tax Act, 1961, provides service by way of renting of premises within the precincts of a religious place which is exempt upto ` ___________.
MCQ
5642
9. Purchase of confectionery items which are to be used to supply free of cost to customers in a customer meet organised by DEF Pvt. Ltd. 1,00,000 Opening balance of Input Tax credit at the beginning of Jan 2024. CGST ` 25,000 SGST ` 25,000 IGST ` 30,000 Additional Information: (1) Rates of CGST, SGST and IGST are 9%, 9% and 18% respectively unless otherwise mentioned. (2) Both inward and outward supplies are exclusive of taxes, wherever applicable. (3) All the conditions necessary for availing the ITC have been fulfilled. From the information given above, compute the output tax liability and input tax credit available to DEF Pvt. Ltd., for the month of January, 2024. Make suitable assumptions wherever required. (10 Marks)
MCQ
5645
Question 2 (a) Mr. Madan, a citizen of India and the Karta of an HUF, is employed in M/s. PCS Pvt. Ltd. He is drawing monthly salary of ` 65,500 in India. On June 1, 2023 he purchased one residential house property in Mumbai for ` 18,00,000 in his individual capacity. The market value of the property is ` 32,00,000 and value for the purpose of charging stamp duty is ` 23,00,000. On August 31st, 2023 he was transferred to the branch office of M/s. PCS Pvt. Ltd. in U.S.A. and he left India on September 1st, 2023. The overseas branch paid him a salary of 2,500permonthinUSA.HemanagedbusinessofHUFfromUSAwhenhewasnotinIndia.HehadalsogoneoutofIndiafor99daysand201daysinpreviousyears2022−23and2021−22,respectively.HehadnevergoneoutofIndiapriortothat.HevisitedIndiafromJanuary1,2024toJanuary15,2024fortrainingonaprojectandreceived15dayssalaryinIndiaasperhisIndianmonthlysalarybeforebeingtransferred.Mr.Rajeev,oneofhisfriends,giftedhimasculptureinIndiaonAugust10,2023.Themarketvalueis‘45,100.DeterminetheresidentialstatusofMr.MadanandhisHUFandcomputegrosstotalincomeofMr.Madanfortheassessmentyear2024−25assumingheoptedoutofthedefaulttaxregime.ThevalueofoneUSD(\displaystyle 2,500 per month in USA. He managed business of HUF from USA when he was not in India. He had also gone out of India for 99 days and 201 days in previous years 2022-23 and 2021-22, respectively. He had never gone out of India prior to that. He visited India from January 1, 2024 to January 15, 2024 for training on a project and received 15 days salary in India as per his Indian monthly salary before being transferred. Mr. Rajeev, one of his friends, gifted him a sculpture in India on August 10, 2023. The market value is ` 45,100. Determine the residential status of Mr. Madan and his HUF and compute gross total income of Mr. Madan for the assessment year 2024-25 assuming he opted out of the default tax regime. The value of one USD () may be taken as ` 70. (4 Marks) (b) Answer the following: (i) M/s. PQR & Co., a proprietary firm of Mr. Yogesh, paid an amount of ` 30,500 to Mr. Amit, a resident individual aged 45 years, on June 1, 2023 towards fees for professional services. Subsequently, another payment of ` 60,000 was due to Mr. Amit on January 30, 2024. Tax was not deducted from both the transactions. Mr. Amit has filed his return of income for assessment year 2024-25 on May 2,2024, taking into account professional fees from M/s. PQR & Co. and paid the taxes due on the income declared in the return of income. What are the tax obligations in the hands of M/s. PQR & Co. on the assumption that the accounts of the firm are audited under section 44AB of the Income-tax Act 1961? (ii) M/s. Fastest Ltd. is an Indian car manufacturer. During the F.Y. 2023- 24, it sold cars for ` 150 lakhs to M/s. Race LLP, a distributor of cars where the sale price of each car was ` 7.5 lakhs. The turnover for the F.Y. 2022-23 of M/s. Fastest Ltd. was ` 15 crores and M/s. Race LLP was 8 crores. What shall be the TCS/TDS implications on M/s. Fastest Ltd. and M/s. Race LLP? (6 Marks)
Subjective
5648
Question 5 (a) DEF Pvt. Ltd., a registered supplier of goods and services in Pune, Maharashtra, has furnished the following details for the month of January, 2024. The turnover of DEF Pvt. Ltd. was ` 3.2 crores in last financial year. Sr. No. Particulars Amount (`) 1. Intra State supply of taxable goods 5,00,000 2. F Ltd. of Mumbai (unregistered) had promised to DEF Pvt. Ltd. in Oct 23 to complete contract within 3 months, but they were not able to complete committed contract, so DEF Pvt. Ltd. received consideration for non-performance of contract on time as decided by pre written agreement. 2,00,000 3. DEF Pvt. Ltd. had provided service of booking of flight tickets for employee of H Enterprise (registered in Delhi) in the economy class from Bagdogra (West Bengal) to Pune Maharashtra. 20,000 4. DEF Pvt. had purchased goods worth ` 5,00,000 from R Ltd. (registered in Gujarat) on 15.03.2023. Now R Ltd. issued debit note on 15.01.2024 for post delivery service to DEF Pvt. Ltd. as per part of terms of sales. 25,000 5. DEF Pvt. Ltd. had sold one of its unit in Pune as a going concern (with all goods and unexecuted orders) to H Ltd. (registered in New Delhi) 10,00,000 6. DEL Pvt. Ltd. had provided service to Mr. Y (registered in Punjab) to organise business exhibition in Dubai. 5,00,000 7. Inter-State supply of service 10,00,000 8. Amount towards receipt of intra State services 6,00,000 9. Purchase of confectionery items which are to be used to supply free of cost to customers in a customer meet organised by DEF Pvt. Ltd. 1,00,000 Opening balance of Input Tax credit at the beginning of Jan 2024. CGST ` 25,000 SGST ` 25,000 IGST ` 30,000 Additional Information: (1) Rates of CGST, SGST and IGST are 9%, 9% and 18% respectively unless otherwise mentioned. (2) Both inward and outward supplies are exclusive of taxes, wherever applicable. (3) All the conditions necessary for availing the ITC have been fulfilled. From the information given above, compute the output tax liability and input tax credit available to DEF Pvt. Ltd., for the month of January, 2024. Make suitable assumptions wherever required. (10 Marks) (b) ABC Infra, is a partnership firm registered under GST. It furnishes the following details about services provided during the month of February 2024: Particulars Amount (i) Consideration received from neighbouring Housing Cooperative Society as ABC Infra agrees to install effluent plant for treatment of wastewater even though is no legal requirement to do so. 5,50,000 (ii) Consideration received from distribution of passes for cricket match organized as firm's annual event. Total 500 passes have been distributed. 2,42,500 (iii) Services given of booking air tickets in economy class for flight between Mumbai to Manipur. 1,20,000 (iv) Services given for construction of buildings to State Government in relation to function entrusted to Municipality under article 243W of the Constitution. Construction material used of ` 2,79,375 is included in the given figure. 8,20,000 All supplies mentioned above are intra-State supplies. GST rates for CGST, SGST, IGST are 9%, 9%, 18% respectively. Compute the GST payable by the ABC Infra for the month of February, 2024. (5 Marks)
Subjective
5650
Question 7 (a) Mohan, a registered person in Salem, Tamil Nadu, makes intra-State supply of taxable goods amounting to ` 13,57,000 (inclusive of GST) to a Public Sector Undertaking (PSU). Consideration for same is received in 5 equal instalments from the PSU. Tax rates applicable: CGST 9%, SGST 9%, IGST 18% What will be your view with respect to applicability of TDS provisions as per section 51 of the CGST Act, 2017 regarding above transaction? What is the period by which TDS is required to be deposited to the Government account? (5 Marks) (b) Every registered person executing works contract shall keep separate accounts for works contract under CGST Rules, 2017. List the details to be maintained. (5 Marks)
Subjective
5641
2024. Also, he received an arrear salary for the month of March 2023 on the same day. (v) His employer gave him a rent-free accommodation (fully furnished) in Delhi from 01.04.2019. This house is owned by his employer. During the previous year 2019-20, the perquisite value of such rent-free furnished accommodation was valued at ` 39,000. The employer also provided him with the facility of a gardener to maintain this house. The salary of gardener paid by the employer was ` 1,000 p.m. The furniture and appliances provided with the house were bought by the employer at an aggregate cost of ` 1,50,000 on 01.01.2020. Electricity and water bills of ` 4,000 p.m. for the said house were paid by the employer. Cost Inflation Index F.Y. 2019-20-289, F.Y. 2020-21-301, F.Y. 2023-24-348. (vi) The employer also spent ` 50,000 on a refresher course for upgrading Mr. Radhey's skills. (vii) During the previous year his wife had been admitted in a notified hospital for treatment of her kidney disease, the hospital bills amounting to ` 3,50,000 were paid by the employer. You are required to compute the taxable salary income of Mr. Radhey for the Assessment Year 2024-25 assuming that he has opted out of the default tax regime under section 115BAC. (6 Marks)
MCQ
5644
Question 1 Mr. Raman, a resident individual aged 62 years, is engaged in the business of manufacturing and sales of spare parts for motor bikes, as a proprietor. He prepares his accounts on mercantile basis. This business is carried out on the ground floor of a two storied commercial building owned by him, the written down value of which is ` 8 lakhs as on April 1, 2023. He prepares his accounts on accrual basis. The Statement of Profit and Loss for the previous year ended on March 31, 2024 shows a net profit of ` 9.25 lakhs (before taxation and depreciation) after debiting/crediting the following items: (i) Travelling expenses includes ` 2,40,000 being expenditure incurred on a foreign tour to Taiwan for attending a business exhibition and meeting with vendors, out of which ` 40,000 is incurred in Indian currency and ` 2,00,000 in foreign currency. Mr. Raman has spent 10 days in Taiwan, out of which 4 days were utilized by him for attending marriage ceremony of a vendor's son. (ii) Administrative expenses include ` 9,525 paid towards interest on delay in deposit of GST. (iii) General expenses include a sum of ` 3,88,000 paid to a non-resident as fee for technical services without deduction of tax at source. (iv) Fire insurance premium of ` 66,000 for the entire building remained unpaid till 31st March, 2024. (v) Expenditure of ` 75,000, was paid to a scientific research association approved under section 35. Out of ` 75,000, ` 50,000 was utilised towards the purchase of land by the research association. (vi) He let out first floor of his commercial building to Mr. Aman on April 1, 2023 and received rent of ` 35,000 per month. Municipal taxes ` 20,000 relating to the building were paid equally by both Mr. Raman and Mr. Aman. Rent received was credited and municipal taxes of ` 10,000 (relating to ground floor) was debited to the statement of profit and loss. (vii) He sold a piece of land for ` 44 lakhs on 12th April, 2023. He had acquired the land for 40 lakhs on 1stJanuary, 2022. The gain of 4,00,000 is credited to the statement of profit and loss. (CII for F.Y. 2021-22-317; F.Y. 2023-24-348) Additional Information: (i) Mr. Raman purchased raw material from M/s. Paul Industries, a micro enterprise, for ` 49,000 on March 10, 2024. However, the payment to M/s. Paul Industries was made on April 5, 2024 by cheque. No written agreement for payment existed between M/s. Paul Industries and Mr. Raman. Another supplier M/s. Kal Industries, a small enterprise, with whom also no written agreement existed for payment, was paid ` 1,34,000 in cash on April 5, 2024 for purchase of raw material on March 31, 2024. Both M/s. Paul Industries and M/s. Kal Industries follow mercantile system of accounting. (ii) Mr. Raman acquired a registered trademark on July 15, 2023 for ` 2,00,000. Mr. Raman started using this trademark for his business from January 15, 2024. Mr. Raman omitted to enter any transaction relating to this trademark in his books of accounts. (iii) Mr. Raman bought a car for personal use on 12th April, 2020 for ` 5,40,000. He started using this car for business purposes from 01.04.2023. As on that day, the market value of the car was ` 2,10,000. Assume the rate of depreciation to be 15%. (iv) He incurred ` 2,50,000 on the purchase of a new machinery to be used in the production of spare parts for motor bikes on May 15, 2023. (v) He has paid tuition fees of ` 25,000 for the education of his daughter to a college. (vi) During the year, Mr. Raman has incurred ` 9,500 in cash for preventive health check-up where ` 5,000 was for himself and ` 4,500 was for his parents who are super senior citizens. (vii) Donation paid to a registered political party by way of cheque ` 20,000. Compute the total income and tax payable for assessment year 2024-25 by Mr. Raman under default tax regime and optional tax regime as per normal provisions of the Act. Which option is advantageous to Mr. Raman? (15 Marks)
Subjective
5647
Question 4 (a) Mr. Suraj, (39 years), his wife Megha (35 years) and minor son Dev (12 years), provide the following details of their income/losses for the previous year 2023-24: Mr. Suraj (i) Salary received as a partner from a partnership firm - ` 6,15,000 He is a working partner in the firm and the salary is as per the limits prescribed under section 40(b). (ii) Income (loss) from house property: Brought forward loss from House -A (let out) - ` 96,000 Current year loss from House B (let out) - ` 2,30,000 (iii) Interest received on enhanced compensation - ` 2,00,000 It relates to transfer of a piece of land in the financial year 2018-19. Out of the above ` 35,000 relates to previous year 2023-24 and the balance relate to preceding previous year. (iv) Gift from grandfather's younger sister by cheque - ` 1,25,000 (v) Dividend on listed equity shares of domestic companies (Gross) - ` 50,000 (vi) On 1stDecember 2023, Mr. Suraj received ` 75 lakhs as maturity proceeds from his life insurance policy which was taken on 1stMay 2012. He paid ` 6,00,000 as annual premium and the sum assured was ` 65 lakhs. Mrs. Megha (i) Current year loss from business. (She carried on this business with funds which Mr. Suraj gifted to her) - ` 8,10,000. (ii) Mrs. Megha purchased a house property from her "Stridhan" and gifted the same to her minor son, Dev on 1stApril, 2023 out of love and affection. The FMV of the house on the date of transfer was ` 51 lakhs. Master Dev Rent received from house property received from Mrs. Megha - ` 35,000 p.m. Compute total income of Mr. Suraj, Mrs. Megha and Dev for the assessment year 2024-25 assuming Mr. Suraj has decided to pay tax under default tax regime provided under section 115BAC, whereas Mrs. Megha and Dev have opted out of the default tax regime. Briefly explain the reasons for the treatment of each item. (6 Marks) (b) Answer the following: (i) Vegetable Ltd. filed its return of income for the A.Y. 2023-24, on 15thDecember 2023. On 2nd January 2024, the accountant of Vegetable Ltd. realised that he had forgotten to claim a genuine business expenditure amounting to ` 15 lakhs. He wants to file revised return to claim such expenditure as the assessment is not yet completed. Whether the action of the accountant of Vegetable Ltd. is valid? (ii) Mahendra, a resident individual aged 45 years earned a salary income of ` 2 crores during the F.Y. 2023-24. He also earned dividend from unlisted shares amounting to ` 4 lakhs. He wants to file his return of income for the A.Y. 2024-25 through a Tax Return Preparer. Can he do so? (4 Marks) OR (b) Rani, an Indian resident aged 34 years did not file her return of income for the A.Y. 2021-22, 2022-23 and 2023-24. She gives the following information regarding each of the A.Y.- A.Y. 2021-22 (i) Tax payable on the total income of Rani - ` 14,50,000 (ii) TDS deducted - ` 5,00,000 A.Y. 2022-23 (i) Tax payable on the total income of Rani - ` 5,60,000 (ii) TDS deducted - ` 10,00,000 A.Y. 2023-24 (i) Tax payable on the total income of Rani - ` 6,30,000 (ii) TDS deducted - ` 2,00,000 (iii) Interest payable under section 234A, 234B and 234C - ` 90,000 (calculated till 31st May 2024) (iv) Self-assessment tax paid - ` 1,00,000 She approaches you to file updated return under section 139(8A) on 16.5.2024. You are required to prepare a suggestion to be given to her in this respect. Your suggestion should include the financial aspect also (like payment of tax) briefly outlining the relevant provisions of the Income-tax Act. (4 Marks)
Subjective
5651
Question 8 (a) Describe the provisions relating to import of services by a registered person as contained in the section 7(1)(b), 7(1)(c) and Schedule 1 of the CGST Act, 2017. (5 Marks) (b) (i) List out category of persons who are exempted from the E-invoicing provisions. (2 Marks) (ii) No act or proceedings of the Goods and Services Tax Council shall be invalid merely by certain reasons. What are they? (3 Marks) OR (b) Commissioner has notified some specified persons to maintain additional accounts or documents as mentioned in rule 56 of the CGST Rules 2017, Agent as defined under Section 2(5) of the CGST Act, 2017 is one of them. List the additional accounts or documents to be kept by agent. (5 Marks)
Subjective
5649
Question 6 (a) M/s. T is a registered dealer of Andhra Pradesh trading in different types of machinery and its related different types of services. Their aggregate turnover for the preceding financial year 2022-23 for sale of machinery was ` 1.32 crores, it was first year so they had not started for providing service related to machinery. From FY 2023-24 they are planning to provide repair and maintenance service of ` 6.25 lakh for which they have to purchase some raw material of ` 5 lakh from the other State (till date they are purchasing within State only). From the information given above, examine whether M/s. T can opt for composition scheme under Section 10(1), 10(2A) or 10(2) of the CGST Act, 2017 for FY 2023-24? (5 Marks) (b) (i) Garima having its permanent residence in Bhavnagar, Gujarat purchased car from Kiara Motors of Jaipur, Rajasthan to take the advantage of lower registration charges and road tax. Garima took the delivery of the car from Jaipur and returned with car to her residence in Bhavnagar, Gujarat. Address of Garima recorded in the invoice issued by Kiara Motors mentions only the name of the State i.e. Gujarat. Garima is an unregistered person whereas Kiara Motors is a registered person under GST. Determine the place of supply for supply made by Kiara Motors to Garima. (2 Marks) (ii) Aakar Advertisement Agency, a registered person in Nagpur, Maharashtra, wants to display the products of its client's at most prominent places in different States. It took on rights to use the space on hoardings mounted on fixed surface attached to earth, situated in Udaipur, Rajasthan and in Gwalior, Madhya Pradesh from G.N. Enterprise registered in State of Chhattisgarh. Aakar Advertisement Agency has an exclusive right to use the space and also to manage the advertisements on the hoardings. What will be the place of supply of services provided by the G.N. Enterprise to the Aakar Advertisement Agency? (3 Marks)
Subjective

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