Paper 7 Direct Taxation | CMA Intermediate Fill in the blanks




Paper 7 Direct Taxation fill in the blanks

A. Fill up the blanks:                                                     

1) Payment of royalty to a person resident in India requires deduction of tax at source at the rate of 10%.

2) The amount of wages paid to eligible new workmen by an assessee engaged in non-seasonal manufacturing activity is deductible u/s 80JJAA @ 30 % of the wages so paid.

3) An expenditure, for which cash payment is made for a sum exceeding Rs. 10,000 on a single day is disallowed.

4) If a return of income is not furnished within the due date prescribed in section 139(1), such return can be filed on or before 31st March, 2020/end of relevant assessment year, provided the assessment is not completed.

5) Maximum amount of exemption under section 10(10C) in respect of compensation received for voluntary retirement is Rs. 5,00,000.

B. Fill up the blanks:                                                     

1) Deduction under section 80GGB in respect of house rent paid is applicable to Individual (Section is wrongly quoted in the question paper) .

2) Unabsorbed depreciation shall be allowed to be carried forward for any number of years and such carried forward unabsorbed depreciation may be set off against any income, other than Income under the head “Salaries”, Winning from lotteries, cross word puzzles, etc..

3) Income referred to in sec. 68 to sec. 69D shall be taxable @ 60%. (Excluding SC and Cess)

4) Any voluntary contributions received by an electoral trust shall be exempted.

5) Income from sub-letting of a house property by a salaried employee is taxable under the head Income from Other Sources

C. Fill up the blanks:                                                     

1) The total income computed will have to be rounded off to the nearest multiple of Rs. 10.

2) Domestic company means a/an Indian company.

3) Additional depreciation on factory building for Rs.30 lakhs, acquired by a manufacturer on 1st Dec, 2017 is Nil.

4) Unabsorbed depreciation can be carried forward for Any number of years.

5) An assessee, who receives leave encashment during continuation of his service, can also claim Relief under section 89.


D. Fill up the blanks:                                                     

1) When a director of a company received 30 lakhs by way of non-compete fee, it is taxable under the head Profits and gains of business or profession .

2) When unrealized rent is received based on court decree but at the time of receipt the property was not owned by the assessee, it is taxable under the head Income from house property .

3) When Mr. Ashwin received Rs. 20,000 as scholarship for meeting the cost of education it is Exempt from tax (or exempt).

4) The Income Computation Disclosure Standards (ICDS) will apply only when the assessee adopts Mercantile (or accrual) method of accounting.

5) Speculation loss can be carried forward for a maximum period of 4 (number of) years after the year of such loss.

E. Fill up the blanks:                                                     

1) In case of an Indian citizen who leaves India during the previous year for employment outside India, the period of 60 days shall be substituted by 182 days.

2) Scholarship received by a student was Rs. 2,000 p.m. He spends Rs. 16,000 for meeting the cost of education. The Balance Rs. 8,000 is Exempt.

3) Generally, income is taxable under the head, house property only when the assessee is the Owner of such house property.

4) Salary, bonus, commission or remuneration due to or received by a working partner from the firm is taxable under the head Profits and gains of business or profession.

5) Period for holding bonus shares or any other financial asset without any payment shall be reckoned from the date of Allotment.