CA Inter Taxation MCQ May 2023 ( ICAI MCQ 1-10)

1. For A.Y.2023-34, Mr. Hari, a resident Indian, earns income of ₹ 10 lakhs from sale of rubber manufactured from latex obtained from rubber plants grown by him in India and ₹ 15 lakhs from sale of rubber manufactured from latex obtained from rubber plants grown by him in Malaysia. What would be his business income chargeable to tax in India, assuming he has no other business?

2. Ms. Sowmya has three farm buildings situated in the immediate vicinity of a rural agricultural land. In the P.Y.2022-23, she earned ₹ 3 lakh from letting out her farm building 1 for storage of food grains, ₹ 10 lakh from letting out her farm building 2 for storage of dairy products and ₹ 15 lakh from letting out her farm building 3 for residential purposes of Mr. Sumanth, whose food grain produce is stored in farm building 1. What is the amount of agricultural income exempt from income-tax?

3. The Gupta HUF in Maharashtra comprises of Mr. Harsh Gupta, his wife Mrs. Nidhi Gupta, his son Mr. Deepak Gupta, his daughter-in-law Mrs. Deepti Gupta, his daughter Miss Preeti Gupta and his unmarried brother Mr. Gautam Gupta. Which of the members of the HUF are eligible for coparcenary rights?

4. Mr. Square, an Indian citizen, currently resides in Dubai. He came to India on a visit and his total stay in India during the F.Y. 2022-23 was 135 days. He is not liable to pay any tax in Dubai. Following is his details of stay in India in the preceding previous years: Financial Year 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 Days of Stay in India 100 125 106 83 78 37 40. What shall be his residential status for the P.Y. 2022-23 if his total income (other than income from foreign sources) is ₹ 10 lakhs?

5. Aashish earns the following income during the P.Y. 2022-23: • Interest on U.K. Development Bonds (1/4th being received in India): ₹ 4,00,000 • Capital gain on sale of a building located in India but received in Holland: ₹ 6,00,000 If Aashish is a resident but not ordinarily resident in India, then what will be amount of income chargeable to tax in India for A.Y. 2023-24?

6. Mr. Rajesh, aged 53 years, and his wife, Mrs. Sowmya, aged 50 years, are citizens of Country X. They are living in Country X since birth. They are not liable to tax in Country X. Both of them have keen interest in Indian Culture. Mr. Rajesh’s parents and grandparents were born in Country X. Mrs. Sowmya visits India along with Mr. Rajesh for four months every year to be with her parents, who were born in Delhi and have always lived in Delhi. During their stay in India, they organize Cultural Programme in Delhi-NCR. Income of Mr. Rajesh and Mrs. Sowmya from the Indian sources for the P.Y. 2022-23 is ₹ 18 lakhs and ₹ 16 lakhs, respectively. What is the residential status of Mr. Rajesh and Mrs. Sowmya for A.Y. 2023-24?

7. Who among the following will qualify as non-resident for the P.Y. 2022-23? – Mr. Bob, an Italian dancer, came on visit to India to explore Indian dance on 15.09.2022 and left on 25.12.2022. For past four years, he visited India for dance competition and stayed in India for 120 days each year. – Mr. Samrat born and settled in USA, visits India each year for 100 days to meet his parents and grandparents, born in India in 1946, living in Delhi. His Indian income is ₹ 15,20,000. – Mr. Joseph, an American scientist, left India to his home country for fixed employment there. He stayed in India for study and research in medicines from 01.01.2017 till 01.07.2022. Choose the correct answer

8. Mr. Sushant is a person of Indian origin, residing in Canada. During P.Y. 2022-23, he visited India on several occasions and his period of stay, in total, amounted to 129 days during P.Y. 2022-23 and his period of stay in India during P.Y. 2021-22, P.Y.2020-21, P.Y. 2019-20 and P.Y. 2018-19 was 135 days, 115 days, 95 days and 125 days, respectively. He earned the following incomes during the P.Y. 2022-23: 1. Source of Income Income received or deemed to be received in India (₹) 2,50,000 2. Income accruing or arising or which is deemed to accrue or arise in India (₹) 3,75,000 3. Income accruing or arising and received outside India from business controlled from India (₹) 5,50,000 4. Income accruing or arising and received outside India from business controlled outside India (₹) 6,50,000 What is the residential status of Mr. Sushant for A.Y. 2023-24 and his income liable to tax in India during A.Y. 2023-24?

9. Mr. Ramesh, a citizen of India, is employed in the Indian embassy in Australia. He is a non-resident for A.Y. 2023-24. He received salary and allowances in Australia from the Government of India for the year ended 31.03.2023 for services rendered by him in Australia. In addition, he was allowed perquisites by the Government. Which of the following statements are correct?

10. Anirudh stays in New Delhi. His basic salary is ₹ 10,000 p.m., D.A. (60% of which forms part of pay) is ₹ 6,000 p.m., HRA is ₹ 5,000 p.m. and he is entitled to a commission of 1% on the turnover achieved by him. Anirudh pays a rent of ₹ 5,500 p.m. The turnover achieved by him during the current year is ₹ 12 lakhs. The amount of HRA exempt under section 10(13A) is –

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