CMA INTERMEDIATE

ASSESSMENT TEST 2022

SUB: DIRECT TAXATION
Topics: RESIDENTIAL STATUS & PRESUMPTIVE INCOME
Time Durations: 1 Hour Maximum Marks: 40

General Instructions:
1. Section-A consists of multiple-choice questions. Each question carries ½ mark.
2. Solve any 40 questions in section-A.
3. In section-B Ques 4 & 5 are compulsory. solve any 2 questions out of Ques 1,2,3.
4. in part-B que.4 & 5 carry 10 marks. And remaining questions carries 5 marks each

PART - A
Multiple choice questions:

Q1. HUF of Mr. P consisting of himself, his wife & 2 sons is assessed to tax. Residential status of HUF = NR
when.
(a) Its management & control is wholly in India
(b) Its management & control is wholly o/s India
(c) The status of Karta is non-resident for that year
(d) When majority of the members are NR.
Q2. If Karta is ROR in India but control & management of HUF is situated partly outside India in PY, HUF is:
(a) ROR (b) RNOR (c) NR (d) None
Q3. Mr. P is Karta of HUF doing business at Pune. Mr. P is residing in Dubai for past 10 years & visited India
for 20 days every year for filing Income tax return of HUF. His 2 major sons take care of the day to day affairs
of business in India. Residential status of HUF for AY 2019-20 is:
(a) ROR (b) RNOR (c) NR (d) None
Q4. Residential status of company is determined
(a) u/s 6(4) (b) u/s 6(1) (c) u/s 6(6) (d) u/s 6(3)
Q5. A company is considered to be resident if:
(a) It is an Indian Company
(b) During PY, foreign company’s POEM is situated in India
(c) Both (a) & (b)
(d) Any of the above
Q6. Indian company would be Resident in India if its .
(a) POEM is in India (b) POEM is outside India
(c) All shareholders are ROR (d) All directors are ROR
Q7. A company incorporated outside India having its place of effective management fully situated in India in
the previous year will be treated as .
(a) NR (b) ROR (c) RNOR (d) Resident
Q8. PC Ltd. is registered in Australia & has head office in Australia. POEM of its business affairs is situated in
India. PC Ltd. shall be:
(a) Resident (b) ROR (c) NR (d) None
Q9. PC Ltd. is registered in India but it has POEM in Nepal. D Ltd. is registered in Nepal but it has POEM in
India.
(a) PC Ltd. – Resident; D Ltd. – NR
(b) Both are NR
(c) Both D & PC Ltd. are resident of India.
(d) PC Ltd. is a NR but D Ltd. is resident of India

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Q10. PC Ltd. is an Indian company. It carries its business in Delhi & London. The POEM of the company is
situated in London. More than 85% of its business income is from the business in England. If so, its
residential status will be-
(a) NR (b) ROR (c) RNOR (d) Resident
Q11. Income deemed to be received in India is given u/s
(a) 10 (b) 7 (c) 12 (d) 5
Q12. Indian Income means _ .
(a) Income accrued. deemed to be accrued in India
(b) Income received. deemed to be received in India
(c) Both (a) & (b)
(d) None of the above.
Q13. Foreign Income means .
(a) Income accrued. deemed to be accrued in India
(b) Income received. deemed to be received in India
(c) Both (a) & (b)
(d) None of the above.
Q14. Income received in India during the previous year is taxable in the case of .
(a) ROR (b) RNOR (c) NR (d) All
Q15. Foreign income received in India during the previous year is taxable in the case of .
(a) ROR (b) RNOR (c) NR (d) All
Q16. Incomes which accrues in India but received outside India are taxable in case of .
(a) ROR (b) RNOR (c) NR (d) All
Q17. Income which accrue or arise outside India & also received outside India is taxable in case of .
(a) ROR (b) RNOR (c) NR (d) ROR &RNOR
Q18. Income accruing in London & received there is taxable in India in the case of .
(a) ROR (b) RNOR (c) NR (d) ROR &RNOR
Q19. Income accruing from agriculture in a foreign country is taxable in India in case of an assesses who is:
(a) ROR (b) RNOR (c) NR (d) ROR &RNOR
Q20. Which Income is taxable in India to ROR Individual?
(a) Any Income accrued or Received in India
(b) Any Income accrued outside India
(c) Any Income received outside India
(d) All Incomes are Taxable
Q21. Which Income is taxable in India to RNOR Individual?
(a) Business income accruing outside India
(b) Property income accruing outside India
(c) Interest income accruing outside India
(d) Income accruing outside India if it is derived from a business controlled in India.
Q22. Income which accrue outside India from business controlled from India is not taxable in India in case of:
(a) ROR (b) RNOR (c) NR (d) All
Q23. Which Income is taxable in India to NR Individual?
(a) Any Income accrued or Received in India
(b) Any Income accrued outside India
(c) Any Income received outside India
(d) No Income is Taxable in India in the hands of NR.
Q24. Income earned & received outside India but later on remitted to India, is taxable to:
(a) ROR (b) RNOR (c) NR (d) None
Q25. Past untaxed profit of PY 2017-18 brought to India in PY 2018-19 is taxable in AY 2019-20 to
(a) All the assesses (b) ROR
(c) Non-resident in India (d) None of the above
Q26. Following are the incomes of Mr. T for the PY 2018-19:

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Particulars Amount
Income from profession in Kenya which was set-up in India received there 12 Lakh
Income from agriculture land in Nepal received there and then bought to India 30 Lakh
Past untaxed profit bought to India during the year 7 Lakh

What is the gross total income of Mr. T, if he is ordinary resident, not ordinary resident or non-resident?

Ordinary Resident Not-ordinary resident Non-resident

a. 42,00,000 12,00,000 Nil
b. 49,00,000 42,00,000 Nil
c. 49,00,000 42,00,000 7,00,000
d. 12,00,000 30,00,000 7,00,000
Q27. Following are the incomes of Mr. Q for the PY 2018-19:
Particulars Amount
Profits earned from business in Paris which is controlled in India; half of the profit is 40 Lakhs
being received in India
Income from Agriculture in Bhutan and remitted to India 10 Lakhs
Income from house property in London and received there 8 Lakhs
What is the gross total income of Mr. Q, if he is Ordinary resident, Not ordinary resident or Non-resident?
Ordinary Resident Not-ordinary resident Non-resident
a. 58,00,000 20,00,000 20,00,000
b. 50,00,000 10,00,000 Nil
c. 58,00,000 40,00,000 20,00,000
d. 58,00,000 40,00,000 Nil
Q28. Mustafa was born in Bangladesh in year 1949. He is staying in Switzerland since 1981. He came to visit
India on
3-10-2018 and returns on 5-4-2019. He will be __________ for the PY 2018-19
a. None of the above
b. Ordinary resident
c. Not-ordinary resident
d. Non-resident
Q.29 For computation of profits of business on presumptive basis under section 44AD, the deemed profits
shall be calculated at the rate of of the total turnover or gross receipts of such business:
a) 8%
b) 6%
c) 20%
d) 5%
Q.30 The total turnover of the business of assessee was of Rs.` 30,00,000. The assessee declared a profit of
Rs.` 2,80,000. What shall be the deemed profits of assessee under section 44AD?
a) Rs.` 2,80,000
b) Rs.` 2,40,000
c) Rs.` 40,000
d) Rs.` 2,60,000
Q.31 The provisions of section 44AD shall not apply to :
a) Person carrying on specified profession as referred to Section 44AA.
b) A person earning income in the nature of commission or brokerage.
c) Person carrying on any agency business.
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d) All of the above.

Q32 Provisions of section 44AD for computation of presumptive income are not applicable to -----------
a) Limited liability partnership
b) Partnership firm
c) Resident Hindu Undivided Family
d) Resident individual.
Q.33 When a partnership firm has total sales of Rs.` 90 Iakh, the maximum amount deductible as salary of
working partners on the basis of presumptive income determined under section 44AD is –
a) Rs.` 4,92,000
b) Rs.` 3,60,000
c) Rs.` 3,30,000
d) NIL
Q.34 For computation of profits of profession on presumptive basis under section 44ADA, the deemed profits
shall be calculated at the rate of of the gross receipts of such profession:
a) 8
b) 50
c) 20
d) 5
Q.35 The provisions of Section 44ADA are
applicable if gross receipts from profession does
not exceed------------- `
a) Rs.` 50,00,000
b) Rs.` 2,00,00,000
c) Rs.` 1,00,00,000
d) Rs.15000000
Q.36 When a person carries on the business of carrying goods for hire for the whole year with 5 self-owned (
gross vehicle weight of each being 1285 kg.) and 3 leasehold heavy goods vehicles (gross vehicle weight of
each being 31,000 kg.), the presumptive income chargeable to tax under section 44AE would be –
a) Rs.`4,80,000
b) Rs.`7,20,000
c) Rs.` 15,66,000
d) Rs.` 3,36,000
Q.37 Mr. DS is carrying of profession of company secretary. His gross receipts from profession is Rs.`
45,00,000 in Previous year 2018-19. His deemed profits as per provisions of Section 44ADA are:
a) Rs.`3,60,000
b) Rs.` 22,50,000
c) Rs.` 4,50,000
d) Rs.` 9,00,000
Q.38 Anuj owns 6 goods carriage vehicles (gross vehicle weight of each being 31000 kg.) . Out of these 2
are heavy goods vehicle acquired by him on 15th January, 2019. His taxable income under section 44AE will
be
a) Rs.` 4,05,000
b) Rs.` 16,74,000
c) Rs.` 84,000
d) Rs.` 3,60,000.
Q.39 Rs. 1000 per ton of gross vehicle weight or unladen weight as the case may be, for per month or part of
a month for a heavy goods carriage and Rs. 7,500 per month or part of a month for other goods vehicle in the
case of Assessee owning not more than------------- goods carriages at any time during the previous year and

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engaged in the business of plying, hiring or leasing such goods carriages shall be eligible to compute profits
under Section 44AE:
a) 10
b) 8
c) 6
d) 15
Q.40 For computing deemed profits under section 44AE in case of goods carriage other than heavy weight
vehicle being a goods vehicle the amount with which per vehicle per month has to be multiplied is:
a) Rs.` 10,000
b) Rs.` 7,500
c) Rs.` 50,000
d) Rs.` 1,50,000
Q.41 For computing deemed profits under section 44AE in case of goods carriage a heavy goods vehicle the
amount with which per ton per month has to be multiplied is:
a) Rs.`10,000
b) Rs.`5,000
c) Rs.` 50,000
d) Rs.`1,000
Q.42 An assessee was engaged in the business of plying, hiring or leasing of goods carriages. He held 4
heavy goods vehicle ( Gross weight for each vehicle15000 kg) being for the entire year and three goods
carriage other than heavy goods vehicle which were acquired on 15th July 2018. Compute the deemed
profits u/ s 44AE.
a) Rs.`5,62,500
b) Rs.` 9,22,500
c) Rs.`4,20,000
d) Rs. 3,78,000

PART – B
Q.1. Mr. Sunil earns the following income during the previous year 2021-22
a. Interest from an Indian company received in Germany rs, 1,00,000
b. Pension from former employer in India received in U.K. Rs, 2,00,000
c. Income from companies in USA and received in India 1,00,000
d. Income from agriculture in USA and received in India 10,000
e. Income from employment in Japan received there rs, 20,000
f. Past untaxed profits brought to India rs, 50,000
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Compute GTI of Sunil for the assessment year 2019-20 if he is,

i. Resident
ii. Not ordinarily resident
iii. Non resident
Q.2. Ram provides following details of income, calculate the income which is liable to be taxed in India
for the A.Y.2021-22 assuming that –

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a) He is an ordinarily resident b) He is not an ordinarily resident c) He is a non-resident.

1. Salary received in India from a former employer of UK 1,40,000
2. Income from tea business in Nepal being controlled from India 10,000
3. Interest on company deposit in Canada (1/3rd received in India) 30,000
4. Profit from a business in Mumbai controlled from UK 1,00,000
5. Profit for the year 2002-03 from a business in Tokyo remitted to India 2,00,000
6. Income from a property in India but received in USA 45,000
7. Income from a property in London but received in Delhi 1,50,000
8. Income from a property in London but received in Canada 2,50,000
9. Income from a business in Jambia but controlled from Turkey 10,000
Q.3. X came India for first time on July 24, 2016. From July 24, 2016 to December 25, 2017 he was
in India. Again, he came to India on August 5, 2020 for employment purpose & left India on November
25, 2020 permanently.
Determine his residential status for the previous year 2020-21 assuming -
a) He is a foreign citizen b) He is an Indian citizen
Q.4. What is Residential Status in India? How do you determine it.
Q.5 Mr. Sunil engaged in the business of plying, hiring or leasing goods carriages. He owned 5
heavy goods vehicle having gross weight of 13,000 kilograms and 4 other goods vehicle during the
previous year 2021-22. What will be his taxable income as per the provisions of section 44AE?

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