FPSB® Retirement & Tax Planning Mock

If a person fails to file the tax return by the due date of 31st July, he will have to pay a compulsory late filing fee.

If a person delays filing the return beyond 31st December of the assessment year, he will be liable to pay a late filing fee of Rs.

In the case of small taxpayers with incomes up to Rs. 5 lakh maximum fees shall not exceed Rs.

Mrs. X has let out one house property @ Rs. 62000 p.m. Municipal Valuation Rs. 72000 p.m. Fair Rent Rs. 90000 p.m. Standard rent Rs. 100000 p.m. Municipal Tax paid Rs. 40000. Compute Net Annual Value.

Municipal Value of house is Rs.100000 Fair Rent Rs. 140000 Standard Rent Rs.130000. The house property has been let out for Rs.13000 p.m. and was vacant for one month during the previous year 2019-20. Municipal taxes paid during the year were Rs. 50000. Compute the net annual value for assessment year 2020-21

Municipal Value 100000 Fair Rent 140000 Actual rent (per month) 11000 Municipal tax paid during the year 10000 The tenant vacated the property on 31.10.2019 and thereafter the property was let out for Rs. 15000 p.m. ABC could not realise the rent for the months of September and October 2019 due to the death of the earlier tenant. Compute the annual value of the property for the assessment year 2020-21

Who can open a NPS account Except?

PFRDA has appointed …….the Central Record Keeping Agency (CRA) to maintain the records of contribution and its deployment in various pension fund schemes for the employees

which account is the default pension account having all the tax incentives under Income Tax Act in NPS?

For salaried employees NPS Contributions are eligible for tax deduction u/s 80 CCD (1) of Income Tax Act up to

For Self-employed NPS Contributions are eligible for tax deduction u/s 80 CCD (1) of Income Tax Act up to:

ditional tax Benefit under Section 80ccd1(b) available for both employee and self-Employed amounts to :

duction under section 80CCD (2) while computing total income of the employee. However amount of deduction could not exceed ….of salary of the Pt. Employee & ……for the government employee

Yamini Purchased 50000 units of an equity mutual fund in an NFO the on 1 jan2016. Valuation of his portfolio as on 31/01/2018 was 650000 and then he sold all units as on 1may2020. He sold it in 900000. What will be his tax liability?

Mr. Ashish is a salaried employee. In the month of January 2015 he purchased 100 shares of X Ltd. @ Rs. 1400 per share from Bombay Stock Exchange. These shares were sold through BSE in April 2019 @ Rs. 2600 per share. The highest price of X Ltd. share quoted on the stock exchange on January 31 2018 was Rs. 1800 per share. What will be the nature of capital gain in this case?

Mr. Saurabh is a salaried employee. In the month of July 2017 he purchased 100 shares of XYZ Ltd. @ Rs. 2000 per share from Bombay Stock Exchange. These shares were sold through NSE in Sept 2018 @ Rs. 4900 per share. The highest price quoted on the stock exchange on this share on January 31 2018 was Rs. 3800 per share. What will be the Capital gain in this case?

In respect of self-occupied property interest deduction under sec 24 (b) is restricted to

Mr. Manish purchases a house property for 500000 on May 20 1990. The following expenses are incurred by him for making addition/alternation to the house property: Particulars ` a. Cost of construction of first floor in 1997-98 150000b. Cost of construction of the second floor in 2002-03 735000 c. Reconstruction of the property in 2012-13 550000 Fair market value of the property on April 1 2001 is ` 850000. The house property is sold by Mr. Manish on September 10 2019 for 7800000 (expenses incurred on transfer: 50000). Compute the capital gain for the assessment year 2019-2020.

Mr. Sachin purchased a residential house on July 20 2017 for ` 1000000 and made some additions to the house incurring ` 200000 in August 2017. He sold the house property in April 2019 for ` 2500000. Out of the sale proceeds he spent ` 500000 to purchase another house property in November 2019. What is the amount of capital gains taxable in the hands of Mr. Sachin for the A.Y. 2020-21?

What is the maximum amount of gratuity exempt from tax under IT Act 1961?

How many minimum years of continuous service is required to be eligible for payment of Gratuity under section 4(1) for the payment of Gratuity Act 1972?

Under how many categories the employees are divided for the purpose of calculation of exemption of Gratuity u/s 10(10)?

Mr. Subodh is a government employee. He received Rs. 2500000 as gratuity. He retired on 16th February 2020 after rendering 25 years and 7 months of service. His basic salary w.e.f. 01-10-2019 was Rs. 30000 per month (prior to that Rs. 25000 p.m.). His dearness allowance was Rs. 15400 p.m. The amount of gratuity taxable will be-

According the section 80 no loss which has not been determined in pursuance of return filed in accordance of provision of section 139(3) shall be carried forward Exceptions are:

What is the maximum amount one can deposit in a PPF account in a financial year?

Interest on PPF account is credited to the account on at the end of each _______

How many instalments can one deposit in a PPF account in one year?

During the year 2019-20 Mr. Kumar received following gifts. Ascertain the total amount of gift charged to tax. Gift of Rs. 84000 from his father. 252000 received on account of will of his grandfather. 30000 received from his friends on the occasion of marriage anniversary

During the year 2019-20 Rahul received following gifts. Ascertain the total amount of gift charged to tax. Gift of gold received from his mother. The value of gold amounted to Rs. 184000. Share’s valuing Rs. 40000 received by way of gift from his brother. Gift of diamond jewelry amounting to Rs. 250000 received from his friends on the occasion of his marriage. Gift of diamond jewelers amounting to Rs. 80000 received from his friends on the occasion of his friend’s marriage.

Mr. Deepanshu has the following receipts from his employer: (1) Basic pay ` 4000 p.m. (2) Dearness allowance (D.A.) 600 p.m. (3) Commission ` 6000 p.a. (4) House rent allowance ` 900 p.m. Find out the amount of HRA eligible for exemption to Mr. Raj Kumar assuming that he paid a rent of 1500 p.m. for his accommodation at Kanpur. DA forms part of salary for retirement benefits

Salary for the purpose of computation of Taxable HRA is:

Business loss of the current year cannot be set-off against –

Section 70 enables set off of losses under one source of income against income from any other source under the same head. The exceptions to this section are –

Abhishek is the minor child of Amitabh and Mrs Jaya. During the previous year 2019-20 the income of Abhishek is Rupees. 2500 During the previous year 2019-20 the income of Amitabh is higher than that of Mrs Jaya What will be the tax implications.

The following income of a minor child shall not be clubbed in the hands of his/her parents and will be taxable in the hands of the minor himself/herself:

additional deduction of up to Rs 50000 for the amount deposited by a taxpayer to their NPS account under section:

If you are an individual or an HUF you may claim a deduction of maximum Rs …. against interest income from your savings account with a bank co-operative society or post office under section 80TTA

Employer’s contribution to NPS – Section 80CCD (2) Can be claimed additional deduction on contribution to employee’s pension account for up to ……. of salary and ……….for Government employees

Alexander owns an apartment that he rents out full-time. At the end of last year his basis in the property was $100000. This year he spent $5000 to repair the sidewalk $10000 to install new cabinets in the kitchen and $2000 on property taxes. He received $18000 in rent. What is Alexander’s current basis in the property?”

cording to IFRS 10 when must a parent company present consolidated financial statements for itself and its subsidiaries?

capital asset is property used to generate a financial return rather than property used generally for consumption or put to other personal use. When capital assets produce a gain or a loss it normally is categorized as a capital gain or capital loss. Which of the following statements least likely supports the concept that the capital gains system is a tax advantaged system?

– Tax evasion refer to:

What is the first factor a financial planner should consider when determining the suitability of an offshore investing strategy for a client?

The business of a HUF is transacted from USA and all the policy decisions are taken there. Mr. Sanjay the Karta of the HUF who was born in Jaipur visits India during the P.Y.2019-20 after 10 years. He comes to India on 1.4.2019 and leaves for Australia on 1.12.2019. Determine the residential status of Mr. Sanjay and the HUF for A.Y.2020-21.

Which of the following is false regarding why a client’s retirement goals may be difficult for an advisor to assess?

Which of the following correctly describes one of the fundamental assumptions that must be determined for each individual when developing a retirement distribution strategy?

Which of the following is least likely to be a type of “capital consumption” pool?

Which of the following would be the most important information for an advisor to collect before estimating a client’s retirement expenses?

If the interest from SCSS is more than Rs.…………… then TDS is deducted at source on interest.

How does employer’s contribution to the employee superannuation fund benefit them?

Which of the following best describes the glide path strategy?

Which of the following is not a potential source of cash flow in retirement?

In the joint family system in India what are the major benefits?

Rohan age 28 years starts investing Rs. 1000 every month for his retirement. Sohan starts investing Rs. 2500 every month from his age of 38 years. Assuming return on investment to be 12% p.a. calculate the difference in the corpus of Rohan and Sohan if both invest till their age of 58 years.

Raju aged 44 is working in ABC Ltd. His present annual expenses are Rs. 300000. He plans to retire at 58. If inflation is expected to be 8% p.a. and he expects 10% p.a. return on his investments calculate the corpus required by him to fund his post retirement needs if his life expectancy is 73 years.

Krishna aged 30 years wants to know the real worth of his investments after 25 years. He is investing Rs. 200000 every year in an equity diversified fund generating 14% p.a. and the average inflation rate for the duration is 8% p.a.

Ramit wants to accumulate money to buy a car worth Rs. 5.6 lakhs after 4 years. He wishes to invest money at the beginning of every quarter for the first 3 years and he cannot save any more money after that. Calculate the amount of saving required every quarter if the rate of return on investments is 14.25% compounding quarterly.

A sum of Rs 50000 in invested every year at a rate of 5% p.a. After 7 years the rate of invest was changes to 5% p.a. compounded half yearly. After a further period of 3 years the rate was again changed to 6% p.a. compounded quarterly. Find the accumulated amount at the end of 15 years from commencement?

Prateek who is 30 years old spends annually Rs. 4.5 lakh towards his household expenses. He expects to retire at 60 years. During this period inflation is expected to be on an average 6% p.a. He wants to cover 25 years living expenses for self and spouse post retirement. If the inflation in the post-retirement period moderates to an average of 5% p.a. and he expects to generate a return of 9% from his accumulated corpus what corpus should he target for a comfortable retirement?

Mr. Naresh has been saving Rs. 2 lakhs every year for the last 10 year. This money has been invested in a diversified equity scheme which gives an average return of 14.25% p.a. He has stopped saving in this account and has started saving total Rs. 15000 per month through 3 SIP’s (systematic investment plans) for 3 years. The average return on these 3 investments is 12.75% per annum compounded monthly. How much will be accumulated from both the investments after 3 years?

Deepak aged 35 years is planning to retire at 55. His present monthly expenses are Rs. 75000. Assuming inflation as 8% p.a. and life expectancy of 75 year calculate the difference in retirement corpus if he delays his retirement by 5 years and retire at 60.

Rakhi aged 30 years wishes to retire at 50. She starts an investment of Rs. 250000 every year for building her retirement corpus. Assume an average annual return of 12% for her on these investment during the accumulation period (20 years). On retirement she plans to withdraw her entire corpus and invest in a fixed deposit yielding 4% p.a. post inflation. In case her life expectancy is 75 years calculate the allowable monthly withdrawals by Rakhi from this corpus.

OASIS stands for:

Who was chosen to head a committee for the OASIS project?

EDLI applies to all employees with a basic salary under Rs. …….. per month & maximum benefit is capped at Rs…….

EDLI Covers the employee:

per the provisions of the EDLI who contributes:

UAN Stands for

Out of 12% Employer Contribute . …… towards “Employees’ Pension Scheme &…………. towards “Employees Provident Fund”.

 Provisions of EPF covers every establishment in which ….or more persons are employed and certain organizations are covered.

What are the most common types of annuities in India?

Indian families’ biggest threat when it comes to structure is?