Question 1

What is the amount of deduction in relation to Tea, Coffee and Rubber development account u/s 33AB of Income Tax Act?

Options :

A : 20% of profits of such business

B : 40% of profits of such business

C : 60% of profits of such business

D : 100% of profits of such business

Answer: B

Question 2

Deductions under section 54 are allowed from

Options :

A : Gross Total Income

B : Long Term Capital Gain

C : Gross total income exclusive of long-term capital gain as well as short-term capital gain

D : Net Total Income

Answer: C

Question 3

What is the quantum of deduction allowed u/s 80U?

Options :

A : Rs. 40,000

B : Rs. 75,000

C : Rs. 60,000

D : Rs. 55,000

Answer: D

Question 4

Mr. Tiwari is the sole income earner in the family. Mrs. Tiwari is a homemaker. They are aged 40 and 36

respectively Life expectancy for both of them is another 40 years. They have no children. Other

information you have is: Current investment portfolio Rs. 20 lakhs, Estimated final expenses Rs. 1 lakh,

present annual expenses are of Rs. 4 lakhs (including Rs. 1 lakh of Mr. Tiwari's personal expenses), Mr.

Tiwari's post tax income in hand is Rs. 3.5 lakhs. Assume a post tax and post inflation rate is 4%.

Calculate the insurance requirement under the Needs Based Method?

Options :

A : Rs. 43 Lakhs

B : Rs. 42 Lakhs

C : Rs. 62 Lakhs

D : Rs. 51 Lakhs

Answer: D

Question 5

At the money option will generate

Options :

A : Positive cash flows

B : Zero cash flow

C : Negative cash flows

D : None of the above

Answer: A