PERSONAL FINANCIAL PLANNING - MCQS 2019 (2024)

A The taxpayer is an individual (may be resident/non-resident or Indian citizen /foreign Citizen) or Hindu undivided family (may be resident or non-resident)

B Parents include mother, father, mother in law & father in law

C Payment for Medical Insurance Premium should be made by any mode other than cash

D Payment should be made out of his income changeable to tax

11. Find out the Tax Liability of Mr Mansuri (resident individual) (Age 83 years) for the assessment year 2018 - 19. The Net Income of Mr Mansuri is Rs.19,00,000

A Rs. 3,32,000

B Rs. 3,81,100

C Rs. 3,92,000

D Rs. 3,70,000

12. Which of the following is true for rebate u/s 87A for assessment year 2018-19 for resident individuals?

A Amount of rebate u/s 87A cannot exceed Rs. 2,500

B Resident individual's total income or net income or taxable income does not exceed Rs. 3.5 Lakhs

A Both (i) and (ii) are true

B (i) is true and (ii) is false

C (i) is false and (ii) is true

D Both (i) and (ii) are false

14. Calculate Deduction available to Mr Modi (Age: 40 years) u/s 8OC for assessment year 2018-19:

All the payments are made out of income chargeable to tax in the previous year 2017-18:

i. Insurance premium paid for life of Mr. Modi Rs. 11,000, Sum Assured Rs. 2,00,000 (policy taken in 2011)

ii. Insuance premium paid in cash for life of Mrs. Modi Rs. 6,000, Sum Assured Rs. 1,00,000 (policy taken in 2014)

iii. Insurance premium paid for the life of dependent son Rs. 13,000, Sum Assured Rs. 1,20,000. (policy taken in 2016)

A Rs. 30,000

B Rs. 29,000

C Rs. 24,000

D Rs. 23,000

15. Calculate the Solvency Ratio from the given information:

Short Term Liability - Rs. - 10,000

Long term Liability - Rs. 4,40,000

Net Worth - Rs. 5,50,000

A 45 %

B 55 %

C 81.81 %

D 122.22%

16. Match the following:

A (a - ii), (b - i), (c - iii)

B (a - ii), (b - iii), (c - i)

C (a - iii), (b - ii), (c - i)

D (a - i), (b - ii), (c - iii)

17. Deduction u/s 80TTA is available (i) upto Rs. 10,000 in respect of any income by way of interest on deposits in Savings account and

(ii) in respect of interest income received from deposits in savings accounts with a bank, co-operative bank and Post Office.

A Both (i) and (ii) are true

B (i) is false and (ii) is true

C (i) is true and (ii) is false

D Both (i) and (ii) are false

18. Which of the following is/are the goal/s of Personal Financial Management ?

A Accumulating Wealth

B improving standard of living

C Spending Money Wisely

D All of the Above

19. Which of the following statement/s is/are true?

A Financial goals should be defined as specifically as possible

B Financial goals should be realistic and attainable

C Long term goals are set first followed by a series of corresponding short term and intermediate goals

D All of the Above

20. Which of the following sentence/s is/are correct?

A A resident individual or resident HUF can claim deduction u/s 80DDB

B The aggregate amount of deduction u/s 80C, 80CCC and 80CCD(1) cannot exceed Rs. 1,50,000

C The maximum amount deductible u/s 80C is Rs. 1,50,000

D All of the Above

21. Calculate the Liquidity Ratio from the following information:

Cash on hand - Rs. 40,000

Savings Account balance - Rs. 60,000

Short Term Liabilities - Rs. 20,000

Loan Installments paid during the year:

Instalment of Home Loan - Rs.2,00,000

instalment of Car Loan - Rs.50,000

Instalment of Education han - Rs.1,00,000

A 28.57%

B 13.51 %

C 14.29%

D 27.03 %

22. From the following information, Find out the amount of deduction under section 80DDB for assessment year 2018-19:

a. Tax Payer (Age 59 years) and His dependent mother (Age 89 years) are Resident.

b. His mother is suffering from the disease which is specified under the rule made by the board.

c. Expenditure of Rs. 90,000 incurred on medical treatment of dependent mother in a hospital recognized by chief commissioner.

d. Amount Received from insurance company is Rs. 4,000.

e. Amount Received from employer of taxpayer is Rs. 2,000.

A Rs. 84,000

B Rs. 74,000

C Rs. 36,000

D Rs. 64,000

23. Average Propensity to Consume refers to ________

A % of each rupee of income kept for saving

B %of each rupee of income spent for investment

C % of each rupee of income spent for current needs

D All of the Above

24. Find out the amount of Rebate u/s 87A for Mr Patel (resident individual) (Age 55 years) for the assessment year 2018-19. The Net Income of Mr Patel is Rs.2,60,000

A Rs. 515

B Rs.2,500

C Rs. 500

D Ni

25. Estate Planning is planning of _________

A Disposition of one's asset to have liquidity

B Disposition of one's asset after death

C Planning of purchase of Land & Building

D None of the above

26. Match the following :

A (a - i), (b - ii), (c - iii)

B (a - ii), (b - iii), (c - i)

C (a - iii), (b - i), (c - ii)

D (a - iii), (b - ii), (c - i)

27. Mr Soni pays Medical Insurance Premium of Rs. 7,000 (Sum Assured Rs.1,00,000, policy taken in 2010), for his dependent brother (being person with 50% disabilty). Determine the amount of Deduction available to Mr. Soni u/s 80D for the assessment year 2018-19.

A Rs.75,000

B Rs.7,000

C Rs.1,25,000

D None of the above

28. Mr. Agrawal is suffering from low vision. His medical certificate shows that he is suffering from 50%% disability.

Calculate the amount of deduction available to Mr. Agrawal for assessment year 2018-19. He has spent total Rs. 25,000 for improving his disability.

A Deduction u/s 80DD, Rs. 1,25,000

B Deduction u/s 80 U, Rs. 75,000

C Both (A) and (B)

D Deduction u/s 80U, Rs. 50,000

29. Match the following:

A (a - i), (b - ii), (c - iii)

B (a - ii), (b - iii), (c - i)

C (a - ii), (b - i), (c - iii)

D (a - iii), (b - ii), (c - i)

30. Calculate Income After Tax from the following information:

Cash Surplus - Rs. 40,000

Savings Ratio - 8%

A 6,25,000

B 5,20,000

C 5,00,000

D 4,80,000