1. Find out the Tax Liability of Mr Pandya (resident individual) (Age 49 years) for the assessment year 2018-19. The Net Income of Mr Pandya is Rs.12,00,000.
A Rs. 1,77,675
B Rs. 1,72,500
C Rs. 1,79,400
D Rs. 1,75,475
2. From the following information, calculate Personal Property of Mr Joshi:
Refrigerator - Rs. 10,000, Microwave Oven - Rs. 5,000, Honda Brio car - Rs. 1,00,000, clothes - Rs. 10,000, Land - Rs. 5,00,000, House Property - Rs. 25,00,000, Cash Balance - Rs. 55,000, Balance of Savings a/c - Rs. 2,00,000, Investment in Gold ETF - Rs. 95,000.
B. Rs.1,25,000
3. From the following transactions for the month of December, compute the balance of cash available on 31-12-2018:
1st Dec. Balance of cash Rs.90,000
5th Dec. Income received in cash Rs.60,000
6th Dec. Electricity bill paid by cash Rs.4,000
9th Dec. Interest received on investment by cheque Rs.10,000
11th Dec. Medical bills paid by (NEFT) Rs.6,000
20th Dec. Mobile purchased by using debit card Rs.9,000
A Rs. 1,46,000
B RS. 1,50,000
C Rs. 1,38,000
4. In Personal Financial Statements, Assets of an individinal or family are recorded in Balance sheet at ________
5. The amount due for Electricity Bill of a house is a part of _______ in Personal FinancialStatement.
8. Match the following
9. Which of the following can be shown as an asset, in Personal Financial Statement?
D. All of the Above
10. Which of the following is not correct with reference to claim the deduction under section 80D for assessment year 2018-19?
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
C Both (A) and (B)
D None of the Above
13. Personal Financial Statements
(i) show financial position as it actually exists and
(ii) report on financial transactions that have actually occurred
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. To prepare Personal Financial Statement, all the assets are recorded in the balance sheet at their _________.
A Original Purchase price
B Historical Cost
C Fair market value
D None of the above
16. In respect of deduction under section 80 D which one of the following is not correct
A Payment should be made by any mode other than cash. However, payment on account of preventive health check-up can be made by any mode including cash.
B Family includes individual, spouse of the individual and dependent children of the individual.
C Parent include father, mother, father in law and mother in law.
D Payment should be made out of income chargeable for tax.
17. Outstanding Electricity Bill is:
A Long Term Liability
B Short TermLiability
C Income
D None of the above
18. Mr Jaimin (Age 45 years) is a resident salaried employee makes the following investments or payments during the year 2015-16:
i) Life insurance premium (taken in 2009), on life of his married daughter: Rs. 6,000 (sum assured: Rs. 20,000)
ii) Life insurance premium (Taken in 2011 on life of his dependent sister: Rs. 10,000 (sum assured: Rs.50,000)
iii) Contribution to recognizedprovident fund: Rs.9.000
iv) Contribution towards public provident fund : Rs.1,30,000
Determine the deduction available to Mr. Jaimin under section 80 C for the assessment year 2016-17.
A Rs.1,43,000
B Rs.1,55,000
C Rs.1,53,000
D Rs.1,45,000
19. ________ refers to the percentage of each rupee of income, on average, that is spent for current needs rather than savings.
A Net worth
B Wealth
C Average propensity to consume
D Investment
20. Deduction in respect of payment of interest on loan taken for higher education is available under section __________.
A 80 E
B 80 EE
C 87 A
D 80 DDB
21. Personal property includes:
A Household Furnishings
B Automobiles
C Clothing
D All of the above
22. Deduction under section 80 CCC is available to:
A Individual and HUF
B Only an Individual
C Only HUF
D Only Company
23. From the following information, calculate Liquidity ratio:
Cash on hand | Rs.4,00.000 |
Balance with savings A/c | Rs.6,00,000 |
Total Current Debts | Rs.10,00,000 |
A 300%
B 60%
C 40%
D 100%
24. ________ and _______ are essential to developing and monitoring personal financial plans.
A Directors report and audit Report
B Annual Report and balance Sheet
C Income & Expense statement and Balance sheet
D Funds Flow statement and Cash Flow statement
25. Maximum amount of deduction available under section 80 TTA is:
A Rs.30,000
B Rs.25,000
C Rs.5,000
D Rs.10,000
26. Personal Financial Planning is a:
A Dynamic Process
B Static Process
C Static and Dynamic Process
D None of the above
27. Deduction under section 80G is available to:
A Company
B Resident or Non-Resident individual
C Fim
D All of the above
28. The amount of additional deduction under section 80CCD (1B) from the assessment year 2016-17 for contribution under National Pension system is available up to __________
A Rs.1,00,000
B Rs.50,000
C Rs.1,25,000
D Rs.75,000
29. Which of the following is true for provisions under section 80DD?
A A fixed deduction of Rs. 75,000 is available.
B Deduction under this section is available regardless of actual expenditure.
C For claiming deduction, the assess should have a certificate issued by the medical authority.
D All of the above
30. Match the following:
X. Long term goals | (i) Wants and desires for a period covering about 6-years out to the next 30 or 40 years. |
Y. Short term goals | (ii) Set each year and cover a 12-months period. |
Z. Goals dates | (iii) Target points in the future when you expect to achieve or complete certain financial objectives. |
A X-iii, Y-ii, Z-i
B X-ii, Y-iii, Z-i
C X-i, Y-ii, Z-iii
D X-iii, Y-i, Z-ii
31. Personal Financial Planning includes:
A Retirement Planning
B Tax Planning
C Estate Planning
D All of the above
32. Mr. K a resident of Surat suffers from 60% disability. Under which section of the Income Tax Act can he avail deduction in respect of his disability?
A 80U
B 80DDB
C 8OTTA
D 80 DD
33. In Personal financial management, the Income and Expense Statement is prepared on:
A Profit basis
B Cash Basis
C Accrual basis
D None of these
34. Calculate Savings Ratio from the following information:
Cash Surplus- Rs.12,000, Income Before Tax - Rs. 80,000, Tax Paid - Rs.15,000
A 12.63%
B 15%
C 18.46%
D 33.75%
35. From the following information, calculate Debt Service Ratio :
Total yearly loan payments | Rs. 2,40,000 |
Gross income before tax for the year | Rs.6,00,000 |
A 20%
B 30%
C 40%
D 50%
36. When total assets of Mr. Shyam are Rs. 39,00,000 and total liabilities are Rs.19,50,000 what would be his solvency ratio?
A 50%
B 200%
C 100%
D 25%
37. Match the following:
i. Savings account | a. Long-term liability |
ii. Agricultural land | b. Investment |
iii. Mutual funds | c. Real property |
iv. Home loan | d. Liquid assets |
A i - a, ii - b, iii - c, iv - d
B i - b, ii - c, iii - a, iv - d
C i - d, ii - c, iii - b, iv - a
D i - d, ii - a, iii - b, iv - c
38. Deduction in respect of rent paid is available under section:
A 80G
B 80GG
C 80GGB
D 80EE
39. ________ Under section 80D, the aggregate payment on account of preventive health checkup of self, Spouse, dependent children, father & mother cannot exceed:
A Rs.2,000
B Rs.5,000
C Rs.25,000
D Rs.10,000
40. Personal financial planning life cycle relates to:
A Early childhood only
B High school, College and Carcer development only
C Pre-Retirement and Post Retirement only
D All of the above
41. Liquid Asset refers to
A An Asset that can readily be converted in to Cash
B An Asset having maturity period of less than a year
C Neither (A) nor (B)
D Both (A) & (B)
42. Mr. Samir (age 63 years) is a resident individual. If his net income is Rs.4,26,000, the tax Liability for the assessment year 2016-17 will be ________.
A Rs.12,978
B Rs.12,600
C Rs.10,918
D Rs.18,128
43. 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%
44. Match the following:
a. Short Term Goals | i. indicates wants and desires for a period covering about 6 years to the next 30 or 40 years |
b. Goal dates | ii. Set each year and cover a 12 - months period |
C. Long Term Goals | iii. target points in the future when you expect to achieve or complete certain financial objectives |
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)
45. 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
46. Match the following:
a. Liquid Assets | i. immovable, relatively long life, high cost, may appreciate in value |
b. Personal Property | ii. Low risk financial assets |
c. Real Property | iii. movable, may depreciate in value |
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)
47. Under which section/s, only an individual can claim deduction for assessment year 2018-19?
A 80 EE
B 80 E
C 80 GG
D All of the Above
48. 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
49. 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
50. 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
51. 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 %
52. 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
53. 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
54. 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
55. 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
56. Match the following :
a. 80D | i. Deduction in respect of medical treatment of a specified disease |
b. 80DD | ii. Deduction in respect of maintenance including medical treatment of a dependent being a person with disability |
c. 80 DDB | iii. Deduction in respect of medical insurance premium |
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)
57. 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
58. 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
59. Match the following:
a. 80E | i. Deduction in respect of interest on loan taken for Residential House Property |
b. 80EE | ii. Deduction in respect of payment of interest on loan taken for higher education |
c. 80TTA | iii. Deduction in respect of interest on deposits in Savings Accounts |
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)
60. 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
