PROBABLE QUESTIONS / TYPE OF QUESTIONS THAT

YOU CAN EXPECT-

Sub:- CTL
Note of Caution :- This is only a MODEL
QUESTION. There is no guarantee or surety that the
questions in exam will be of similar nature. The objective
of this model question is just to give an idea about the
type of questions that may come in the exam. Hence to
avoid any risk and surprises , please cover your syllabus
thoroughly and completely, without concentrating on just
the model questions.

A-12 marks question type –

1) What is a “Private Company” and what are it’s
privileges and limitations?
2) What are MOA & AOA and what are the
differences between these two documents ?
3) Who is a “director” and how a director can be
appointed ?
4) Who is a “director” and how a director can be
removed from his office ?
5) What is “winding up” of a company , and how a
company can be wound up ?
6) What are the expenditures allowed to be deducted
while computing income from business or
profession ? Explain with examples.
 7) Compute the Taxable income of Sri Ravi from his
Salaries, who is working in Bhubaneswar for the
Assessment Year 2019-20.
SALARY PARTICULARS for the Financial Year 2018- Rs.
19

Basic Salary 6,00,000

DA (Forming part of the Salary) 3,00,000

HRA 3,00,000

Transport Allowance 9,600

Medical Allowance 19,200

Educational Allowance For 2 Children 4,800

Hostel Allowance- For 2 Children 7,200

Professional Pursuit-Reimbursement 24,000

Special Allowance 49,400

Additional Information-
a) Sri Ravi was staying in a rented house at Cuttack and
was paying a monthly rent of Rs. 25,000/= .
b) Sri Ravi had one child for whose school fees was
6,000/= p.a and hostel fees was 12,000/= p.a.
c) Sri Ravi had his personal car for his family , the
remuneration of the driver was being paid to the
tune of Rs.1,20,000/= p.a by the office.

(Answer- Income from Salaries- Rs.11,54,200/=)

B- 8 marks question type –
a)U/S 2(51) of Companies Act-2013, who are Key
Managerial Personnel and which companies are
mandatorily required to appoint KMP ?
8) What is a “Small Company” and what are it’s
advantages ?
9) What is a “Meeting” and what are the requisites of a
valid meeting ?
10) What is – Authorised Capital, Issued Capital
Subscribed Capital & Reserve Capital ?
11) What is “Tax Avoidance” and how does it
differ from “Tax Planning” ?
12) What are the methods of “Tax Planning” ,give
examples ?
13) What is Tax Planning and how an employee
can do his planning ?
14) In spite of stringent laws, why there is rampant
Tax Evasion in India ? In your opinion what can be
done to stop Tax Evasion by various tax payers in
India ?

15) Compute Sri Jaga’s Income from House

Property-
Information- He had three houses, one was self
occupied, 2nd one was not let out and the 3rd one
was let out. Rental income for the 3rd house per
month was Rs.10,000/=. Fair rent in the locality
for 2nd house and 3rd house was Rs.1,50,000/=
and Rs.1,44,000/= respectively p.a. When Sri
Jaga had paid Municipality tax for the self
 occupied house to the tune of Rs.10,000/= and
for 2nd house Rs.12,000/= p.a, he couldn’t pay
municipality tax for the third house which was
Rs.18,000/=. For constructing the 3rd house Jaga
had taken a loan from his friend, to whom he
was repaying Rs.2,50,000/= towards principal
and Rs.2,00,000/= as interest every year.
(Answer- 1st House-Self Occupied- NIL
2nd House- Deemed to be let out- Rs.96,600/=
3rd House-Let out-Loss Rs.99,200/=. Loss from
House Property- Rs.2,600/=)

16) What are the Central & State Taxes that have
been subsumed in GST and as on date which taxes
are not subsumed within GST ambit ?

17) Compute the taxable income from business or

profession of Mr X, the proprietor for the Financial
year 2018-19.
a) Gross revenue from trading business-Rs.85,00,000/=
b) Gross revenue from gambling business – Rs.2,00,000/=
c) Gross revenue from his audit firm- Rs.12,00,000/=
d) Mr X incurred following expenses during the Financial
year for his business & profession.
i. Rent for his office- Rs.1,20,000/=
ii. Rent for his house-Rs.1,80,000/=
iii. Remuneration to employees-Rs.8,00,000/=
iv. Various expenses for conducting gambling-
Rs.4,00,000/=
v. Purchased one air conditioner for office –
Rs.50,000/=
 vi. There was a cash shortage of Rs.25,000/=
during the year
vii. Fines & Penalty imposed by Govt. for
violating certain provisions-Rs.30,000/=
viii. Foreign travel for official purpose-
Rs.3,00,000/=
ix. Marriage expenses of his daughter-
Rs.1,50,000/=
(Ans- Income from business or profession- Rs.86,55,000/=)
C- 5 marks question type –
1)What is a Prospectus and how many types of
Prospectus are there ?
2)What is a “minutes of meeting” ?
3) What are the businesses that are generally
conducted in an Annual General Meeting ?
4) What do you mean by Corporate Social
Responsibilities ?
5) What is “Tax Input Credit” under GST regime and
what are the conditions to avail it ?
6) What are the methods of Corporate tax planning ?
7) Compute the Output Tax under GST for B, who
purchased material from A and sold to various end
consumers. It can be presumed that both A & B
have fulfilled all the conditions to avail Input Tax
Credit and Selling price includes all costs & their
profit.
As per Invoice A (Trader) B (Trader)
Selling Price of Rs.1,000/= Rs.1,500/=
the Item
GST 12% Rs.120/= Rs.180/=
Invoice Value Rs.1,120/= Rs.1,680/=

(Answer – Output Tax of B is Rs.60/=)

8)How much TDS you will deduct in following

cases, presuming the receivers of payment has
provided his PAN.
i) You have to pay Rs.1,00,000/= to Mr X
towards winning from Horse Race.
 ii) Bonus & commission payable to agents or
sellers of lottery tickets to the tune of Rs.5,00,000/=
iii) Payment of Rs.1,25,000/= to a contractor
who is an individual.
iv) Payment of Rs.2,00,000/= to your auditor
v) Rent payment of Rs.1,00,000/= during the
year.

9)Under what circumstances, Tax need not be deducted

at source ?
10) What is a “Loss Return” and what are the
consequences if Income Tax return is not filled in case
of “Loss” ?
11)What are the advantages of GST and as on date how
many tax rates are applicable under GST?
12) What is “CIN” in case of companies ? What the
number signifies ?
13) What is Reverse Charge Mechanism (RCM) in GST
? Explain with some examples.
14) Who need to be registered under GST ?
15) How having a subsidiary company helps in tax
planning ?
16) How amalgamation and merges of companies helps
in tax planning ?
17) How MOA & AOA can be altered ?
18) What are the requisites of a “valid meeting” ?
19) What are the differences between Tax Planning &
Tax Management ?