Tap here to pick an attempt, marks or topic, and to sort. It makes finding questions easy!
16
June 2026Q. 3(a)5 marksSyllabus 2022Law changed
Law changed after this attempt: The Income-tax Act, 2025 replaced the Income-tax Act, 1961 from 1 April 2026, and ICSI's study material is based on it from the June 2027 examination, so section numbers, rates and limits may differ. (ICSI Study Material, Tax Laws and Practice, June 2027 onwards). The answer below reflects the Income-tax Act, 1961 as it stood for June 2026 (A.Y. 2026-27).
(a)Raghav, aged 34, a resident individual, furnishes the following details of investments and expenses for the financial year 2025-26. His Gross Total Income (GTI) before Chapter VI- A deductions is ₹ 9,00,000.
Details of investments and expenses are :
(i)Tuition fees of ₹ 60,000 paid for his two children (₹ 30,000 each) pursuing full time graduation course at Winners University in Bengaluru.
(ii)Principal repayment of housing loan taken from a relative – ₹ 70,000. The property is self-occupied situated at Pune.
(iii)Mediclaim premium : ₹ 28,000 for self : ₹ 32,000 for parents (senior citizens) paid through Credit Card.
(iv)Donation to Prime Minister’s National Relief Fund for ₹ 50,000 paid through Debit Card of Union Bank.
(v)Interest paid on education loan taken for his spouse’s higher education : ₹ 48,000 through account payee cheque.
(vi)Cash deposit in PPF account : ₹ 1,15,000 on 31st March, 2026.
Compute the deductions available under Chapter VI-A to Raghav for the assessment year 2026-27. Assuming that he has not opted for Section 115BAC for the assessment year 2026-27.
Computation of deductions available under Chapter VI-A to Mr. Raghav for A.Y. 2026-27
Particulars
Amount (₹)
Amount (₹)
(i) Deduction under section 80C:
Tuition Fees paid for two children (Tuition fee paid for full time graduation course in Winners University in Bengaluru is eligible for deduction under section 80C for a maximum of two children)
60,000
Housing loan principal repayment (Repayment of principal on housing loan is not allowed as deduction in case the loan is borrowed from friends, relatives etc. In order to qualify for deduction, the loan should have been obtained from Central Government / State Government / bank / financial institution.)
Nil
Cash Deposited in PPF (Eligible for deduction u/s 80C)
1,15,000
1,75,000
The total allowed deduction under Section 80C, 80CCC, and 80CCD(1) is restricted to ₹ 1,50,000.
1,50,000
(ii) Deduction under section 80D:
Mediclaim insurance premium
(a) For self-insurance maximum 25,000 is allowed
25,000
(b) For Parents (maximum limit is 50,000 for senior citizen, so full 32,000 is allowed)
32,000
(Medical insurance premium paid otherwise than in Cash is allowed, so credit card payment is allowable)
Total allowed deduction under section 80D
57,000
(iii) Deduction under section 80E:
Interest paid on education loan taken for his spouse’s higher education (Interest paid on a loan taken for the higher education of self, spouse, or children is fully allowed as deduction u/s 80E without any monetary limit)
48,000
(iv) Deduction under Section 80G:
Donation to Prime Minister’s National Relief Fund (Donation to the Prime Minister’s National Relief Fund (PMNRF) falls under the "100% Deduction without any qualifying limit)
50,000
Total Deduction under chapter VI-A
3,05,000
Source: ICSI Guideline Answers, June 2026, Q. 3(a) (Syllabus 2022).
June 2025Q. 1(d)3 marksSyllabus 2022Law changed
Law changed after this attempt: The Income-tax Act, 2025 replaced the Income-tax Act, 1961 from 1 April 2026, and ICSI's study material is based on it from the June 2027 examination, so section numbers, rates and limits may differ. (ICSI Study Material, Tax Laws and Practice, June 2027 onwards). The answer below reflects the Income-tax Act, 1961 as it stood for June 2025 (A.Y. 2025-26).
Show the facts common to all parts of Q. 1
Mrs. Ankita aged 50 years, a resident individual and practicing Company Secretary, furnishes you the receipts and payments account for the financial year 2024-25.
Receipt and Payment Account
Receipt
Amount
Payment
Amount
( ₹ )
( ₹ )
Opening balance Cash on hand
10,000
Staff salary, bonus and stipend to
21,00,000
and at Bank as on 1.4.2024
articled assistants
Fee from professional services (Gross)
50,00,000
Other administrative expenses
11,50,000
Rent from House Property
60,000
Office rent paid in a Complex
30,000
Motor car loan from SBI Bank (on
2,40,000
Housing loan repaid to SBI (includes
1,88,000
1.1.2025 @ 9% p.a.)
interest of ₹ 80,000)
Interest from Saving bank account
12,500
Life insurance premium of her spouse (10% of sum assured)
24,000
Motor car (acquired on 1st Jan., 2025 by A/c payee cheque)
4,25,000
Medical insurance premium (for self and her husband paid through mobile UPI)
18,000
Books bought on 1.07.2024 (annual publications by A/c payee cheque)
20,000
Computer acquired on 1.12.2024 by A/c payee cheque (for professional use)
30,000
Public provident fund subscription for own
20,000
Motor car maintenance
20,000
Closing balance Cash on hand and at Bank as on 31.3.2025
12,97,500
53,22,500
53,22,500
Following further information is given to you :
(1)She occupies 50% of the building for own residence and let out the balance for residential use at a monthly rent of ₹ 5,000. The building was constructed during the year 1997-98, when the housing loan was obtained.
(2)Motor car was put to use both for official and personal purpose. 1/5th of the motor car use is used for personal purpose.
(3)The written down value of assets as on 01.04.2024 are given below :
On the basis of the above information, you are required to give the following answers, assuming that she has shifted out of the default tax regime under section 115BAC :
(d)Compute the total allowable deduction under chapter VI-A of the Income Tax Act, 1961 for Ankita for the assessment year 2025-26.
Computation of Allowed Deduction u/s 80C and 80D for the A.Y.2025-26
Particulars
Amount
Amount
( ₹ )
( ₹ )
Deductions under Chapter VI-A Deduction under section 80C
Housing loan Principal Repayment
1,0,8000
Life insurance premium (allowed for both own and for spouse)
24,000
Public provident fund subscription for own
20,000
Total
152,000
Total amount of 1,52,000 restricted to ₹ 1,50,000
1,50,000
Deduction under section 80D
Medical insurance premium (paid otherwise than in cash)
18,000
Deduction under section 80TTA
Interest from Saving Bank Account (Max. deduction is ₹ 10,000)
10,000
Total Deductions under Chapter VI-A
1,78,000
Source: ICSI Guideline Answers, June 2025, Q. 1(d) (Syllabus 2022).
June 2024Q. 51 markMCQSyllabus 2017Law changed
Law changed after this attempt: The Income-tax Act, 2025 replaced the Income-tax Act, 1961 from 1 April 2026, and ICSI's study material is based on it from the June 2027 examination, so section numbers, rates and limits may differ. (ICSI Study Material, Tax Laws and Practice, June 2027 onwards). The answer below reflects the Income-tax Act, 1961 as it stood for June 2024 (A.Y. 2024-25).
Mr. J is an employee in accounts department of Bharat Ltd., a cellular company operating in the regions of eastern India. It is engaged in manufacturing of cellular devices. During F.Y. 2023-24, following transactions were undertaken by Mr. J :
( i )He attended a seminar on “Perquisite Valuation” Seminar fees of ₹ 25,000 was paid by Bharat Ltd.
( ii )Tuition fees of Mr. H (son of Mr. J) paid to private coaching classes (not having any tie-up with Bharat Ltd.) was reimbursed by Bharat Ltd. Amount of fees was ₹ 50,000.
( iii )Ms. S (daughter of Mr. J) studies in MPS Public School (owned and maintained by Bharat Ltd.). Tuition fees paid for Ms. S was ₹ 1,500 per month by Mr. J. Cost of education in similar institution is ₹ 10,500 per month.
What shall be the amount which is chargeable to tax under the head “salaries” in hands of Mr. J for A.Y. 2024-25 ?
December 2023Q. 271 markMCQSyllabus 2017Law changed
Law changed after this attempt: The Income-tax Act, 2025 replaced the Income-tax Act, 1961 from 1 April 2026, and ICSI's study material is based on it from the June 2027 examination, so section numbers, rates and limits may differ. (ICSI Study Material, Tax Laws and Practice, June 2027 onwards). The answer below reflects the Income-tax Act, 1961 as it stood for December 2023 (A.Y. 2023-24).
Public Provident Fund Account can be opened by an individual for the purpose of deduction under Section 80C in the name of :
December 2023Q. 281 markMCQSyllabus 2017Law changed
Law changed after this attempt: The Income-tax Act, 2025 replaced the Income-tax Act, 1961 from 1 April 2026, and ICSI's study material is based on it from the June 2027 examination, so section numbers, rates and limits may differ. (ICSI Study Material, Tax Laws and Practice, June 2027 onwards). The answer below reflects the Income-tax Act, 1961 as it stood for December 2023 (A.Y. 2023-24).
Mr. P has interest accrued from NSC (maturity date is after two years) 15,600. During the current year 2022-23 he invested 1,00,000 and his wife invested 50,000 in NSC. What will be the deduction under section 80C assuming that no other investments are made by Mr. P :
December 2023Q. 3(c)5 marksSyllabus 2022Law changed
Law changed after this attempt: The Income-tax Act, 2025 replaced the Income-tax Act, 1961 from 1 April 2026, and ICSI's study material is based on it from the June 2027 examination, so section numbers, rates and limits may differ. (ICSI Study Material, Tax Laws and Practice, June 2027 onwards). The answer below reflects the Income-tax Act, 1961 as it stood for December 2023 (A.Y. 2023-24).
(c)Rajendra, aged 47 years, a resident individual, engaged in a retail business of Stationary products furnishes the following particulars of his income for the previous year 2022-2023:
S. No.
Particulars
Amount (₹)
(i)
Income from business
15,10,000
(ii)
LIC premium paid for dependent father, aged 75 years.
25,000
(iii)
Interest received from Public Provident Fund
15,000
(iv)
Interest from bank on savings bank account
22,000
(v)
Deposit in Public Provident Fund
1,30,000
You are required to calculate his tax liability and advise him whether he should opt for alternative tax regime under section 115BAC or not for assessment year 2023-24.
Computation of Total Income of Mr. Rajendra for the A.Y. 2023-24 under the regular provisions of the Income Tax Act, 1961
Sr. No.
Particulars
Amount
Amount
(Rs.)
(Rs.)
i
Income from business
15,10,000
ii
Income from other sources
Interest received from Public Provident Fund (Exempt)
Nil
Interest from bank on saving bank account
22,000
22,000
Gross total income
15,32,000
Less : Deductions under Chapter VI-A
Deduction under section 80C
a) Deposit in Public Provident
1,30,000
(1,30,000)
Fund
Nil
b) LIC premium paid for
dependent father (premium for
life insurance policy of father is
not allowed as deduction)
Since the maximum deduction under
section 80C is Rs. 150000 so Rs.
130000 is fully allowed
Deduction under section 80TTA [Interest from saving bank account since the maximum deduction under section 80TTA is Rs.10000]
(10,000)
Total Taxable Income
13,92,000
Computation of Tax Payable by Mr. Rajendra for the AY 2023-24 under the regular provisions of the Income Tax Act, 1961
Particulars
Amount
Amount
(Rs.)
(Rs.)
Tax on total income of Rs. 13,92,000
Up to Rs. 2,50,000
Nil
Rs. 2,50,001 – Rs. 5,00,000 @ 5% of Rs. 2,50,000
12,500
Rs. 5,00,001 – Rs. 10,00,000 @ 20% of Rs. 5,00,000
1,00,000
Rs. 10,00,001 – Rs. 13,92,000 @ 30% of Rs. 3,92,000
1,17,600
2,30,100
Less : Rebate u/s 87A (Since total income exceed Rs. 5,00,000, no rebate allowed.)
Nil
Total
2,30,100
Add: Health and Education Cess @ 4% of Rs. 2,30,100
9,204
Total Tax and Cess payable
2,39,304
Round off u/s 288B
2,39,300
Computation of Total Income of Mr. Rajendra for the A.Y. 2023-24 as per section l15BAC
Gross Total Income as per regular provisions of the Income-tax Act, 1961 Rs. 15,32,000.
(No deduction under Chapter VI-A allowable). Hence, Total income as per section 115BAC is Rs. 15,32,000.
Computation of Tax Payable by Mr. Rajendra for the AY 2023-24 as per section 115BAC
Particulars
Amount
Amount
(Rs.)
(Rs.)
Tax on total income of Rs. 15,32,000
Up to Rs. 2,50,000
Nil
Rs. 2,50,001 – Rs. 5,00,000 @ 5% of Rs. 2,50,000
12,500
Rs. 5,00,001 – Rs. 7,50,000 @ 10% of Rs. 2,50,000
25,000
Rs. 7,50,001 – Rs. 10,00,000 @ 15% of Rs. 2,50,000
Less: Rebate u/s 87A (Since total income exceed Rs. 5,00,000, no rebate allowed.)
Nil
Total
1,97,100
Add : Health and Education Cess @ 4% of Rs. 1,97,100
7,884
Total Tax and Cess payable
2,04,984
Round off u/s 288B
2,04,980
In the instant case, tax liability under section l15BAC is lower, hence it is advisable to opt for provision of section 115 BAC of the Income tax Act, 1961.
(Attempt all parts of either Q. No. 4 or Q. No. 4A)
Source: ICSI Guideline Answers, December 2023, Q. 3(c) (Syllabus 2022).
June 2023Q. 141 markMCQSyllabus 2017Law changed
Law changed after this attempt: The Income-tax Act, 2025 replaced the Income-tax Act, 1961 from 1 April 2026, and ICSI's study material is based on it from the June 2027 examination, so section numbers, rates and limits may differ. (ICSI Study Material, Tax Laws and Practice, June 2027 onwards). The answer below reflects the Income-tax Act, 1961 as it stood for June 2023 (A.Y. 2023-24).
Naresh a resident individual gives you the following information of his investments:
(i )Life insurance premium of his parent paid ₹ 40,000;
(ii)Tax Saver Deposit in his own name ₹ 30,000;
(iii)Deposit in Public Provident Fund in own name ₹ 20,000;
(iv)5 year time deposit in post office ₹ 22,000;
(v)Tuition fees for his son studying Armenia ₹ 1, 10,000.
How much is the amount eligible for deduction under section 80C of the Income Tax Act, 1961?
Law changed after this attempt: The Income-tax Act, 2025 replaced the Income-tax Act, 1961 from 1 April 2026, and ICSI's study material is based on it from the June 2027 examination, so section numbers, rates and limits may differ. (ICSI Study Material, Tax Laws and Practice, June 2027 onwards). The answer below reflects the Income-tax Act, 1961 as it stood for June 2023 (A.Y. 2023-24).
Hari (age 40 years) a resident individual has gross total income of ₹ 11, 20,000 before deduction under Chapter VI- A. He has deposited ₹ 1, 40,000 in PPF account and paid health insurance premium of ₹ 30,000 for himself and wife. How much is his income tax liability for the assessment year 2023-24 on the assumption that he has opted for section 115BAC of the Income Tax Act, 1961?
Law changed after this attempt: The Income-tax Act, 2025 replaced the Income-tax Act, 1961 from 1 April 2026, and ICSI's study material is based on it from the June 2027 examination, so section numbers, rates and limits may differ. (ICSI Study Material, Tax Laws and Practice, June 2027 onwards). The answer below reflects the Income-tax Act, 1961 as it stood for June 2022 (A.Y. 2022-23).
Deduction u/s 80C in respect of life insurance premium is restricted to ........... of capital sum assured in respect of policies issued on before 31st March, 2012 and .............. of capital sum assured in value of policies taken on or after 1st April, 2012.
December 2021Q. 331 markMCQOld syllabusLaw changed
Law changed after this attempt: The Income-tax Act, 2025 replaced the Income-tax Act, 1961 from 1 April 2026, and ICSI's study material is based on it from the June 2027 examination, so section numbers, rates and limits may differ. (ICSI Study Material, Tax Laws and Practice, June 2027 onwards). The answer below reflects the Income-tax Act, 1961 as it stood for December 2021 (A.Y. 2021-22).
For the Financial Year 2020-21, the Gross Total Income of Mr. G, who is 70 years old was ₹ 8,50,000. The Gross Total Income included interest income of ₹ 12,000 from the savings bank deposit with banks and ₹ 40,000 interests on fixed deposit with banks. He has invested in PPF ₹ 1,20,000 and also paid a medical insurance premium of 51,000 paid by cheque. Compute Total Income for the Assessment Year 2021-22 :
(A)₹ 6,30,000
(B)₹ 6,95,000
(C)₹ 6,70,000
(D)₹ 6,40,000
ICSI accepted any of these answers: (A) ₹ 6,30,000; (C) ₹ 6,70,000
ICSI's note: The computation of Total Income of Mr. G as follow: Gross Total Income Rs. 850000 Less: Deduction u/s 80C 120000, Deduction u/s 80TTB 50000, Deduction u/s 80D 50000 = 630000. Option A is correct. Further, option C is correct if Mr. G is non-resident.
December 2021Q. 341 markMCQOld syllabusLaw changed
Law changed after this attempt: The Income-tax Act, 2025 replaced the Income-tax Act, 1961 from 1 April 2026, and ICSI's study material is based on it from the June 2027 examination, so section numbers, rates and limits may differ. (ICSI Study Material, Tax Laws and Practice, June 2027 onwards). The answer below reflects the Income-tax Act, 1961 as it stood for December 2021 (A.Y. 2021-22).
Mr. A an individual, aged 52, deposited in PPF ₹ 1,70,000. He paid medical insurance premium for wife and dependent son of ₹ 31,000 and he earns an interest on savings bank account of ₹ 12,000 during the financial year 2020-21. Calculate the amount he is eligible for deduction under chapter VI-A in the Assessment Year 2021-22.
Law changed after this attempt: The Income-tax Act, 2025 replaced the Income-tax Act, 1961 from 1 April 2026, and ICSI's study material is based on it from the June 2027 examination, so section numbers, rates and limits may differ. (ICSI Study Material, Tax Laws and Practice, June 2027 onwards). The answer below reflects the Income-tax Act, 1961 as it stood for June 2021 (A.Y. 2021-22).
Heena is a self-employed lady. Her business income is ₹ 9,00,000 and other income is ₹ 2,00,000. She contributes ₹ 20,000 per month towards National Pension Scheme. Besides, she deposited ₹ 20,000 in public provident fund, ₹ 5,000 in notified annuity plan of LIC. Compute total income of Heena for the Assessment Year 2021-22. (Assuming assessee has not opted for section 115BAC)
December 2019Q. 551 markMCQOld syllabusLaw changed
Law changed after this attempt: The Income-tax Act, 2025 replaced the Income-tax Act, 1961 from 1 April 2026, and ICSI's study material is based on it from the June 2027 examination, so section numbers, rates and limits may differ. (ICSI Study Material, Tax Laws and Practice, June 2027 onwards). The answer below reflects the Income-tax Act, 1961 as it stood for December 2019 (A.Y. 2019-20).
For which of the following transactions, quoting of Permanent Account Number is mandatory ?
(A)Payment to hotel ₹ 22,000 on any single day
(B)Deposit of cash in saving bank account of ₹ 55,000 on any single day
(C)Purchase of property valued at ₹ 3 lakh
(D)Payment of life insurance premium of ₹ 25,000
Answer: (B) Deposit of cash in saving bank account of ₹ 55,000 on any single day
Law changed after this attempt: The Income-tax Act, 2025 replaced the Income-tax Act, 1961 from 1 April 2026, and ICSI's study material is based on it from the June 2027 examination, so section numbers, rates and limits may differ. (ICSI Study Material, Tax Laws and Practice, June 2027 onwards). The answer below reflects the Income-tax Act, 1961 as it stood for June 2019 (A.Y. 2019-20).
Rao, carrying a business, contributed ₹ 40,000 in the National Pension Trust account. He also made a tax saving deposit of ₹ 1,20,000 in his PPF account and ₹ 40,000 in LIC Premium. The total amount eligible for deduction under various sections enumerated in Chapter VI-A shall be :
December 2018Q. 2(a)3 marksSyllabus 2017Law changed
Law changed after this attempt: The Income-tax Act, 2025 replaced the Income-tax Act, 1961 from 1 April 2026, and ICSI's study material is based on it from the June 2027 examination, so section numbers, rates and limits may differ. (ICSI Study Material, Tax Laws and Practice, June 2027 onwards). The answer below reflects the Income-tax Act, 1961 as it stood for December 2018 (A.Y. 2018-19).
(a)Distinguish between exemptions, deductions and rebate under the Income-tax Act, 1961.
Exemptions
Deduction
Rebate
1. Exemptions means a source
1. Deductions are incentives 1. Rebate is a specified
of income is exempt from
provided by the govern-
percentage of or an
Income Tax Act whether fully
ment to reduce the
amount reduced from
or partially.
Taxable income.
total income tax
payable.
2. The exempted income is not
2. Income in respect of
2. Tax rebate is allowed as
included in the total Income
which deduction is
a reduction from the
of the assessee.
allowed is firstly included
total tax payable.
in income and then deductions are allowed under different heads of income as well as from the total income.
3. Chapter III (Section 10) of the
3. Chapter VI-A (Section
3. Section 87A deals with
Income Tax Act, 1961 deals
80C to 80U) of the
rebate under Income
with exempt income.
Income Tax Act, 1961
Tax Act, 1961.
deals with deductions.
Source: ICSI Guideline Answers, December 2018, Q. 2(a) (Syllabus 2017).
December 2025Q. 1(d)4 marksSyllabus 2022Law changed
Law changed after this attempt: The Income-tax Act, 2025 replaced the Income-tax Act, 1961 from 1 April 2026, and ICSI's study material is based on it from the June 2027 examination, so section numbers, rates and limits may differ. (ICSI Study Material, Tax Laws and Practice, June 2027 onwards). The answer below reflects the Income-tax Act, 1961 as it stood for December 2025 (A.Y. 2025-26).
Show the facts common to all parts of Q. 1
Karan, aged 38 years, working as Sales Manager with Arjun Grand Ltd., provides the following information for the year ended 31st March, 2025 :
Particulars
Amount (₹)
Basic salary
6,00,000 p.a.
DA (50% of it is meant for retirement benefits)
3,00,000 p.a.
Commission as a percentage of turnover of the Company
0.5%
Turnover of the Company
60 lakhs
Bonus
60,000 p.a.
Project Allowance
40,000 p.a.
Own Contribution to R.P.F.
40,000 p.a.
Professional tax total paid ₹ 2,500 of which ₹ 2,000 was paid by the employer
—
Employer’s contribution to R.P.F.
20% of basic salary
Interest credited in the R.P.F. account @ 15% p.a.
15,000
Following further information is given to you as under :
(1)Music System purchased on 01.04.2024 by the company for ₹ 95,000 and was given to Karan for personal use on same day.
(2)Smart TV worth ₹ 15,000 was given by employer to Karan as gift on his 25th wedding anniversary.
(3)Gold ring worth ₹ 75,000 received from Sanjay who is school friend of Karan as gift on his 25th wedding anniversary.
(4)Two old light goods vehicles owned by him were leased to a transport company against the fixed charges of ₹ 6,500 p.m. Books of account are not maintained. Karan wants to opt the section 44AE of Income Tax Act, 1961.
(5)Received interest of ₹ 8,000 from SBI Bank FD on 24.4.2024 and interest of ₹ 8,100 (Net) from the debentures of Indian Companies on 5.5.2024.
(6)Made payment by cheques of ₹ 15,000 towards premium on Life Insurance policies for self and ₹ 22,500 for Mediclaim Insurance policy for spouse.
(7)Invested in NSC ₹ 30,000 and in FDR of SBI for 5 years ₹ 50,000.
(8)Donations of ₹ 1,50,000 to an institution approved u/s 80G by account payee cheque and of ₹ 25,000 to Prime Minister’s National Relief Fund through BHIM UPI were made during the year.
On the basis of the above information, you are required to give the following answers, assuming that he has shifted out of the default tax regime under section 115BAC :
(d)Compute the total allowable deduction under chapter VI-A of the Income Tax Act, 1961 for Karan for the Assessment Year 2025-26.
Computation of allowable deduction under chapter VI-A for Karan for A.Y. 2025-26
Particulars
Amount
Amount
( ₹ )
( ₹ )
A. Deduction under section 80C:
– Premium on life insurance policy
15,000
– Investment in NSC
30,000
– FDR of SBI for 5 years
50,000
– Employee’s contribution to recognized provident fund
40,000
1,35,000
B. Deduction under section 80D: – Mediclaim Insurance (for spouse)
22,500
C. Deduction under section 80G: Donation to PM National Relief Fund (100%)
25,000
Donation to institution approved under section 80G (50% of qualifying amount i.e. ₹ 1,14,540) (Maximum qualifying amount is actual donation ₹ 1,50,000 or 10% of Adjusted Total Income i.e. ₹ 1,14,540, whichever is lower) (Adjusted Total Income = Gross Total Income − Deductions under section 80C and 80D = ₹ 13,02,900 − ₹ 1,57,500 = ₹ 11,45,400)
57,270
82,270
Total Deduction
2,39,770
income.
Alternative Answer 1(d)
Computation of allowable deduction under chapter VI-A for Karan for A.Y. 2025-26
Particulars
Amount
Amount
( ₹ )
( ₹ )
A. Deduction under section 80C:
– Premium on life insurance policy
15,000
– Investment in NSC
30,000
– FDR of SBI for 5 years
50,000
Particulars
Amount
Amount
( ₹ )
( ₹ )
– Employee’s contribution to recognized provident fund
40,000
1,35,000
B. Deduction under section 80D: – Mediclaim Insurance (for spouse)
22,500
C. Deduction under section 80G: Donation to PM National Relief Fund (100%)
25,000
Donation to institution approved under section 80G (50% of qualifying amount i.e. ₹ 1,15,040) (Maximum qualifying amount is actual donation ₹ 1,50,000 or 10% of Adjusted Total Income i.e. ₹ 1,15,040, whichever is lower) (Adjusted Total Income = Gross Total Income − Deductions under section 80C and 80D = ₹ 13,07,900 − ₹ 1,57,500 = ₹ 11,50,400)
57,520
82,520
Total Deduction
2,40,020
of gift of ₹ 15,000 may be taxed.
Source: ICSI Guideline Answers, December 2025, Q. 1(d) (Syllabus 2022).
December 2024Q. 181 markMCQSyllabus 2017Law changed
Law changed after this attempt: The Income-tax Act, 2025 replaced the Income-tax Act, 1961 from 1 April 2026, and ICSI's study material is based on it from the June 2027 examination, so section numbers, rates and limits may differ. (ICSI Study Material, Tax Laws and Practice, June 2027 onwards). The answer below reflects the Income-tax Act, 1961 as it stood for December 2024 (A.Y. 2024-25).
Maximum permissible deduction under section 80G which is subject to qualifying limit is restricted to :
December 2024Q. 4A(ii)5 marksSyllabus 2022Law changed
Law changed after this attempt: The Income-tax Act, 2025 replaced the Income-tax Act, 1961 from 1 April 2026, and ICSI's study material is based on it from the June 2027 examination, so section numbers, rates and limits may differ. (ICSI Study Material, Tax Laws and Practice, June 2027 onwards). The answer below reflects the Income-tax Act, 1961 as it stood for December 2024 (A.Y. 2024-25).
( ii )For the Financial year 2023-24 Gross Total Income of Dhruvan (Age 47) employed in Indian Air Force was ₹ 17,50,000, it includes long term capital gain on sale of house property ₹ 3,16,000. He has made the following payments and investments during the current financial year :
(i)Premium paid ₹ 35,000 to Max Life Insurance for the life of his major daughter (policy taken on 1.4.2022) (Sum assured value ₹ 1,70,000).
(ii)Five-year post-office time deposit - ₹ 52,000.
(iii)Donation to a public charitable institution registered under 80G ₹ 1,35,000 by way of online NEFT.
(iv)He contributed ₹ 22,500 to Agniveer Corpus Fund setup by Central Government, his employer also contributed the same amount of ₹ 22,500.
(v)Payment of tuition fees paid to Winsome School, Kolkata for education of his son studying in class X - ₹ 75,000.
Compute the total allowed deduction under chapter VI-A of Dhruvan for assessment year 2024-25, assuming that he has not opted for section 115BAC.
Computation of Total allowed deduction under chapter VI-A for A.Y. 2024-25
Particulars
Amount
Amount
(i) Deduction under section 80C
Life insurance premium paid for insurance of his major daughter (Maximum 10% of sum assured value, i.e. Rs. 1,70,000 X 10% = Rs. 17,000)
17,000
Five-year post-office time deposit
52,000
Payment of tuition fees for son paid to Winsome School
75,000
Total Deduction under section 80C -
1,44,000
(ii) Deduction under section 80CCH(l)
Employee's contribution to Agniveer Corpus Fund
22,500
(iii) Deduction under section 80CCH(2)
Employer's contribution to Agniveer Corpus Fund
22,500
(iv) Deduction under section 80G
Donation to a public charitable institution registered under 80G (Subject to maximum of 50% of Rs. 1,24,500) (W.N. 1)
62,250
Total Deduction under chapter VI-A
2,51,250
Working Note 1:
Donation to a registered public charitable institution is eligible for 50% deduction subject to qualifying limit. In this case qualifying limit for availing deduction under section 80G is restricted to 10% of adjusted gross total income.
Adjusted gross total income means = Gross total income - LTCG - STCG u/s 111A - all deductions except 80G.
Therefore, adjusted total income is Rs. 12,45,000 (i.e., Rs. 17,50,000 – Rs. 3,16,000 – Rs. 1,44,000 – Rs. 22,500 – Rs. 22,500), 10% of adjusted total income is Rs. 1,24,500.
Hence, the deduction under section 80G would be Rs. 62,250 (i.e., 50 % Rs. 1,24,500)
Source: ICSI Guideline Answers, December 2024, Q. 4A(ii) (Syllabus 2022).
June 2024Q. 121 markMCQSyllabus 2017Law changed
Law changed after this attempt: The Income-tax Act, 2025 replaced the Income-tax Act, 1961 from 1 April 2026, and ICSI's study material is based on it from the June 2027 examination, so section numbers, rates and limits may differ. (ICSI Study Material, Tax Laws and Practice, June 2027 onwards). The answer below reflects the Income-tax Act, 1961 as it stood for June 2024 (A.Y. 2024-25).
Mr. S made a donation of ₹ 50,000 to PM Cares Fund and ₹ 20,000 to Rajiv Gandhi Foundation by cheque. He made a cash donation of ₹ 10,000 to a public charitable trust registered under section 80G. The maximum deduction allowable to him under section 80G for A.Y. 2024-25 is :
(A)₹ 80,000
(B)₹ 70,000
(C)₹ 60,000
(D)₹ 35,000
ICSI did not treat any of the given options as correct.
ICSI's note: None of the given options are correct. Correct answer is Rs. 50000 donation to PM cares fund. Donation made in Cash is not allowed as deduction u/s 80G. Further, Finance Act, 2023 has amended the section 80G omitted the donation made to Rajiv Gandhi Foundation out of the purview of u/s 80G.
Law changed after this attempt: The Income-tax Act, 2025 replaced the Income-tax Act, 1961 from 1 April 2026, and ICSI's study material is based on it from the June 2027 examination, so section numbers, rates and limits may differ. (ICSI Study Material, Tax Laws and Practice, June 2027 onwards). The answer below reflects the Income-tax Act, 1961 as it stood for June 2023 (A.Y. 2023-24).
Venkat and Co. engaged in trading activity gave ₹ 1 lakh as donation to Deference Research and Development Organisation. How much of the amount given as donation is eligible for deduction while computing its income under the head ‘‘Profits and gains of Business or Profession’’?
(A)Nil
(B)₹ 50,000
(C)₹ 1, 00,000
(D)₹ 1, 50,000
ICSI accepted any of these answers: (A) Nil; (C) ₹ 1, 00,000
ICSI's note: There is a typo error in the question paper written as "Deference" instead of "Defence". Option C is correct assuming it is an approved scientific research organisation under section 35 of the Income tax Act, 1961. Option A is correct assuming it is not an approved scientific research organisation under section 35 of the Income tax Act, 1961.
Law changed after this attempt: The Income-tax Act, 2025 replaced the Income-tax Act, 1961 from 1 April 2026, and ICSI's study material is based on it from the June 2027 examination, so section numbers, rates and limits may differ. (ICSI Study Material, Tax Laws and Practice, June 2027 onwards). The answer below reflects the Income-tax Act, 1961 as it stood for June 2023 (A.Y. 2023-24).
Bansal employed in a private company as general manager with salary income (computed) ₹ 18, 60,000. He paid ₹ 1,00,000 to Universal College for doing resear ch in social science which is approved by the prescribed authority for the purpose of section 35(1) (iii) of the Income Tax Act, 1961. His son was admitted in the same college for pursuing a degree course. How much of the donation given by Bansal is eligible for deduction while computing his total income for the assessment year 2023-24?
(A)Nil
(B)₹ 50,000 under section 80G of the Income Tax Act, 1961
(C)₹ 1, 00,000 under section 80GGA of the Income Tax Act, 1961
(D)₹ 1,50,000 under section 35(1) of the Income Tax Act, 1961
Answer: (C) ₹ 1, 00,000 under section 80GGA of the Income Tax Act, 1961
December 2021Q. 101 markMCQOld syllabusLaw changed
Law changed after this attempt: The Income-tax Act, 2025 replaced the Income-tax Act, 1961 from 1 April 2026, and ICSI's study material is based on it from the June 2027 examination, so section numbers, rates and limits may differ. (ICSI Study Material, Tax Laws and Practice, June 2027 onwards). The answer below reflects the Income-tax Act, 1961 as it stood for December 2021 (A.Y. 2021-22).
What is the maximum limit prescribed by the Act for cash donation received by the Political Party registered with the Election Commission of India?
December 2021Q. 341 markMCQSyllabus 2017Law changed
Law changed after this attempt: The Income-tax Act, 2025 replaced the Income-tax Act, 1961 from 1 April 2026, and ICSI's study material is based on it from the June 2027 examination, so section numbers, rates and limits may differ. (ICSI Study Material, Tax Laws and Practice, June 2027 onwards). The answer below reflects the Income-tax Act, 1961 as it stood for December 2021 (A.Y. 2021-22).
Ankita gave a donation on 15.8.20 of ₹ 1,00,000 to PM Cares Fund by way of RTGS transfer, on 11.9.20 of ₹ 25,000 to Rajiv Gandhi Foundation by account payee cheque and on 21.2.21 a cash donation of ₹ 11,000 to a public charitable trust. The deduction allowable under section 80G for the various donations given during the year out of the GTI for A.Y. 2021-22 for filing return of income would be :
December 2020Q. 371 markMCQOld syllabusLaw changed
Law changed after this attempt: The Income-tax Act, 2025 replaced the Income-tax Act, 1961 from 1 April 2026, and ICSI's study material is based on it from the June 2027 examination, so section numbers, rates and limits may differ. (ICSI Study Material, Tax Laws and Practice, June 2027 onwards). The answer below reflects the Income-tax Act, 1961 as it stood for December 2020 (A.Y. 2020-21).
The maximum amount which can be donated in cash for claiming benefit of deduction under section 80G of the Act is ________
Law changed after this attempt: The Income-tax Act, 2025 replaced the Income-tax Act, 1961 from 1 April 2026, and ICSI's study material is based on it from the June 2027 examination, so section numbers, rates and limits may differ. (ICSI Study Material, Tax Laws and Practice, June 2027 onwards). The answer below reflects the Income-tax Act, 1961 as it stood for June 2019 (A.Y. 2019-20).
100% deduction in respect of donations as per section 80G without any qualifying amount or limit is available in the case of :
(A)Prime Minister Drought Relief Fund
(B)Jawaharlal Nehru Memorial Fund
(C)Payment to local authority for promotion of family planning
December 2018Q. 471 markMCQOld syllabusLaw changed
Law changed after this attempt: The Income-tax Act, 2025 replaced the Income-tax Act, 1961 from 1 April 2026, and ICSI's study material is based on it from the June 2027 examination, so section numbers, rates and limits may differ. (ICSI Study Material, Tax Laws and Practice, June 2027 onwards). The answer below reflects the Income-tax Act, 1961 as it stood for December 2018 (A.Y. 2018-19).
Nargis during the previous year 1st April, 2017 to 31st March, 2018 had donated the amount of ₹ 50,000 each in Africa Fund, National Children Fund, National Illness Assistance Fund and further amount of ₹ 30,000 in Rajiv Gandhi Foundation. The amount of deduction eligible to be claimed by her as per section ................. in A.Y. 2018-19 shall be of .................
Law changed after this attempt: The Income-tax Act, 2025 replaced the Income-tax Act, 1961 from 1 April 2026, and ICSI's study material is based on it from the June 2027 examination, so section numbers, rates and limits may differ. (ICSI Study Material, Tax Laws and Practice, June 2027 onwards). The answer below reflects the Income-tax Act, 1961 as it stood for June 2023 (A.Y. 2023-24).
Siddarth (age 50 years) paid ₹ 20,000 through credit card towards health insurance of himself and his wife. He incurred ₹ 70,000 towards medical expenditure for his mother who is not covered by health insuranc e policy. He paid ₹ 23,000 towards health insurance of his father by account payee cheque. Both the parents are senior citizens and dependent on Siddarth. How much is the amount eligible for deduction under section 80D of the Income Tax Act, 1961?
December 2019Q. 101 markMCQOld syllabusLaw changed
Law changed after this attempt: The Income-tax Act, 2025 replaced the Income-tax Act, 1961 from 1 April 2026, and ICSI's study material is based on it from the June 2027 examination, so section numbers, rates and limits may differ. (ICSI Study Material, Tax Laws and Practice, June 2027 onwards). The answer below reflects the Income-tax Act, 1961 as it stood for December 2019 (A.Y. 2019-20).
Mahadev (age 45) engaged in business paid ₹ 52,000 towards medical insurance of his parents who are senior citizens. He also paid ₹ 30,000 towards medical insurance for himself, his wife and one daughter. The premium amount was paid by account payee crossed cheque. The amount of deduction allowable under section 80D would be :
December 2019Q. 701 markMCQOld syllabusLaw changed
Law changed after this attempt: The Income-tax Act, 2025 replaced the Income-tax Act, 1961 from 1 April 2026, and ICSI's study material is based on it from the June 2027 examination, so section numbers, rates and limits may differ. (ICSI Study Material, Tax Laws and Practice, June 2027 onwards). The answer below reflects the Income-tax Act, 1961 as it stood for December 2019 (A.Y. 2019-20).
Senthil employed in a nationalized bank incurred ₹ 60,000 towards medical expenditure of his parent who is a senior citizen and dependent upon him. There is no health insurance policy to cover the parent. The amount eligible for deduction under section 80D would be :
Law changed after this attempt: The Income-tax Act, 2025 replaced the Income-tax Act, 1961 from 1 April 2026, and ICSI's study material is based on it from the June 2027 examination, so section numbers, rates and limits may differ. (ICSI Study Material, Tax Laws and Practice, June 2027 onwards). The answer below reflects the Income-tax Act, 1961 as it stood for June 2019 (A.Y. 2019-20).
Timir, (aged 51 years) subscribed to health insurance for him, wife and son and paid premium of ₹ 28,000. He also incurred medical expenditure for his parents during the year amounting to ₹ 32,000. He can claim deduction for these expenses as per section 80D of the Income Tax Act, 1961, of :
Law changed after this attempt: The Income-tax Act, 2025 replaced the Income-tax Act, 1961 from 1 April 2026, and ICSI's study material is based on it from the June 2027 examination, so section numbers, rates and limits may differ. (ICSI Study Material, Tax Laws and Practice, June 2027 onwards). The answer below reflects the Income-tax Act, 1961 as it stood for June 2024 (A.Y. 2024-25).
Deduction under Section 80PA is available to producer company whose turnover is less than 100 crores commencing its business after 01-04-2019, 100 percent deduction will be available up to which Assessment Year ?
Law changed after this attempt: The Income-tax Act, 2025 replaced the Income-tax Act, 1961 from 1 April 2026, and ICSI's study material is based on it from the June 2027 examination, so section numbers, rates and limits may differ. (ICSI Study Material, Tax Laws and Practice, June 2027 onwards). The answer below reflects the Income-tax Act, 1961 as it stood for June 2022 (A.Y. 2022-23).
Rajesh pays a rent of ₹ 8,000 p.m. His total income is ₹ 6,00,000 for the financial year 2021-22 (i.e., Gross total income is reduced by deduction under chapter VIA except section 80GG). He is also in receipt of HRA. He would be eligible for a deduction under section 80GG of an amount of ............... for the Assessment Year 2022-23 ? (Assessee has not opted for section 115BAC).
December 2020Q. 351 markMCQOld syllabusLaw changed
Law changed after this attempt: The Income-tax Act, 2025 replaced the Income-tax Act, 1961 from 1 April 2026, and ICSI's study material is based on it from the June 2027 examination, so section numbers, rates and limits may differ. (ICSI Study Material, Tax Laws and Practice, June 2027 onwards). The answer below reflects the Income-tax Act, 1961 as it stood for December 2020 (A.Y. 2020-21).
Rama Farm Pvt Ltd is a producer company as specified under section 581A (i) of the Companies Act, 1956. In order to avail/ taking the benefit of deduction under section 80PA, the total turnover of the company is to be less than _________ in any previous year.
December 2020Q. 401 markMCQOld syllabusLaw changed
Law changed after this attempt: The Income-tax Act, 2025 replaced the Income-tax Act, 1961 from 1 April 2026, and ICSI's study material is based on it from the June 2027 examination, so section numbers, rates and limits may differ. (ICSI Study Material, Tax Laws and Practice, June 2027 onwards). The answer below reflects the Income-tax Act, 1961 as it stood for December 2020 (A.Y. 2020-21).
Sandeep during the previous year 2019-20 receives royalty on books of ₹ 1,00,000 at a rate of 17% and incurs ₹ 10,000 as expenditure for earning the amount of royalty. The books are covered under section 80QQB and the entire royalty was to be received from UK. ₹ 50,000, however shall be remitted to India till 30th September, 2020 out of the total amount of Royalty of ₹ 1,00,000. Deduction under section 80QQB for the assessment year 2020-21 available to Sandeep is ______________
(A)₹ 90,000
(B)₹ 50,000
(C)₹ 40,000
(D)₹ 1,00,000
Answer: (C) ₹ 40,000
ICSI's note: Correct option is C i.e. 40000 (50000 -10000). However, while calculating deduction proportinate expendiutre is deducted, thus, no options are correct.
December 2020Q. 361 markMCQSyllabus 2017Law changed
Law changed after this attempt: The Income-tax Act, 2025 replaced the Income-tax Act, 1961 from 1 April 2026, and ICSI's study material is based on it from the June 2027 examination, so section numbers, rates and limits may differ. (ICSI Study Material, Tax Laws and Practice, June 2027 onwards). The answer below reflects the Income-tax Act, 1961 as it stood for December 2020 (A.Y. 2020-21).
Babu Lal authored a book which is covered as per provision of section 80QQB and received an amount of royalty of ₹ 2,00,000 @ 20% during the year ended 31.3.2020. He had incurred an expenditure of ₹ 30,000 for earning the amount of royalty of ₹ 2,00,000. The entire royalty was received by him from abroad and amount of ₹ 1,10,000 out of the royalty amount shall be remitted to India till 30.09.2020. He can claim deduction out of such royalty income in assessment year 2020-21 for an amount of _________
(A)₹ 1,70,000
(B)₹ 80,000
(C)₹ 1,20,000
(D)₹ 2,00,000
Answer: (B) ₹ 80,000
ICSI's note: Correct option is B i.e. 80000 (110000 -30000). However,while calculating deduction, if proportionate expendiutre is deducted, thus, no options are correct .
December 2019Q. 461 markMCQOld syllabusLaw changed
Law changed after this attempt: The Income-tax Act, 2025 replaced the Income-tax Act, 1961 from 1 April 2026, and ICSI's study material is based on it from the June 2027 examination, so section numbers, rates and limits may differ. (ICSI Study Material, Tax Laws and Practice, June 2027 onwards). The answer below reflects the Income-tax Act, 1961 as it stood for December 2019 (A.Y. 2019-20).
Lal authored a text-book for school students of Malaysia. He received Royalty (in convertible foreign exchange before 31-5-2019) of ₹ 5 lakh. He incurred expenditure such as ₹ 20,000 for reference books, ₹ 60,000 for text proof readers and ₹ 1,00,000 for content assistants. How much of his income is eligible for deduction under section 80QQB ?
December 2019Q. 291 markMCQSyllabus 2017Law changed
Law changed after this attempt: The Income-tax Act, 2025 replaced the Income-tax Act, 1961 from 1 April 2026, and ICSI's study material is based on it from the June 2027 examination, so section numbers, rates and limits may differ. (ICSI Study Material, Tax Laws and Practice, June 2027 onwards). The answer below reflects the Income-tax Act, 1961 as it stood for December 2019 (A.Y. 2019-20).
ABC Limited fulfilling all the conditions of operating different infrastructure facilities for claiming deduction u/s 80-IA. Find which are being not covered under infrastructure facility out of the following :
December 2018Q. 591 markMCQOld syllabusLaw changed
Law changed after this attempt: The Income-tax Act, 2025 replaced the Income-tax Act, 1961 from 1 April 2026, and ICSI's study material is based on it from the June 2027 examination, so section numbers, rates and limits may differ. (ICSI Study Material, Tax Laws and Practice, June 2027 onwards). The answer below reflects the Income-tax Act, 1961 as it stood for December 2018 (A.Y. 2018-19).
The Patna High Court following the decision laid down by the Bombay High Court in the case of Mahindra Sintered Products Ltd. held that to claim special deduction u/s 80 J, the assessee has to establish the fact/facts relating to ..............
(A)investment of substantial fresh capital in the new industrial undertaking so set up
(B)earning of profits clearly attributable to the said undertaking
(C)manufacture or production of articles on the said undertaking
Law changed after this attempt: The Income-tax Act, 2025 replaced the Income-tax Act, 1961 from 1 April 2026, and ICSI's study material is based on it from the June 2027 examination, so section numbers, rates and limits may differ. (ICSI Study Material, Tax Laws and Practice, June 2027 onwards). The answer below reflects the Income-tax Act, 1961 as it stood for June 2025 (A.Y. 2025-26).
(b)Prakash (age 41 years), who is a resident in India, is a person with disability (disability below 80%), he provides the following particulars of his income for the year ended 31.3.2025 :
S. No.
Particulars
Amount (₹)
1.
Dividend received from Domestic Company
1,78,000
2.
Interest on government securities (gross)
46,000
3.
Honorarium from school of orphanage for giving his part time service
50,000
He has donated ₹ 20,000 to the school for orphanage which is approved as a charitable institution and contributed ₹ 2,000 to Prime Minister National Relief Fund.
He has deposited ₹ 20,000 in Public Provident Fund Account on 31.03.2025. He has also paid ₹ 3,000 by credit card as premium of Mediclaim policy of his dependent Son.
His father is also a person with disability (disability below 65%) and is dependent on him for medical treatment and rehabilitation. Prakash spends ₹ 8,000 during the year on him.
Compute the Total Income of Prakash for the assessment year 2025-26, assuming that he has not opted the default tax regime under section 115BAC of the Income Tax Act, 1961.
Computation of Total Income of Prakash for A.Y.2025-26
Particulars
Amount
Amount
( ₹ )
( ₹ )
Income from other sources
Dividend received from Domestic Company
1,78,000
Interest on Government Securities
46,000
Honorarium from school
50,000
Gross Total Income
2,74,000
Less: Deductions:
Under Section 80C- Public Provident Fund
20,000
Under Section 80D- Mediclaim Insurance Policy
3,000
Under Section 80DD- Disability for Dependent father
75,000
Under Section 80U- Disability Himself
75,000
Under Section 80G- Donation
5,050
Prime Minister Relief fund (100% of Rs. 2,000)
2,000
Orphanage School (50% of Rs. 10,100) 10% of 1,01,000 Rs. (2,74,000 –
20000+3000+75000+75000)
Total Deductions
(1,80,050)
Total Income
93,950
Source: ICSI Guideline Answers, June 2025, Q. 3(b) (Syllabus 2022).
June 2022Q. 481 markMCQSyllabus 2017Law changed
Law changed after this attempt: The Income-tax Act, 2025 replaced the Income-tax Act, 1961 from 1 April 2026, and ICSI's study material is based on it from the June 2027 examination, so section numbers, rates and limits may differ. (ICSI Study Material, Tax Laws and Practice, June 2027 onwards). The answer below reflects the Income-tax Act, 1961 as it stood for June 2022 (A.Y. 2022-23).
Sirish’s father is dependent on him and suffering with 90% disability. Sirish has incurred an amount of ₹ 98,000 during the financial year 2021-22 in maintaining and on medical treatment of his father. The deduction he can claim in his income tax return for Assessment Year 2022-23 if opted for section 115 BAC is :
Law changed after this attempt: The Income-tax Act, 2025 replaced the Income-tax Act, 1961 from 1 April 2026, and ICSI's study material is based on it from the June 2027 examination, so section numbers, rates and limits may differ. (ICSI Study Material, Tax Laws and Practice, June 2027 onwards). The answer below reflects the Income-tax Act, 1961 as it stood for June 2021 (A.Y. 2021-22).
Ram is a resident individual and suffers from severe disability certified by the appropriate authority. He is mainly dependent on his father Karan. Karan has to spend ₹ 4,000 per month on the treatment of Ram. The gross total income of Ram and Karan is ₹ 50,000 and ₹ 1,50,000 respectively. Find out total income of Karan for the Assessment Year 2021-22. (Assuming assessee has not opted for section 115BAC)
December 2019Q. 151 markMCQOld syllabusLaw changed
Law changed after this attempt: The Income-tax Act, 2025 replaced the Income-tax Act, 1961 from 1 April 2026, and ICSI's study material is based on it from the June 2027 examination, so section numbers, rates and limits may differ. (ICSI Study Material, Tax Laws and Practice, June 2027 onwards). The answer below reflects the Income-tax Act, 1961 as it stood for December 2019 (A.Y. 2019-20).
M incurred ₹ 2 lakh as expenditure towards medical treatment of his father P (age 61) who suffered from advanced stage of cancer. The amount of expenditure eligible for deduction under section 80DDB would be :
December 2023Q. 301 markMCQSyllabus 2017Law changed
Law changed after this attempt: The Income-tax Act, 2025 replaced the Income-tax Act, 1961 from 1 April 2026, and ICSI's study material is based on it from the June 2027 examination, so section numbers, rates and limits may differ. (ICSI Study Material, Tax Laws and Practice, June 2027 onwards). The answer below reflects the Income-tax Act, 1961 as it stood for December 2023 (A.Y. 2023-24).
Contributions made other than by way of cash by an Indian Company in the previous year to any political party shall be allowed as deduction to the extent of ...... % of contribution made.
December 2023Q. 1(c)5 marksSyllabus 2022Law changed
Law changed after this attempt: The Income-tax Act, 2025 replaced the Income-tax Act, 1961 from 1 April 2026, and ICSI's study material is based on it from the June 2027 examination, so section numbers, rates and limits may differ. (ICSI Study Material, Tax Laws and Practice, June 2027 onwards). The answer below reflects the Income-tax Act, 1961 as it stood for December 2023 (A.Y. 2023-24).
Show the facts common to all parts of Q. 1
Vijay, an Indian Citizen, was living in Delhi since 1972, he left for France on 1st August, 2017 and comes back on 2nd April, 2022. On the same day he joined BGH Industries Ltd., Delhi as a Chief Mechanic. He went to China for 15 days during the year in the month of July 2022.
He furnishes following details for the previous year 2022-23 about his salary income :
Particulars
Amount (₹)
Basic Salary
1,22,000 p.m.
Dearness allowance eligible for retirement benefits)
60,000 p.m.
Fixed medical allowance
5,000 p.m.
House rent allowance
25,000 p.m.
Transport allowance
2,000 p.m.
Bonus
2 months basic salary+ DA
Club membership fee reimbursed by employer
14,000 P. a.
Residence telephone bill paid by employer
22,000 p. a.
Contribution of employer to recognized provident fund
15% of basic salary + D. A.
Two children of Vijay study in the school run by the company. The cost of education in the similar school for the year would be ₹ 1,24,000 and the employee paid ₹ 50,000 to the school by way of fee.
Vijay gives the following information with respect to two loans taken by him from scheduled banks for various purposes:
(i)A housing loan of ₹ 34,00,000/- taken on 12th March, 2022 for the purchase of a house to be used for self-residence at a cost of ₹ 44,00,000/-. The stamp duty value of the house was ₹ 41,00,000/- at the time of purchase. Amount of repayment of loan during P.Y. 2022-23 was :
(A)towards principal - ₹ 1,22,000/-
(B)towards interest - ₹ 3,60,000/-
This is the first and only residential house owned by Vijay.
(ii)A vehicle loan of ₹ 18,00,000/- taken on 29th May, 2022 for the purchase of new electric car for personal use. Amount of repayment of loan during P.Y. 2022-23 was :
(A)towards principal - ₹ 80,000/-
(B)towards interest - ₹ 1,75,000/-
Besides these loans, he has also paid a sum of ₹ 9,000 to a political party as contribution. The entire amount was paid in cash. Based on the facts of the case scenario given above, answer each of the following three parts treated as separately :
(c)With reference to loans taken and contribution to political party, compute the amount of tax benefits/deduction(s) available to Vijay under various provisions of Income-tax Act, 1961 for A.Y. 2023-24, so that he gets the maximum benefits assuming that he does not opt to pay tax under section 115BAC.
Computation of amount of tax benefits/ deductions available for Mr. Vijay for A.Y. 2023-24
Sr.
Particulars
Amount
Amount
No.
(Rs.)
(Rs.)
1.
Deduction allowable while computing income under the head “Income from house property”: Deduction under section 24(b) for interest on home loan of Rs. 3,60,000 in respect of self-occupied property restricted to 2,00,000.
2,00,000
2.
Deduction under Chapter VI-A
Deduction under section 80C: For repayment of Home loan principal to bank (actual subject to maximum of Rs. 1,50,000).
1,22,000
Deduction under section 80EEA: Since stamp duty value does not exceed Rs. 45 lakhs and Mr. Vijay does not own any residential house, so Mr. Vijay is eligible for deduction of upto Rs. 1,50,000 in respect of such interest on loan (which is not claimed under house property head) since loan is sanctioned between 1.4.2019 and 31.3.2022. 3,60,000 - 2,00,000 [claimed as deduction u/s 24(b)] = 1,60,000 restricted to Rs. 1,50,000, being the maximum permissible deduction.
1,50,000
Deduction under section 80EEB: Deduction for interest on loan for purchase of electric vehicle of Rs. 1,75,000 restricted to Rs. 1,50,000, being the maximum permissible deduction, since loan is sanctioned between 1.4.2019 and 31.3.2023. [No deduction in respect of principal repayment of loan for purchase of electric vehicle.]
1,50,000
Deduction under section 80GGC: Contribution of Rs. 9,000 to political party not allowable since the sum is paid in cash.
Nil
Deduction under Chapter VI-A from Gross Total Income
4,22,000
Total Deductions
6,22,000
Source: ICSI Guideline Answers, December 2023, Q. 1(c) (Syllabus 2022).
December 2019Q. 451 markMCQOld syllabusLaw changed
Law changed after this attempt: The Income-tax Act, 2025 replaced the Income-tax Act, 1961 from 1 April 2026, and ICSI's study material is based on it from the June 2027 examination, so section numbers, rates and limits may differ. (ICSI Study Material, Tax Laws and Practice, June 2027 onwards). The answer below reflects the Income-tax Act, 1961 as it stood for December 2019 (A.Y. 2019-20).
Rahul & Co. Ltd. paid ₹ 1,10,000 towards printing of pamphlets of a registered political party in connection with state assembly elections. The expenditure incurred is :
(A)Inadmissible expenditure
(B)Deductible @ 50%
(C)Deductible @ 100%
(D)Deductible U/s 80GGB
ICSI accepted any of these answers: (A) Inadmissible expenditure; (D) Deductible U/s 80GGB
ICSI's note: As per section 37(2B), specifically considered inadmissible expenditure incurred by an assessee on advertisement in any souvenir, brochure, tract, pamphlet or the like published by a political party. Further, the same will be deductibel u/s 80GGB. Section 80GGB In computing the total income of an assessee, being an Indian company, there shall be deducted any sum contributed by it, in the previous year to any political party or an electoral trust. the word “contribute”, with its grammatical variation, has the meaning assigned to it under section 293A of the Companies Act, 1956 (1 of 1956) which spesicially include expenditure on pamphlets. Therefore, both option A/D are correct.
December 2022Q. 351 markMCQSyllabus 2017Law changed
Law changed after this attempt: The Income-tax Act, 2025 replaced the Income-tax Act, 1961 from 1 April 2026, and ICSI's study material is based on it from the June 2027 examination, so section numbers, rates and limits may differ. (ICSI Study Material, Tax Laws and Practice, June 2027 onwards). The answer below reflects the Income-tax Act, 1961 as it stood for December 2022 (A.Y. 2022-23).
Where an assessee has not exercised option u/s 115BAC, deduction under section 80EEB is allowed to an individual on account of interest payable on loan taken by him from any financial institution for the purpose of purchase of an electric vehicle subject to maximum of Rupees :
Law changed after this attempt: The Income-tax Act, 2025 replaced the Income-tax Act, 1961 from 1 April 2026, and ICSI's study material is based on it from the June 2027 examination, so section numbers, rates and limits may differ. (ICSI Study Material, Tax Laws and Practice, June 2027 onwards). The answer below reflects the Income-tax Act, 1961 as it stood for June 2022 (A.Y. 2022-23).
Sanghvi purchased her first house at Vijayawada for occupation on 10th June, 2020 for ₹ 80 Lakhs (stamp duty value being the same) with bank loan sanctioned on 1st June, 2020 she paid on interest of ₹ 4.5 Lakhs during the Previous Year 2021-22. What is the tax treatment of interest paid by her for the Assessment Year 2022-23? (Assessee has not opted for section 115BAC).
(A)Interest of 2 lakhs allowable u/s 24
(B)Interest of 1.5 lakhs u/s 24 and 1.5 lakhs allowable u/s 80EEA
(C)Interest of 2 lakhs allowable u/s 24 and 50,000 allowable u/s 80EEA
(D)Interest of 2 lakhs allowable u/s 24 and 1.5 lakhs allowable u/s 80EEA
December 2020Q. 391 markMCQOld syllabusLaw changed
Law changed after this attempt: The Income-tax Act, 2025 replaced the Income-tax Act, 1961 from 1 April 2026, and ICSI's study material is based on it from the June 2027 examination, so section numbers, rates and limits may differ. (ICSI Study Material, Tax Laws and Practice, June 2027 onwards). The answer below reflects the Income-tax Act, 1961 as it stood for December 2020 (A.Y. 2020-21).
A deduction of an amount of ₹ _______ under section 80EEA in respect to interest paid on home loan for acquisition of residential house under affordable housing is available to _______ in A.Y. 2020-21.
Law changed after this attempt: The Income-tax Act, 2025 replaced the Income-tax Act, 1961 from 1 April 2026, and ICSI's study material is based on it from the June 2027 examination, so section numbers, rates and limits may differ. (ICSI Study Material, Tax Laws and Practice, June 2027 onwards). The answer below reflects the Income-tax Act, 1961 as it stood for June 2024 (A.Y. 2024-25).
Mr. H aged 65 years of age earned the following Interest during Financial Year 2023-24.
l Interest on Savings Bank ₹ 25,000
l Interest on FD ₹ 20,000
l Interest on Time Deposit ₹ 9,000
What will be the amount of Deduction Under Section 80TTB for the Assessment Year 2024-25 :
December 2022Q. 381 markMCQSyllabus 2017Law changed
Law changed after this attempt: The Income-tax Act, 2025 replaced the Income-tax Act, 1961 from 1 April 2026, and ICSI's study material is based on it from the June 2027 examination, so section numbers, rates and limits may differ. (ICSI Study Material, Tax Laws and Practice, June 2027 onwards). The answer below reflects the Income-tax Act, 1961 as it stood for December 2022 (A.Y. 2022-23).
Deduction u/s 80TTB of Income Tax Act, 1961, shall be allowed if the Total Income includes :
(A)interest on deposits in a Savings Account with a Bank or Post Office
(B)interest on deposits in a Savings Account with a Cooperative Bank
(C)interest on deposits in a Fixed Deposit Account with Bank or Post Office
December 2024Q. 391 markMCQSyllabus 2017Law changed
Law changed after this attempt: The Income-tax Act, 2025 replaced the Income-tax Act, 1961 from 1 April 2026, and ICSI's study material is based on it from the June 2027 examination, so section numbers, rates and limits may differ. (ICSI Study Material, Tax Laws and Practice, June 2027 onwards). The answer below reflects the Income-tax Act, 1961 as it stood for December 2024 (A.Y. 2024-25).
Deduction under section 80E can be claimed for interest on loan for :
(A)Any course of study after passing the Senior Secondary Examination or its equivalent from any recognized school, board or university
(B)For any course of higher education
(C)Any course Recognized by State Government
(D)Any course Recognized by Central Government
ICSI accepted any of these answers: (A) Any course of study after passing the Senior Secondary Examination or its equivalent from any recognized school, board or university; (B) For any course of higher education
ICSI's note: Option A / B both are correct. Section 80E Deduction in respect of interest on loan taken for higher education. Further "higher education" means any course of study pursued after passing the Senior Secondary Examination or its equivalent from any school, board or university recognised by the Central Government or State Government or local authority or by any other authority authorised by the Central Government or State Government or local authority to do so;
Law changed after this attempt: The Income-tax Act, 2025 replaced the Income-tax Act, 1961 from 1 April 2026, and ICSI's study material is based on it from the June 2027 examination, so section numbers, rates and limits may differ. (ICSI Study Material, Tax Laws and Practice, June 2027 onwards). The answer below reflects the Income-tax Act, 1961 as it stood for June 2024 (A.Y. 2024-25).
The deduction under section 80IAC shall be available to eligible start up (incorporated between 01-04-2016 to 01-04-2021) for a period of three consecutive assessment years out of ................. beginning from the year in which it was incorporated.
Law changed after this attempt: The Income-tax Act, 2025 replaced the Income-tax Act, 1961 from 1 April 2026, and ICSI's study material is based on it from the June 2027 examination, so section numbers, rates and limits may differ. (ICSI Study Material, Tax Laws and Practice, June 2027 onwards). The answer below reflects the Income-tax Act, 1961 as it stood for June 2021 (A.Y. 2021-22).
Which of the following condition is not applicable for allowance of deduction for start-ups under section 80-IAC of the Act ?
(A)It is a company incorporated after 01.04.2016 but before 01.04.2021
(B)The total turnover does not exceed 100 crores and has not incurred loss in any previous year prior to the claim of deduction under this section for the first time
(C)Holds a certificate of eligible business from Inter-Ministerial Board of Certification
(D)Eligible for deduction @ 50% of the profits and gains derived from such business for 3 consecutive assessment years
Answer: (D) Eligible for deduction @ 50% of the profits and gains derived from such business for 3 consecutive assessment years
December 2024Q. 221 markMCQSyllabus 2017Law changed
Law changed after this attempt: The Income-tax Act, 2025 replaced the Income-tax Act, 1961 from 1 April 2026, and ICSI's study material is based on it from the June 2027 examination, so section numbers, rates and limits may differ. (ICSI Study Material, Tax Laws and Practice, June 2027 onwards). The answer below reflects the Income-tax Act, 1961 as it stood for December 2024 (A.Y. 2024-25).
Deduction u/s 80JJAA in respect of employment of a new workman can be claimed by company for an amount equals to :
June 2026, Q. 1(c) · Compute the Total Income of Lalit for the assessment year 2026-27, assuming that he has followed old tax regime under Income Tax Act, 1961. (Ch. 11)
December 2025, Q. 1(e) · Compute the Tax Payable/Refundable on total income for Karan for the Assessment Year 2025-26. (Ch. 11)
June 2025, Q. 4(b) · Raghuveer has two minor children, viz., Master A and Master B. (Ch. 9)
June 2024, Q. 4A(i) · Following is the Profit and Loss account of Vinod for the year ended 31st March, 2024 : (Ch. 6)
June 2024, Q. 41 · A political party have the following Income during the Financial Year 2023-24 is as follows : (Ch. 11)
December 2022, Q. 36 · Adjusted GTI (Gross Total Income) for the purpose of section 80G of Income Tax Act, 1961 means ........................... (Ch. 7)
December 2021, Q. 7 · Total income computed under the head of Salary of ₹ 6,50,000 and of other sources of Sevak Kumar, who have attained the age of 60 years on 0… (Ch. 11)
June 2021, Q. 13 · Shanti Lal has taken loan of ₹ 5,00,000 on 1st October, 1999 @ 10% p.a. (Ch. 5)
June 2021, Q. 19 · Rahim purchased house on 1st April, 2001 for ₹ 2,00,000 and incurred ₹ 3,00,000 on improvement on 1st July, 2002. (Ch. 7)
June 2021, Q. 26 · In the case of investment in eligible startups which of the following condition is not applicable for the purpose of allowing exemption unde… (Ch. 7)
December 2020, Q. 9 · Any voluntary contributions received by an electoral trust not be included in the total income where such electoral trust distributes to any… (Ch. 11)
December 2020, Q. 29 · Ratan Lal, aged 55 years, resident in India having during the previous year 2019-20 income of winnings from races : (Ch. 8)
December 2020, Q. 33 · Rajkamal has four minor children (2 daughters and 2 sons). (Ch. 9)
June 2019, Q. 11 · A registered political party have income during the year 2018-19 of banks interest ₹ 5,00,000, rent from letting of building ₹ 3,00,000 and … (Ch. 11)
December 2018, Q. 2A(ii) · Ms. Padmaja, aged 42, a resident individual, sold her residential house for ₹ 55 lakh to Robert on 1st July, 2017. (Ch. 7)
December 2018, Q. 64 · D an individual resident of India, aged 62 years, received after TDS of professional fees of ₹ 2,50,000 on 1st July, 2017 and ₹ 3,00,000 on … (Ch. 13)