KSET Commerce Solved Paper 2015 [Paper III]

KSET Commerce Solved Paper 2015 [Paper III]

KSET Solved Question Paper Commerce

[Time: 2 hour 30 Minutes, 150 Minutes; Maximum Marks: 150]

Note: This paper contains SeventyFive (75)multiple choice questions, each carrying Two (2) marks. Attempt All questions.

In this post you will get KSET Commerce Solved Paper 2015 [Paper III]with Proper Explanation. K-SET General Paper 1 Solutions will also be available very soon on our website.

KSET Exam is conducted every year by the  Karnataka Exam Authority (KEA). Question Papers of KSET Exam is tough as compared to UGC NET Exam question paper. Syllabus of  KSET Exam and UGC NET exam is similar. You can refer KSET Commerce syllabus for 2025 here.

1. Which of the following statements is true?

(A) Higher the beta, lower the risk.

(B) Higher the beta, higher the risk.

(C) If beta is zero, total risk is zero.

(D) Beta is unrelated to risk.

Ans: (B) Higher the beta, higher the risk.

2. Amount of risk reduction in a portfolio depends upon

(A) Market movement.

(B) Degree of correlation.

(C) No. of shares.

(D) Duration of the portfolio.

Ans: (B) Degree of correlation.

3. NAA Committee on accounting for corporate social performance has not identified, one of the following

(A) Community Development.

(B) HRD.

(C) Physical Resources and Environmental Considerations.

(D) Corporate Governance.

Ans: (D) Corporate Governance.

4. Match List – I with List – II:

List – I

List – II

(a) Inflation Accounting.

(b) Cost centres.

(c) Jaggi and Lau model.

(d) CSR.

(1) HRA.

(2) Social Accounting.

(3) Responsibility Accounting.

(4) CCA.

 Codes:

(A) (a)-(4), (b)-(3), (c)-(1), (d)-(2).

(B) (a)-(3), (b)-(1), (c)-(2), (d)-(4).

(C) (a)-(4), (b)-(2), (c)-(1), (d)-(3).

(D) (a)-(2), (b)-(1), (c)-(4), (d)-(3).

Ans: (A) (a)-(4), (b)-(3), (c)-(1), (d)-(2).

5. Match List I with List II:

List – I

List – II

(a) C.B. Bhave Committee.

(b) Dr. K. R. Chandratre Committee.

(c) SEC.

(d) ECBs.

(1) Delisting norms for stock exchanges.

(2) SEBI.

(3) RBI.

(4) Foreign Debt.

(5) Corporate Disclosure standards.

 Codes:

(A) (a)-(1), (b)-(5), (c)-(2), (d)-(4).

(B) (a)-(5), (b)-(1), (c)-(3), (d)-(4).

(C) (a)-(5), (b)-(1), (c)-(2), (d)-(4).

(D) (a)-(5), (b)-(1), (c)-(4), (d)-(3).

Ans: (C) (a)-(5), (b)-(1), (c)-(2), (d)-(4).

6. Match List – I with List – II:

List – I

List – II

(a) Exit Load.

(b) Treasury Bill.

(c) Factoring.

(d) Tally.

(1) Computerised Accounting.

(2) Sales of Mutual Fund Units.

(3) Money Market.

(4) Refinancing Debt.

(5) Lease Financing.

 Codes:

(A) (a)-(2), (b)-(3), (c)-(4), (d)-(1).

(B) (a)-(3), (b)-(2), (c)-(4), (d)-(1).

(C) (a)-(5), (b)-(2), (c)-(3), (d)-(1).

(D) (a)-(5), (b)-(3), (c)-(2), (d)-(1).

Ans: (A) (a)-(2), (b)-(3), (c)-(4), (d)-(1).

7. Normally, direct ask price is ________ than the direct bid price.

(A) Equal.

(B) Greater.

(C) Lesser.

(D) Not related.

Ans: (B) Greater.

8. In India, derivatives in interest rates are regulated by

(A) SEBI.

(B) Forward Market Commission.

(C) RBI.

(D) MOF.

Ans: (C) RBI.

9. Merger of two companies under BIFR supervision is known as

(A) Reverse merger.

(B) Negotiated merger.

(C) Offer for sale.

(D) Arranged merger.

Ans: (B) Negotiated merger.

10. A short term lease which is often cancelable is known as

(A) Finance lease.

(B) Net lease.

(C) Operating lease.

(D) Leverage lease.

Ans: (C) Operating lease.

11. Commercial paper are generally issued at prices

(A) Equal to face value.

(B) More than face value.

(C) Less than face value.

(D) Equal to redemption value.

Ans: (C) Less than face value.

12. Which of the following is a liability of a bank?

(A) Treasury Bills.

(B) Commercial papers.

(C) CDs.

(D) Junk Bonds.

Ans: (C) CDs.

13. Which of the following is not available in India?

(A) Index options.

(B) Index futures.

(C) Commodity options.

(D) Commodity futures.

Ans: (C) Commodity options.

14. Risk can be defined as

(1) Actual return – expected return.

(2) The surprise portion of an announcement.

(3) Both systematic and unsystematic.

(4) The discounted portion of an announcement.

Codes:

(A) (1) and (4) only.

(B) (2) and (3) only.

(C) (1), (2) and (3) only.

(D) (2), (3) and (4) only.

Ans: (C) (1), (2) and (3) only.

15. Which one of the following is an example of unsystematic risk?

(A) An increase in inflation.

(B) Decrease in interest rates.

(C) Decrease in rupee value.

(D) Labour strike against a plastic firm.

Ans: (D) Labour strike against a plastic firm.

16. Which concept of marketing philosophy recognises that “everything matters”?

(A) The production concept.

(B) The product concept.

(C) The marketing concept.

(D) The holistic marketing concept.

Ans: (D) The holistic marketing concept.

17. Who proposed the concept of meta market?

(A) Sawhney.

(B) Robert Lauterborn.

(C) Philip Kotler.

(D) Levitt.

Ans: (A) Sawhney.

18. Match the following:

List – A

List – B

(a) Product.

(b) Price.

(c) Place.

(d) Promotion.

(1) Communication. 

(2) Convenience.

(3) Customer solution.

(4) Customer cost.

 Codes:

(A) (a)-(1), (b)-(2), (c)-(4), (d)-(3).

(B) (a)-(3), (b)-(4), (c)-(2), (d)-(1).

(C) (a)-(2), (b)-(3), (c)-(4), (d)-(1).

(D) (a)-(3), (b)-(2), (c)-(1), (d)-(4).

Ans: (B) (a)-(3), (b)-(4), (c)-(2), (d)-(1).

19. Assertion (A): Corporate social marketing leads to social change.

Reasoning (R): Making gifts of money or goods to individuals or groups is one of corporate social initiatives.

Codes:

(A) Both (A) and (R) are correct.

(B) (A) is correct and (R) is not correct.

(C) (A) is incorrect and (R) is correct.

(D) Both (A) and (R) are incorrect.

Ans: (A) Both (A) and (R) are correct.

20. What is the correct order of the following in strategic marketing?

(1) Targeting.

(2) Positioning.

(3) Segmenting.

(4) Selling.

Codes:

(A) (4) (1) (2) (3).

(B) (3) (1) (2) (4).

(C) (2) (1) (3) (4).

(D) (4) (3) (2) (1).

Ans: (B) (3) (1) (2) (4).

21. Modern marketing is a process of

(A) Choosing the value.

(B) Providing the value.

(C) Communicating the value.

(D) Choosing, providing and communicating the value.

Ans: (D) Choosing, providing and communicating the value.

22. The marketing strategy, which aims at selling the current products in the markets for gaining more market share, is called

(A) Product Development Strategy.

(B) Market Development Strategy.

(C) Market Penetration Strategy.

(D) Diversification Strategy.

Ans: (C) Market Penetration Strategy.

23. Assertion (A): Absence of defensive marketing action would lead to an environmental threat.

Reasoning (R): Environmental threat caused by an unfavorable trend in market results in decline in sales or profits.

Codes:

(A) Both (A) and (R) are correct.

(B) (A) is correct and (R) is incorrect.

(C) (A) is incorrect and (R) is correct.

(D) Both (A) and (R) are incorrect.

Ans: (A) Both (A) and (R) are correct.

24. Match the following:

List – A

List – B

(a) Platinum customers.

(b) Gold customers.

(c) Iron customers.

(d) Lead customers.

(1) Low profitable but desirable.

(2) Unprofitable and undesirable.

(3) Most profitable.

(4) Profitable.

 Codes:

(A) (a)-(1), (b)-(2), (c)-(3), (d)-(4).

(B) (a)-(2), (b)-(1), (c)-(3), (d)-(4).

(C) (a)-(3), (b)-(4), (c)-(1), (d)-(2).

(D) (a)-(4), (b)-(3), (c)-(2), (d)-(1).

Ans: (C) (a)-(3), (b)-(4), (c)-(1), (d)-(2).

25. Which of the following is/are included in building brand loyalty?

(1) Basic marketing.

(2) Reactive marketing.

(3) Proactive marketing.

(4) Partnership marketing.

Codes:

(A) only (1).

(B) only (4).

(C) (1), (2) and (3).

(D) (1), (2), (3) and (4).

Ans: (D) (1), (2), (3) and (4).

26. Customer value is equal to

(A) Customer benefits – Customer costs.

(B) Customer benefits – Product benefits.

(C) Customer benefits – Service benefits.

(D) Customer benefits – Image benefits.

Ans: (A) Customer benefits – Customer costs.

27. Intensive distribution strategy is adopted when the product reached ________ stage of its life cycle.

(A) Introductory stage.

(B) Growth stage.

(C) Maturity stage.

(D) Decline stage.

Ans: (B) Growth stage.

28. Assertion (A): The product life cycle concept yields a product – oriented picture rather than a market – oriented picture.

Reason (R): The PLC is not an independent variable to which the company should adopt their marketing programmes.

Codes:

(A) Both (A) and (R) are correct.

(B) (A) is correct and (R) is incorrect.

(C) (A) is incorrect and (R) is correct.

(D) Both (A) and (R) are incorrect.

Ans: (A) Both (A) and (R) are correct.

29. Arrange the following needs as per Maslow’s hierarchy of needs.

(1) Self actualisation needs.

(2) Social needs.

(3) Esteem needs.

(4) Physiological needs.

(5) Safety needs.

Codes:

(A) (4) (5) (2) (3) (1).

(B) (1) (2) (4) (5) (3).

(C) (2) (3) (5) (4) (1).

(D) (3) (2) (4) (5) (1).

Ans: (A) (4) (5) (2) (3) (1).

30. Match the following:

List – A

List – B

(a) Counterfeiter.

(b) Cloner.

(c) Imitator.

(d) Adapter.

(1) Takes leader’s product and improves it.

(2) Copies things form the leader.

(3) Emulates leader’s product.

(4) Duplicates leader’s product.

 Codes:

(A) (a)-(1), (b)-(3), (c)-(2), (d)-(4).

(B) (a)-(3), (b)-(2), (c)-(1), (d)-(4).

(C) (a)-(2), (b)-(1), (c)-(3), (d)-(4).

(D) (a)-(4), (b)-(3), (c)-(2), (d)-(1).

Ans: (D) (a)-(4), (b)-(3), (c)-(2), (d)-(1).

31. The traditional term used for human resource planning is

(A) Gap analysis.

(B) Employee planning.

(C) Personnel planning.

(D) Man-power planning.

Ans: (D) Man-power planning.

32. Heavy reliance on internal recruitment can result in

(A) Internal conflict.

(B) Reduced performance.

(C) High labour turnover.

(D) Poor group dynamics.

Ans: (B) Reduced performance.

33. Statements:

(1) Balanced score card is a measurement framework that help managers translate strategic goals into operational objectives.

(2) Ergonomics is an interdisciplinary approach for designing equipment and systems that can be easily and efficiently used by human beings.

(A) Both are correct.

(B) Both are incorrect.

(C) (1) is correct (2) is incorrect.

(D) (2) is correct (1) is incorrect.

Ans: (A) Both are correct.

34. Match the following:

List – A

List – B

(a) Reliability.

(b) Validity.

 

(c) Content validity.

(d) Concurrent validity.

(1) The extent to which a selection tool measures a theoretical construct.  

(2) The degree to which selection procedures yield comparable data over time and alternative measures.

(3) The degree to which selection procedure measures a person’s attributes.

(4) The extent to which test scores match the data obtained from current employees.

 Codes:

(A) (a)-(2), (b)-(1), (c)-(4), (d)-(3).

(B) (a)-(4), (b)-(2), (c)-(3), (d)-(1).

(C) (a)-(2), (b)-(3), (c)-(1), (d)-(4).

(D) (a)-(2), (b)-(1), (c)-(3), (d)-(4).

Ans: (C) (a)-(2), (b)-(3), (c)-(1), (d)-(4).

35. Which of the following are generic skills?

(a) Leadership.

(b) Team working.

(c) Motivation.

(d) IT skills.

(A) (a), (b) and (d).

(B) (a), (b) and (c).

(C) (a) and (b).

(D) (b) and (c).

Ans: (B) (a), (b) and (c).

36. A performance rating system is

(A) Achievements during the current year.

(B) The degree of performance of an organisation.

(C) Details of the extent to which objectives are achieved.

(D) A score relating to overall performance.

Ans: (D) A score relating to overall performance.

37. The process of identifying, developing and tracking key individuals is called

(A) Human resource planning.

(B) Succession planning.

(C) Selection.

(D) Recruitment.

Ans: (B) Succession planning.

38. A team widely disbursed but linked through computer technology is called

(A) Employee teams.

(B) Work groups.

(C) Virtual teams.

(D) Top management team.

Ans: (C) Virtual teams.

39. Statements:

(1) The point system is a qualitative job evaluation procedure that determines a job’s relative value.

(2) Transfer of training refers to the effective application of principles learned to what is required on the job.

(A) (1) is correct (2) is incorrect.

(B) (2) is correct (1) is incorrect.

(C) Both are correct.

(D) Both are incorrect.

Ans: (B) (2) is correct (1) is incorrect.

40. Match the following:

List – A

List – B

(a) Cross functional teams.

(b) Project teams.

(c) Self-directed teams.

(d) Task force teams.

(1) A group formed for a specific job. 

(2) A group consisting of specialists from different departments.

(3) A group formed to solve a major problem immediately.

(4) Highly trained individuals performing a set of interdependent jobs.

 Codes:

(A) (a)-(3), (b)-(2), (c)-(1), (d)-(4).

(B) (a)-(1), (b)-(2), (c)-(4), (d)-(3).

(C) (a)-(2), (b)-(1), (c)-(3), (d)-(4).

(D) (a)-(2), (b)-(1), (c)-(4), (d)-(3).

Ans: (D) (a)-(2), (b)-(1), (c)-(4), (d)-(3).

41. Lines of advancement in an occupational field within an organisation is called

(A) Career path.

(B) Promotion.

(C) Transfer.

(D) Job progression.

Ans: (A) Career path.

42. ________ involves determining which employees need training and which do not.

(A) Training need analysis.

(B) Person analysis.

(C) Competency assessment.

(D) Work-force scanning.

Ans: (B) Person analysis.

43. The term union density refers to

(A) The total number of workers who are union members.

(B) The proportion of workers who are not the members of union.

(C) The proportion of workers who are the members of union.

(D) The number of workers whose pay is set by collective bargaining.

Ans: (C) The proportion of workers who are the members of union.

44. The reasons for using multiple systems of performance appraisal are

(a) To provide employees with a choice methods.

(b) To prevent the misuse of performance appraisal systems by the managers.

(c) Different systems are required for different departments.

(d) To separate reward and non-reward aspects of appraisal.

Codes:

(A) (a), (b) and (c).

(B) (b), (c) and (d).

(C) (c), (d) and (a).

(D) (c) and (d).

Ans: (C) (c), (d) and (a).

45. Statements:

(1) Spot bonus is an unplanned bonus given for employee effort unrelated to an established performance measure.

(2) A promotion is a change of assignment to a job at a higher level in an organisation.

Codes:

(A) Both are correct.

(B) Both are incorrect.

(C) (1) is correct, (2) is incorrect.

(D) (2) is correct, (1) is incorrect.

Ans: (A) Both are correct.

46. What are the factors contributing towards the success of India’s software industry?

(A) Low wage rate, compared to international standards.

(B) Educated middle class and top institutes.

(C) Emphasize in engineering and English as working language.

(D) All of the above.

Ans: (D) All of the above.

47. Which of the following organisation publishes International Financial Statistics and World Investment Report?

(A) IMF.

(B) UNCTAD.

(C) World Bank.

(D) Both (A) and (B) above.

Ans: (D) Both (A) and (B) above.

48. If spot USD1 = INR 47.30, 2 months forward discount = 40 paise, forward rate should be

(A) 47.70.

(B) 42.80.

(C) 46.90.

(D) 36.50.

Ans: (C) 46.90.

49. Assertion (A): Licensing may not be the best way to expand overseas.

Reason (R): Licensing typically involves each licensee setting up its own production operations.

Codes:

(A) (A) and (R) are correct.

(B) Both are incorrect.

(C) (A) is correct, (R) is incorrect.

(D) (A) is incorrect, (R) is correct.

Ans: (A) (A) and (R) are correct.

50. Match the following:

List – I

(Country)

List – II

(Currency)

(a) Argentina.

(b) France.

(c) Jordan.

(d) Brazil.

(1) Real. 

(2) Dinar.

(3) Franc.

(4) Peso.

 Codes:

(A) (a)-(4), (b)-(1), (c)-(2), (d)-(3).

(B) (a)-(4), (b)-(3), (c)-(2), (d)-(1).

(C) (a)-(2), (b)-(1), (c)-(3), (d)-(4).

(D) (a)-(1), (b)-(2), (c)-(4), (d)-(3).

Ans: (B) (a)-(4), (b)-(3), (c)-(2), (d)-(1).

51. For the sanction of credit, IDA observe the following criteria

(1) poverty test, performance test, project test

(2) population test, performance test, profitability test

(3) productivity test, profitability test, performance test

Codes:

(A) (1) is correct (2) and (3) incorrect.

(B) (1) is incorrect (2) is correct.

(C) (1) and (2) incorrect (3) is correct.

(D) (1), (2) and (3) are incorrect.

Ans: (A) (1) is correct (2) and (3) incorrect.

52. Under ________ rate system, exchange rate of the currency of a country is determined entirely by market forces such as demand and supply.

(A) Pegging.

(B) Basket floating.

(C) Managed floating.

(D) Pure floating.

Ans: (D) Pure floating.

53. Which of the following statement is incorrect with respect to membership of Regional Trading Blocks?

(A) Vietnam and Cambodia have become member of ASEAN.

(B) Mexico is part of NAFTA.

(C) Nicaragua have become member of OECS.

(D) SAARC countries comprise Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka.

Ans: (C) Nicaragua have become member of OECS.

54. Arrange the following attitudes identified by EPRG framework toward internationalisation in sequence

(1) Geocentrism.

(2) Polycentrism.

(3) Ethnocentrism.

(4) Regiocentrism.

Codes:

(A) (1) (2) (4) (3).

(B) (1) (3) (4) (2).

(C) (3) (2) (1) (4).

(D) (2) (3) (4) (1).

Ans: (C) (3) (2) (1) (4).

55. Match the following institutions with their year of establishment:

Institutions

Establishment Year

(a) World Trade Organisation.

(b) WTO – Trade Policy Review Body.

(c) The Patents (Amendment) Act.

(d) Uruguay Round Negotiations.

(1) 1999.

(2) 1993.

(3) 1995.

(4) 1997.

 Codes:

(A) (a)-(1), (b)-(3), (c)-(2), (d)-(4).

(B) (a)-(3), (b)-(4), (c)-(1), (d)-(2).

(C) (a)-(2), (b)-(3), (c)-(4), (d)-(1).

(D) (a)-(4), (b)-(2), (c)-(3), (d)-(1).

Ans: (B) (a)-(3), (b)-(4), (c)-(1), (d)-(2).

56. ________ agreement of WTO recognises‘ movement of natural persons’ as one of the models for globalisation.

(A) GATS.

(B) GATT.

(C) TRIPS.

(D) TRIMS.

Ans: (A) GATS.

57. Which of the following major issue does not relate to the financial aspects of exporting?

(A) Price of the product.

(B) Method of payment.

(C) Location of production.

(D) Insurance.

Ans: (C) Location of production.

58. Assertion (1): Import of raw material is permitted under EPCG scheme.

Reason (2): DEPB is an export incentive scheme based on the principle of duty exemption/drawback.

Codes:

(A) Both (1) and (2) are true.

(B) Both (1) and (2) are false.

(C) (1) is true, (2) is false.

(D) (1) is false, (2) is true.

Ans: (D) (1) is false, (2) is true.

59. Arrange the following institutions in the order of their inception:

(1) SAFTA.

(2) WTO.

(3) ADB.

(4) IBRD.

Code:

(A) (1), (3), (2) and (4).

(B) (3), (4), (1) and (2).

(C) (2), (3), (4) and (1).

(D) (4), (2), (3) and (1).

Ans: (B) (3), (4), (1) and (2).

60. Match the following:

List – I

(MNCs)

List – II

(Alliances with)

(a) Ford.

(b) Xerox.

(c) General Electric Co.

(d) Microsoft.

(1) Snecma.

(2) Toshiba.

(3) Mazda.

(4) Fuji.

 Code:

(A) (a)-(2), (b)-(3), (c)-(1), (d)-(4).

(B) (a)-(3), (b)-(4), (c)-(1), (d)-(2).

(C) (a)-(4), (b)-(2), (c)-(3), (d)-(1).

(D) (a)-(1), (b)-(3), (c)-(4), (d)-(2).

Ans: (B) (a)-(3), (b)-(4), (c)-(1), (d)-(2).

61. Which of the following is not a capital receipt and, therefore, is not taxable?

(A) Income of wasting assets.

(B) Receipt in lieu of source of income.

(C) Receipt on account of circulating capital.

(D) Subsidy given to carry-out business operation.

Ans: (B) Receipt in lieu of source of income.

62. Mr. X is employed in Karnataka Paper Co. at Rs. 6,000 p.m. He is a member of the R.P.F. to which he and his employer contribute 14% of his salary. During the year, he was given a credit of Rs. 2,100 as interest on R.P.F. balance of Rs. 20,000.The amount of annual accretion to be included under the head “salaries” will be

(A) Rs. 1,080.

(B) Rs. 1,440.

(C) Rs. 2,100.

(D) Rs. 1,640.

Ans: (D) Rs. 1,640.

63. Assertion (A): Mr. X is an employee and beneficial owner of equity shares in Y Ltd.(carrying not less than 20% voting rights) and,therefore, car facility provided to him is not a taxable perquisite.

Reasoning (R): Y Ltd. provides education facility to the children of employee X and,therefore, it is a taxable perquisite.

Codes:

(A) Both (A) and (R) are correct.

(B) (A) is correct and (R) is incorrect.

(C) (A) is incorrect and (R) is correct.

(D) Both (A) and (R) are incorrect.

Ans: (C) (A) is incorrect and (R) is correct.

64. In respect of which of the following houses owned by Mr. X, the de fecto rent is the determinant of the Gross Annual Value (GAV)?

Houses

Municipal

Value

(Rs.)

Fair

Rent

(Rs.)

Standard

Rent

(Rs.)

De facto

Rent

(Rs.)

(1) House – A

(2) House – B

(3) House – C

(4) House – D

30,000

26,000

35,000

30,000

36,000

28,000

30,000

36,000

30,000

35,000

36,000

40,000

40,000

30,000

32,000

32,000

 Codes:

 (A) (1) and (2).

(B) (1) and (3).

(C) (3) and (4).

(D) (1) and (4).

Ans: (A) (1) and (2).

65. Match the following:

List – A

(Loss)

List – B

(Carrying forward period)

(a) House property.

(b) Speculation loss.

(c) Unabsorbed.

(d) Short-term and long-term capital loss.

(1) 4 years. 

(2) No time limit.

(3) Eight years.

(4) 8 years.

 Codes:

(A) (a)-(1), (b)-(2), (c)-(3), (d)-(4).

(B) (a)-(2), (b)-(3), (c)-(4), (d)-(1).

(C) (a)-(3), (b)-(1), (c)-(4), (d)-(2).

(D) (a)-(4), (b)-(1), (c)-(2), (d)-(3).

Ans: (D) (a)-(4), (b)-(1), (c)-(2), (d)-(3).

66. Given that Mr. X’s business income is Rs. 2,90,000, bank interest is Rs. 10,000 and he paid rent @ Rs. 3,500 p.m. for the house occupied for his residence, the allowable deduction under Section 80 GG is

(A) Rs. 42,000.

(B) Rs. 75,000.

(C) Rs. 27,000.

(D) Rs. 12,000.

Ans: (D) Rs. 12,000.

67. An individual, who is required to file there turn fails to file it before the end of the assessment year, he is liable to pay penalty of

(A) Rs. 500.

(B) Rs. 2,000.

(C) Rs. 5,000.

(D) Rs. 10,000.

Ans: (C) Rs. 5,000.

68. Statement (A): Mr. X is eligible to claim deduction in respect of aggregate interest on deposits in Savings Account U/S 80 TTA.

Statement (B): During the previous year 2013 – 14, Mr. X received interest of Rs. 10,000 and claimed deduction.

Codes:

(A) Both (A) and (B) are correct.

(B) (A) is correct and (B) is incorrect.

(C) (A) is incorrect and (B) is correct.

(D) Both (A) and (B) are incorrect.

Ans: (A) Both (A) and (B) are correct.

69. Of the following non-corporate assesses,to whom the provisions of the alternative minimum tax are not applicable w.e.f. the assessment year 2013 – 14?

(1) Limited Liability Partnership Firm.

(2) Individual having adjusted total income exceeding Rs. 20 lakhs.

(3) Individual having adjusted total income not exceeding Rs. 20 lakhs.

(4) Artificial juridical person.

Codes:

(A) (1), (2) and (4).

(B) (1), (3) and (4).

(C) (2), (3) and (4).

(D) (3), (2) and (1).

Ans: (A) (1), (2) and (4).

70. Match the following:

List – A

List – B

(a) Submission of return of loss.

(b) Submission of belated return.

(c) Submission of revised return.

(d) Submission of defective return.

(1) Sec. 139(5).

(2) Sec. 139(9).

(3) Sec. 139(3).

(4) Sec. 139(4).

 Codes:

(A) (a)-(4), (b)-(3), (c)-(2), (d)-(1).

(B) (a)-(4), (b)-(1), (c)-(2), (d)-(3).

(C) (a)-(3), (b)-(4), (c)-(1), (d)-(2).

(D) (a)-(1), (b)-(2), (c)-(3), (d)-(4).

Ans: (C) (a)-(3), (b)-(4), (c)-(1), (d)-(2).

71. Depreciation u/s 32 is to be calculated at a specified rate on

(A) Purchase cost of an asset.

(B) Written down value of the asset.

(C) Written down value of the block of assets on the first day of the previous year.

(D) Written down value of the block of assets on the last day of the previous year.

Ans:(D) Written down value of the block of assets on the last day of the previous year.

72. If Mr. X transfers self-generated goodwill of business for Rs. 1,75,000 and if the fair market value of the same on 1st April 1981 is Rs. 10,000; the amount of capital gains chargeable to tax will be

(A) Rs. 1,75,000.

(B) Rs. 1,65,000.

(C) Rs. 1,85,000.

(D) Nil.

Ans: (A) Rs. 1,75,000.

73. Which of the following is (are) not eligible for consideration while computing the gross qualifying amount under Section 80 C?

(1) Insurance premium paid on own life.

(2) Insurance premium paid on wife’s life.

(3) Insurance premium paid on father’s life.

(4) Insurance premium paid on mother’s life.

Codes:

(A) only (1).

(B) only (2).

(C) (3) and (4).

(D) (1) and (2).

Ans: (C) (3) and (4).

74. Statement (A): Deemed incomes are not liable for taxation.

Statement (B): Mr. X transferred his property to his major son and, therefore,avoided income tax.

Codes:

(A) Both (A) and (B) are correct.

(B) (A) is correct and (B) is incorrect.

(C) (A) is incorrect and (B) is correct.

(D) Both (A) and (B) are incorrect.

Ans: (A) Both (A) and (B) are correct.

75. Match the following:

List – A

List – B

(a) Deduction of tax from salary.

(b) Deduction of tax interest on securities.

(c) Deduction of tax from dividends.

(d) Deduction of tax winnings from lotteries.

(1) Sec. 194.

(2) Sec. 194(B).

(3) Sec. 193.

(4) Sec. 192.

 Codes:

(A) (a)-(1), (b)-(2), (c)-(4), (d)-(3).

(B) (a)-(2), (b)-(1), (c)-(4), (d)-(3).

(C) (a)-(4), (b)-(3), (c)-(1), (d)-(2).

(D) (a)-(3), (b)-(1), (c)-(2), (d)-(4).

Ans: (C) (a)-(4), (b)-(3), (c)-(1), (d)-(2).

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