Commerce 2016 July Paper 3 Solved

COMMERCE
Paper – III
Note : This paper contains seventy five (75) objective type
questions of two (2) marks each. All
questions are compulsory.

1. Read the following and select the right code :
Statement – I : A custom to be valid should be proved to
be immemorial but may not be ancient.
Statement – II : The principle of judicial decision which is
only authoritative is known as ‘ratio decidendi’.
(1) Both the statements are true.
(2) Both the statements are false.
(3) Statement – I is true but Statement – II is false.
(4) Statement – II is true but Statement – I is false.
Answer:(4)

2. To become a director in a company the person
must obtain
(1) Business Licence
(2) Director’s Licence
(3) TIN (4) DIN
Answer:(4)

3. Which of following is not a “Maharatna”
industry in India ?
(1) CIL (2) SAIL
 (3) OIL (4) GAIL
Answer:(3)

4. Match the items of Column – I with those
of Column – II :
Column – I Column – II
a. Exchange control i. Adverse BOP
b. Price control ii. Domestic firms
c. Import control iii. Mass consumption product
d. Legislative control iv. Industrial location
Codes :
 a b c d
(1) ii i iii iv
 (2) iv ii iii i
 (3) iii ii i iv
 (4) ii iii i iv
Answer:(4)

5. Match the items of List – I with those of List – II
and choose the correct code :
List – I List – II
a. Provision for taxation i. Current Assets
b. Live-stock ii. Unsecured loans
c. Sundry Debtors iii. Fixed Assets
d. Interest accrued on unsecured loans iv. Provisions
Codes :
 a b c d
(1) iv iii i ii
 (2) iv iii ii i
 (3) iii iv ii i
 (4) ii i iii iv
Answer:(1)


6. A, B and C are partners in a firm sharing profits and
losses in the ratio of 4 : 3 : 2. They agreed to take D into
partnership and gave him 1
8 share. What will be their new profit
sharing ratio ?
(1) 4 : 3 : 2 : 1 (2) 28 : 21 : 14 : 9
 (3) 28 : 21 : 14 : 8 (4) 4 : 1 : 2 : 1
Answer:(2)

7. From the following information, find out the number of
units that must be sold by the firm
to earn profit of INR 80,000 per year.
 Sales price : INR 25 per unit
 Variable manufacturing costs – INR 12 per unit
 Variable selling costs – INR 3 per unit
 Fixed factory overheads – INR 5,00,000
 Fixed selling costs – INR 3,00,000
(1) 60,000 units (2) 88,000 units
 (3) 98,000 units (4) 1,00,000 units
Answer:(2)

8. Which of the following is not a cash inflow ?
(1) Decrease in creditors
(2) Decrease in debtors
(3) Issue of shares
(4) Sale of a fixed asset
Answer:(1)

9. Match the items of List – I with those of List – II
and indicate the correct code from the
following :
List – I List – II
a. Postage stamp pricing i. Equality of marginal and average cost
b. Loss leader ii. Constant average and marginal cost
c. Economic capacity iii. Product line pricing
d. Reserve capacity iv. Differential pricing
Codes :
 a b c d
(1) iii iv ii i
 (2) iv iii i ii
 (3) ii i iii iv
 (4) i ii iv iii
Answer:(2)

10. For the following two statements of Assertion
(A) and Reasoning (R) indicate the correct
code :
Assertion (A) : Low initial pricing for new products is
regarded as the principal
instrument for entering into mass markets.
Reasoning (R) : Firms generally go for production of
new products with excess capacity initially.
Codes :
(1) Assertion (A) and Reasoning (R) both are correct
but (R) does not offer full explanation for (A).
 (2) Assertion (A) and Reasoning (R) both are wrong.
 (3) Assertion (A) is correct but Reasoning (R) is wrong.
 (4) Assertion (A) and Reasoning (R) both are correct and
(R) offers full explanation for
Answer:(1)

11. For the following two statements of Assertion (A) and
Reasoning (R) indicate the correct
code :
Assertion (A) : Gossen’s first law of consumption is
invariably applicable in case of
individuals’ consumption behaviour.
Reasoning (R) : It serves as an important determinant
of demand for the goods and
services in the market.
Codes :
(1) Assertion (A) and Reasoning (R) both are correct.
 (2) Assertion (A) and Reasoning (R) both are incorrect.
 (3) Assertion (A) is correct but Reasoning (R) is incorrect.
 (4) Assertion (A) is incorrect but Reasoning (R) is correct.
Answer:(4)

12. Production function for a product is based on certain
assumptions. Indicate the correct
code from the following :
 (a) Complementarity
 (b) Substitutability
 (c) Product elasticity
 (d) Specificity
Codes :
(1) (a) (b) (c)
 (2) (b) (c) (d)
 (3) (a) (c) (d)
 (4) (a) (b) (d)
Answer:(4)

13. Which one of the following is not the characteristic
of normal distribution ?
(1) Mean, median and mode for the normal distribution are equal.
(2) The two tails of the normal curve extend to infinity in
both directions but never touch the horizontal axis.
(3) For different values of standard deviation, the height
of the mean ordinate remains the same.
(4) The number of independent constraints of normal
distribution are






Answer:(3)

14. Which one of the following formulae is used to calculate the
standard error of coefficient of correlation between 25 paired
observations of a sample ?

Answer:(2)

15. Read the following statements and choose the correct code :
 Statement – I : Non-parametric tests are based on
some assumptions about the parent population from
which the sample has been drawn.
Statement – II : The standard deviation of the sampling
distribution of mean is called standard error of mean.
 Codes :
(1) Both statements are true.
 (2) Both statements are false.
 (3) Statement – I is true while Statement – II is false.
 (4) Statement – I is false while Statement – II is true.


Answer:(4)

Answer:(2)


17. Which of the following is a deterioration of mental
efficiency, reality testing and moral
judgement that results from in-group pressure ?
(1) Harassment (2) Group think
 (3) Group burnout (4) Group control
Answer:(2)

18. According to Fiedler’s contingency model of leadership,
favourableness of situation
depends on which combination of the following ?
 (a) Leader-member relationship
 (b) Member-member relationship
 (c) Leader’s position power
 (d) Degree of task structure
 (e) Degree of training
Codes :
(1) (a), (b) and (c) (2) (a), (c) and (d)
 (3) (c), (d) and (e) (4) (a), (b) and (e)
Answer:(2)

19. The apex body at the highest level of the unit/division,
which oversees the functioning of
quality circles, is called
(1) Facilitator (2) Coordinator
(3) Steering committee
(4) Supervisory committee
Answer:(3)

20. Which of the following is related to the practical means
of determining a moral course of action ?
(1) Meta ethics (2) Virtue ethics
 (3) Normative ethics (4) Applied ethics
Answer:(3)

21. Match List – I and List – II and indicate the correct code :
List – I List – II
a. Convenience goods i. Consumer purchases them frequently,
immediately and with minimal effort.
b. Shopping goods ii. Consumer compares them on the basis
of suitability, quality, price and style.
c. Speciality goods iii. These are goods with unique
characteristics or brand identification.
d. Unsought goods iv. Consumers are not aware of them and
normally do not think of buying them.
Codes :
 a b c d
(1) i iv ii iii
 (2) i ii iii iv
 (3) iv iii ii i
 (4) ii i iii iv
Answer:(2)

22. Which of the following marketing strategies is/are
not used in ‘growth stage’ of the
product life cycle ?
(1) Improving quality and adding new features.
 (2) Adding new models of product.
 (3) Entering new market segments.
 (4) Using awareness and trial communications.
Answer:(4)

23. Who among the following take(s) both title to and
possession of goods from the preceding
member(s) and channelize them to the subsequent
members ?
(a) Agent intermediaries
(b) Merchant intermediaries
(1) (a) only (2) (b) only
(3) Both (a) and (b)
(4) Neither (a) nor (b)
Answer:(2)

24. Which of the following is not a determinant
of service quality ?
(1) Reliability (2) Responsiveness
 (3) Sensitivity (4) Assurance
Answer:(3)


25. Sales of a firm are INR 74 lakh, variable
costs INR 40 lakh,fixed costs INR 8 lakh. Operating
leverage of the firm will be
(1) 1.48 (2) 1.78
 (3) 1.31 (4) 2.42
Answer:(3)

26. From the following techniques of capital budgeting
decision, indicate the correct
combination of discounting techniques :
 I. Profitability index
 II. Net present value
 III. Accounting rate of return
 IV. Internal rate of return
Codes :
(1) I II III
 (2) II III IV
 (3) I II IV
 (4) I III IV
Answer:(3)

27. Insufficient working capital may result into which
combination of the following ?
 I. Failures to adapt to changes.
 II. Enhancement in credit-worthiness of the firm.
 III. Reduced availability of trade and cash discounts.
 IV. Reduced volume of sales.
Codes :
(1) I, II, III, IV
 (2) I, III, IV
 (3) I, II, IV
 (4) I, II, III
Answer:(2)

28. Which combination of the following represents the
assumptions of the Walter’s dividend
model ?
I. The company has a very long or perpetual life.
II. All earnings are either reinvested internally or
distributed as dividend.
III. There is no floatation cost for the company.
IV. Cost of capital of the company is constant.
Codes :
(1) I II III
 (2) II III IV
 (3) I II IV
 (4) I III IV
Answer:(3)

29. Match the items of List – I with the items of
List – II and indicate the correct code :
List – I List – II
a. Job specifications i. The procedure for determining the
duties and skill requirements of a job
and the kind of person who should be
hired for it.
b. Job description ii. A list of human requirements
c. Job analysis iii. A list of job’s duties, responsibilities,
reporting relationships, working
conditions and supervisory
responsibilities.
Codes :
 a b c
(1) i ii iii
 (2) ii iii i
 (3) iii ii i
 (4) ii i iii
Answer:(2)

30. A training technique in which trainees are first shown
good management techniques in a film, are asked to play roles
in a simulated situation, and are then given feedback and
praise by their supervisor is known as.
(1) Behaviour modelling (2) Role playing
 (3) In-house development center (4) Management game
Answer:(1)

31. Which combination of the following statements is correct
about the code of discipline in
industry ?
(a) It aims at preventing disputes by providing for outside
agency or adjudication.
(b) It is a government imposed involuntary principle
of discipline.
(c) It restrains the parties from unilateral action.
Codes :
(1) (a), (b) and (c) (2) (b) and (c)
 (3) (a) only (4) (c) only
Answer:(4)

32. A conciliation proceeding is deemed to be pending
until any combination of the following
conditions is fulfilled :
(a) a settlement is arrived at a memorandum of settlement
is signed by parties to the dispute.
(b) no settlement is arrived at, the report of conciliation
officer is received by the appropriate government.
(c) a reference is made to the court of Inquiry, Labour Court,
Tribunal or National Tribunal during the pendency of conciliation
proceedings.
Codes :
(1) only (a) is correct. (2) only (b) is correct.
 (3) (a) and (c) are correct. (4) (a), (b) and (c) are correct.
Answer:(4)

33. Identify the correct combination of statements
with regard to banking in India.
(a) For many years the presidency banks had acted
as quasi-central banks.
(b) The Bank of Hindustan was liquidated during 1829-32.
(c) General Bank of India was an unsuccessful bank
and was dissolved in 1791.
(d) Bank of Calcutta was renamed as Bank of Bengal in 1921.
Codes :
(1) (a), (b) and (c) (2) (b), (c) and (d)
 (3) (a), (b) and (d) (4) (a), (b), (c) and (d)
Answer:(1)

34. Which combination of the following methods indicates
quantitative methods of control of credit creation practiced
by the Reserve Bank of India ?
 (a) Bank Rate
 (b) Open Market Operations
 (c) Variable Reserve Ratios
 (d) Credit Rationing
Codes :
(1) (a), (b) and (c) (2) (a), (b) and (d)
 (3) (b), (c) and (d) (4) (a), (c) and (d)
Answer:(1)

35. Which one of the following development financial
institutions in India has started the special refinance scheme for
the resettlement and rehabilitation of voluntary retired
workers of the National Textile Corporation of India ?
(1) IDBI (2) SIDBI
 (3) ICICI (4) None of the above
Answer:(1)

36. Read the following statements and choose the correct code :
Statement – I : Small Industry Development Bank of India
(SIDBI) was set up as a wholly owned subsidiary of RBI.
Statement – II : SIDBI has taken over the responsibility of
administering small industry development fund managed by IDBI.
Codes :
(1) only (I) is correct.
(2) Only (II) is correct.
(3) Both (I) and (II) are correct.
(4) Both (I) and (II) are wrong.
Answer:(2)


37. Under the Foreign Trade Policy 2015-2020, following
additional ports are allowed for
export and import :
 (a) Calicut Airport, Kerala
 (b) Rajkot Airport, Gujarat
 (c) Arakonam ICD, Tamil Nadu
 (d) Ludhiana Airport, Punjab
Codes :
(1) (a) and (c) (2) (a) and (d)
 (3) (b) and (d) (4) (c) and (d)
Answer:(1)

38. Assertion (A) : Under FEMA, the receiver of
laundered money is to be made culpable,
instead of sender/distributor.
Reasoning (R) : FEMA differs from the earlier exchange
regulation Act FERA with regard to penalties and punishment
in case of violation of the Act.
 Codes :
(1) (A) is correct but (R) is not correct.
(2) (A) and (R) both are correct but (R) is not the right
explanation of (A).
(3) (A) and (R) both are correct and (R) is the right
explanation of (A).
(4) (A) and (R) both are incorrect.
Answer:(3)

39. Match the items of List – I with those of List – II with
regard to international monetary
fund’s various schemes :
List – I List – II
a. Extended Fund Facility (EFF) i. Repayment period
4 to 10 years
b. Stan Arrangements ii. Repayment period 3 to 5 years
c. Supplemented Reserve Fund (SRF) iii. Repayment
period 2 to 5 years
d. Poverty Reduction and Growth
Facility (PRGF)
iv. Repayment period 10 years
Codes :
 a b c d
(1) i ii iii iv
 (2) iv iii ii i
 (3) iv ii iii i
 (4) i iv ii iii
Answer:(1)

40. Which combination of the following is correct with
regard to World Trade Organization
(WTO) :
(a) WTO initiates peace process among the member
countries to enhance international trade.
(b) WTO avoids the task of “Settlement of Disputes”
among the member countries.
(c) WTO administers the “Trade Review Mechanism”.
(d) WTO cooperates in an appropriate manner with the
IMF and the World Bank.
Codes :
(1) (b), (c) and (d) (2) (a) and (c)
 (3) (c) and (d) (4) (a), (b) and (d)
Answer:(3)

41. Choose the code representing the correct sequence
of steps in a merging transaction :
(I) Screening and investigation of merger proposal.
(II) Approval of Central Government
(III) Approval of respective High Courts
(IV) Negotiation Stage
(V) Approval of proposal by Board of Directors,
Shareholders and Creditors
Codes :
(1) (I) → (V) → (IV) → (III) → (II)
 (2) (I) → (IV) → (V) → (III) → (II)
 (3) (I) → (IV) → (III) → (V) → (II)
 (4) (I) → (III) → (V) → (II) → (IV)
Answer:(2)

42. Which of the following are the important
features of option contracts ?
(I) Buyers of option have limited liability.
(II) Options have high degree of risk to option-writers.
(III) Options are exercisable only by buyers of option.
(IV) Buyers of option have all rights which are available to
equity shareholders of the
concerned companies.
Codes :
(1) (I), (II), (III) (2) (I), (II), (III), (IV)
 (3) (I), (II), (IV) (4) (I), (III), (IV)
Answer:(1)

43. Which of the following approaches is adopted for the
valuation of human resource
according to economic concept ?
(1) Replacement cost approach
(2) Opportunity cost approach
(3) Historical cost approach
(4) None of the above
Answer:(2)

44. Match the items of List – I with those of
List – II and select the correct code :
List – I List – II
a. High levered fund i. Market risk
b. Increase in bank rate ii. Purchasing power risk
c. Inflation iii. Financial risk
d. Political instability iv. Interest rate risk
Codes :
 a b c d
(1) iii i ii iv
 (2) i iii iv ii
 (3) iii iv ii i
 (4) ii iii i iv
Answer:(3)

45. Which of the following are the instruments
of money market ?
 (i) Call money market
 (ii) Commercial bill market
 (iii) Industrial securities market
 (iv) Short-term loans market
 (v) Treasury bill market
Codes :
(1) (i), (ii), (iv), (v) (2) (i), (ii), (v)
 (3) (i), (ii), (iii), (iv), (v) (4) (i), (ii), (iii), (iv)
Answer:(1)

46. Accounting Standard-6 is meant for
(1) Accounting for Fixed Assets
(2) Accounting treatment for goodwill
(3) Depreciation Accounting
(4) Disclosure of Accounting policies
Answer:(3)

47. Which of the following is not a feature of OTCEI ?
(1) Quick transfer and disposal system
 (2) Nationalised computerised networking
 (3) Ringless trading system
 (4) Fragmentation of regional stock exchanges
Answer:(4)

48. Which of the following requires consumers to
interpret ambiguous stimuli ?
(1) Focus group method
(2) Projective techniques
(3) Rejective techniques
(4) Semantic differential scales
Answer:(2)

49. Which of the following passes through the four
stages of distinctiveness, emulation, mass
fashion and decline ?
(1) Style (2) Fashion
 (3) Fad (4) Style and Fashion
Answer:(2)

50. Which of the following positioning strategies
is adopted by marketers to position their
product in two categories simultaneously ?
(1) Point of Difference (2) Point of Parity
 (3) Straddle Positioning (4) Emotional Positioning
Answer:(3)

51. Statement (I) : Marketing is the process by
which a firm profitably translates
customer needs into revenue.
Statement (II) : Marketing is the messages and/or
actions that causes messages and/or
actions.
 Codes :
(1) (I) is correct but (II) is not correct.
 (2) (II) is correct but (I) is not correct.
 (3) (I) and (II) both are correct.
 (4) (I) and (II) both are incorrect.
Answer:(3)

52. Assertion (A) : Odd pricing aims at maximising
profit by making micro-adjustments in
pricing structure.
Reasoning (R) : Odd pricing refers to a price ending in
1, 3, 5, 7, or 9. When examining
a price, the first digits carry more weight than the
last ones.
 Codes :
(1) (A) is right and (R) is wrong.
 (2) (A) is wrong and (R) is right.
 (3) Both (A) and (R) are right.
 (4) Both (A) and (R) are wrong.
Answer:(3)

53. Name the process in which a buyer posts its interest
in buying a certain quantity of item and sellers compete for
the business by submitting lower bid until there is only one seller
left.
(1) Internet (2) Reverse auction
 (3) B2B market place (4) B2C market place
Answer:(2)

54. Advertising method in which an advertisement is broadcasted
simultaneously on several radio stations and / or television
channels is known as
(1) Black-out (2) Consolidation
 (3) Road-block (4) Cornering
Answer:(3)

55. Which of the following is the mental condition or
attitude of individuals and groups which
determines their willingness to cooperate ?
(1) Motivation (2) Morale
 (3) Excitement (4) Delight
Answer:(2)

56. Which of the following is not provided under the
Factories Act, 1948 ?
(1) The certificate of fitness is granted by a certifying
surgeon on the application of any young person or a parent
or a guardian.
(2) An adolescent who has not been granted a certificate
of fitness shall be deemed to be a child for the purpose of the act.
(3) The certificate of fitness granted or renewed remains
valid for a period of six months from the date of issue.
(4) Any fee payable for the certificate of fitness shall be
paid by occupier and not by the young person or his
parent or guardian.
Answer:(3)

57. Arrange the following steps of developing Behaviourally Anchored
Rating Scales (BARS)
in the right sequence :
 (a) Developing performance dimensions
 (b) Generate critical incidents
 (c) Scale the incidents
 (d) Reallocate the incidents
 (e) Develop the final instrument
Codes :
(1) (a), (b), (c), (d), (e) (2) (b), (a), (d), (c), (e)
 (3) (a), (b), (d), (c), (e) (4) (a), (c), (b), (d), (e)
Answer:(2)


58. Within how much period from the close of
accounting year,bonus must be paid, if there is
no dispute about the payment of bonus ?
(1) Two months (2) Six months
 (3) Eight months (4) Ten months
Answer:(3)

59. Which of the following statements is correct about
Wage Boards in India ?
(a) A Wage Board is a tripartite body.
(b) Labour and management representatives on a Wage
Board can be selected from
industries other than the one which is investigated.
(c) Wage Boards are always statutory in nature.
(d) Wage Boards work on the principle of living wage.
Codes :
(1) (a) only (2) (b) and (c)
 (3) (c) and (d) (4) (a), (b), (c) and (d)
Answer:(1)

60. Who gave the surplus value theory of wage ?
(1) David Ricardo (2) Karl Marx
 (3) Adam Smith (4) F.A. Walker
Answer:(2)

61. Who gave the systems approach to industrial relations ?
(1) Beatrice Webb (2) John Dunlop
 (3) Eric Trist (4) Henry Fayol
Answer:(2)

62. Which among the following are multinational corporations ?
(a) A multinational, decentralized corporation with
strong home country presence.
(b) A global, centralized corporation that acquires cost
advantage through centralized production when cheaper
resources are available.
(c) An international company that builds on the parent
corporations technology and R & D.
(d) A transnational enterprise that combines the (a), (b) and (c).
Codes :
(1) (a) and (b) (2) (b) and (c)
 (3) (a), (b) and (c) (4) (a), (b), (c) and (d)
Answer:(4)

63. Which among the following are full member
countries of ASEAN ?
 (a) Brunei Darussalam (b) Cambodia
 (c) Vietnam (d) Myanmar
 (e) Sri Lanka
 Codes :
(1) (a), (b) and (e) (2) (a), (b), (c) and (e)
 (3) (b), (c), (d) and (e) (4) (a), (b), (c) and (d)
Answer:(4)

64. Assertion (A) : Capital Account convertibility is
introduced only sometime after the
introduction of convertibility on current account when
exchange rate of currency of a country is relatively stable.
Reasoning (R) : Capital Account convertibility is necessary
for faster growth and development of economy and it makes
foreign exchange rate more stable.
 Codes :
(1) (A) is correct but (R) is not correct.
(2) (A) and (R) both are correct and (R) is the
right explanation of (A).
(3) (A) and (R) both are correct but (R) is not the
right explanation of (A).
(4) Both (A) and (R) are incorrect.
Answer:(1)

65. Statement (I) : WTO is only international organization
which deals with the rules of
trade between organizations.
Statement (II) : The limit of holding by individual foreign
institutional investors in a company has been raised from 5 to
10% of company’s share while the aggregate limit has been
increased from 24 to 34%.
 Codes :
(1) Statement (I) is correct but Statement (II) is false.
 (2) Statement (II) is correct but Statement (I) is false.
 (3) Statements (I) and (II) both are correct.
 (4) Statements (I) and (II) both are false.
Answer:(3)

66. In case a farmer in India buys a wheat option on future :
(a) The farmer must accept a wheat futures contract and not
take physical possession of wheat.
(b) The farmer must accept delivery of the wheat at a higher price.
(c) The farmer has the right to deliver the wheat and will do
so only if the price is favourable.
(d) The farmer must deliver the wheat at market price.
Codes :
(1) (a) and (d) (2) (d) only
 (3) (c) only (4) (b) and (c)
Answer:(3)

67. Sector specific policy of government of India in
case of B2B is when
(1) FDI is upto 100%
(2) FDI is upto 49%
(3) FDI is upto 100% subject to condition
that the investment in favour of Indian public
to the tune of 20% within 5 years to be done.
(4) FDI is upto 100% subject to condition that the
investment in favour of Indian public
to the tune of 26% within 10 years to be done.
Answer:(3)

68. Statement I : In India a “copyright” of an unpublished
book can be registered under copyright Act of India.
Statement II : Once granted by the European Patent Office,
the proprietor has a patent which is effective in all contracting
states of the patent cooperation treaty and the agreement on
the trade related aspects of IPR.
 Codes :
(1) Statement (I) is correct and (II) is false.
 (2) Statement (II) is correct and (I) is false.
 (3) Statements (I) and (II) both are correct.
 (4) Statements (I) and (II) both are false.
Answer:(3)

69. As per the Income Tax Act, 1961 for the assessment
year 2015-16, a deduction u/s 80 QQB for authors of books
of literacy, artistic or scientific nature is allowed upto
(1) INR 1,00,000 (2) INR 2,00,000
 (3) INR 2,40,000 (4) INR 3,00,000
Answer:(4)

70. Gratuity received by a government employee is
(1) exempted upto INR 3,50,000
(2) exempted upto INR 10,00,000
(3) fully exempted
(4) fully taxable
Answer:(3)

71. Match the items of the List – I with those of
the List – II and indicate the correct code :
List – I List – II
a. Residential status of i. Section 10 (13A)
an individual
b. Agricultural income ii. Section 10 (10)
c. House rent allowance iii. Section 6
d. Gratuity iv. Section 10 (1)
Codes :
 a b c d
(1) i iii ii iv
 (2) iii iv i ii
 (3) ii i iii iv
 (4) iv ii i iii
Answer:(2)

72. Match the items of the List – I with List – II
and indicate the correct code :
List – I List – II
a. House rent allowance i. A deduction from income
b. Casual income ii. A step taken by tax authorities
c. Collection charges of iii. Taxable income
interest on securities
d. Best judgement  iv. Partly taxable allowance
assessment
Codes :
 a b c d
(1) iv iii ii i
 (2) iv iii i ii
 (3) iii iv i ii
 (4) ii iv i iii
Answer:(2)

73. The statutory limit for deduction u/s 80 GG of
Income tax Act, 1961, for the assessment
year 2015-16 is
(1) INR 2,000 per month
(2) INR 3,000 per month
(3) INR 2,500 per month
(4) INR 5,000 per month
Answer:(1)

74. For the purpose of assessment under Income Tax
Act, 1961, which combination of the
following represent income ?
 (I) Tax-free salary from the private sector employer.
 (II) Pin money received by a family member.
 (III) Awards received by the sports persons.
 (IV) Loss incurred by the assessee.
 (V) Perquisites received by employees.
Codes :
(1) (I), (II), (III), (IV) (2) (II), (III), (IV), (V)
 (3) (I), (III), (IV), (V) (4) (I), (II), (IV), (V)
Answer:(3)

75. Indicate the correct code for forms for filing income
tax return from the following Income
Tax Return Forms :
 (a) ITR-4S
 (b) ITR-2
 (c) ITR-2B
 (d) ITR-3
Codes :
(1) (a), (b) and (c) (2) (b), (c) and (d)
 (3) (a), (b) and (d) (4) (a), (c) and (d)
Answer:(3)